Simsen International Corp Ltd reports 28.0% Net Income decline while 27.2% Revenue growth
30/07/2015 • About Simsen International Corp Ltd (
$993) • By InTwits
Simsen International Corp Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Simsen International Corp Ltd doesn't have a profitable business model yet: FY2015 ROIC is -2.0%
- The company operates at negative EBITDA Margin: -49.9%
- Simsen International Corp Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -25.1%0
- Simsen International Corp Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 5.0%. At the same time it's in pair with industry average of 25.6%.
- CAPEX is quite volatile: 0.53 in FY2015, 6.6 in FY2014, 59.5 in FY2013, 193 in FY2012, 286 in FY2011
- The company has unprofitable business model: ROIC is at -2.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Simsen International Corp Ltd ($993) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 164.3 | 124.7 | 92.5 | 40.5 | 51.5 | 27.2% |
| EBITDA | 24.7 | -41.1 | -47.4 | -29.2 | -25.7 | -12.0% |
| Net Income | 77.4 | -43.0 | -56.9 | 45.2 | 32.5 | -28.0% |
Balance Sheet
|
|---|
| Cash | 119.7 | 215.3 | 570.1 | 381.5 | 68.3 | -82.1% |
| Short Term Debt | 0.2 | 0.1 | 0.1 | 0.1 | 53.9 | 64,855.4% |
| Long Term Debt | 0.4 | 0.2 | 0.1 | 349.8 | 29.2 | -91.7% |
Cash flow
|
|---|
| Capex | 2.7 | 3.9 | 1.7 | 4.1 | 4.2 | 1.8% |
Ratios
|
|---|
| Revenue growth | -22.3% | -24.1% | -25.8% | -56.3% | 27.2% | |
| EBITDA growth | 61.4% | -266.2% | 15.4% | -38.5% | -12.0% | |
| EBITDA Margin | 15.1% | -33.0% | -51.3% | -72.1% | -49.9% | 22.2% |
| Net Income Margin | 47.1% | -34.5% | -61.5% | 111.5% | 63.1% | -48.5% |
| CAPEX, % of revenue | 1.7% | 3.1% | 1.9% | 10.1% | 8.1% | -2.0% |
| ROIC | 5.3% | -6.7% | -4.6% | -2.4% | -2.0% | 0.3% |
| ROE | 31.3% | -6.1% | -4.9% | 3.6% | 2.3% | -1.2% |
| Net Debt/EBITDA | -4.8x | | | | | 0.0x |
Revenue and profitability
Simsen International Corp Ltd's Revenue jumped on 27.2% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 1,866 pp from -33.9% to -1,900% in 2015.
Net Income marign dropped on 48.5 pp from 112% to 63.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 8.1% in FY2015. The company showed CAPEX/Revenue growth of 5.0 pp from 3.1% in FY2012 to 8.1% in FY2015. It's average CAPEX/Revenue for the last three years was 6.7%.
Return on investment
The company operates at negative ROIC (-2.04%) and low but positive ROE (2.34%). ROIC showed almost no change in FY2015. ROE decreased slightly on 1.2 pp from 3.6% to 2.3% in FY2015.
Leverage (Debt)
Debt level is -5.6x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt dropped on 76.2% in FY2015 while cash dropped on 82.1% in FY2015.
Appendix 1: Peers in Diversified Finan Serv
Below you can find Simsen International Corp Ltd benchmarking vs. other companies in Diversified Finan Serv industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China New Energy Power Group Ltd ($1041) | | 100.0% | 0.0% | 64,246.0% | |
| ReOrient Group Ltd ($376) | 63.3% | 112.8% | 75.1% | 1,106.9% | |
| Global Strategic Group Ltd ($8007) | 2.2% | -3.9% | 2.1% | 806.3% | |
| AID Partners Capital Holdings Ltd ($8088) | -38.7% | 0.9% | -79.5% | 655.2% | |
| Willie International Holdings Ltd ($273) | | | | 543.9% | |
| |
|---|
| Median (62 companies) | 6.9% | 1.2% | 14.7% | 26.5% | 21.4% |
|---|
| Simsen International Corp Ltd ($993) | | -24.1% | -25.8% | -56.3% | 27.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Roma Group Ltd ($8072) | | | | 99.4% | 98.7% |
| Freeman Financial Corp Ltd ($279) | 97.1% | 52.3% | 99.3% | 98.5% | |
| Chinese Strategic Holdings Ltd ($8089) | 97.9% | 99.1% | 97.9% | 97.0% | |
| First China Financial Network Holdings Ltd ($8123) | 98.6% | 93.4% | | 94.5% | |
| Allied Group Ltd ($373) | 94.5% | 95.1% | 94.4% | 93.6% | |
| |
|---|
| Median (13 companies) | 80.8% | 64.2% | 75.1% | 88.2% | 90.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Styland Holdings Ltd ($211) | 68.6% | 198.6% | 91.5% | 161.0% | 17.9% |
| Roma Group Ltd ($8072) | 81.4% | 18.1% | 36.8% | 143.0% | 44.7% |
| First China Financial Network Holdings Ltd ($8123) | -231.6% | -329.2% | -211.2% | 124.3% | |
| Willie International Holdings Ltd ($273) | | | 75.3% | 95.2% | |
| Get Nice Holdings Ltd ($64) | 28.4% | 2.6% | 153.4% | 92.7% | 83.9% |
| |
|---|
| Median (63 companies) | 30.3% | 16.4% | 36.2% | 47.2% | 38.0% |
|---|
| Simsen International Corp Ltd ($993) | 15.1% | -33.0% | -51.3% | -72.1% | -49.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gemini Investments Holdings Ltd ($174) | 14.9% | 479.1% | 37.3% | 216.0% | |
| China Assurance Finance Group Ltd ($8090) | | 94.7% | 68.9% | 53.3% | |
| Chinese Strategic Holdings Ltd ($8089) | 93.2% | 376.0% | 5.7% | 32.6% | |
| AID Partners Capital Holdings Ltd ($8088) | 196.3% | 4.1% | 2.9% | 28.4% | |
| Asian Capital Holdings Ltd ($8295) | 2.3% | 0.1% | 0.2% | 15.6% | |
| |
|---|
| Median (63 companies) | 2.3% | 1.8% | 1.7% | 1.1% | 1.7% |
|---|
| Simsen International Corp Ltd ($993) | 1.7% | 3.1% | 1.9% | 10.1% | 8.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ReOrient Group Ltd ($376) | -24.9% | -45.6% | -53.5% | 128.6% | |
| Roma Group Ltd ($8072) | | 19.6% | 43.7% | 107.8% | 13.3% |
| Convoy Financial Holdings Ltd ($1019) | 31.1% | 3.4% | 39.3% | 47.3% | |
| Willie International Holdings Ltd ($273) | -28.1% | -9.5% | 4.7% | 30.9% | |
| Value Partners Group Ltd ($806) | 8.7% | 16.8% | 16.5% | 26.8% | |
| |
|---|
| Median (65 companies) | 4.6% | 3.9% | 4.0% | 4.8% | 3.1% |
|---|
| Simsen International Corp Ltd ($993) | 5.3% | -6.7% | -4.6% | -2.4% | -2.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cash Financial Services Group Ltd ($510) | -1.1x | 7.8x | | 67.5x | |
| Far East Horizon Ltd ($3360) | 17.8x | 16.9x | 21.7x | 20.0x | |
| Bright Smart Securities & Commodities Group Ltd ($1428) | 7.3x | 2.1x | 10.3x | 9.3x | 39.3x |
| China Cinda Asset Management Co Ltd ($1359) | 2.1x | 5.0x | 7.7x | 8.4x | |
| Aeon Credit Service Asia Co Ltd ($900) | 6.3x | 5.2x | 6.0x | 6.9x | 5.5x |
| |
|---|
| Median (46 companies) | -1.0x | -1.0x | 0.1x | -0.0x | 0.6x |
|---|
