Vision Values Holdings Ltd revenue decline decelerated to 1.2% in FY2015 vs. 40.2% a year earliner
16/09/2015 • About Vision Values Holdings Ltd (
$862) • By InTwits
Vision Values Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vision Values Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is -12.7%
- The company operates at negative EBITDA Margin: -191.5%
- Vision Values Holdings 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 -32.2%0
- Vision Values Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's a lot of higher than industry average of 35.1%.
- CAPEX is quite volatile: 0.66 in FY2015, 1.9 in FY2014, 0.44 in FY2013, 0.52 in FY2012, 0.14 in FY2011
- The company has unprofitable business model: ROIC is at -12.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Vision Values Holdings Ltd ($862) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 26.726 | 35.557 | 37.284 | 22.289 | 22.032 | -1.2% |
| EBITDA | 5.155 | 0.355 | 5.326 | -15.043 | -42.189 | 180.5% |
| Net Income | -19.485 | -2.044 | 7.557 | -14.080 | -45.189 | 220.9% |
Balance Sheet
|
|---|
| Cash | 64.922 | 133.090 | 128.982 | 277.481 | 260.293 | -6.2% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.140 | 0.524 | 0.435 | 1.883 | 0.664 | -64.7% |
Ratios
|
|---|
| Revenue growth | -12.5% | 33.0% | 4.9% | -40.2% | -1.2% | |
| EBITDA growth | -140.6% | -93.1% | 1,400.3% | -382.4% | 180.5% | |
| EBITDA Margin | 19.3% | 1.0% | 14.3% | -67.5% | -191.5% | -124.0% |
| Net Income Margin | -72.9% | -5.7% | 20.3% | -63.2% | -205.1% | -141.9% |
| CAPEX, % of revenue | 0.5% | 1.5% | 1.2% | 8.4% | 3.0% | -5.4% |
| ROIC | -1.8% | -0.9% | 3.1% | -6.2% | -12.7% | -6.5% |
| ROE | -12.0% | -1.3% | 4.8% | -5.7% | -13.8% | -8.1% |
| Net Debt/EBITDA | -12.6x | -374.9x | -24.2x | | | 0.0x |
Revenue and profitability
Vision Values Holdings Ltd's Revenue decreased slightly on 1.2% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 124 pp from -67.5% to -191% in FY2015.
Net Income marign dropped on 142 pp from -63.2% to -205% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Vision Values Holdings Ltd's CAPEX/Revenue was 3.0% in FY2015. CAPEX/Revenue increased slightly on 1.5 pp from 1.5% in FY2012 to 3.0% in FY2015. It's average CAPEX/Revenue for the last three years was 4.2%.
Return on investment
The company operates at negative ROIC (-12.70%) and ROE (-13.80%). ROIC decreased on 6.5 pp from -6.2% to -12.7% in FY2015. ROE decreased on 8.1 pp from -5.7% to -13.8% in FY2015.
Leverage (Debt)
The company has no debt. Cash decreased on 6.2% in FY2015.
Appendix 1: Peers in Telecommunications
Below we provide Vision Values Holdings Ltd benchmarking against other companies in Telecommunications industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Energine International Holdings Ltd ($1185) | -41.8% | 143.6% | 34.3% | 103.1% | |
| MOBI Development Co Ltd ($947) | -23.4% | -13.8% | 29.1% | 85.6% | |
| Vodatel Networks Holdings Ltd ($8033) | 34.4% | -5.9% | -4.6% | 81.7% | |
| Gold Tat Group International Ltd ($8266) | | 29.4% | 1,582.2% | 77.0% | 26.5% |
| Great World Co Holdings Ltd ($8003) | | 1,651.8% | -81.7% | 61.9% | -3.7% |
| |
|---|
| Median (49 companies) | 8.6% | 8.9% | 8.3% | 7.5% | 23.5% |
|---|
| Vision Values Holdings Ltd ($862) | | 33.0% | 4.9% | -40.2% | -1.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Synertone Communication Corp ($1613) | 65.4% | 68.1% | 64.1% | 70.5% | 50.3% |
| Zhi Cheng Holdings Ltd ($8130) | 61.6% | 45.9% | 41.0% | 64.0% | 19.6% |
| APT Satellite Holdings Ltd ($1045) | 52.3% | 58.7% | 64.1% | 62.5% | |
| Hong Kong Television Network Ltd ($1137) | | -59.6% | -101.3% | 59.7% | |
| Cisco Systems Inc ($4333) | 61.4% | 61.2% | 60.6% | 58.9% | 60.4% |
| |
|---|
| Median (44 companies) | 31.8% | 26.8% | 29.0% | 28.1% | 46.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 83.5% | 86.5% | 85.8% | 81.6% | |
| APT Satellite Holdings Ltd ($1045) | 76.7% | 81.0% | 78.9% | 77.5% | |
| Synertone Communication Corp ($1613) | 49.5% | 44.9% | 48.5% | 49.4% | 51.5% |
| PCCW Ltd ($8) | 31.4% | 32.0% | 31.9% | 39.2% | |
| China Mobile Ltd ($941) | 47.1% | 43.7% | 38.2% | 36.9% | |
| |
|---|
| Median (49 companies) | 14.2% | 13.2% | 6.7% | 8.9% | 6.5% |
|---|
| Vision Values Holdings Ltd ($862) | 19.3% | 1.0% | 14.3% | -67.5% | -191.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hong Kong Television Network Ltd ($1137) | | 12,435.9% | 504.9% | 1,283.5% | |
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 61.8% | 93.8% | 71.7% | 75.0% | |
| Hanny Holdings Ltd ($275) | 80.8% | 19.8% | 11.6% | 28.3% | 0.2% |
| APT Satellite Holdings Ltd ($1045) | 155.2% | 74.3% | 2.5% | 27.2% | |
| China Electronics Corp Holdings Co Ltd ($85) | 1.5% | 1.8% | 8.3% | 27.1% | |
| |
|---|
| Median (49 companies) | 3.4% | 2.9% | 3.9% | 3.6% | 1.9% |
|---|
| Vision Values Holdings Ltd ($862) | 0.5% | 1.5% | 1.2% | 8.4% | 3.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| VTech Holdings Ltd ($303) | 40.5% | 37.6% | 39.5% | 40.0% | 39.8% |
| Telecom Service One Holdings Ltd ($8145) | | 95.0% | 5.4% | 26.7% | 39.8% |
| TCL Communication Technology Holdings Ltd ($2618) | 6.4% | -1.6% | 6.0% | 17.2% | |
| China Fiber Optic Network System Group Ltd ($3777) | 23.1% | 18.8% | 17.6% | 16.6% | |
| China U-Ton Holdings Ltd ($6168) | 69.5% | 35.7% | 25.0% | 16.2% | |
| |
|---|
| Median (49 companies) | 7.2% | 6.1% | 5.8% | 6.6% | 3.6% |
|---|
| Vision Values Holdings Ltd ($862) | -1.8% | -0.9% | 3.1% | -6.2% | -12.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CCT Land Holdings Ltd ($261) | | 10.1x | 23.8x | 48.4x | |
| China Energine International Holdings Ltd ($1185) | | | | 13.3x | |
| China Electronics Corp Holdings Co Ltd ($85) | -2.1x | -2.0x | -1.3x | 12.5x | |
| China All Access Holdings Ltd ($633) | -1.0x | 0.9x | 1.8x | 5.2x | |
| Synertone Communication Corp ($1613) | -0.3x | -0.4x | -2.2x | 4.8x | 2.5x |
| |
|---|
| Median (36 companies) | -0.1x | -0.1x | 0.6x | 0.7x | 0.2x |
|---|
