DX.com Holdings Ltd revenue dropped on 43.4% in 2015 while EBITDA Margin increased slightly on 1.6 pp from -2.5% to -0.90%
24/09/2015 • About DX.com Holdings Ltd (
$8086) • By InTwits
DX.com Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- DX.com Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is -5.1%
- The company operates at negative EBITDA Margin: -0.9%
- EBITDA Margin is quite volatile: -0.9% in FY2015, -2.5% in FY2014, 6.1% in FY2013, 11.8% in FY2012, 41.8% in FY2011
- DX.com Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.8%. At the same time it's a lot of higher than industry average of 4.8%.
- CAPEX is quite volatile: 1.6 in FY2015, 4.0 in FY2014, 4.9 in FY2013, 2.4 in FY2012, 54.4 in FY2011
- The company has unprofitable business model: ROIC is at -5.1%
- It operates with high leverage: Net Debt/EBITDA is 1.4x while industry average is -7.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
DX.com Holdings Ltd ($8086) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 193 | 1,416 | 1,404 | 1,324 | 750 | -43.4% |
| Gross Profit | 108 | 606 | 558 | 526 | 314 | -40.3% |
| SG&A | | 447 | 476 | 563 | 374 | -33.6% |
| EBITDA | 81 | 167 | 86 | -34 | -7 | -80.0% |
| Net Income | 71 | 131 | 37 | -71 | -87 | 22.7% |
Balance Sheet
|
|---|
| Cash | 200 | 123 | 80 | 88 | 64 | -27.8% |
| Short Term Debt | 0 | 0 | 0 | 10 | 92 | 817.0% |
| Long Term Debt | 11 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 54 | 2 | 5 | 4 | 2 | -60.3% |
Ratios
|
|---|
| Revenue growth | 80.5% | 634.3% | -0.8% | -5.7% | -43.4% | |
| EBITDA growth | 821.4% | 106.7% | -48.4% | -139.0% | -80.0% | |
| Gross Margin | 55.9% | 42.8% | 39.7% | 39.7% | 41.9% | 2.2% |
| EBITDA Margin | 41.8% | 11.8% | 6.1% | -2.5% | -0.9% | 1.6% |
| Net Income Margin | 37.0% | 9.3% | 2.6% | -5.4% | -11.6% | -6.3% |
| SG&A, % of revenue | | 31.5% | 33.9% | 42.5% | 49.9% | 7.4% |
| CAPEX, % of revenue | 28.2% | 0.2% | 0.3% | 0.3% | 0.2% | -0.1% |
| ROIC | 35.8% | 45.5% | 27.1% | -16.2% | -5.1% | 11.0% |
| ROE | 36.3% | 40.1% | 14.4% | -38.3% | -65.1% | -26.8% |
| Net Debt/EBITDA | -2.4x | -0.7x | -0.9x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 43.4% in FY2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.6 pp from -2.5% to -0.90% in FY2015.
Gross Margin increased on 2.2 pp from 39.7% to 41.9% in FY2015. SG&A as a % of Revenue increased on 7.4 pp from 42.5% to 49.9% in FY2015.
Net Income marign decreased on 6.3 pp from -5.4% to -11.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 DX.com Holdings Ltd had CAPEX/Revenue of 0.21%. CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 0.29%.
Return on investment
The company operates at negative ROIC (-5.15%) and ROE (-65.08%). ROIC surged on 11.0 pp from -16.2% to -5.1% in FY2015. ROE dropped on 26.8 pp from -38.3% to -65.1% in FY2015.
Leverage (Debt)
Debt level is 1.4x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt jumped on 817% in FY2015 while cash dropped on 27.8% in FY2015.
Appendix 1: Peers in Internet
Below you can find DX.com Holdings Ltd benchmarking vs. other companies in Internet 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 Public Procurement Ltd ($1094) | -78.5% | 5,077.0% | -67.5% | 1,258.9% | |
| China Digital Culture Group Ltd ($8175) | 320.4% | -47.9% | 180.8% | 168.8% | |
| GET Holdings Ltd ($8380) | -4.3% | 13.8% | 2,126.4% | 154.4% | |
| China Healthcare Holdings Ltd ($673) | | -14.8% | -52.9% | 63.1% | 0.3% |
| ABC Multiactive Ltd ($8131) | -1.9% | -15.2% | -13.2% | 59.4% | |
| |
|---|
| Median (19 companies) | 18.5% | 11.9% | 8.3% | 14.8% | 4.4% |
|---|
| DX.com Holdings Ltd ($8086) | | 634.3% | -0.8% | -5.7% | -43.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ABC Multiactive Ltd ($8131) | 73.0% | 86.7% | 83.5% | 86.2% | |
| Sino-I Technology Ltd ($250) | 74.2% | 75.3% | 82.7% | 78.8% | |
| AcrossAsia Ltd ($8061) | 78.7% | 70.9% | 73.0% | 72.5% | |
| Pacific Online Ltd ($543) | 69.1% | 71.0% | 70.5% | 67.3% | |
| Forgame Holdings Ltd ($484) | 82.1% | 89.8% | 84.7% | 66.1% | |
| |
|---|
| Median (16 companies) | 65.2% | 65.0% | 65.5% | 61.3% | 42.7% |
|---|
| DX.com Holdings Ltd ($8086) | 55.9% | 42.8% | 39.7% | 39.7% | 41.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SUNeVision Holdings Ltd ($8008) | 61.1% | 64.2% | 71.6% | 71.6% | 72.4% |
| GET Holdings Ltd ($8380) | -182.0% | -237.7% | 56.8% | 66.4% | |
| AcrossAsia Ltd ($8061) | 15.4% | 20.8% | 24.2% | 44.7% | |
| Tencent Holdings Ltd ($700) | 48.2% | 38.4% | 34.7% | 42.5% | |
| China Digital Culture Group Ltd ($8175) | -12.1% | -66.7% | 22.5% | 40.8% | |
| |
|---|
| Median (20 companies) | 3.0% | 1.4% | 18.6% | 13.8% | -28.6% |
|---|
| DX.com Holdings Ltd ($8086) | 41.8% | 11.8% | 6.1% | -2.5% | -0.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SUNeVision Holdings Ltd ($8008) | 14.2% | 7.6% | 10.2% | 62.8% | 12.4% |
| AcrossAsia Ltd ($8061) | 61.2% | 56.6% | 65.9% | 36.3% | |
| China E-Learning Group Ltd ($8055) | 1.3% | 0.0% | 2.7% | 15.3% | |
| Asian Capital Resources Holdings Ltd ($8025) | 0.0% | 0.0% | | 12.2% | |
| Capinfo Co Ltd ($1075) | 1.6% | 17.3% | 13.1% | 9.7% | |
| |
|---|
| Median (20 companies) | 10.8% | 4.5% | 2.9% | 3.4% | 0.3% |
|---|
| DX.com Holdings Ltd ($8086) | 28.2% | 0.2% | 0.3% | 0.3% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tencent Holdings Ltd ($700) | 33.4% | 29.5% | 26.7% | 29.1% | |
| Pacific Online Ltd ($543) | 41.7% | 37.9% | 36.4% | 28.6% | |
| GET Holdings Ltd ($8380) | -6.8% | -6.5% | 10.8% | 19.3% | |
| Tradelink Electronic Commerce Ltd ($536) | 19.5% | 22.4% | 18.2% | 17.4% | |
| SUNeVision Holdings Ltd ($8008) | 9.9% | 10.8% | 13.3% | 14.4% | 15.3% |
| |
|---|
| Median (20 companies) | -2.4% | -6.3% | 3.0% | -2.6% | -9.5% |
|---|
| DX.com Holdings Ltd ($8086) | 35.8% | 45.5% | 27.1% | -16.2% | -5.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ABC Multiactive Ltd ($8131) | | | | 9.5x | |
| AcrossAsia Ltd ($8061) | 1.7x | 2.3x | 2.9x | 1.5x | |
| Tencent Holdings Ltd ($700) | -0.1x | -0.2x | -0.2x | -0.2x | |
| China Digital Culture Group Ltd ($8175) | | | -2.2x | -0.4x | |
| GET Holdings Ltd ($8380) | | | -1.1x | -1.0x | |
| |
|---|
| Median (13 companies) | -1.8x | -1.4x | -1.4x | -1.5x | 40.8x |
|---|
