CIL Holdings Ltd reports 33.1% revenue growth in FY2015 and 7.9 pp EBITDA Margin growth from -9.8% to -1.9%
30/09/2015 • About CIL Holdings Ltd (
$479) • By InTwits
CIL Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CIL Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is -10.3%
- The company operates at negative EBITDA Margin: -1.9%
- CIL Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -4.8% for the sames years0
- CIL Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has unprofitable business model: ROIC is at -10.3%
- It operates with high leverage: Net Debt/EBITDA is 2.2x while industry average is 1.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CIL Holdings Ltd ($479) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 270.8 | 284.6 | 382.8 | 464.1 | 617.7 | 33.1% |
| Gross Profit | 14.4 | 11.6 | 17.7 | 16.4 | 20.5 | 24.8% |
| SG&A | | | | | 62.6 | |
| EBITDA | -4.9 | -14.3 | -20.3 | -45.5 | -12.0 | -73.7% |
| Net Income | -1.6 | -12.7 | -23.2 | -57.1 | -61.5 | 7.7% |
Balance Sheet
|
|---|
| Cash | 73.4 | 55.3 | 49.3 | 42.0 | 11.9 | -71.8% |
| Short Term Debt | 38.9 | 40.8 | 45.0 | 65.2 | 38.1 | -41.5% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 42.0 | |
Cash flow
|
|---|
| Capex | 1.3 | 0.1 | 3.9 | 6.4 | 5.2 | -19.4% |
Ratios
|
|---|
| Revenue growth | 23.2% | 5.1% | 34.5% | 21.2% | 33.1% | |
| EBITDA growth | -383.3% | 188.9% | 41.8% | 124.4% | -73.7% | |
| Gross Margin | 5.3% | 4.1% | 4.6% | 3.5% | 3.3% | -0.2% |
| EBITDA Margin | -1.8% | -5.0% | -5.3% | -9.8% | -1.9% | 7.9% |
| Net Income Margin | -0.6% | -4.5% | -6.1% | -12.3% | -10.0% | 2.3% |
| SG&A, % of revenue | | | | | 10.1% | 10.1% |
| CAPEX, % of revenue | 0.5% | 0.0% | 1.0% | 1.4% | 0.8% | -0.5% |
| ROIC | -47.1% | -27.6% | -37.3% | -38.7% | -10.3% | 28.4% |
| ROE | | -111.4% | -222.3% | -92.5% | -76.8% | 15.7% |
Revenue and profitability
CIL Holdings Ltd's Revenue jumped on 33.1% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 7.9 pp from -9.8% to -1.9% in FY2015.
Gross Margin showed almost no change in FY2015.
Net Income marign increased on 2.3 pp from -12.3% to -10.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.84%. The company showed small growth in CAPEX/Revenue of 0.82 pp from 0.021% in FY2012 to 0.84% in FY2015. It's average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at negative ROIC (-10.33%) and ROE (-76.77%). ROIC jumped on 28.4 pp from -38.7% to -10.3% in FY2015. ROE jumped on 15.7 pp from -92.5% to -76.8% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.2x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt jumped on 23.0% in FY2015 while cash dropped on 71.8% in FY2015.
Appendix 1: Peers in Distribution/Wholesale
Below you can find CIL Holdings Ltd benchmarking vs. other companies in Distribution/Wholesale 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 |
|---|
| Forefront Group Ltd ($885) | | | 504.6% | 3,871.0% | |
| China LNG Group Ltd ($931) | -84.5% | 694.8% | 13.6% | 1,341.3% | |
| Sheng Yuan Holdings Ltd ($851) | 571.1% | -86.1% | 756.9% | 567.2% | |
| China Infrastructure Investment Ltd ($600) | 346.9% | 412.1% | -50.9% | 557.9% | |
| China-Hongkong Photo Products Holdings Ltd ($1123) | | 24.9% | 9.0% | 81.2% | 12.2% |
| |
|---|
| Median (37 companies) | 18.6% | 2.6% | 0.0% | 0.8% | 6.1% |
|---|
| CIL Holdings Ltd ($479) | | 5.1% | 34.5% | 21.2% | 33.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goldin Financial Holdings Ltd ($530) | 67.0% | 75.3% | 71.7% | 74.8% | 73.8% |
| Forefront Group Ltd ($885) | | | | 69.8% | |
| YGM Trading Ltd ($375) | 67.1% | 66.5% | 67.4% | 64.0% | 62.5% |
| Goldlion Holdings Ltd ($533) | 57.3% | 56.4% | 54.1% | 55.7% | |
| Sincere Watch Hong Kong Ltd ($444) | 34.2% | 35.6% | 39.7% | 38.8% | 38.3% |
| |
|---|
| Median (33 companies) | 16.4% | 17.5% | 18.2% | 19.3% | 24.8% |
|---|
| CIL Holdings Ltd ($479) | 5.3% | 4.1% | 4.6% | 3.5% | 3.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goldin Financial Holdings Ltd ($530) | -134.6% | 163.7% | 613.4% | 285.7% | 364.1% |
| China LNG Group Ltd ($931) | 195.2% | 95.1% | 76.4% | 97.9% | |
| Forefront Group Ltd ($885) | | -2,113.8% | -803.1% | 57.7% | |
| China Infrastructure Investment Ltd ($600) | -1,171.2% | -274.9% | 120.0% | 52.0% | |
| GA Holdings Ltd ($8126) | -4.5% | 8.0% | 19.7% | 22.9% | |
| |
|---|
| Median (37 companies) | 2.9% | 2.6% | 2.5% | 4.6% | 2.0% |
|---|
| CIL Holdings Ltd ($479) | -1.8% | -5.0% | -5.3% | -9.8% | -1.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| C Y Foundation Group Ltd ($1182) | 9.8% | 2.5% | 5.2% | 82.2% | 9.3% |
| Inspur International Ltd ($596) | 0.9% | 8.4% | 12.2% | 33.6% | |
| SIS International Holdings ($529) | 0.2% | 13.4% | 31.8% | 14.8% | |
| HKC International Holdings Ltd ($248) | 0.9% | 5.5% | 0.8% | 11.4% | 0.5% |
| Tan Chong International Ltd ($693) | 7.6% | 6.0% | 7.6% | 7.0% | |
| |
|---|
| Median (36 companies) | 1.5% | 1.4% | 1.8% | 1.7% | 1.8% |
|---|
| CIL Holdings Ltd ($479) | 0.5% | 0.0% | 1.0% | 1.4% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China LNG Group Ltd ($931) | 2.2% | 8.4% | 7.4% | 87.0% | |
| Yestar International Holdings Co Ltd ($2393) | 29.4% | 28.8% | 24.1% | 26.2% | |
| Powerwell Pacific Holdings Ltd ($8265) | 27.8% | 6.4% | 6.4% | 23.6% | |
| Forefront Group Ltd ($885) | -37.7% | -4.9% | -11.0% | 19.5% | |
| Sincere Watch Hong Kong Ltd ($444) | 46.4% | 51.7% | 27.7% | 14.6% | 5.5% |
| |
|---|
| Median (38 companies) | 2.9% | 2.7% | 1.7% | 3.2% | 2.4% |
|---|
| CIL Holdings Ltd ($479) | -47.1% | -27.6% | -37.3% | -38.7% | -10.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sheng Yuan Holdings Ltd ($851) | | | | 19.3x | |
| Takson Holdings Ltd ($918) | | | 11.5x | 11.7x | 15.7x |
| Huiyin Household Appliances Holdings Co Ltd ($1280) | 10.1x | | | 10.9x | |
| Pacific Andes International Holdings Ltd ($1174) | 4.9x | 5.1x | 9.1x | 7.8x | |
| SIS International Holdings ($529) | -62.1x | -1.8x | 7.0x | 7.2x | |
| |
|---|
| Median (27 companies) | -0.2x | -0.2x | -0.6x | -0.0x | -0.7x |
|---|
