UDL Holdings Ltd revenue started to decline in FY2015: dropped 25.6% vs. 75.6% growth a year earliner
22/10/2015 • About UDL Holdings Ltd (
$620) • By InTwits
UDL Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- UDL Holdings Ltd is a company in decline: FY2015 revenue growth was -25.6%, 5 years revenue CAGR was -4.9%
- The company operates at negative EBITDA Margin: -17.5%
- UDL 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 -31.1%0
- UDL Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.8%. At the same time it's a lot of higher than industry average of 6.5%.
- CAPEX is quite volatile: 0.16 in FY2015, 0.11 in FY2014, 2.8 in FY2013, 3.8 in FY2012, 14.6 in FY2011
- The company has unprofitable business model: ROIC is at -13.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
UDL Holdings Ltd ($620) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 60.3 | 24.4 | 68.2 | 119.7 | 89.0 | -25.6% |
| Gross Profit | | | | | 11.5 | |
| EBITDA | -38.4 | -21.2 | -12.3 | -24.8 | -15.6 | -37.1% |
| Net Income | -72.1 | -40.5 | -76.1 | -11.7 | -38.1 | 225.6% |
Balance Sheet
|
|---|
| Cash | 20.1 | 5.8 | 3.8 | 4.0 | 82.0 | 1,929.6% |
| Short Term Debt | 16.3 | 11.1 | 0.1 | 0.4 | 0.7 | 77.7% |
| Long Term Debt | 250.4 | 237.6 | 13.9 | 15.0 | 103.9 | 593.1% |
Cash flow
|
|---|
| Capex | 14.6 | 3.8 | 2.8 | 0.1 | 0.2 | 50.5% |
Ratios
|
|---|
| Revenue growth | -47.3% | -59.6% | 180.0% | 75.6% | -25.6% | |
| EBITDA growth | 1,432.9% | -44.8% | -42.1% | 102.2% | -37.1% | |
| Gross Margin | | | | | 12.9% | 12.9% |
| EBITDA Margin | -63.8% | -87.1% | -18.0% | -20.7% | -17.5% | 3.2% |
| Net Income Margin | -119.6% | -166.4% | -111.5% | -9.8% | -42.8% | -33.1% |
| CAPEX, % of revenue | 24.3% | 15.5% | 4.1% | 0.1% | 0.2% | 0.1% |
| ROIC | -12.5% | -7.6% | -9.3% | -20.2% | -13.7% | 6.5% |
| ROE | -32.1% | -22.7% | -49.0% | -8.5% | -34.5% | -26.1% |
Revenue and profitability
The company's Revenue dropped on 25.6% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.2 pp from -20.7% to -17.5% in FY2015.
Net Income marign dropped on 33.1 pp from -9.8% to -42.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.18% in FY2015. The company showed big decline in CAPEX/Revenue of 15.3 pp from 15.5% in FY2012 to 0.18% in FY2015. It's average CAPEX/Revenue for the last three years was 1.5%.
Return on investment
The company operates at negative ROIC (-13.66%) and ROE (-34.54%). ROIC increased on 6.5 pp from -20.2% to -13.7% in FY2015. ROE dropped on 26.1 pp from -8.5% to -34.5% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -12.7x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt surged on 580% in FY2015 while cash surged on 1,930% in FY2015.
Appendix 1: Peers in Engineering&Construction
Below you can find UDL Holdings Ltd benchmarking vs. other companies in Engineering&Construction 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 |
|---|
| Richly Field China Development Ltd ($313) | | | -45.0% | 464.2% | -65.7% |
| Junefield Department Store Group Ltd ($758) | 22.9% | -20.3% | -24.9% | 126.6% | |
| CNQC International Holdings Ltd ($1240) | 401.9% | 21.6% | 91.0% | 103.7% | |
| Wison Engineering Services Co Ltd ($2236) | 1.2% | -2.9% | -24.9% | 90.3% | |
| China Resources and Transportation Group Ltd ($269) | | 939.8% | 3,196.3% | 87.9% | -41.6% |
| |
|---|
| Median (41 companies) | 18.1% | 10.3% | 20.8% | 11.7% | 14.6% |
|---|
| UDL Holdings Ltd ($620) | | -59.6% | 180.0% | 75.6% | -25.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huayu Expressway Group Ltd ($1823) | 2.2% | 43.6% | 65.6% | 64.0% | |
| HNA Infrastructure Company Ltd ($357) | 61.6% | 66.4% | 62.1% | 62.4% | |
| Freetech Road Recycling Technology Holdings Ltd ($6888) | 50.1% | 54.1% | 54.3% | 41.5% | |
| Kingbo Strike Ltd ($1421) | 22.9% | 32.4% | 44.4% | 40.3% | 30.7% |
| Grand Ming Group Holdings Ltd ($1271) | 20.4% | 11.0% | 18.1% | 35.7% | 19.7% |
| |
|---|
| Median (37 companies) | 11.0% | 12.4% | 12.1% | 12.9% | 12.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huayu Expressway Group Ltd ($1823) | -0.5% | 46.2% | 73.8% | 77.1% | |
| HNA Infrastructure Company Ltd ($357) | 60.0% | 62.8% | 63.7% | 62.8% | |
| Beijing Capital International Airport Co Ltd ($694) | 55.1% | 53.4% | 52.9% | 50.3% | |
| Cheung Kong Infrastructure Holdings Ltd ($1038) | 39.8% | 31.2% | 20.6% | 36.2% | |
| Grand Ming Group Holdings Ltd ($1271) | 17.5% | 10.0% | 15.8% | 31.0% | 19.0% |
| |
|---|
| Median (42 companies) | 9.2% | 9.8% | 8.2% | 7.1% | 4.7% |
|---|
| UDL Holdings Ltd ($620) | -63.8% | -87.1% | -18.0% | -20.7% | -17.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HNA Infrastructure Company Ltd ($357) | 43.3% | 36.8% | 5.7% | 85.4% | |
| PYI Corp Ltd ($498) | 6.6% | 3.7% | 4.2% | 24.5% | 13.1% |
| Shun Cheong Holdings ($650) | 7.2% | 16.4% | 8.0% | 23.9% | |
| Freetech Road Recycling Technology Holdings Ltd ($6888) | 6.1% | 4.2% | 7.7% | 20.2% | |
| KFM Kingdom Holdings Ltd ($3816) | 6.5% | 4.6% | 11.5% | 14.9% | 9.6% |
| |
|---|
| Median (42 companies) | 4.4% | 2.4% | 2.6% | 2.2% | 2.0% |
|---|
| UDL Holdings Ltd ($620) | 24.3% | 15.5% | 4.1% | 0.1% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chun Sing Engineering Holdings Ltd ($2277) | | | 98.3% | 54.9% | 43.7% |
| Kingbo Strike Ltd ($1421) | | 56.9% | 125.4% | 48.9% | 11.4% |
| Ngai Shun Holdings Ltd ($1246) | | 68.8% | 77.2% | 45.2% | 31.0% |
| CNQC International Holdings Ltd ($1240) | 23.1% | 12.2% | 22.3% | 40.4% | |
| China Saite Group Co Ltd ($153) | 46.3% | 64.0% | 53.2% | 35.3% | |
| |
|---|
| Median (43 companies) | 7.0% | 6.1% | 5.5% | 4.3% | 2.4% |
|---|
| UDL Holdings Ltd ($620) | -12.5% | -7.6% | -9.3% | -20.2% | -13.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Resources and Transportation Group Ltd ($269) | | | | 66.7x | 29.7x |
| CNC Holdings Ltd ($8356) | -0.7x | | 22.0x | 21.9x | 24.3x |
| Deson Development International Holdings ($262) | 3.1x | 3.8x | 4.9x | 13.7x | 47.0x |
| Chun Wo Development Holdings Ltd ($711) | | 14.3x | 8.1x | 12.6x | 15.9x |
| Hsin Chong Construction Group Ltd ($404) | 4.3x | 1.8x | 8.0x | 10.2x | |
| |
|---|
| Median (36 companies) | 0.5x | 1.5x | 1.7x | 2.4x | 2.9x |
|---|
