Global Tech Holdings Ltd revenue decreased on 3.4% in 2015 and EBITDA Margin decreased on 4.5 pp from -14.2% to -18.6%
25/11/2015 • About Global Tech Holdings Ltd (
$143) • By InTwits
Global Tech Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Global Tech Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is -10.0%
- The company operates at negative EBITDA Margin: -18.6%
- Global Tech 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 -32.8% for the sames years0
- Global Tech Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.4%. At the same time it's in pair with industry average of 3.6%.
- CAPEX is quite volatile: 1.4 in FY2015, 0.18 in FY2014, 2.8 in FY2013, 1.3 in FY2012, 4.4 in FY2011
- The company has unprofitable business model: ROIC is at -10.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Global Tech Holdings Ltd ($143) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 38.9 | 100.6 | 110.5 | 89.8 | 86.7 | -3.4% |
| Gross Profit | 11.5 | 25.6 | 33.0 | 24.7 | 26.0 | 5.4% |
| SG&A | | | 51.4 | 39.5 | 43.4 | 9.7% |
| EBITDA | -53.4 | -21.3 | -36.5 | -12.7 | -16.2 | 27.0% |
| Net Income | -15.3 | -20.6 | 12.9 | -16.0 | -23.3 | 46.0% |
Balance Sheet
|
|---|
| Cash | 53.9 | 48.4 | 37.9 | 24.6 | 14.3 | -42.0% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 4.5 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 4.4 | 1.3 | 2.8 | 0.2 | 1.4 | 682.3% |
Ratios
|
|---|
| Revenue growth | 20.0% | 158.6% | 9.9% | -18.8% | -3.4% | |
| EBITDA growth | 124.1% | -60.0% | 71.1% | -65.1% | 27.0% | |
| Gross Margin | 29.5% | 25.4% | 29.9% | 27.5% | 30.0% | 2.5% |
| EBITDA Margin | -137.2% | -21.2% | -33.0% | -14.2% | -18.6% | -4.5% |
| Net Income Margin | -39.2% | -20.5% | 11.7% | -17.8% | -26.9% | -9.1% |
| SG&A, % of revenue | | | 46.5% | 44.0% | 50.0% | 6.0% |
| CAPEX, % of revenue | 11.3% | 1.3% | 2.5% | 0.2% | 1.6% | 1.4% |
| ROIC | -22.3% | -10.3% | -18.7% | -7.4% | -10.0% | -2.5% |
| ROE | -20.9% | -39.1% | 26.7% | -33.5% | -73.3% | -39.8% |
Revenue and profitability
Global Tech Holdings Ltd's Revenue decreased on 3.4% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.5 pp from -14.2% to -18.6% in FY2015.
Gross Margin increased on 2.5 pp from 27.5% to 30.0% in FY2015. SG&A as a % of Revenue increased on 6.0 pp from 44.0% to 50.0% in FY2015.
Net Income marign decreased on 9.1 pp from -17.8% to -26.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Global Tech Holdings Ltd had CAPEX/Revenue of 1.6%. The company showed almost no change in CAPEX/Revenue from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 1.4%.
Return on investment
The company operates at negative ROIC (-9.99%) and ROE (-73.27%). ROIC decreased on 2.5 pp from -7.4% to -10.0% in FY2015. ROE dropped on 39.8 pp from -33.5% to -73.3% 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 while cash dropped on 42.0% in FY2015.
Appendix 1: Peers in Distribution/Wholesale
Below we provide Global Tech Holdings Ltd benchmarking against other companies in Distribution/Wholesale 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 |
|---|
| 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) | 17.0% | 2.6% | 0.0% | 1.4% | 12.2% |
|---|
| Global Tech Holdings Ltd ($143) | | 158.6% | 9.9% | -18.8% | -3.4% |
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) | 15.5% | 17.3% | 17.1% | 18.0% | 22.8% |
|---|
| Global Tech Holdings Ltd ($143) | 29.5% | 25.4% | 29.9% | 27.5% | 30.0% |
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% | 1.8% |
|---|
| Global Tech Holdings Ltd ($143) | -137.2% | -21.2% | -33.0% | -14.2% | -18.6% |
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) | 1.3% | 1.4% | 1.7% | 1.7% | 1.6% |
|---|
| Global Tech Holdings Ltd ($143) | 11.3% | 1.3% | 2.5% | 0.2% | 1.6% |
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% | 0.9% |
|---|
| Global Tech Holdings Ltd ($143) | -22.3% | -10.3% | -18.7% | -7.4% | -10.0% |
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 |
|---|
