Inno-Tech Holdings Ltd reports 293% Net Income growth while 23.7% Revenue decline
28/01/2016 • About Inno-Tech Holdings Ltd (
$8202) • By InTwits
Inno-Tech Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -31.6%
- Inno-Tech 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 -2.4%0
- Inno-Tech Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.0%. At the same time it's a lot of higher than industry average of 39.0%.
- CAPEX is quite volatile: 0.11 in FY2015, 0.88 in FY2014, 0.11 in FY2013, 0.41 in FY2012, 3.5 in FY2011
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Inno-Tech Holdings Ltd ($8202) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 30.140 | 42.889 | 55.847 | 51.375 | 39.218 | -23.7% |
| Gross Profit | -18.628 | -6.918 | -34.755 | -24.776 | -31.222 | 26.0% |
| SG&A | | 39.801 | 22.676 | 30.146 | 31.405 | 4.2% |
| EBITDA | -30.108 | -33.961 | 86.541 | -15.350 | -12.377 | -19.4% |
| Net Income | -82.478 | -47.160 | -1,563.180 | -371.458 | 716.253 | -292.8% |
Balance Sheet
|
|---|
| Cash | 114.172 | 4.419 | 25.133 | 1.704 | 7.506 | 340.5% |
| Short Term Debt | 4.241 | 4.400 | 20.400 | 215.609 | 88.693 | -58.9% |
| Long Term Debt | 0.000 | 0.000 | 1,099.657 | 693.458 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 3.519 | 0.409 | 0.113 | 0.884 | 0.109 | -87.7% |
Ratios
|
|---|
| Revenue growth | 222.5% | 42.3% | 30.2% | -8.0% | -23.7% | |
| EBITDA growth | 20.1% | 12.8% | -354.8% | -117.7% | -19.4% | |
| Gross Margin | -61.8% | -16.1% | -62.2% | -48.2% | -79.6% | -31.4% |
| EBITDA Margin | -99.9% | -79.2% | 155.0% | -29.9% | -31.6% | -1.7% |
| Net Income Margin | -273.6% | -110.0% | -2,799.0% | -723.0% | 1,826.3% | 2,549.4% |
| SG&A, % of revenue | | 92.8% | 40.6% | 58.7% | 80.1% | 21.4% |
| CAPEX, % of revenue | 11.7% | 1.0% | 0.2% | 1.7% | 0.3% | -1.4% |
| ROIC | -29.6% | -21.3% | -21.0% | -35.7% | | 35.7% |
| ROE | -56.3% | -20.8% | | | | 0.0% |
| Net Debt/EBITDA | | | 12.7x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 23.7% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.7 pp from -29.9% to -31.6% in FY2015.
Gross Margin dropped on 31.4 pp from -48.2% to -79.6% in FY2015. SG&A as a % of Revenue jumped on 21.4 pp from 58.7% to 80.1% in FY2015.
Net Income marign jumped on 2,549 pp from -723% to 1,826% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.28%. Inno-Tech Holdings Ltd showed small CAPEX/Revenue decline of 0.68 pp from 0.95% in FY2012 to 0.28% in FY2015. Average CAPEX/Revenue for the last three years was 0.73%.
Leverage (Debt)
Company's Net Debt / EBITDA is -6.5x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt dropped on 90.2% in FY2015 while cash jumped on 340% in FY2015.
Appendix 1: Peers in Software
Below we provide Inno-Tech Holdings Ltd benchmarking against other companies in Software 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 |
|---|
| Pizu Group Holdings Ltd ($8053) | | 40.3% | -42.9% | 1,742.9% | 157.9% |
| China City Railway Transportation Technology Holdings Co Ltd ($1522) | 194.6% | 164.0% | 33.6% | 100.5% | |
| China Mobile Games and Cultural Investment Ltd ($8081) | -16.7% | 393.7% | -6.6% | 92.2% | |
| Epicurean and Co Ltd ($8213) | | 177.0% | 185.7% | 62.6% | 22.0% |
| China Bio Cassava Holdings Ltd ($8129) | -15.0% | -14.2% | 38.8% | 55.1% | |
| |
|---|
| Median (30 companies) | 18.5% | 10.6% | 11.1% | 21.5% | 25.2% |
|---|
| Inno-Tech Holdings Ltd ($8202) | | 42.3% | 30.2% | -8.0% | -23.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Bio Cassava Holdings Ltd ($8129) | 90.2% | 90.4% | 97.4% | 98.4% | |
| NetDragon Websoft Inc ($777) | 90.1% | 93.4% | 90.8% | 89.3% | |
| China Mobile Games and Cultural Investment Ltd ($8081) | 19.4% | 6.5% | 45.3% | 84.8% | |
| Kingdee International Software Group Co Ltd ($268) | 70.1% | 65.0% | 75.3% | 82.5% | |
| Kingsoft Corp Ltd ($3888) | 85.5% | 86.8% | 86.3% | 82.4% | |
| |
|---|
| Median (29 companies) | 43.5% | 40.0% | 38.6% | 37.2% | 28.8% |
|---|
| Inno-Tech Holdings Ltd ($8202) | -61.8% | -16.1% | -62.2% | -48.2% | -79.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sinosoft Technology Group Ltd ($1297) | 55.5% | 62.6% | 54.9% | 57.2% | |
| International Entertainment Corp ($1009) | 235.1% | 50.8% | 64.0% | 54.9% | 62.0% |
| Microsoft Corp ($4338) | 42.8% | 33.5% | 39.2% | 38.0% | 25.8% |
| Kingdee International Software Group Co Ltd ($268) | 19.5% | 7.8% | 33.2% | 37.2% | |
| TravelSky Technology Ltd ($696) | 43.3% | 38.1% | 35.8% | 31.9% | |
| |
|---|
| Median (30 companies) | 10.3% | 7.8% | 10.6% | 7.4% | 9.5% |
|---|
| Inno-Tech Holdings Ltd ($8202) | -99.9% | -79.2% | 155.0% | -29.9% | -31.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| NetDragon Websoft Inc ($777) | 13.3% | 21.1% | 34.6% | 54.6% | |
| China Eco-Farming Ltd ($8166) | 0.3% | 0.6% | 0.7% | 18.1% | |
| TravelSky Technology Ltd ($696) | 5.8% | 8.9% | 21.7% | 18.1% | |
| Kingsoft Corp Ltd ($3888) | 6.8% | 4.3% | 3.8% | 14.3% | |
| Sing Lee Software Group Ltd ($8076) | 19.4% | 3.3% | 0.2% | 14.0% | |
| |
|---|
| Median (29 companies) | 2.4% | 2.6% | 2.8% | 3.6% | 1.1% |
|---|
| Inno-Tech Holdings Ltd ($8202) | 11.7% | 1.0% | 0.2% | 1.7% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Microsoft Corp ($4338) | 43.4% | 28.6% | 30.3% | 26.2% | 15.6% |
| Sinosoft Technology Group Ltd ($1297) | 31.6% | 34.0% | 21.9% | 20.2% | |
| Boyaa Interactive International Ltd ($434) | 100.4% | 75.3% | 21.3% | 20.0% | |
| ITE Holdings Ltd ($8092) | -19.6% | -15.0% | 10.6% | 16.8% | 19.8% |
| TravelSky Technology Ltd ($696) | 16.2% | 15.0% | 13.8% | 12.5% | |
| |
|---|
| Median (30 companies) | 4.9% | 1.4% | 4.7% | -0.4% | 2.2% |
|---|
| Inno-Tech Holdings Ltd ($8202) | -29.6% | -21.3% | -21.0% | -35.7% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pizu Group Holdings Ltd ($8053) | | | | 346.1x | -0.4x |
| Epicurean and Co Ltd ($8213) | 2.9x | 2.3x | 4.7x | 12.3x | 12.0x |
| Sing Lee Software Group Ltd ($8076) | | | | 6.2x | |
| China Technology Solar Power Holdings Ltd ($8111) | | | 7.4x | 3.3x | 0.2x |
| Chinasoft International Ltd ($354) | -1.3x | -0.7x | 0.7x | 1.5x | |
| |
|---|
| Median (19 companies) | -0.9x | -0.7x | -1.4x | -0.8x | -0.3x |
|---|
