CIAM Group Ltd revenue returned to growth in 2015: increased 211% vs. 40.0% decline a year earliner
29/02/2016 • About CIAM Group Ltd (
$378) • By InTwits
CIAM Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CIAM Group Ltd doesn't have a profitable business model yet: 2015 ROIC is 0.4%
- CIAM Group Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -12.3%0
- CIAM Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has potentially unprofitable business model: ROIC is at 0.4%
- It operates with high leverage: Net Debt/EBITDA is 32.6x while industry average is 7.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CIAM Group Ltd ($378) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 58.407 | 22.067 | 32.647 | 19.580 | 60.984 | 211.5% |
| Gross Profit | | | | | 46.244 | |
| SG&A | | | | 26.995 | 39.097 | 44.8% |
| EBITDA | 4.302 | -8.384 | -26.502 | -6.833 | 13.611 | -299.2% |
| Net Income | -131.455 | -14.687 | -22.229 | -48.635 | -1,895.910 | 3,798.2% |
Balance Sheet
|
|---|
| Cash | 267.824 | 246.820 | 399.621 | 366.684 | 295.982 | -19.3% |
| Short Term Debt | 61.251 | 0.031 | 0.000 | 0.000 | 82.371 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 656.975 | |
Cash flow
|
|---|
| Capex | 0.630 | 0.000 | 0.000 | 0.000 | 0.289 | |
Ratios
|
|---|
| Revenue growth | -31.5% | -62.2% | 47.9% | -40.0% | 211.5% | |
| EBITDA growth | -85.2% | -294.9% | 216.1% | -74.2% | -299.2% | |
| Gross Margin | | | | | 75.8% | 75.8% |
| EBITDA Margin | 7.4% | -38.0% | -81.2% | -34.9% | 22.3% | 57.2% |
| Net Income Margin | -225.1% | -66.6% | -68.1% | -248.4% | -3,108.9% | -2,860.5% |
| SG&A, % of revenue | | | | 137.9% | 64.1% | -73.8% |
| CAPEX, % of revenue | 1.1% | 0.0% | 0.0% | 0.0% | 0.5% | 0.5% |
| ROIC | 0.2% | -1.7% | -2.8% | -0.5% | 0.4% | 0.9% |
| ROE | -20.9% | -2.6% | -2.4% | -3.7% | -120.7% | -117.0% |
| Net Debt/EBITDA | -48.0x | | | | 32.6x | 32.6x |
Revenue and profitability
CIAM Group Ltd's Revenue surged on 211% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 38.0 pp from -70.9% to -33.0% in 2015.
SG&A as a % of Revenue dropped on 73.8 pp from 138% to 64.1% in 2015.
Net Income marign dropped on 2,860 pp from -248% to -3,109% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 CIAM Group Ltd had CAPEX/Revenue of 0.47%. The company's CAPEX/Revenue showed almost no change from 2012 to 2015.
Return on investment
The company operates at low but positive ROIC (0.39%) and negative ROE (-120.72%). ROIC increased slightly on 0.94 pp from -0.54% to 0.39% in 2015. ROE dropped on 117 pp from -3.7% to -121% in 2015.
Leverage (Debt)
Debt level is 32.6x Net Debt / EBITDA and 54.3x Debt / EBITDA. Net Debt / EBITDA surged32.6x from to 32.6x in 2015. Debt jumped while cash dropped on 19.3% in 2015.
Appendix 1: Peers in Holding Companies-Divers
Below you can find CIAM Group Ltd benchmarking vs. other companies in Holding Companies-Divers 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 |
|---|
| Kong Sun Holdings Ltd ($295) | -18.7% | -88.3% | 5.1% | 7,067.0% | |
| Goldin Properties Holdings Ltd ($283) | | | 126.0% | 2,065.8% | -79.6% |
| China Primary Energy Holdings Ltd ($8117) | -43.1% | -56.3% | -23.6% | 195.4% | |
| Carnival Group International Holdings Ltd ($996) | | | | 159.1% | |
| 21 Holdings Ltd ($1003) | 20.3% | -57.4% | -12.4% | 106.4% | |
| |
|---|
| Median (42 companies) | 18.7% | 12.2% | 3.3% | 15.7% | 0.5% |
|---|
| CIAM Group Ltd ($378) | | -62.2% | 47.9% | -40.0% | 211.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Multifield International Holdings Ltd ($898) | 66.4% | 87.5% | 84.7% | 89.1% | |
| New Century Group Hong Kong Ltd ($234) | 76.7% | 27.3% | 85.2% | 82.8% | 91.5% |
| Emperor International Holdings Ltd ($163) | 74.5% | 71.3% | 64.9% | 79.2% | 75.3% |
| China Renji Medical Group Ltd/Hong Kong ($648) | 54.9% | 70.0% | 67.3% | 78.6% | |
| Century Legend Holdings Ltd ($79) | 68.5% | 70.1% | 72.3% | 71.0% | |
| |
|---|
| Median (40 companies) | 28.1% | 33.2% | 35.3% | 32.6% | 39.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Emperor International Holdings Ltd ($163) | 224.8% | 180.7% | 131.8% | 100.6% | 73.9% |
| Multifield International Holdings Ltd ($898) | 49.8% | 80.1% | 68.3% | 97.5% | |
| New Century Group Hong Kong Ltd ($234) | 82.5% | -5.5% | 78.8% | 58.3% | 85.0% |
| Magnificent Estates ($201) | 42.1% | 45.5% | 47.8% | 53.0% | |
| China Merchants Holdings International Co Ltd ($144) | 63.7% | 56.4% | 50.8% | 45.2% | |
| |
|---|
| Median (44 companies) | 5.2% | 2.8% | 2.8% | 7.4% | 3.7% |
|---|
| CIAM Group Ltd ($378) | 7.4% | -38.0% | -81.2% | -34.9% | 22.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Far East Holdings International Ltd ($36) | 2.7% | 0.1% | 13.2% | 422.1% | |
| China Investments Holdings Ltd ($132) | 20.7% | 4.8% | 81.9% | 382.2% | |
| Heng Fai Enterprises Ltd ($185) | 217.5% | 4.8% | 77.1% | 310.0% | 458.1% |
| New Century Group Hong Kong Ltd ($234) | 1.0% | 97.2% | 1.0% | 142.7% | 32.2% |
| Chinney Investments Ltd ($216) | 37.6% | 17.5% | 103.4% | 111.3% | 230.9% |
| |
|---|
| Median (44 companies) | 4.9% | 2.7% | 3.8% | 7.0% | 26.4% |
|---|
| CIAM Group Ltd ($378) | 1.1% | 0.0% | 0.0% | 0.0% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wisdom Holdings Group ($1661) | 62.7% | 68.6% | 42.1% | 28.8% | |
| Chinney Alliance Group Ltd ($385) | 3.4% | 6.4% | 8.1% | 13.6% | |
| Hutchison Whampoa Ltd ($13) | 3.3% | 3.7% | 4.2% | 8.1% | |
| Code Agriculture Holdings Ltd ($8153) | -0.1% | 2.4% | -3.3% | 7.9% | -6.2% |
| C C Land Holdings Ltd ($1224) | 4.5% | 7.4% | 5.3% | 7.9% | |
| |
|---|
| Median (44 companies) | 0.6% | 0.1% | 0.2% | 0.8% | -0.0% |
|---|
| CIAM Group Ltd ($378) | 0.2% | -1.7% | -2.8% | -0.5% | 0.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chinney Investments Ltd ($216) | 111.3x | 10.3x | 63.7x | 48.6x | 93.7x |
| Carnival Group International Holdings Ltd ($996) | | | | 23.7x | |
| Van Shung Chong Holdings Ltd ($1001) | 3.4x | | 0.9x | 12.3x | 7.7x |
| Southeast Asia Properties & Finance Ltd ($252) | 6.8x | 6.7x | 5.7x | 9.2x | 4.3x |
| Code Agriculture Holdings Ltd ($8153) | 24.3x | 11.9x | 42.8x | 8.7x | |
| |
|---|
| Median (27 companies) | 3.1x | 2.5x | 3.1x | 3.0x | 6.5x |
|---|
