Gemini Investments Holdings Ltd CAPEX dropped on 98.9% in 2015 and Revenue dropped on 75.4%
29/02/2016 • About Gemini Investments Holdings Ltd (
$174) • By InTwits
Gemini Investments Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gemini Investments Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -0.5%
- The company operates at negative EBITDA Margin: -129.5%
- Gemini Investments Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -19.1% for the sames years0
- Gemini Investments Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 151.5%. At the same time it's a lot of higher than industry average of 4.8%.
- CAPEX is quite volatile: 2.3 in 2015, 198 in 2014, 69.7 in 2013, 242 in 2012, 10.0 in 2011
- The company has unprofitable business model: ROIC is at -0.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Gemini Investments Holdings Ltd ($174) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 67.4 | 50.5 | 186.7 | 91.9 | 22.6 | -75.4% |
| EBITDA | 1.4 | 18.5 | -2.9 | -67.9 | -29.3 | -56.8% |
| Net Income | -18.7 | 6.6 | 39.2 | -144.8 | -1,135.3 | 683.8% |
Balance Sheet
|
|---|
| Cash | 280.3 | 401.2 | 715.3 | 2,157.9 | 851.5 | -60.5% |
| Short Term Debt | 0.0 | 61.7 | 549.8 | 0.0 | 863.3 | 1,962,020.5% |
| Long Term Debt | 500.0 | 496.8 | 1,000.2 | 1,522.6 | 1,601.6 | 5.2% |
Cash flow
|
|---|
| Capex | 10.0 | 242.2 | 69.7 | 198.5 | 2.3 | -98.9% |
Ratios
|
|---|
| Revenue growth | 259.7% | -25.0% | 269.3% | -50.8% | -75.4% | |
| EBITDA growth | -66.2% | 1,220.2% | -115.5% | 2,270.5% | -56.8% | |
| EBITDA Margin | 2.1% | 36.6% | -1.5% | -73.8% | -129.5% | -55.7% |
| Net Income Margin | -27.8% | 13.1% | 21.0% | -157.6% | -5,015.9% | -4,858.3% |
| CAPEX, % of revenue | 14.9% | 479.1% | 37.3% | 216.0% | 10.0% | -205.9% |
| ROIC | 0.2% | 1.8% | -0.2% | -1.8% | -0.5% | 1.3% |
| ROE | -3.8% | 1.4% | 7.6% | -30.4% | -487.2% | -456.8% |
| Net Debt/EBITDA | 156.6x | 8.5x | | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 75.4% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 55.7 pp from -73.8% to -130% in 2015.
Net Income marign dropped on 4,858 pp from -158% to -5,016% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Gemini Investments Holdings Ltd had CAPEX/Revenue of 10.0%. CAPEX/Revenue dropped on 469 pp from 479% in 2012 to 10.0% in 2015. It's average CAPEX/Revenue for the last three years was 87.8%.
Return on investment
The company operates at negative ROIC (-0.51%) and ROE (-487.23%). ROIC increased slightly on 1.3 pp from -1.8% to -0.51% in 2015. ROE dropped on 457 pp from -30.4% to -487% in 2015.
Leverage (Debt)
Debt level is -0.8x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt surged on 61.9% in 2015 while cash dropped on 60.5% in 2015.
Appendix 1: Peers in Diversified Finan Serv
Below we provide Gemini Investments Holdings Ltd benchmarking against other companies in Diversified Finan Serv 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 |
|---|
| China New Energy Power Group Ltd ($1041) | | 100.0% | 0.0% | 64,246.0% | |
| ReOrient Group Ltd ($376) | | 112.8% | 75.1% | 1,106.9% | -90.8% |
| Global Strategic Group Ltd ($8007) | | -3.9% | 2.1% | 806.3% | 681.2% |
| AID Partners Capital Holdings Ltd ($8088) | -38.7% | 0.9% | -79.5% | 655.2% | |
| Willie International Holdings Ltd ($273) | | | | 543.9% | |
| |
|---|
| Median (62 companies) | 3.8% | 1.2% | 12.9% | 26.5% | 24.9% |
|---|
| Gemini Investments Holdings Ltd ($174) | | -25.0% | 269.3% | -50.8% | -75.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Roma Group Ltd ($8072) | | | | 99.4% | 98.7% |
| Freeman Financial Corp Ltd ($279) | 97.1% | 52.3% | 99.3% | 98.5% | |
| Chinese Strategic Holdings Ltd ($8089) | 97.9% | 99.1% | 97.9% | 97.0% | |
| First China Financial Network Holdings Ltd ($8123) | 98.6% | 93.4% | | 94.5% | |
| Allied Group Ltd ($373) | 94.5% | 95.1% | 94.4% | 93.6% | |
| |
|---|
| Median (13 companies) | 80.8% | 64.2% | 75.1% | 88.2% | 89.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Styland Holdings Ltd ($211) | 68.6% | 198.6% | 91.5% | 161.0% | 17.9% |
| Roma Group Ltd ($8072) | 81.4% | 18.1% | 36.8% | 143.0% | 44.7% |
| First China Financial Network Holdings Ltd ($8123) | -231.6% | -329.2% | -211.2% | 124.3% | |
| Willie International Holdings Ltd ($273) | | | 75.3% | 95.2% | |
| Get Nice Holdings Ltd ($64) | 28.4% | 2.6% | 153.4% | 92.7% | 83.9% |
| |
|---|
| Median (63 companies) | 30.3% | 14.0% | 36.2% | 47.2% | 30.5% |
|---|
| Gemini Investments Holdings Ltd ($174) | 2.1% | 36.6% | -1.5% | -73.8% | -129.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Assurance Finance Group Ltd ($8090) | | 94.7% | 68.9% | 53.3% | |
| Chinese Strategic Holdings Ltd ($8089) | 93.2% | 376.0% | 5.7% | 32.6% | |
| AID Partners Capital Holdings Ltd ($8088) | 196.3% | 4.1% | 2.9% | 28.4% | |
| Asian Capital Holdings Ltd ($8295) | 2.3% | 0.1% | 0.2% | 15.6% | |
| Crown International Corp Ltd ($727) | 168.4% | 71.6% | 147.6% | 12.1% | 7.1% |
| |
|---|
| Median (63 companies) | 2.2% | 1.8% | 1.7% | 1.1% | 1.6% |
|---|
| Gemini Investments Holdings Ltd ($174) | 14.9% | 479.1% | 37.3% | 216.0% | 10.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ReOrient Group Ltd ($376) | -24.9% | -45.6% | -53.5% | 128.6% | -2.8% |
| Roma Group Ltd ($8072) | | 19.6% | 43.7% | 107.8% | 13.3% |
| Convoy Financial Holdings Ltd ($1019) | 31.1% | 3.4% | 39.3% | 47.3% | |
| Willie International Holdings Ltd ($273) | -28.1% | -9.5% | 4.7% | 30.9% | |
| Value Partners Group Ltd ($806) | 8.7% | 16.8% | 16.5% | 26.8% | |
| |
|---|
| Median (65 companies) | 4.9% | 3.9% | 4.0% | 4.8% | 2.2% |
|---|
| Gemini Investments Holdings Ltd ($174) | 0.2% | 1.8% | -0.2% | -1.8% | -0.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cash Financial Services Group Ltd ($510) | -1.1x | 7.8x | | 67.5x | |
| Far East Horizon Ltd ($3360) | 17.8x | 16.9x | 21.7x | 20.0x | |
| Bright Smart Securities & Commodities Group Ltd ($1428) | 7.3x | 2.1x | 10.3x | 9.3x | 39.3x |
| China Cinda Asset Management Co Ltd ($1359) | 2.1x | 5.0x | 7.7x | 8.4x | |
| Aeon Credit Service Asia Co Ltd ($900) | 6.3x | 5.2x | 6.0x | 6.9x | 5.5x |
| |
|---|
| Median (46 companies) | -1.1x | -1.3x | 0.1x | -0.0x | -1.5x |
|---|
