China Jiuhao Health Industry Corp Ltd Net Income dropped on 995% in 2015 and EBITDA Margin dropped on 72.4 pp from -10.0% to -82.4%
11/03/2016 • About China Jiuhao Health Industry Corp Ltd (
$419) • By InTwits
China Jiuhao Health Industry Corp Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Jiuhao Health Industry Corp Ltd doesn't have a profitable business model yet: 2015 ROIC is -7.0%
- The company operates at negative EBITDA Margin: -82.4%
- China Jiuhao Health Industry Corp 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 -11.5%0
- China Jiuhao Health Industry Corp Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 29.7%. At the same time it's a lot of higher than industry average of 14.5%.
- CAPEX is quite volatile: 53.2 in 2015, 74.1 in 2014, 40.1 in 2013, 3.4 in 2012, 4.3 in 2011
- The company has unprofitable business model: ROIC is at -7.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Jiuhao Health Industry Corp Ltd ($419) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 102.0 | 165.1 | 126.2 | 110.1 | 122.8 | 11.5% |
| Gross Profit | 15.8 | 94.1 | 17.0 | 25.8 | 55.2 | 113.8% |
| SG&A | 78.7 | 87.9 | 77.3 | 69.4 | 160.0 | 130.5% |
| EBITDA | 6.3 | 45.9 | -12.2 | -11.0 | -101.2 | 819.9% |
| Net Income | -17.8 | -43.6 | -165.7 | 55.2 | -493.7 | -994.7% |
Balance Sheet
|
|---|
| Cash | 108.2 | 179.5 | 99.9 | 162.7 | 280.4 | 72.3% |
| Short Term Debt | 0.0 | 0.0 | 6.1 | 19.1 | 0.0 | -100.0% |
| Long Term Debt | 0.0 | 595.8 | 334.6 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 4.3 | 3.4 | 40.1 | 74.1 | 53.2 | -28.2% |
Ratios
|
|---|
| Revenue growth | -40.5% | 61.8% | -23.6% | -12.7% | 11.5% | |
| EBITDA growth | -124.4% | 627.6% | -126.5% | -9.6% | 819.9% | |
| Gross Margin | 15.5% | 57.0% | 13.5% | 23.4% | 44.9% | 21.5% |
| EBITDA Margin | 6.2% | 27.8% | -9.6% | -10.0% | -82.4% | -72.4% |
| Net Income Margin | -17.4% | -26.4% | -131.3% | 50.1% | -401.9% | -452.0% |
| SG&A, % of revenue | 77.1% | 53.2% | 61.3% | 63.0% | 130.2% | 67.2% |
| CAPEX, % of revenue | 4.2% | 2.1% | 31.8% | 67.3% | 43.3% | -24.0% |
| ROIC | -4.0% | 0.3% | -2.4% | -1.8% | -7.0% | -5.3% |
| ROE | -1.7% | -3.1% | -9.8% | 2.7% | -34.4% | -37.1% |
| Net Debt/EBITDA | -17.2x | 9.1x | | | | 0.0x |
Revenue and profitability
The company's Revenue surged on 11.5% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 7.9 pp from 12.3% to 20.3% in 2015.
Gross Margin jumped on 21.5 pp from 23.4% to 44.9% in 2015. SG&A as a % of Revenue surged on 67.2 pp from 63.0% to 130% in 2015.
Net Income marign dropped on 452 pp from 50.1% to -402% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 China Jiuhao Health Industry Corp Ltd had CAPEX/Revenue of 43.3%. The company's CAPEX/Revenue jumped on 41.3 pp from 2.1% in 2012 to 43.3% in 2015. It's average CAPEX/Revenue for the last three years was 47.5%.
Return on investment
The company operates at negative ROIC (-7.03%) and ROE (-34.37%). ROIC decreased on 5.3 pp from -1.8% to -7.0% in 2015. ROE dropped on 37.1 pp from 2.7% to -34.4% in 2015.
Leverage (Debt)
The company paid down all the debt in 2015. Cash jumped on 72.3% in 2015.
Appendix 1: Peers in Leisure Time
Below we provide China Jiuhao Health Industry Corp Ltd benchmarking against other companies in Leisure Time 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 |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | | 11.9% | 15.3% | 19.5% | 18.9% |
| Water Oasis Group Ltd ($1161) | | -16.3% | -23.7% | 8.0% | 1.9% |
| Perfect Shape PRC Holdings Ltd ($1830) | | 23.4% | 16.2% | 6.1% | 55.0% |
| Genting Hong Kong Ltd ($678) | 23.6% | 5.3% | 6.6% | 2.9% | |
| Vietnam Manufacturing & Export Processing Holdings Ltd ($422) | 9.5% | -24.4% | -15.5% | 2.8% | |
| |
|---|
| Median (9 companies) | 5.5% | 5.3% | 2.0% | 2.8% | 18.9% |
|---|
| China Jiuhao Health Industry Corp Ltd ($419) | | 61.8% | -23.6% | -12.7% | 11.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino Splendid Holdings Ltd ($8006) | 55.1% | 51.7% | 51.4% | 51.9% | |
| China Travel International Investment Hong Kong Ltd ($308) | 48.2% | 46.1% | 47.8% | 46.0% | |
| Sino Golf Holdings Ltd ($361) | 15.7% | 11.7% | 17.4% | 18.1% | |
| Vietnam Manufacturing & Export Processing Holdings Ltd ($422) | 17.5% | 10.9% | 7.8% | 6.7% | |
| Success Universe Group Ltd ($487) | 4.9% | 5.4% | 2.1% | 6.3% | |
| |
|---|
| Median (5 companies) | 32.9% | 28.9% | 32.6% | 18.1% | 90.7% |
|---|
| China Jiuhao Health Industry Corp Ltd ($419) | 15.5% | 57.0% | 13.5% | 23.4% | 44.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Travel International Investment Hong Kong Ltd ($308) | 25.6% | 28.2% | 29.1% | 48.5% | |
| Perfect Shape PRC Holdings Ltd ($1830) | 26.3% | 27.5% | 29.1% | 26.5% | 29.8% |
| Travel Expert Asia Enterprises Ltd ($1235) | 20.1% | 17.4% | 16.2% | 18.3% | 15.0% |
| Water Oasis Group Ltd ($1161) | 11.3% | 6.5% | 4.7% | 11.4% | 13.1% |
| Genting Hong Kong Ltd ($678) | 24.2% | 23.1% | 8.5% | 8.6% | |
| |
|---|
| Median (9 companies) | 11.3% | 6.5% | 8.5% | 8.6% | 15.0% |
|---|
| China Jiuhao Health Industry Corp Ltd ($419) | 6.2% | 27.8% | -9.6% | -10.0% | -82.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Genting Hong Kong Ltd ($678) | 7.3% | 16.6% | 25.4% | 33.0% | |
| China Travel International Investment Hong Kong Ltd ($308) | 14.6% | 13.4% | 28.3% | 29.9% | |
| Perfect Shape PRC Holdings Ltd ($1830) | 7.9% | 6.1% | 8.9% | 7.7% | 24.8% |
| Sino Golf Holdings Ltd ($361) | 1.8% | 3.0% | 2.8% | 3.2% | |
| Water Oasis Group Ltd ($1161) | 2.7% | 3.7% | 4.0% | 2.8% | 3.5% |
| |
|---|
| Median (9 companies) | 2.7% | 3.7% | 4.0% | 2.8% | 3.5% |
|---|
| China Jiuhao Health Industry Corp Ltd ($419) | 4.2% | 2.1% | 31.8% | 67.3% | 43.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | 140.4% | 62.8% | 44.1% | 37.7% | 44.1% |
| Travel Expert Asia Enterprises Ltd ($1235) | 179.4% | 50.9% | 26.7% | 29.8% | 23.0% |
| Water Oasis Group Ltd ($1161) | 21.6% | 5.3% | 1.7% | 15.7% | 19.2% |
| China Travel International Investment Hong Kong Ltd ($308) | 4.6% | 5.6% | 5.0% | 9.6% | |
| Sino Golf Holdings Ltd ($361) | -0.5% | -1.9% | 6.8% | 3.8% | |
| |
|---|
| Median (9 companies) | 4.6% | 2.0% | 1.7% | 3.8% | 23.0% |
|---|
| China Jiuhao Health Industry Corp Ltd ($419) | -4.0% | 0.3% | -2.4% | -1.8% | -7.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino Golf Holdings Ltd ($361) | 7.3x | 10.0x | 1.9x | 3.0x | |
| China Travel International Investment Hong Kong Ltd ($308) | -2.4x | -1.7x | -1.1x | -1.1x | |
| Perfect Shape PRC Holdings Ltd ($1830) | -0.9x | -2.0x | -0.8x | -1.4x | -1.8x |
| Travel Expert Asia Enterprises Ltd ($1235) | -2.3x | -1.3x | -1.2x | -1.7x | -0.3x |
| Water Oasis Group Ltd ($1161) | -2.2x | -3.2x | -5.1x | -2.8x | -2.6x |
| |
|---|
| Median (6 companies) | -2.2x | -1.5x | -1.2x | -1.6x | -1.8x |
|---|
