China Trends Holdings Ltd revenue surged on 106% in 2015 and EBITDA Margin jumped on 28.1 pp from -32.1% to -3.9%
11/03/2016 • About China Trends Holdings Ltd (
$8171) • By InTwits
China Trends Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Trends Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -4.0%
- The company operates at negative EBITDA Margin: -3.9%
- China Trends Holdings 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 -6.4%0
- China Trends Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has unprofitable business model: ROIC is at -4.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Trends Holdings Ltd ($8171) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 85.4 | 227.9 | 67.8 | 56.5 | 116.5 | 106.0% |
| Gross Profit | 6.1 | 7.2 | 2.4 | 2.4 | 3.5 | 45.2% |
| SG&A | | | | 21.0 | 8.6 | -58.8% |
| EBITDA | -1.2 | -3.2 | -8.2 | -18.1 | -4.6 | -74.7% |
| Net Income | -502.4 | -3.8 | -7.9 | -18.4 | -4.9 | -73.4% |
Balance Sheet
|
|---|
| Cash | 57.1 | 77.5 | 10.9 | 7.5 | 5.5 | -26.9% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.8 | 0.0 | 0.1 | 0.0 | 0.0 | -75.0% |
Ratios
|
|---|
| Revenue growth | 130.1% | 167.0% | -70.2% | -16.7% | 106.0% | |
| EBITDA growth | -89.1% | 174.8% | 156.7% | 120.3% | -74.7% | |
| Gross Margin | 7.2% | 3.2% | 3.6% | 4.3% | 3.0% | -1.3% |
| EBITDA Margin | -1.4% | -1.4% | -12.1% | -32.1% | -3.9% | 28.1% |
| Net Income Margin | -588.5% | -1.7% | -11.6% | -32.5% | -4.2% | 28.3% |
| SG&A, % of revenue | | | | 37.1% | 7.4% | -29.7% |
| CAPEX, % of revenue | 1.0% | 0.0% | 0.1% | 0.0% | 0.0% | -0.0% |
| ROIC | -0.5% | -3.0% | -6.7% | -14.4% | -4.0% | 10.5% |
| ROE | -129.0% | -2.7% | -5.9% | -14.5% | -4.0% | 10.5% |
Revenue and profitability
China Trends Holdings Ltd's Revenue jumped on 106% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 39.2 pp from 22.1% to -17.0% in FY2015.
Gross Margin decreased slightly on 1.3 pp from 4.3% to 3.0% in 2015. SG&A as a % of Revenue dropped on 29.7 pp from 37.1% to 7.4% in 2015.
Net Income marign jumped on 28.3 pp from -32.5% to -4.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 China Trends Holdings Ltd had CAPEX/Revenue of 0.0017%. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 0.032%.
Return on investment
The company operates at negative ROIC (-3.95%) and ROE (-4.02%). ROIC surged on 10.5 pp from -14.4% to -4.0% in 2015. ROE jumped on 10.5 pp from -14.5% to -4.0% in 2015.
Leverage (Debt)
The company has no debt. Cash dropped on 26.9% in 2015.
Appendix 1: Peers in Telecommunications
Below we provide China Trends Holdings Ltd benchmarking against other companies in Telecommunications 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 Energine International Holdings Ltd ($1185) | -41.8% | 143.6% | 34.3% | 103.1% | |
| MOBI Development Co Ltd ($947) | -23.4% | -13.8% | 29.1% | 85.6% | |
| Vodatel Networks Holdings Ltd ($8033) | 34.4% | -5.9% | -4.6% | 81.7% | |
| Gold Tat Group International Ltd ($8266) | | 29.4% | 1,582.2% | 77.0% | 26.5% |
| Great World Co Holdings Ltd ($8003) | | 1,651.8% | -81.7% | 61.9% | -3.7% |
| |
|---|
| Median (51 companies) | 10.1% | 8.7% | 8.3% | 7.5% | 18.1% |
|---|
| China Trends Holdings Ltd ($8171) | | 167.0% | -70.2% | -16.7% | 106.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HKBN Ltd ($1310) | | | 84.3% | 86.5% | 86.9% |
| Synertone Communication Corp ($1613) | 65.4% | 68.1% | 64.1% | 70.5% | 50.3% |
| Zhi Cheng Holdings Ltd ($8130) | 61.6% | 45.9% | 41.0% | 64.0% | 19.6% |
| APT Satellite Holdings Ltd ($1045) | 52.3% | 58.7% | 64.1% | 62.5% | |
| Hong Kong Television Network Ltd ($1137) | | -59.6% | -101.3% | 59.7% | |
| |
|---|
| Median (45 companies) | 31.8% | 26.8% | 30.3% | 29.1% | 46.8% |
|---|
| China Trends Holdings Ltd ($8171) | 7.2% | 3.2% | 3.6% | 4.3% | 3.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 83.5% | 86.5% | 85.8% | 81.6% | |
| APT Satellite Holdings Ltd ($1045) | 76.7% | 81.0% | 78.9% | 77.5% | |
| Synertone Communication Corp ($1613) | 49.5% | 44.9% | 48.5% | 49.4% | 51.5% |
| HKBN Ltd ($1310) | | | 39.2% | 40.1% | 39.0% |
| PCCW Ltd ($8) | 31.4% | 32.0% | 31.9% | 39.2% | 30.6% |
| |
|---|
| Median (51 companies) | 14.3% | 11.6% | 7.5% | 8.9% | 15.7% |
|---|
| China Trends Holdings Ltd ($8171) | -1.4% | -1.4% | -12.1% | -32.1% | -3.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hong Kong Television Network Ltd ($1137) | | 12,435.9% | 504.9% | 1,283.5% | |
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 61.8% | 93.8% | 71.7% | 75.0% | |
| Hanny Holdings Ltd ($275) | 80.8% | 19.8% | 11.6% | 28.3% | 0.2% |
| APT Satellite Holdings Ltd ($1045) | 155.2% | 74.3% | 2.5% | 27.2% | |
| China Electronics Corp Holdings Co Ltd ($85) | 1.5% | 1.8% | 8.3% | 27.1% | |
| |
|---|
| Median (50 companies) | 3.1% | 2.7% | 3.9% | 5.2% | 3.0% |
|---|
| China Trends Holdings Ltd ($8171) | 1.0% | 0.0% | 0.1% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| VTech Holdings Ltd ($303) | 40.5% | 37.6% | 39.5% | 40.0% | 39.8% |
| Telecom Service One Holdings Ltd ($8145) | | 95.0% | 5.4% | 26.7% | 39.8% |
| TCL Communication Technology Holdings Ltd ($2618) | 6.4% | -1.6% | 6.0% | 17.2% | |
| China Fiber Optic Network System Group Ltd ($3777) | 23.1% | 18.8% | 17.6% | 16.6% | |
| China U-Ton Holdings Ltd ($6168) | 69.5% | 35.7% | 25.0% | 16.2% | |
| |
|---|
| Median (51 companies) | 7.4% | 6.0% | 5.6% | 5.8% | 8.1% |
|---|
| China Trends Holdings Ltd ($8171) | -0.5% | -3.0% | -6.7% | -14.4% | -4.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CCT Land Holdings Ltd ($261) | | 10.1x | 23.8x | 48.4x | |
| China Energine International Holdings Ltd ($1185) | | | | 13.3x | |
| China Electronics Corp Holdings Co Ltd ($85) | -2.1x | -2.0x | -1.3x | 12.5x | |
| China All Access Holdings Ltd ($633) | -1.0x | 0.9x | 1.8x | 5.2x | |
| Synertone Communication Corp ($1613) | -0.3x | -0.4x | -2.2x | 4.8x | 2.5x |
| |
|---|
| Median (37 companies) | -0.2x | -0.2x | 0.6x | 0.9x | 1.4x |
|---|
