Merdeka Mobile Group Ltd revenue jumped on 88.0% in 2015 while EBITDA Margin dropped on 11.6 pp from -15.3% to -26.9%
11/03/2016 • About Merdeka Mobile Group Ltd (
$8163) • By InTwits
Merdeka Mobile Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Merdeka Mobile Group Ltd doesn't have a profitable business model yet: 2015 ROIC is -6.1%
- The company operates at negative EBITDA Margin: -26.9%
- EBITDA Margin is quite volatile: -26.9% in 2015, -15.3% in 2014, 140.9% in 2013, 6,783.7% in 2012, -294.2% in 2011
- Merdeka Mobile Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 22.9%. At the same time it's a lot of higher than industry average of 10.3%.
- CAPEX is quite volatile: 0.59 in 2015, 2.3 in 2014, 1.4 in 2013, 0 in 2012, 9.5 in 2011
- The company has unprofitable business model: ROIC is at -6.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Merdeka Mobile Group Ltd ($8163) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8.9 | 7.9 | 40.8 | 69.9 | 131.4 | 88.0% |
| Gross Profit | 0.8 | 0.2 | 2.1 | 8.3 | 18.7 | 125.6% |
| SG&A | | 12.0 | | 13.6 | 9.6 | -29.2% |
| EBITDA | -26.2 | 536.5 | 57.4 | -10.7 | -35.3 | 230.8% |
| Net Income | -67.2 | -613.0 | -109.2 | -172.2 | -124.9 | -27.5% |
Balance Sheet
|
|---|
| Cash | 35.7 | 2.6 | 7.9 | 32.2 | 52.8 | 64.1% |
| Short Term Debt | 0.0 | 0.0 | 187.8 | 0.7 | 375.1 | 51,641.1% |
| Long Term Debt | 304.1 | 189.7 | 0.0 | 133.9 | 627.4 | 368.5% |
Cash flow
|
|---|
| Capex | 9.5 | 0.0 | 1.4 | 2.3 | 0.6 | -74.8% |
Ratios
|
|---|
| Revenue growth | 32.4% | -11.0% | 415.4% | 71.4% | 88.0% | |
| EBITDA growth | -20.9% | -2,151.4% | -89.3% | -118.6% | 230.8% | |
| Gross Margin | 8.9% | 2.1% | 5.1% | 11.9% | 14.2% | 2.4% |
| EBITDA Margin | -294.2% | 6,783.7% | 140.9% | -15.3% | -26.9% | -11.6% |
| Net Income Margin | -755.3% | -7,751.1% | -267.8% | -246.5% | -95.1% | 151.4% |
| SG&A, % of revenue | | 151.4% | | 19.4% | 7.3% | -12.1% |
| CAPEX, % of revenue | 107.0% | 0.0% | 3.5% | 3.3% | 0.4% | -2.9% |
| ROIC | -4.0% | 86.1% | 18.9% | -6.2% | -6.1% | 0.2% |
| ROE | -13.3% | -176.1% | -125.4% | -483.1% | -873.3% | -390.2% |
| Net Debt/EBITDA | | 0.3x | 3.1x | | | 0.0x |
Revenue and profitability
The company's Revenue jumped on 88.0% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 80.9 pp from -7.3% to 73.6% in FY2015.
Gross Margin increased on 2.4 pp from 11.9% to 14.2% in 2015. SG&A as a % of Revenue dropped on 12.1 pp from 19.4% to 7.3% in 2015.
Net Income marign jumped on 151 pp from -246% to -95.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.45%. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. For the last three years the average CAPEX/Revenue was 2.4%.
Return on investment
The company operates at negative ROIC (-6.06%) and ROE (-873.34%). ROIC showed almost no change in 2015. ROE dropped on 390 pp from -483% to -873% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.1x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt surged on 645% in 2015 while cash jumped on 64.1% in 2015.
Appendix 1: Peers in Forest Products&Paper
Below you can find Merdeka Mobile Group Ltd benchmarking vs. other companies in Forest Products&Paper 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 |
|---|
| KuangChi Science Ltd ($439) | | | | 39.7% | |
| PNG Resources Holdings Ltd ($221) | | 323.7% | 248.6% | 8.5% | 8.7% |
| Hop Fung Group Holdings Ltd ($2320) | 0.8% | -27.0% | -2.3% | 6.9% | |
| Samson Paper Holdings Ltd ($731) | | 7.4% | -7.1% | 6.4% | 6.2% |
| Youyuan International Holdings Ltd ($2268) | | 0.4% | 6.7% | 0.8% | 10.3% |
| |
|---|
| Median (11 companies) | 0.8% | 9.4% | 4.0% | 0.7% | 7.5% |
|---|
| Merdeka Mobile Group Ltd ($8163) | | -11.0% | 415.4% | 71.4% | 88.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Youyuan International Holdings Ltd ($2268) | 29.6% | 29.8% | 32.9% | 31.3% | 29.2% |
| PNG Resources Holdings Ltd ($221) | 31.9% | 19.4% | 18.6% | 24.2% | 35.3% |
| Greenheart Group Ltd ($94) | 47.3% | 37.6% | 33.7% | 21.6% | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 15.5% | 15.2% | 18.0% | 19.4% | |
| China Sunshine Paper Holdings Co Ltd ($2002) | 16.8% | 16.6% | 16.5% | 19.0% | |
| |
|---|
| Median (11 companies) | 16.9% | 16.2% | 17.4% | 17.3% | 27.8% |
|---|
| Merdeka Mobile Group Ltd ($8163) | 8.9% | 2.1% | 5.1% | 11.9% | 14.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Youyuan International Holdings Ltd ($2268) | 27.6% | 27.2% | 30.8% | 29.8% | 30.0% |
| Nine Dragons Paper Holdings Ltd ($2689) | 17.1% | 16.4% | 17.2% | 18.6% | 16.9% |
| Shandong Chenming Paper Holdings Ltd ($1812) | 11.6% | 11.4% | 13.2% | 14.5% | |
| China Sunshine Paper Holdings Co Ltd ($2002) | 13.8% | 14.3% | 12.7% | 14.5% | |
| PNG Resources Holdings Ltd ($221) | -68.2% | -6.1% | 9.6% | 12.2% | 26.5% |
| |
|---|
| Median (11 companies) | 2.3% | 6.8% | 10.3% | 10.2% | 16.9% |
|---|
| Merdeka Mobile Group Ltd ($8163) | -294.2% | 6,783.7% | 140.9% | -15.3% | -26.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PNG Resources Holdings Ltd ($221) | 294.9% | 133.1% | 35.6% | 53.0% | 44.8% |
| China Agroforestry Low-Carbon Holdings Ltd ($1069) | 0.1% | 0.2% | 11.5% | 26.7% | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 28.7% | 14.4% | 18.8% | 16.3% | |
| Nine Dragons Paper Holdings Ltd ($2689) | 34.3% | 16.8% | 15.5% | 8.9% | 5.9% |
| China Sunshine Paper Holdings Co Ltd ($2002) | 10.4% | 14.8% | 9.9% | 8.7% | |
| |
|---|
| Median (11 companies) | 33.5% | 15.8% | 10.7% | 8.4% | 5.9% |
|---|
| Merdeka Mobile Group Ltd ($8163) | 107.0% | 0.0% | 3.5% | 3.3% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Youyuan International Holdings Ltd ($2268) | 15.6% | 12.6% | 12.9% | 10.4% | 10.6% |
| PNG Resources Holdings Ltd ($221) | -3.6% | -1.2% | 5.8% | 8.3% | 19.9% |
| Nine Dragons Paper Holdings Ltd ($2689) | 7.5% | 6.5% | 6.1% | 5.9% | 5.3% |
| China Sunshine Paper Holdings Co Ltd ($2002) | 7.5% | 6.8% | 5.1% | 5.5% | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 2.4% | 1.9% | 3.3% | 3.0% | |
| |
|---|
| Median (13 companies) | 2.4% | -1.2% | 1.8% | 1.6% | 5.3% |
|---|
| Merdeka Mobile Group Ltd ($8163) | -4.0% | 86.1% | 18.9% | -6.2% | -6.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Greenheart Group Ltd ($94) | | | 7.1x | 26.8x | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 9.0x | 10.4x | 9.0x | 10.9x | |
| Samson Paper Holdings Ltd ($731) | 11.3x | 8.3x | 13.0x | 9.3x | 8.9x |
| China Sunshine Paper Holdings Co Ltd ($2002) | 6.1x | 5.9x | 6.9x | 6.0x | |
| Nine Dragons Paper Holdings Ltd ($2689) | 5.2x | 4.9x | 5.7x | 5.1x | 4.7x |
| |
|---|
| Median (8 companies) | 5.2x | 4.9x | 5.7x | 5.6x | 3.1x |
|---|
