Sheng Yuan Holdings Ltd EBITDA jumped on 98.9% in 2015 while Revenue decreased on 2.1%
11/03/2016 • About Sheng Yuan Holdings Ltd (
$851) • By InTwits
Sheng Yuan Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 5.0% in 2015 vs. 2.4% in 2014 vs. -14.5% in 2011
- Sheng Yuan 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
- Sheng Yuan Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.4%. At the same time it's a lot of higher than industry average of 3.6%.
- CAPEX is quite volatile: 0.13 in 2015, 0.33 in 2014, 1.3 in 2013, 2.1 in 2012, 11.1 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.6%
- It operates with high leverage: Net Debt/EBITDA is 15.4x while industry average is 1.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sheng Yuan Holdings Ltd ($851) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 52.2 | 7.3 | 62.1 | 414.6 | 405.7 | -2.1% |
| Gross Profit | 1.2 | | | | | |
| EBITDA | -7.6 | -45.1 | -38.1 | 10.1 | 20.1 | 98.9% |
| Net Income | -13.1 | -49.1 | -40.2 | -5.0 | -34.4 | 582.2% |
Balance Sheet
|
|---|
| Cash | 144.4 | 65.5 | 58.5 | 94.5 | 60.5 | -35.9% |
| Short Term Debt | 0.0 | 0.0 | 30.0 | 155.0 | 222.3 | 43.5% |
| Long Term Debt | 52.5 | 0.1 | 0.0 | 133.9 | 148.5 | 10.9% |
Cash flow
|
|---|
| Capex | 11.1 | 2.1 | 1.3 | 0.3 | 0.1 | -60.2% |
Ratios
|
|---|
| Revenue growth | 571.1% | -86.1% | 756.9% | 567.2% | -2.1% | |
| EBITDA growth | -49.4% | 496.7% | -15.6% | -126.5% | 98.9% | |
| Gross Margin | 2.4% | | | | | 0.0% |
| EBITDA Margin | -14.5% | -621.7% | -61.2% | 2.4% | 5.0% | 2.5% |
| Net Income Margin | -25.0% | -676.9% | -64.8% | -1.2% | -8.5% | -7.3% |
| CAPEX, % of revenue | 21.2% | 28.6% | 2.1% | 0.1% | 0.0% | -0.0% |
| ROIC | -7.5% | -34.9% | -38.3% | 3.0% | 3.6% | 0.6% |
| ROE | | -44.2% | -45.9% | -3.8% | -19.3% | -15.5% |
| Net Debt/EBITDA | | | | 19.3x | 15.4x | -3.8x |
Revenue and profitability
Sheng Yuan Holdings Ltd's Revenue decreased on 2.1% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.5 pp from 2.4% to 5.0% in 2015.
Net Income marign decreased on 7.3 pp from -1.2% to -8.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Sheng Yuan Holdings Ltd had CAPEX/Revenue of 0.033%. CAPEX/Revenue dropped on 28.5 pp from 28.6% in 2012 to 0.033% in 2015. It's average CAPEX/Revenue for the last three years was 0.73%.
Return on investment
The company operates at low but positive ROIC (3.59%) and negative ROE (-19.27%). ROIC increased slightly on 0.62 pp from 3.0% to 3.6% in 2015. ROE dropped on 15.5 pp from -3.8% to -19.3% in 2015.
Leverage (Debt)
Debt level is 15.4x Net Debt / EBITDA and 18.5x Debt / EBITDA. Net Debt / EBITDA dropped on 3.8x from 19.3x to 15.4x in 2015. Debt surged on 28.4% in 2015 while cash dropped on 35.9% in 2015.
Appendix 1: Peers in Distribution/Wholesale
Below we provide Sheng Yuan Holdings Ltd benchmarking against other companies in Distribution/Wholesale 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 |
|---|
| Forefront Group Ltd ($885) | | | 504.6% | 3,871.0% | |
| China LNG Group Ltd ($931) | -84.5% | 694.8% | 13.6% | 1,341.3% | |
| China Infrastructure Investment Ltd ($600) | 346.9% | 412.1% | -50.9% | 557.9% | |
| China-Hongkong Photo Products Holdings Ltd ($1123) | | 24.9% | 9.0% | 81.2% | 12.2% |
| Goldin Financial Holdings Ltd ($530) | | -39.4% | 63.5% | 60.3% | 42.9% |
| |
|---|
| Median (37 companies) | 15.4% | 3.1% | 0.0% | 0.8% | 6.1% |
|---|
| Sheng Yuan Holdings Ltd ($851) | | -86.1% | 756.9% | 567.2% | -2.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goldin Financial Holdings Ltd ($530) | 67.0% | 75.3% | 71.7% | 74.8% | 73.8% |
| Forefront Group Ltd ($885) | | | | 69.8% | |
| YGM Trading Ltd ($375) | 67.1% | 66.5% | 67.4% | 64.0% | 62.5% |
| Goldlion Holdings Ltd ($533) | 57.3% | 56.4% | 54.1% | 55.7% | |
| Sincere Watch Hong Kong Ltd ($444) | 34.2% | 35.6% | 39.7% | 38.8% | 38.3% |
| |
|---|
| Median (34 companies) | 16.4% | 17.4% | 17.8% | 18.7% | 24.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goldin Financial Holdings Ltd ($530) | -134.6% | 163.7% | 613.4% | 285.7% | 364.1% |
| China LNG Group Ltd ($931) | 195.2% | 95.1% | 76.4% | 97.9% | |
| Forefront Group Ltd ($885) | | -2,113.8% | -803.1% | 57.7% | |
| China Infrastructure Investment Ltd ($600) | -1,171.2% | -274.9% | 120.0% | 52.0% | |
| GA Holdings Ltd ($8126) | -4.5% | 8.0% | 19.7% | 22.9% | |
| |
|---|
| Median (37 companies) | 2.9% | 2.6% | 2.5% | 4.6% | 1.7% |
|---|
| Sheng Yuan Holdings Ltd ($851) | -14.5% | -621.7% | -61.2% | 2.4% | 5.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| C Y Foundation Group Ltd ($1182) | 9.8% | 2.5% | 5.2% | 82.2% | 9.3% |
| Inspur International Ltd ($596) | 0.9% | 8.4% | 12.2% | 33.6% | |
| SIS International Holdings ($529) | 0.2% | 13.4% | 31.8% | 14.8% | |
| HKC International Holdings Ltd ($248) | 0.9% | 5.5% | 0.8% | 11.4% | 0.5% |
| Tan Chong International Ltd ($693) | 7.6% | 6.0% | 7.6% | 7.0% | |
| |
|---|
| Median (36 companies) | 1.3% | 1.3% | 1.7% | 1.7% | 1.6% |
|---|
| Sheng Yuan Holdings Ltd ($851) | 21.2% | 28.6% | 2.1% | 0.1% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China LNG Group Ltd ($931) | 2.2% | 8.4% | 7.4% | 87.0% | |
| Yestar International Holdings Co Ltd ($2393) | 29.4% | 28.8% | 24.1% | 26.2% | |
| Powerwell Pacific Holdings Ltd ($8265) | 27.8% | 6.4% | 6.4% | 23.6% | |
| Forefront Group Ltd ($885) | -37.7% | -4.9% | -11.0% | 19.5% | |
| Sincere Watch Hong Kong Ltd ($444) | 46.4% | 51.7% | 27.7% | 14.6% | 5.5% |
| |
|---|
| Median (38 companies) | 2.9% | 2.7% | 1.7% | 3.2% | -0.7% |
|---|
| Sheng Yuan Holdings Ltd ($851) | -7.5% | -34.9% | -38.3% | 3.0% | 3.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Takson Holdings Ltd ($918) | | | 11.5x | 11.7x | 15.7x |
| Huiyin Household Appliances Holdings Co Ltd ($1280) | 10.1x | | | 10.9x | |
| Pacific Andes International Holdings Ltd ($1174) | 4.9x | 5.1x | 9.1x | 7.8x | |
| SIS International Holdings ($529) | -62.1x | -1.8x | 7.0x | 7.2x | |
| Futong Technology Development Holdings Ltd ($465) | 2.2x | 5.6x | 8.6x | 6.9x | |
| |
|---|
| Median (26 companies) | -0.2x | -0.2x | -0.6x | -0.1x | -0.7x |
|---|
| Sheng Yuan Holdings Ltd ($851) | | | | 19.3x | 15.4x |
