Shun Ho Technology Holdings Ltd CAPEX jumped on 168% in 2015 while Revenue dropped on 13.4%
11/03/2016 • About Shun Ho Technology Holdings Ltd (
$219) • By InTwits
Shun Ho Technology Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 51.8% in 2015 vs. 60.0% in 2014 vs. 64.9% in 2011
- Shun Ho Technology Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's a lot of higher than industry average of 3.6%.
- CAPEX is quite volatile: 29.1 in 2015, 10.9 in 2014, 5.4 in 2013, 22.5 in 2012, 16.1 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shun Ho Technology Holdings Ltd ($219) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 401.6 | 520.5 | 688.7 | 648.4 | 561.8 | -13.4% |
| Gross Profit | 281.9 | 362.7 | 456.7 | 420.4 | 327.3 | -22.1% |
| SG&A | | | | 32.1 | 32.9 | 2.3% |
| EBITDA | 260.5 | 333.7 | 430.8 | 389.0 | 291.2 | -25.2% |
| Net Income | 331.6 | 378.0 | 439.3 | 644.5 | 170.2 | -73.6% |
Balance Sheet
|
|---|
| Cash | 100.7 | 179.9 | 314.6 | 1,165.6 | 1,065.2 | -8.6% |
| Short Term Debt | 1,171.5 | 1,135.3 | 695.7 | 635.9 | 559.8 | -12.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 16.1 | 22.5 | 5.4 | 10.9 | 29.1 | 168.0% |
Ratios
|
|---|
| Revenue growth | 31.9% | 29.6% | 32.3% | -5.9% | -13.4% | |
| EBITDA growth | 37.9% | 28.1% | 29.1% | -9.7% | -25.2% | |
| Gross Margin | 70.2% | 69.7% | 66.3% | 64.8% | 58.3% | -6.6% |
| EBITDA Margin | 64.9% | 64.1% | 62.6% | 60.0% | 51.8% | -8.2% |
| Net Income Margin | 82.6% | 72.6% | 63.8% | 99.4% | 30.3% | -69.1% |
| SG&A, % of revenue | | | | 5.0% | 5.9% | 0.9% |
| CAPEX, % of revenue | 4.0% | 4.3% | 0.8% | 1.7% | 5.2% | 3.5% |
| ROIC | 4.2% | 4.9% | 5.7% | 4.7% | 3.0% | -1.7% |
| ROE | 12.2% | 11.4% | 11.7% | 15.0% | 3.4% | -11.6% |
| Net Debt/EBITDA | 4.1x | 2.9x | 0.9x | -1.4x | -1.7x | -0.4x |
Revenue and profitability
Shun Ho Technology Holdings Ltd's Revenue dropped on 13.4% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 8.2 pp from 60.0% to 51.8% in 2015.
Gross Margin decreased on 6.6 pp from 64.8% to 58.3% in 2015. SG&A as a % of Revenue increased slightly on 0.90 pp from 5.0% to 5.9% in 2015.
Net Income marign dropped on 69.1 pp from 99.4% to 30.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
Shun Ho Technology Holdings Ltd's CAPEX/Revenue was 5.2% in 2015. CAPEX/Revenue increased slightly on 0.87 pp from 4.3% in 2012 to 5.2% in 2015. Average CAPEX/Revenue for the last three years was 2.5%.
Return on investment
The company operates at low ROIC (2.96%) and ROE (3.35%). ROIC decreased slightly on 1.7 pp from 4.7% to 3.0% in 2015. ROE dropped on 11.6 pp from 15.0% to 3.4% in 2015.
Leverage (Debt)
Debt level is -1.7x Net Debt / EBITDA and 1.9x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from -1.4x to -1.7x in 2015. Debt dropped on 12.0% in 2015 while cash decreased on 8.6% in 2015.
Appendix 1: Peers in Real Estate
Below you can find Shun Ho Technology Holdings Ltd benchmarking vs. other companies in Real Estate 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 |
|---|
| Common Splendor International Health Industry Group Ltd ($286) | -0.9% | -0.5% | 1.9% | 4,120.2% | |
| Landsea Green Properties Co Ltd ($106) | -91.1% | -35.1% | -51.2% | 3,097.3% | |
| LVGEM China Real Estate Invest ($95) | -0.1% | -27.5% | -21.9% | 3,008.3% | |
| Rivera Holdings Ltd ($281) | 222.2% | 197.1% | -89.9% | 2,067.2% | |
| Ceneric Holdings Ltd ($542) | -94.0% | -73.9% | -49.8% | 1,922.5% | |
| |
|---|
| Median (173 companies) | 13.8% | 15.4% | 13.0% | 5.2% | 4.2% |
|---|
| Shun Ho Technology Holdings Ltd ($219) | | 29.6% | 32.3% | -5.9% | -13.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tern Properties Co Ltd ($277) | 96.9% | 96.7% | 98.4% | 98.4% | 98.7% |
| GR Properties Ltd ($108) | 37.4% | 39.3% | | 98.2% | |
| Renhe Commercial Holdings Co Ltd ($1387) | 71.1% | 79.0% | 95.2% | 97.9% | |
| YT Realty Group Ltd ($75) | 91.5% | 94.4% | 96.6% | 96.7% | |
| ITC Properties Group Ltd ($199) | 29.8% | 22.8% | 92.9% | 95.2% | 62.7% |
| |
|---|
| Median (155 companies) | 43.6% | 41.9% | 40.5% | 39.1% | 48.5% |
|---|
| Shun Ho Technology Holdings Ltd ($219) | 70.2% | 69.7% | 66.3% | 64.8% | 58.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ITC Properties Group Ltd ($199) | 24.0% | -125.5% | -2,995.7% | 1,685.3% | -525.1% |
| Beijing Properties Holdings Ltd ($925) | 33.2% | -606.3% | 2,162.6% | 224.3% | |
| Chinese Estates Holdings Ltd ($127) | 340.9% | 356.2% | 91.6% | 195.5% | |
| Zall Development Group Ltd ($2098) | 73.6% | 105.3% | 133.1% | 143.2% | |
| Ceneric Holdings Ltd ($542) | -5.9% | -382.7% | -1,024.0% | 126.8% | |
| |
|---|
| Median (173 companies) | 35.1% | 28.9% | 28.0% | 26.4% | 34.3% |
|---|
| Shun Ho Technology Holdings Ltd ($219) | 64.9% | 64.1% | 62.6% | 60.0% | 51.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| LT Commercial Real Estate Ltd ($112) | 0.0% | 0.0% | 18.0% | 27,965.5% | |
| ITC Properties Group Ltd ($199) | 25.6% | 56.2% | 4,202.4% | 1,304.7% | 189.7% |
| Wanda Hotel Development Co Ltd ($169) | | 5.9% | 24.1% | 1,091.1% | |
| Pacific Century Premium Developments Ltd ($432) | 6.5% | 2.9% | 323.1% | 351.2% | 340.6% |
| Liu Chong Hing Investment Ltd ($194) | 9.4% | 18.5% | 6.1% | 269.7% | 0.9% |
| |
|---|
| Median (174 companies) | 5.9% | 5.5% | 6.2% | 4.7% | 7.7% |
|---|
| Shun Ho Technology Holdings Ltd ($219) | 4.0% | 4.3% | 0.8% | 1.7% | 5.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rykadan Capital Ltd ($2288) | 17.2% | -1.8% | -2.6% | 48.4% | -3.7% |
| Colour Life Services Group Co Ltd ($1778) | | 44.2% | 47.9% | 29.3% | 14.5% |
| LVGEM China Real Estate Invest ($95) | 0.2% | -0.2% | -1.1% | 22.1% | |
| Zall Development Group Ltd ($2098) | 39.0% | 19.2% | 17.6% | 18.7% | |
| China Overseas Land & Investment Ltd ($688) | 18.0% | 18.4% | 15.1% | 18.5% | |
| |
|---|
| Median (177 companies) | 4.6% | 4.0% | 3.8% | 3.8% | 3.0% |
|---|
| Shun Ho Technology Holdings Ltd ($219) | 4.2% | 4.9% | 5.7% | 4.7% | 3.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Properties Group Ltd ($1838) | 16.9x | 43.0x | 21.4x | 1,523.0x | |
| SRE Group Ltd ($1207) | 10.6x | 14.1x | 24.7x | 1,184.6x | |
| Cheuk Nang Holdings Ltd ($131) | 53.2x | | 177.3x | 901.7x | |
| Tian An China Investment Co Ltd ($28) | 2.4x | 13.2x | 15.1x | 486.6x | |
| Greenland Hong Kong Holdings Ltd ($337) | 3.7x | | 6.2x | 49.3x | |
| |
|---|
| Median (140 companies) | 2.1x | 2.2x | 2.8x | 3.0x | 2.2x |
|---|
| Shun Ho Technology Holdings Ltd ($219) | 4.1x | 2.9x | 0.9x | -1.4x | -1.7x |
