Greater China Holdings Ltd reports 693% Net Income growth and 110% Revenue growth
14/03/2016 • About Greater China Holdings Ltd (
$431) • By InTwits
Greater China Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Greater China 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 -2.6%0
- Greater China Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.6%. At the same time it's in pair with industry average of 33.8%.
- CAPEX is quite volatile: 15.3 in 2015, 24.0 in 2014, 0 in 2013, 0.42 in 2012, 11.0 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Greater China Holdings Ltd ($431) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 184.2 | 118.3 | 33.0 | 55.1 | 116.0 | 110.3% |
| Gross Profit | 8.5 | 9.4 | 11.4 | 13.0 | | -100.0% |
| SG&A | 37.5 | 33.1 | 30.1 | 31.4 | 83.3 | 165.4% |
| EBITDA | -15.4 | -16.7 | -7.6 | -9.6 | 36.1 | -477.8% |
| Net Income | 2.5 | -43.8 | -30.0 | -19.6 | 116.1 | -693.3% |
Balance Sheet
|
|---|
| Cash | 47.1 | 8.0 | 9.1 | 12.8 | 524.7 | 4,014.0% |
| Short Term Debt | 135.5 | 192.7 | 173.1 | 30.3 | 199.9 | 559.2% |
| Long Term Debt | 0.0 | 0.0 | 57.1 | 41.7 | 132.5 | 217.7% |
Cash flow
|
|---|
| Capex | 11.0 | 0.4 | 0.0 | 24.0 | 15.3 | -36.3% |
Ratios
|
|---|
| Revenue growth | 2,383.0% | -35.8% | -72.1% | 67.3% | 110.3% | |
| EBITDA growth | 15.5% | 8.6% | -54.5% | 25.6% | -477.8% | |
| Gross Margin | 4.6% | 8.0% | 34.6% | 23.7% | | -23.7% |
| EBITDA Margin | -8.4% | -14.2% | -23.1% | -17.3% | 31.2% | 48.5% |
| Net Income Margin | 1.4% | -37.0% | -91.1% | -35.5% | 100.2% | 135.7% |
| SG&A, % of revenue | 20.4% | 28.0% | 91.2% | 56.9% | 71.8% | 14.9% |
| CAPEX, % of revenue | 6.0% | 0.4% | 0.0% | 43.5% | 13.2% | -30.3% |
| ROIC | -9.5% | -7.9% | -5.1% | -7.5% | 3.1% | 10.5% |
| ROE | 1.3% | -24.6% | -20.8% | -16.3% | 18.3% | 34.6% |
| Net Debt/EBITDA | | | | | -5.3x | -5.3x |
Revenue and profitability
Greater China Holdings Ltd's Revenue surged on 110% 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.
SG&A as a % of Revenue jumped on 14.9 pp from 56.9% to 71.8% in 2015.
Net Income marign surged on 136 pp from -35.5% to 100% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 13.2% in 2015. The company's CAPEX/Revenue jumped on 12.8 pp from 0.36% in 2012 to 13.2% in 2015.
Return on investment
The company operates at good ROE (18.27%) while ROIC is low (3.08%). ROIC surged on 10.5 pp from -7.5% to 3.1% in 2015. ROE surged on 34.6 pp from -16.3% to 18.3% in 2015.
Leverage (Debt)
Debt level is -5.3x Net Debt / EBITDA and 9.2x Debt / EBITDA. Net Debt / EBITDA dropped5.3x from to -5.3x in 2015. Debt jumped on 361% in 2015 while cash surged on 4,014% in 2015.
Appendix 1: Peers in Holding Companies-Divers
Below you can find Greater China Holdings Ltd benchmarking vs. other companies in Holding Companies-Divers 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 |
|---|
| Kong Sun Holdings Ltd ($295) | -18.7% | -88.3% | 5.1% | 7,067.0% | |
| Goldin Properties Holdings Ltd ($283) | | | 126.0% | 2,065.8% | -79.6% |
| China Primary Energy Holdings Ltd ($8117) | -43.1% | -56.3% | -23.6% | 195.4% | |
| Carnival Group International Holdings Ltd ($996) | | | | 159.1% | |
| 21 Holdings Ltd ($1003) | 20.3% | -57.4% | -12.4% | 106.4% | |
| |
|---|
| Median (42 companies) | 11.6% | 12.2% | 4.9% | 12.6% | -0.1% |
|---|
| Greater China Holdings Ltd ($431) | | -35.8% | -72.1% | 67.3% | 110.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Multifield International Holdings Ltd ($898) | 66.4% | 87.5% | 84.7% | 89.1% | |
| New Century Group Hong Kong Ltd ($234) | 76.7% | 27.3% | 85.2% | 82.8% | 91.5% |
| Emperor International Holdings Ltd ($163) | 74.5% | 71.3% | 64.9% | 79.2% | 75.3% |
| China Renji Medical Group Ltd/Hong Kong ($648) | 54.9% | 70.0% | 67.3% | 78.6% | |
| Century Legend Holdings Ltd ($79) | 68.5% | 70.1% | 72.3% | 71.0% | |
| |
|---|
| Median (39 companies) | 29.5% | 33.4% | 36.0% | 34.4% | 39.0% |
|---|
| Greater China Holdings Ltd ($431) | 4.6% | 8.0% | 34.6% | 23.7% | |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Emperor International Holdings Ltd ($163) | 224.8% | 180.7% | 131.8% | 100.6% | 73.9% |
| Multifield International Holdings Ltd ($898) | 49.8% | 80.1% | 68.3% | 97.5% | |
| New Century Group Hong Kong Ltd ($234) | 82.5% | -5.5% | 78.8% | 58.3% | 85.0% |
| Magnificent Estates ($201) | 42.1% | 45.5% | 47.8% | 53.0% | 40.6% |
| China Merchants Holdings International Co Ltd ($144) | 63.7% | 56.4% | 50.8% | 45.2% | |
| |
|---|
| Median (44 companies) | 6.3% | 2.8% | 2.8% | 7.4% | 8.1% |
|---|
| Greater China Holdings Ltd ($431) | -8.4% | -14.2% | -23.1% | -17.3% | 31.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Far East Holdings International Ltd ($36) | 2.7% | 0.1% | 13.2% | 422.1% | |
| China Investments Holdings Ltd ($132) | 20.7% | 4.8% | 81.9% | 382.2% | |
| Heng Fai Enterprises Ltd ($185) | 217.5% | 4.8% | 77.1% | 310.0% | 458.1% |
| New Century Group Hong Kong Ltd ($234) | 1.0% | 97.2% | 1.0% | 142.7% | 32.2% |
| Chinney Investments Ltd ($216) | 37.6% | 17.5% | 103.4% | 111.3% | 230.9% |
| |
|---|
| Median (44 companies) | 4.1% | 2.7% | 3.8% | 6.1% | 14.3% |
|---|
| Greater China Holdings Ltd ($431) | 6.0% | 0.4% | 0.0% | 43.5% | 13.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wisdom Holdings Group ($1661) | 62.7% | 68.6% | 42.1% | 28.8% | |
| Chinney Alliance Group Ltd ($385) | 3.4% | 6.4% | 8.1% | 13.6% | |
| Hutchison Whampoa Ltd ($13) | 3.3% | 3.7% | 4.2% | 8.1% | |
| Code Agriculture Holdings Ltd ($8153) | -0.1% | 2.4% | -3.3% | 7.9% | -6.2% |
| C C Land Holdings Ltd ($1224) | 4.5% | 7.4% | 5.3% | 7.9% | |
| |
|---|
| Median (44 companies) | 0.6% | 0.1% | 0.2% | 0.8% | 0.4% |
|---|
| Greater China Holdings Ltd ($431) | -9.5% | -7.9% | -5.1% | -7.5% | 3.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chinney Investments Ltd ($216) | 111.3x | 10.3x | 63.7x | 48.6x | 93.7x |
| Carnival Group International Holdings Ltd ($996) | | | | 23.7x | |
| Van Shung Chong Holdings Ltd ($1001) | 3.4x | | 0.9x | 12.3x | 7.7x |
| Southeast Asia Properties & Finance Ltd ($252) | 6.8x | 6.7x | 5.7x | 9.2x | 4.3x |
| Code Agriculture Holdings Ltd ($8153) | 24.3x | 11.9x | 42.8x | 8.7x | |
| |
|---|
| Median (27 companies) | 3.0x | 2.5x | 3.1x | 3.0x | 4.3x |
|---|
