Sinolink Worldwide Holdings Ltd Net Income dropped on 1,576% in 2015 and EBITDA Margin dropped on 13.1 pp from 28.8% to 15.8%
17/03/2016 • About Sinolink Worldwide Holdings Ltd (
$1168) • By InTwits
Sinolink Worldwide Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sinolink Worldwide Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -0.2%
- Sinolink Worldwide Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.4%. At the same time it's in pair with industry average of 18.2%.
- CAPEX is quite volatile: 42.6 in 2015, 27.2 in 2014, 119 in 2013, 61.3 in 2012, 76.1 in 2011
- The company has unprofitable business model: ROIC is at -0.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sinolink Worldwide Holdings Ltd ($1168) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 349.2 | 314.6 | 348.8 | 301.4 | 336.0 | 11.5% |
| Gross Profit | 194.6 | 156.4 | 206.1 | 160.9 | 144.5 | -10.2% |
| SG&A | 99.3 | 83.4 | 94.2 | 107.7 | 162.0 | 50.5% |
| EBITDA | 99.7 | 81.8 | 147.1 | 86.9 | 52.9 | -39.1% |
| Net Income | 375.2 | 289.2 | -75.4 | 27.7 | -409.5 | -1,575.8% |
Balance Sheet
|
|---|
| Cash | 4,312.4 | 4,002.2 | 4,154.8 | 3,721.4 | 2,745.6 | -26.2% |
| Short Term Debt | 187.1 | 25.4 | 39.4 | 40.1 | 35.9 | -10.5% |
| Long Term Debt | 221.9 | 270.3 | 240.6 | 199.4 | 96.5 | -51.6% |
Cash flow
|
|---|
| Capex | 76.1 | 61.3 | 119.5 | 27.2 | 42.6 | 56.2% |
Ratios
|
|---|
| Revenue growth | -72.7% | -9.9% | 10.9% | -13.6% | 11.5% | |
| EBITDA growth | -79.7% | -18.0% | 79.9% | -40.9% | -39.1% | |
| Gross Margin | 55.7% | 49.7% | 59.1% | 53.4% | 43.0% | -10.4% |
| EBITDA Margin | 28.6% | 26.0% | 42.2% | 28.8% | 15.8% | -13.1% |
| Net Income Margin | 107.4% | 91.9% | -21.6% | 9.2% | -121.9% | -131.1% |
| SG&A, % of revenue | 28.4% | 26.5% | 27.0% | 35.7% | 48.2% | 12.5% |
| CAPEX, % of revenue | 21.8% | 19.5% | 34.2% | 9.0% | 12.7% | 3.6% |
| ROIC | 0.9% | 0.7% | 1.4% | 0.6% | -0.2% | -0.8% |
| ROE | 5.4% | 3.9% | -1.0% | 0.4% | -5.7% | -6.0% |
| Net Debt/EBITDA | -39.1x | -45.3x | -26.3x | -40.1x | -49.4x | -9.3x |
Revenue and profitability
The company's Revenue surged on 11.5% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 13.9 pp from 31.9% to 45.8% in 2015.
Gross Margin dropped on 10.4 pp from 53.4% to 43.0% in 2015. SG&A as a % of Revenue surged on 12.5 pp from 35.7% to 48.2% in 2015.
Net Income marign dropped on 131 pp from 9.2% to -122% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 12.7%. CAPEX/Revenue decreased on 6.8 pp from 19.5% in 2012 to 12.7% in 2015. It's average level of CAPEX/Revenue for the last three years was 18.7%.The company invested a big chunk of EBITDA (80.4%) to CAPEX to secure its growth.
Return on investment
The company operates at negative ROIC (-0.24%) and ROE (-5.67%). ROIC decreased slightly on 0.79 pp from 0.56% to -0.24% in 2015. ROE decreased on 6.0 pp from 0.37% to -5.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -49.4x and Debt / EBITDA is 2.5x. Net Debt / EBITDA dropped on 9.3x from -40.1x to -49.4x in 2015. Debt dropped on 44.8% in 2015 while cash dropped on 26.2% in 2015.
Appendix 1: Peers in Real Estate
Below you can find Sinolink Worldwide 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) | 12.2% | 15.8% | 13.1% | 5.2% | 4.2% |
|---|
| Sinolink Worldwide Holdings Ltd ($1168) | | -9.9% | 10.9% | -13.6% | 11.5% |
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% | 99.9% |
| 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% | 48.3% |
|---|
| Sinolink Worldwide Holdings Ltd ($1168) | 55.7% | 49.7% | 59.1% | 53.4% | 43.0% |
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% | 397.4% |
| 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) | 35.3% | 29.1% | 28.0% | 26.4% | 31.1% |
|---|
| Sinolink Worldwide Holdings Ltd ($1168) | 28.6% | 26.0% | 42.2% | 28.8% | 15.8% |
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% | 190.4% |
| 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) | 5.8% | 5.4% | 6.1% | 4.6% | 6.8% |
|---|
| Sinolink Worldwide Holdings Ltd ($1168) | 21.8% | 19.5% | 34.2% | 9.0% | 12.7% |
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% | 4.1% | 3.9% | 3.9% | 3.0% |
|---|
| Sinolink Worldwide Holdings Ltd ($1168) | 0.9% | 0.7% | 1.4% | 0.6% | -0.2% |
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 | 2.4x | 2.8x | 3.0x | 2.7x |
|---|
| Sinolink Worldwide Holdings Ltd ($1168) | -39.1x | -45.3x | -26.3x | -40.1x | -49.4x |
