NewOcean Energy Holdings Ltd Debt dropped on 33.3% in 2015 and Revenue dropped on 21.0%
18/03/2016 • About NewOcean Energy Holdings Ltd (
$342) • By InTwits
NewOcean Energy Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 8.4% in 2015, 5.5% in 2014, 5.6% in 2013, 6.4% in 2012, 1.8% in 2011
- NewOcean Energy Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's a lot of higher than industry average of 19.2%.
- CAPEX is quite volatile: 51.3 in 2015, 183 in 2014, 206 in 2013, 231 in 2012, 349 in 2011
- The company has business model with average profitability: ROIC is at 10.1%
- It operates with high leverage: Net Debt/EBITDA is 2.6x while industry average is -0.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
NewOcean Energy Holdings Ltd ($342) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 10,117 | 12,456 | 14,433 | 19,633 | 15,515 | -21.0% |
| Gross Profit | 427 | 1,057 | 1,216 | 1,377 | 1,840 | 33.6% |
| SG&A | 280 | 429 | 501 | 481 | 634 | 32.0% |
| EBITDA | 180 | 795 | 803 | 1,076 | 1,300 | 20.8% |
| Net Income | 306 | 811 | 783 | 900 | 757 | -16.0% |
Balance Sheet
|
|---|
| Cash | 878 | 1,196 | 1,748 | 1,739 | 1,570 | -9.7% |
| Short Term Debt | 6,783 | 5,907 | 6,083 | 6,240 | 2,915 | -53.3% |
| Long Term Debt | 445 | 187 | 552 | 1,184 | 2,034 | 71.8% |
Cash flow
|
|---|
| Capex | 349 | 231 | 206 | 183 | 51 | -72.0% |
Ratios
|
|---|
| Revenue growth | 19.3% | 23.1% | 15.9% | 36.0% | -21.0% | |
| EBITDA growth | -12.7% | 341.2% | 1.0% | 34.0% | 20.8% | |
| Gross Margin | 4.2% | 8.5% | 8.4% | 7.0% | 11.9% | 4.8% |
| EBITDA Margin | 1.8% | 6.4% | 5.6% | 5.5% | 8.4% | 2.9% |
| Net Income Margin | 3.0% | 6.5% | 5.4% | 4.6% | 4.9% | 0.3% |
| SG&A, % of revenue | 2.8% | 3.4% | 3.5% | 2.4% | 4.1% | 1.6% |
| CAPEX, % of revenue | 3.4% | 1.9% | 1.4% | 0.9% | 0.3% | -0.6% |
| ROIC | 1.7% | 7.5% | 7.0% | 8.2% | 10.1% | 1.9% |
| ROE | 18.6% | 36.9% | 23.5% | 20.1% | 14.8% | -5.3% |
| Net Debt/EBITDA | 35.2x | 6.2x | 6.1x | 5.3x | 2.6x | -2.7x |
Revenue and profitability
NewOcean Energy Holdings Ltd's Revenue dropped on 21.0% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.9 pp from 5.5% to 8.4% in 2015.
Gross Margin increased on 4.8 pp from 7.0% to 11.9% in 2015. SG&A as a % of Revenue increased slightly on 1.6 pp from 2.4% to 4.1% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
NewOcean Energy Holdings Ltd's CAPEX/Revenue was 0.33% in 2015. The company showed small CAPEX/Revenue decline of 1.5 pp from 1.9% in 2012 to 0.33% in 2015. It's average CAPEX/Revenue for the last three years was 0.90%.
Return on investment
The company operates at good ROE (14.80%) while ROIC is low (10.10%). ROIC increased slightly on 1.9 pp from 8.2% to 10.1% in 2015. ROE decreased on 5.3 pp from 20.1% to 14.8% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.6x and Debt / EBITDA is 3.8x. Net Debt / EBITDA dropped on 2.7x from 5.3x to 2.6x in 2015. Debt dropped on 33.3% in 2015 while cash decreased on 9.7% in 2015.
Appendix 1: Peers in Retail
Below you can find NewOcean Energy Holdings Ltd benchmarking vs. other companies in Retail 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 |
|---|
| China Household Holdings Ltd ($692) | -87.0% | -32.8% | 5,357.9% | 76.2% | |
| Ming Fung Jewellery Group Ltd ($860) | | 3.3% | -14.9% | 54.3% | -70.8% |
| Merry Garden Holdings Ltd ($1237) | 53.9% | 37.1% | 12.8% | 47.6% | |
| Luk Fook Holdings International Ltd ($590) | | 47.2% | 12.6% | 43.3% | -17.1% |
| Tsui Wah Holdings Ltd ($1314) | | 27.5% | 42.2% | 35.9% | 22.2% |
| |
|---|
| Median (112 companies) | 25.6% | 10.4% | 6.0% | 3.1% | -0.8% |
|---|
| NewOcean Energy Holdings Ltd ($342) | | 23.1% | 15.9% | 36.0% | -21.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Culture Landmark Investment Ltd ($674) | 77.5% | 91.1% | 99.4% | 99.5% | |
| Modern Beauty Salon Holdings Ltd ($919) | 97.3% | 97.4% | 95.9% | 96.8% | 96.7% |
| Vongroup Ltd ($318) | | | | 95.1% | 99.1% |
| Nanjing Sinolife United Co Ltd ($3332) | 80.6% | 86.5% | 89.3% | 90.9% | |
| Embry Holdings Ltd ($1388) | 82.3% | 81.2% | 80.4% | 82.3% | |
| |
|---|
| Median (101 companies) | 40.0% | 37.7% | 38.0% | 35.6% | 42.0% |
|---|
| NewOcean Energy Holdings Ltd ($342) | 4.2% | 8.5% | 8.4% | 7.0% | 11.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Maoye International Holdings Ltd ($848) | 45.5% | 47.4% | 46.3% | 73.2% | 39.6% |
| China Dongxiang Group Co Ltd ($3818) | 5.6% | 6.0% | 5.6% | 58.3% | |
| Nanjing Sinolife United Co Ltd ($3332) | 47.8% | 51.6% | 56.9% | 54.4% | |
| Lifestyle International Holdings Ltd ($1212) | 49.6% | 47.5% | 47.0% | 44.7% | 43.4% |
| Golden Eagle Retail Group Ltd ($3308) | 52.1% | 48.5% | 47.3% | 42.8% | |
| |
|---|
| Median (111 companies) | 13.2% | 9.9% | 7.3% | 8.8% | 7.7% |
|---|
| NewOcean Energy Holdings Ltd ($342) | 1.8% | 6.4% | 5.6% | 5.5% | 8.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Intime Retail Group Co Ltd ($1833) | 58.4% | 28.3% | 55.4% | 37.0% | |
| Future Bright Holdings Ltd ($703) | 6.2% | 2.6% | 3.7% | 36.8% | 24.9% |
| Sage International Group Ltd ($8082) | 20.4% | 236.6% | 28.2% | 35.4% | |
| Maoye International Holdings Ltd ($848) | 30.9% | 32.8% | 24.1% | 31.5% | 17.7% |
| Tsui Wah Holdings Ltd ($1314) | 5.2% | 8.3% | 9.3% | 30.5% | 10.6% |
| |
|---|
| Median (112 companies) | 3.9% | 4.0% | 3.6% | 3.5% | 2.7% |
|---|
| NewOcean Energy Holdings Ltd ($342) | 3.4% | 1.9% | 1.4% | 0.9% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Modern Beauty Salon Holdings Ltd ($919) | 48.1% | 50.7% | -4.6% | 81.3% | 71.8% |
| Starbucks Corp ($4337) | 36.4% | 36.4% | -6.0% | 52.8% | 51.4% |
| Sa Sa International Holdings Ltd ($178) | 45.7% | 53.5% | 52.7% | 49.0% | 39.8% |
| Coach Inc ($6388) | 82.0% | 82.3% | 68.7% | 45.0% | 20.8% |
| Nanjing Sinolife United Co Ltd ($3332) | 57.4% | 67.3% | 68.1% | 32.2% | |
| |
|---|
| Median (112 companies) | 17.2% | 12.3% | 8.4% | 8.4% | 6.0% |
|---|
| NewOcean Energy Holdings Ltd ($342) | 1.7% | 7.5% | 7.0% | 8.2% | 10.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sparkle Roll Group Ltd ($970) | -0.8x | 0.6x | 4.0x | 9.3x | 23.5x |
| China Yongda Automobiles Services Holdings Ltd ($3669) | 3.3x | 3.4x | 4.7x | 5.5x | |
| Zhongsheng Group Holdings Ltd ($881) | 2.2x | 4.6x | 4.5x | 5.3x | |
| Century Ginwa Retail Holdings Ltd ($162) | 6.5x | 2.0x | 2.5x | 4.8x | 7.3x |
| China ZhengTong Auto Services Holdings Ltd ($1728) | 6.5x | 3.9x | 3.7x | 4.7x | |
| |
|---|
| Median (87 companies) | -0.8x | -0.5x | -0.8x | -0.2x | -0.5x |
|---|
| NewOcean Energy Holdings Ltd ($342) | 35.2x | 6.2x | 6.1x | 5.3x | 2.6x |
