Sino Splendid Holdings Ltd reports 238% Net Income growth and 1.6 pp EBITDA Margin growth from -6.1% to -4.6%
18/03/2016 • About Sino Splendid Holdings Ltd (
$8006) • By InTwits
Sino Splendid Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sino Splendid Holdings Ltd is a company in decline: 2015 revenue growth was -2.9%, 5 years revenue CAGR was -5.6%
- The company operates at negative EBITDA Margin: -4.6%
- Sino Splendid Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -20.0% for the sames years0
- Sino Splendid Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's a lot of higher than industry average of 6.0%.
- CAPEX is quite volatile: 0.98 in 2015, 1.2 in 2014, 0.54 in 2013, 54.6 in 2012, 0.76 in 2011
- The company has unprofitable business model: ROIC is at -1.7%
- It operates with high leverage: Net Debt/EBITDA is -6.1x while industry average is -34.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sino Splendid Holdings Ltd ($8006) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 127.1 | 91.5 | 93.3 | 81.6 | 79.2 | -2.9% |
| Gross Profit | 70.0 | 47.3 | 48.0 | 42.3 | 42.6 | 0.8% |
| SG&A | | 68.3 | 48.7 | 51.7 | 52.0 | 0.6% |
| EBITDA | -6.6 | -13.0 | -66.2 | -5.0 | -3.6 | -27.8% |
| Net Income | 6.9 | 20.4 | 102.6 | 3.3 | 11.2 | 237.5% |
Balance Sheet
|
|---|
| Cash | 253.1 | 286.5 | 373.5 | 187.5 | 136.9 | -27.0% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 1.6 | 0.6 | 1.5 | 1.3 | 1.7 | 25.3% |
Ratios
|
|---|
| Revenue growth | 20.4% | -28.0% | 2.0% | -12.6% | -2.9% | |
| EBITDA growth | 447.0% | 98.5% | 408.3% | -92.5% | -27.8% | |
| Gross Margin | 55.1% | 51.7% | 51.4% | 51.9% | 53.9% | 2.0% |
| EBITDA Margin | -5.2% | -14.2% | -70.9% | -6.1% | -4.6% | 1.6% |
| Net Income Margin | 5.4% | 22.3% | 109.9% | 4.1% | 14.2% | 10.1% |
| SG&A, % of revenue | | 74.6% | 52.2% | 63.4% | 65.7% | 2.3% |
| CAPEX, % of revenue | 1.3% | 0.7% | 1.6% | 1.6% | 2.1% | 0.5% |
| ROIC | -2.6% | -4.2% | -16.8% | -1.5% | -1.7% | -0.1% |
| ROE | 2.2% | 6.2% | 26.1% | 1.0% | 4.4% | 3.4% |
Revenue and profitability
Sino Splendid Holdings Ltd's Revenue decreased on 2.9% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.6 pp from -6.1% to -4.6% in 2015.
Gross Margin increased slightly on 2.0 pp from 51.9% to 53.9% in 2015. SG&A as a % of Revenue increased on 2.3 pp from 63.4% to 65.7% in 2015.
Net Income marign surged on 10.1 pp from 4.1% to 14.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
Sino Splendid Holdings Ltd's CAPEX/Revenue was 2.1% in 2015. The company's CAPEX/Revenue increased slightly on 1.4 pp from 0.69% in 2012 to 2.1% in 2015. Average CAPEX/Revenue for the last three years was 1.8%.
Return on investment
The company operates at negative ROIC (-1.67%) and low but positive ROE (4.39%). ROIC showed almost no change in 2015. ROE increased on 3.4 pp from 0.95% to 4.4% in 2015.
Leverage (Debt)
The company has no debt. Cash dropped on 27.0% in 2015.
Appendix 1: Peers in Leisure Time
Below you can find Sino Splendid Holdings Ltd benchmarking vs. other companies in Leisure Time 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 |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | | 11.9% | 15.3% | 19.5% | 18.9% |
| Water Oasis Group Ltd ($1161) | | -16.3% | -23.7% | 8.0% | 1.9% |
| Perfect Shape PRC Holdings Ltd ($1830) | | 23.4% | 16.2% | 6.1% | 55.0% |
| Genting Hong Kong Ltd ($678) | | 5.3% | 6.6% | 2.9% | 20.9% |
| Vietnam Manufacturing & Export Processing Holdings Ltd ($422) | 9.5% | -24.4% | -15.5% | 2.8% | |
| |
|---|
| Median (9 companies) | -0.4% | 7.2% | -6.6% | 2.8% | 18.9% |
|---|
| Sino Splendid Holdings Ltd ($8006) | | -28.0% | 2.0% | -12.6% | -2.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Travel International Investment Hong Kong Ltd ($308) | 48.2% | 46.1% | 47.8% | 46.0% | |
| China Jiuhao Health Industry Corp Ltd ($419) | 15.5% | 57.0% | 13.5% | 23.4% | 44.9% |
| Sino Golf Holdings Ltd ($361) | 15.7% | 11.7% | 17.4% | 18.1% | |
| Vietnam Manufacturing & Export Processing Holdings Ltd ($422) | 17.5% | 10.9% | 7.8% | 6.7% | |
| Success Universe Group Ltd ($487) | 4.9% | 5.4% | 2.1% | 6.3% | |
| |
|---|
| Median (5 companies) | 16.6% | 28.9% | 15.5% | 18.1% | 67.8% |
|---|
| Sino Splendid Holdings Ltd ($8006) | 55.1% | 51.7% | 51.4% | 51.9% | 53.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Travel International Investment Hong Kong Ltd ($308) | 25.6% | 28.2% | 29.1% | 48.5% | |
| Perfect Shape PRC Holdings Ltd ($1830) | 26.3% | 27.5% | 29.1% | 26.5% | 29.8% |
| Travel Expert Asia Enterprises Ltd ($1235) | 20.1% | 17.4% | 16.2% | 18.3% | 15.0% |
| Water Oasis Group Ltd ($1161) | 11.3% | 6.5% | 4.7% | 11.4% | 13.1% |
| Genting Hong Kong Ltd ($678) | 24.2% | 23.1% | 8.5% | 8.6% | 0.9% |
| |
|---|
| Median (9 companies) | 11.3% | 17.4% | 8.5% | 8.6% | 13.1% |
|---|
| Sino Splendid Holdings Ltd ($8006) | -5.2% | -14.2% | -70.9% | -6.1% | -4.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Jiuhao Health Industry Corp Ltd ($419) | 4.2% | 2.1% | 31.8% | 67.3% | 43.3% |
| Genting Hong Kong Ltd ($678) | 7.3% | 16.6% | 25.4% | 33.0% | 58.1% |
| China Travel International Investment Hong Kong Ltd ($308) | 14.6% | 13.4% | 28.3% | 29.9% | |
| Perfect Shape PRC Holdings Ltd ($1830) | 7.9% | 6.1% | 8.9% | 7.7% | 24.8% |
| Sino Golf Holdings Ltd ($361) | 1.8% | 3.0% | 2.8% | 3.2% | |
| |
|---|
| Median (9 companies) | 4.1% | 3.7% | 8.9% | 3.2% | 24.8% |
|---|
| Sino Splendid Holdings Ltd ($8006) | 1.3% | 0.7% | 1.6% | 1.6% | 2.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | 140.4% | 62.8% | 44.1% | 37.7% | 44.1% |
| Travel Expert Asia Enterprises Ltd ($1235) | 179.4% | 50.9% | 26.7% | 29.8% | 23.0% |
| Water Oasis Group Ltd ($1161) | 21.6% | 5.3% | 1.7% | 15.7% | 19.2% |
| China Travel International Investment Hong Kong Ltd ($308) | 4.6% | 5.6% | 5.0% | 9.6% | |
| Sino Golf Holdings Ltd ($361) | -0.5% | -1.9% | 6.8% | 3.8% | |
| |
|---|
| Median (9 companies) | 4.6% | 2.0% | 1.7% | 3.8% | 19.2% |
|---|
| Sino Splendid Holdings Ltd ($8006) | -2.6% | -4.2% | -16.8% | -1.5% | -1.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino Golf Holdings Ltd ($361) | 7.3x | 10.0x | 1.9x | 3.0x | |
| China Travel International Investment Hong Kong Ltd ($308) | -2.4x | -1.7x | -1.1x | -1.1x | |
| Perfect Shape PRC Holdings Ltd ($1830) | -0.9x | -2.0x | -0.8x | -1.4x | -1.8x |
| Travel Expert Asia Enterprises Ltd ($1235) | -2.3x | -1.3x | -1.2x | -1.7x | -0.3x |
| Water Oasis Group Ltd ($1161) | -2.2x | -3.2x | -5.1x | -2.8x | -2.6x |
| |
|---|
| Median (6 companies) | -2.3x | -1.3x | -1.2x | -1.6x | -2.2x |
|---|
