Vodatel Networks Holdings Ltd Net Income dropped on 75.6% in 2015 and EBITDA Margin decreased on 2.9 pp from 5.1% to 2.2%
18/03/2016 • About Vodatel Networks Holdings Ltd (
$8033) • By InTwits
Vodatel Networks Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vodatel Networks Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has potentially unprofitable business model: ROIC is at 2.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Vodatel Networks Holdings Ltd ($8033) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 289.5 | 272.4 | 259.8 | 472.0 | 350.3 | -25.8% |
| Gross Profit | 72.9 | 73.2 | 82.3 | 128.0 | 107.0 | -16.4% |
| SG&A | | 82.8 | 89.2 | 107.6 | 101.7 | -5.5% |
| EBITDA | -8.4 | -12.7 | -8.5 | 24.1 | 7.6 | -68.5% |
| Net Income | 26.7 | 29.3 | -3.9 | 29.7 | 7.3 | -75.6% |
Balance Sheet
|
|---|
| Cash | 98.8 | 78.3 | 96.9 | 79.3 | 77.5 | -2.3% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 3.9 | 0.0 | -100.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.8 | 1.1 | 1.5 | 1.1 | 1.4 | 19.1% |
Ratios
|
|---|
| Revenue growth | 34.4% | -5.9% | -4.6% | 81.7% | -25.8% | |
| EBITDA growth | -132.9% | 50.6% | -33.3% | -384.0% | -68.5% | |
| Gross Margin | 25.2% | 26.9% | 31.7% | 27.1% | 30.5% | 3.4% |
| EBITDA Margin | -2.9% | -4.7% | -3.3% | 5.1% | 2.2% | -2.9% |
| Net Income Margin | 9.2% | 10.7% | -1.5% | 6.3% | 2.1% | -4.2% |
| SG&A, % of revenue | | 30.4% | 34.3% | 22.8% | 29.0% | 6.2% |
| CAPEX, % of revenue | 0.3% | 0.4% | 0.6% | 0.2% | 0.4% | 0.1% |
| ROIC | -3.9% | -4.1% | -2.8% | 7.5% | 2.2% | -5.3% |
| ROE | 14.1% | 11.6% | -1.4% | 10.7% | 2.7% | -8.0% |
| Net Debt/EBITDA | | | | -3.1x | -10.2x | -7.1x |
Revenue and profitability
Vodatel Networks Holdings Ltd's Revenue dropped on 25.8% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 2.9 pp from 5.1% to 2.2% in 2015.
Gross Margin increased on 3.4 pp from 27.1% to 30.5% in 2015. SG&A as a % of Revenue increased on 6.2 pp from 22.8% to 29.0% in 2015.
Net Income marign decreased on 4.2 pp from 6.3% to 2.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.39%. Vodatel Networks Holdings Ltd showed almost no change in CAPEX/Revenue from 2012 to 2015. For the last three years the average CAPEX/Revenue was 0.40%.
Return on investment
The company operates at low ROIC (2.21%) and ROE (2.68%). ROIC decreased on 5.3 pp from 7.5% to 2.2% in 2015. ROE decreased on 8.0 pp from 10.7% to 2.7% in 2015.
Leverage (Debt)
The company paid down all the debt in 2015. Cash decreased on 2.3% in 2015.
Appendix 1: Peers in Telecommunications
Below you can find Vodatel Networks Holdings Ltd benchmarking vs. other companies in Telecommunications 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 Energine International Holdings Ltd ($1185) | -41.8% | 143.6% | 34.3% | 103.1% | |
| MOBI Development Co Ltd ($947) | -23.4% | -13.8% | 29.1% | 85.6% | |
| Gold Tat Group International Ltd ($8266) | | 29.4% | 1,582.2% | 77.0% | 26.5% |
| Great World Co Holdings Ltd ($8003) | | 1,651.8% | -81.7% | 61.9% | -3.7% |
| TCL Communication Technology Holdings Ltd ($2618) | 22.4% | 12.9% | 60.9% | 58.5% | |
| |
|---|
| Median (53 companies) | 14.3% | 9.1% | 8.3% | 6.9% | 8.5% |
|---|
| Vodatel Networks Holdings Ltd ($8033) | | -5.9% | -4.6% | 81.7% | -25.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HKBN Ltd ($1310) | | | 84.3% | 86.5% | 86.9% |
| Synertone Communication Corp ($1613) | 65.4% | 68.1% | 64.1% | 70.5% | 50.3% |
| Zhi Cheng Holdings Ltd ($8130) | 61.6% | 45.9% | 41.0% | 64.0% | 19.6% |
| APT Satellite Holdings Ltd ($1045) | 52.3% | 58.7% | 64.1% | 62.5% | |
| Hong Kong Television Network Ltd ($1137) | | -59.6% | -101.3% | 59.7% | |
| |
|---|
| Median (47 companies) | 28.1% | 22.1% | 25.8% | 26.1% | 36.2% |
|---|
| Vodatel Networks Holdings Ltd ($8033) | 25.2% | 26.9% | 31.7% | 27.1% | 30.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 83.5% | 86.5% | 85.8% | 81.6% | 82.4% |
| APT Satellite Holdings Ltd ($1045) | 76.7% | 81.0% | 78.9% | 77.5% | |
| Synertone Communication Corp ($1613) | 49.5% | 44.9% | 48.5% | 49.4% | 51.5% |
| HKBN Ltd ($1310) | | | 39.2% | 40.1% | 39.0% |
| PCCW Ltd ($8) | 31.4% | 32.0% | 31.9% | 39.2% | 30.6% |
| |
|---|
| Median (53 companies) | 14.0% | 9.5% | 6.7% | 7.9% | 14.2% |
|---|
| Vodatel Networks Holdings Ltd ($8033) | -2.9% | -4.7% | -3.3% | 5.1% | 2.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hong Kong Television Network Ltd ($1137) | | 12,435.9% | 504.9% | 1,283.5% | |
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 61.8% | 93.8% | 71.7% | 75.0% | 52.8% |
| Hanny Holdings Ltd ($275) | 80.8% | 19.8% | 11.6% | 28.3% | 0.2% |
| APT Satellite Holdings Ltd ($1045) | 155.2% | 74.3% | 2.5% | 27.2% | |
| China Electronics Corp Holdings Co Ltd ($85) | 1.5% | 1.8% | 8.3% | 27.1% | |
| |
|---|
| Median (52 companies) | 3.0% | 2.5% | 3.7% | 4.1% | 2.8% |
|---|
| Vodatel Networks Holdings Ltd ($8033) | 0.3% | 0.4% | 0.6% | 0.2% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| VTech Holdings Ltd ($303) | 40.5% | 37.6% | 39.5% | 40.0% | 39.8% |
| Telecom Service One Holdings Ltd ($8145) | | 95.0% | 5.4% | 26.7% | 39.8% |
| TCL Communication Technology Holdings Ltd ($2618) | 6.4% | -1.6% | 6.0% | 17.2% | |
| China Fiber Optic Network System Group Ltd ($3777) | 23.1% | 18.8% | 17.6% | 16.6% | |
| China U-Ton Holdings Ltd ($6168) | 69.5% | 35.7% | 25.0% | 16.2% | |
| |
|---|
| Median (53 companies) | 7.4% | 6.3% | 5.8% | 5.8% | 7.1% |
|---|
| Vodatel Networks Holdings Ltd ($8033) | -3.9% | -4.1% | -2.8% | 7.5% | 2.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CCT Land Holdings Ltd ($261) | | 10.1x | 23.8x | 48.4x | |
| China Energine International Holdings Ltd ($1185) | | | | 13.3x | |
| China Electronics Corp Holdings Co Ltd ($85) | -2.1x | -2.0x | -1.3x | 12.5x | |
| China All Access Holdings Ltd ($633) | -1.0x | 0.9x | 1.8x | 5.2x | |
| Synertone Communication Corp ($1613) | -0.3x | -0.4x | -2.2x | 4.8x | 2.5x |
| |
|---|
| Median (38 companies) | -0.2x | -0.2x | 0.6x | 0.7x | 0.7x |
|---|
| Vodatel Networks Holdings Ltd ($8033) | | | | -3.1x | -10.2x |
