Yuxing InfoTech Investment Holdings Ltd Net Income dropped on 707% in 2015 while Revenue jumped on 21.3%
20/03/2016 • About Yuxing InfoTech Investment Holdings Ltd (
$8005) • By InTwits
Yuxing InfoTech Investment Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Yuxing InfoTech Investment Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -8.6%
- The company operates at negative EBITDA Margin: -33.3%
- Yuxing InfoTech Investment 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 -9.4% for the sames years0
- Yuxing InfoTech Investment Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has unprofitable business model: ROIC is at -8.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Yuxing InfoTech Investment Holdings Ltd ($8005) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 610.1 | 791.0 | 623.1 | 520.5 | 631.5 | 21.3% |
| Gross Profit | 86.8 | 93.1 | 64.6 | 65.2 | 105.7 | 62.3% |
| SG&A | 61.9 | 86.4 | 151.4 | 80.7 | 336.8 | 317.2% |
| EBITDA | 20.5 | -3.3 | -83.3 | -23.3 | -210.1 | 803.0% |
| Net Income | 34.0 | -500.0 | 2,167.4 | 31.0 | -188.2 | -706.7% |
Balance Sheet
|
|---|
| Cash | 70.5 | 62.7 | 121.4 | 349.2 | 433.8 | 24.2% |
| Short Term Debt | 106.0 | 100.2 | 84.1 | 181.8 | 359.4 | 97.7% |
| Long Term Debt | 0.0 | 0.1 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 6.5 | 6.4 | 4.1 | 5.3 | 3.5 | -34.5% |
Ratios
|
|---|
| Revenue growth | 82.1% | 29.6% | -21.2% | -16.5% | 21.3% | |
| EBITDA growth | -349.5% | -116.3% | 2,391.6% | -72.1% | 803.0% | |
| Gross Margin | 14.2% | 11.8% | 10.4% | 12.5% | 16.7% | 4.2% |
| EBITDA Margin | 3.4% | -0.4% | -13.4% | -4.5% | -33.3% | -28.8% |
| Net Income Margin | 5.6% | -63.2% | 347.8% | 6.0% | -29.8% | -35.8% |
| SG&A, % of revenue | 10.1% | 10.9% | 24.3% | 15.5% | 53.3% | 37.8% |
| CAPEX, % of revenue | 1.1% | 0.8% | 0.7% | 1.0% | 0.6% | -0.5% |
| ROIC | 0.4% | -0.5% | -3.8% | -1.3% | -8.6% | -7.3% |
| ROE | 1.2% | -21.7% | 96.5% | 1.4% | -8.5% | -9.9% |
| Net Debt/EBITDA | 1.7x | | | | | 0.0x |
Revenue and profitability
The company's Revenue jumped on 21.3% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 28.8 pp from -4.5% to -33.3% in 2015.
Gross Margin increased on 4.2 pp from 12.5% to 16.7% in 2015. SG&A as a % of Revenue jumped on 37.8 pp from 15.5% to 53.3% in 2015.
Net Income marign dropped on 35.8 pp from 6.0% to -29.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Yuxing InfoTech Investment Holdings Ltd had CAPEX/Revenue of 0.55%. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 0.74%.
Return on investment
The company operates at negative ROIC (-8.55%) and ROE (-8.48%). ROIC decreased on 7.3 pp from -1.3% to -8.6% in 2015. ROE decreased on 9.9 pp from 1.4% to -8.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.1x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt jumped on 97.7% in 2015 while cash jumped on 24.2% in 2015.
Appendix 1: Peers in Home Furnishings
Below you can find Yuxing InfoTech Investment Holdings Ltd benchmarking vs. other companies in Home Furnishings 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 |
|---|
| Jiu Rong Holdings Ltd ($2358) | | | 136.9% | 438.7% | |
| See Corp Ltd ($491) | | 13.7% | -31.9% | 134.1% | 126.9% |
| BEP International Holdings Ltd ($2326) | | 44.7% | -41.5% | 46.2% | 187.9% |
| Aupu Group Holding Co Ltd ($477) | 2.6% | 5.7% | 9.0% | 26.4% | |
| Alco Holdings Ltd ($328) | | -10.2% | -32.6% | 22.8% | 11.8% |
| |
|---|
| Median (26 companies) | 16.5% | -0.2% | 7.8% | 3.0% | 0.9% |
|---|
| Yuxing InfoTech Investment Holdings Ltd ($8005) | | 29.6% | -21.2% | -16.5% | 21.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Aupu Group Holding Co Ltd ($477) | 47.1% | 48.6% | 45.0% | 47.8% | |
| South East Group Ltd ($726) | 36.2% | 25.5% | 51.6% | 38.8% | 82.4% |
| Grande Holdings Ltd/The ($186) | 19.9% | 23.7% | 25.4% | 29.0% | |
| Samson Holding Ltd ($531) | 24.9% | 25.6% | 25.4% | 27.3% | |
| Gold Peak Industries Holding Ltd ($40) | 26.8% | 25.8% | 23.6% | 24.9% | 25.6% |
| |
|---|
| Median (26 companies) | 16.5% | 18.9% | 18.2% | 16.7% | 14.1% |
|---|
| Yuxing InfoTech Investment Holdings Ltd ($8005) | 14.2% | 11.8% | 10.4% | 12.5% | 16.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| See Corp Ltd ($491) | -58.7% | -38.4% | -59.5% | 32.0% | -35.6% |
| Aupu Group Holding Co Ltd ($477) | 18.1% | 15.3% | 17.6% | 30.1% | |
| Welling Holding Ltd ($382) | 8.6% | 11.9% | 12.8% | 10.8% | 8.6% |
| Hing Lee HK Holdings Ltd ($396) | 9.3% | -3.0% | 4.3% | 9.4% | |
| Samson Holding Ltd ($531) | 6.2% | 7.5% | 6.6% | 9.4% | |
| |
|---|
| Median (26 companies) | 6.0% | 5.5% | 4.7% | 4.6% | 4.3% |
|---|
| Yuxing InfoTech Investment Holdings Ltd ($8005) | 3.4% | -0.4% | -13.4% | -4.5% | -33.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Royale Furniture Holdings Ltd ($1198) | 35.8% | | 14.1% | 16.5% | |
| Sunrise China Technology Group Ltd ($8226) | 7.9% | 126.4% | 69.3% | 7.4% | 14.1% |
| Aupu Group Holding Co Ltd ($477) | 1.9% | 1.5% | 6.3% | 5.3% | |
| Alco Holdings Ltd ($328) | 5.1% | 0.8% | 1.4% | 5.2% | 1.3% |
| Skyworth Digital Holdings Ltd ($751) | 2.2% | 3.0% | 2.9% | 4.9% | 2.9% |
| |
|---|
| Median (26 companies) | 1.8% | 1.5% | 2.2% | 2.8% | 2.8% |
|---|
| Yuxing InfoTech Investment Holdings Ltd ($8005) | 1.1% | 0.8% | 0.7% | 1.0% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mastercraft International Holdings Ltd ($8146) | 76.2% | 54.4% | 38.6% | 36.4% | |
| Aupu Group Holding Co Ltd ($477) | 18.0% | 14.8% | 17.0% | 32.2% | |
| Haier Electronics Group Co Ltd ($1169) | 45.3% | 37.5% | 32.8% | 20.8% | |
| Welling Holding Ltd ($382) | 29.4% | 23.5% | 24.3% | 18.7% | 10.7% |
| Tonly Electronics Holdings Ltd ($1249) | 7.0% | 4.2% | 7.1% | 15.9% | 11.7% |
| |
|---|
| Median (26 companies) | 7.0% | 4.2% | 4.7% | 4.0% | 4.1% |
|---|
| Yuxing InfoTech Investment Holdings Ltd ($8005) | 0.4% | -0.5% | -3.8% | -1.3% | -8.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kasen International Holdings Ltd ($496) | 9.6x | 2.2x | 3.7x | 44.9x | |
| Chigo Holding Ltd ($449) | 27.0x | 12.3x | 11.8x | 14.5x | |
| Gold Peak Industries Holding Ltd ($40) | 5.6x | 10.2x | 3.4x | 3.6x | 2.8x |
| Skyworth Digital Holdings Ltd ($751) | 1.1x | 1.2x | 1.5x | 1.2x | -0.2x |
| Hisense Kelon Electrical Holdings Co Ltd ($921) | 3.3x | 1.2x | 0.9x | 1.0x | |
| |
|---|
| Median (20 companies) | 0.0x | -0.3x | -0.9x | -1.3x | -2.8x |
|---|
