Leeport Holdings Ltd revenue showed almost no change in 2015 and EBITDA Margin increased on 2.7 pp from -1.9% to 0.82%
21/03/2016 • About Leeport Holdings Ltd (
$387) • By InTwits
Leeport Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Leeport Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -0.8%
- Leeport Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has unprofitable business model: ROIC is at -0.8%
- It operates with high leverage: Net Debt/EBITDA is 16.1x while industry average is 2.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Leeport Holdings Ltd ($387) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,026 | 931 | 746 | 678 | 675 | -0.5% |
| Gross Profit | 166 | 136 | 138 | 131 | 123 | -5.9% |
| SG&A | | 169 | 164 | 147 | 135 | -7.6% |
| EBITDA | 39 | -8 | -16 | -13 | 6 | -142.9% |
| Net Income | 33 | 15 | 6 | 23 | 21 | -4.9% |
Balance Sheet
|
|---|
| Cash | 53 | 42 | 52 | 59 | 45 | -22.6% |
| Short Term Debt | 175 | 226 | 222 | 144 | 134 | -7.1% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 13 | 6 | 6 | 2 | 4 | 89.8% |
Ratios
|
|---|
| Revenue growth | 6.1% | -9.3% | -19.9% | -9.0% | -0.5% | |
| EBITDA growth | -28.0% | -121.5% | 89.6% | -20.0% | -142.9% | |
| Gross Margin | 16.1% | 14.6% | 18.5% | 19.3% | 18.3% | -1.1% |
| EBITDA Margin | 3.8% | -0.9% | -2.2% | -1.9% | 0.8% | 2.7% |
| Net Income Margin | 3.2% | 1.6% | 0.9% | 3.3% | 3.2% | -0.1% |
| SG&A, % of revenue | | 18.1% | 22.0% | 21.6% | 20.1% | -1.5% |
| CAPEX, % of revenue | 1.3% | 0.6% | 0.8% | 0.3% | 0.6% | 0.3% |
| ROIC | 5.5% | -3.4% | -4.5% | -4.0% | -0.8% | 3.2% |
| ROE | 9.7% | 4.1% | 1.8% | 6.5% | 6.1% | -0.5% |
| Net Debt/EBITDA | 3.1x | | | | 16.1x | 16.1x |
Revenue and profitability
Leeport Holdings Ltd's Revenue showed almost no change in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.7 pp from -1.9% to 0.82% in 2015.
Gross Margin decreased slightly on 1.1 pp from 19.3% to 18.3% in 2015. SG&A as a % of Revenue decreased slightly on 1.5 pp from 21.6% to 20.1% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.59% in 2015. Leeport Holdings Ltd's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 0.56%.Battling declining revenue Leeport Holdings Ltd invested a large share of EBITDA (71.8%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-0.79%) and low but positive ROE (6.06%). ROIC increased on 3.2 pp from -4.0% to -0.79% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt level is 16.1x Net Debt / EBITDA and 24.3x Debt / EBITDA. Net Debt / EBITDA surged16.1x from to 16.1x in 2015. Debt decreased on 7.1% in 2015 while cash dropped on 22.6% in 2015.
Appendix 1: Peers in Distribution/Wholesale
Below we provide Leeport Holdings Ltd benchmarking against other companies in Distribution/Wholesale industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Forefront Group Ltd ($885) | | | 504.6% | 3,871.0% | 72.0% |
| China LNG Group Ltd ($931) | -84.5% | 694.8% | 13.6% | 1,341.3% | |
| Sheng Yuan Holdings Ltd ($851) | | -86.1% | 756.9% | 567.2% | -2.1% |
| China Infrastructure Investment Ltd ($600) | 346.9% | 412.1% | -50.9% | 557.9% | |
| China-Hongkong Photo Products Holdings Ltd ($1123) | | 24.9% | 9.0% | 81.2% | 12.2% |
| |
|---|
| Median (37 companies) | 7.9% | 3.1% | 2.1% | 1.4% | 0.0% |
|---|
| Leeport Holdings Ltd ($387) | | -9.3% | -19.9% | -9.0% | -0.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goldin Financial Holdings Ltd ($530) | 67.0% | 75.3% | 71.7% | 74.8% | 73.8% |
| Forefront Group Ltd ($885) | | | | 69.8% | 39.1% |
| YGM Trading Ltd ($375) | 67.1% | 66.5% | 67.4% | 64.0% | 62.5% |
| Goldlion Holdings Ltd ($533) | 57.3% | 56.4% | 54.1% | 55.7% | 60.0% |
| Sincere Watch Hong Kong Ltd ($444) | 34.2% | 35.6% | 39.7% | 38.8% | 38.3% |
| |
|---|
| Median (33 companies) | 15.8% | 17.5% | 17.1% | 18.0% | 24.8% |
|---|
| Leeport Holdings Ltd ($387) | 16.1% | 14.6% | 18.5% | 19.3% | 18.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goldin Financial Holdings Ltd ($530) | -134.6% | 163.7% | 613.4% | 285.7% | 364.1% |
| China LNG Group Ltd ($931) | 195.2% | 95.1% | 76.4% | 97.9% | |
| Forefront Group Ltd ($885) | | -2,113.8% | -803.1% | 57.7% | 4.9% |
| China Infrastructure Investment Ltd ($600) | -1,171.2% | -274.9% | 120.0% | 52.0% | |
| GA Holdings Ltd ($8126) | -4.5% | 8.0% | 19.7% | 22.9% | |
| |
|---|
| Median (37 companies) | 2.2% | 2.6% | 2.5% | 4.6% | 3.8% |
|---|
| Leeport Holdings Ltd ($387) | 3.8% | -0.9% | -2.2% | -1.9% | 0.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| C Y Foundation Group Ltd ($1182) | 9.8% | 2.5% | 5.2% | 82.2% | 9.3% |
| Inspur International Ltd ($596) | 0.9% | 8.4% | 12.2% | 33.6% | |
| SIS International Holdings ($529) | 0.2% | 13.4% | 31.8% | 14.8% | 49.8% |
| HKC International Holdings Ltd ($248) | 0.9% | 5.5% | 0.8% | 11.4% | 0.5% |
| Tan Chong International Ltd ($693) | 7.6% | 6.0% | 7.6% | 7.0% | |
| |
|---|
| Median (36 companies) | 1.5% | 1.4% | 1.8% | 1.7% | 1.2% |
|---|
| Leeport Holdings Ltd ($387) | 1.3% | 0.6% | 0.8% | 0.3% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China LNG Group Ltd ($931) | 2.2% | 8.4% | 7.4% | 87.0% | |
| Yestar International Holdings Co Ltd ($2393) | 29.4% | 28.8% | 24.1% | 26.2% | 25.4% |
| Powerwell Pacific Holdings Ltd ($8265) | 27.8% | 6.4% | 6.4% | 23.6% | 27.1% |
| Forefront Group Ltd ($885) | -37.7% | -4.9% | -11.0% | 19.5% | 1.3% |
| Sincere Watch Hong Kong Ltd ($444) | 46.4% | 51.7% | 27.7% | 14.6% | 5.5% |
| |
|---|
| Median (38 companies) | 2.2% | 2.7% | 1.7% | 3.2% | 1.9% |
|---|
| Leeport Holdings Ltd ($387) | 5.5% | -3.4% | -4.5% | -4.0% | -0.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sheng Yuan Holdings Ltd ($851) | | | | 19.3x | 15.4x |
| Takson Holdings Ltd ($918) | | | 11.5x | 11.7x | 15.7x |
| Huiyin Household Appliances Holdings Co Ltd ($1280) | 10.1x | | | 10.9x | |
| Pacific Andes International Holdings Ltd ($1174) | 4.9x | 5.1x | 9.1x | 7.8x | |
| SIS International Holdings ($529) | -62.1x | -1.8x | 7.0x | 7.2x | 16.8x |
| |
|---|
| Median (27 companies) | -0.4x | -0.2x | -0.6x | -0.0x | 0.1x |
|---|
