North Asia Resources Holdings Ltd CAPEX dropped on 62.7% in 2015 and Revenue dropped on 39.8%
21/03/2016 • About North Asia Resources Holdings Ltd (
$61) • By InTwits
North Asia Resources Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- North Asia Resources Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -3.8%
- The company operates at negative EBITDA Margin: -255.2%
- North Asia Resources 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 -106.1% for the sames years0
- North Asia Resources Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 84.2%. At the same time it's a lot of higher than industry average of 9.1%.
- CAPEX is quite volatile: 70.4 in 2015, 189 in 2014, 122 in 2013, 3.9 in 2012, 25.2 in 2011
- The company has unprofitable business model: ROIC is at -3.8%
- It operates with high leverage: Net Debt/EBITDA is -0.6x while industry average is -3.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
North Asia Resources Holdings Ltd ($61) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 73.5 | 86.1 | 129.7 | 106.2 | 63.9 | -39.8% |
| Gross Profit | 11.5 | 18.7 | 22.5 | 49.6 | 17.2 | -65.4% |
| SG&A | | 59.6 | 204.6 | 233.4 | 228.2 | -2.2% |
| EBITDA | -49.8 | -25.3 | -150.3 | -99.0 | -163.1 | 64.7% |
| Net Income | -865.3 | -113.7 | -3,948.0 | -452.5 | -2,373.3 | 424.5% |
Balance Sheet
|
|---|
| Cash | 33.6 | 13.3 | 88.9 | 40.6 | 34.5 | -15.2% |
| Short Term Debt | 250.8 | 293.9 | 37.8 | 57.8 | 223.7 | 287.4% |
| Long Term Debt | 0.0 | 0.0 | 2,962.1 | 2,866.0 | 1,173.5 | -59.1% |
Cash flow
|
|---|
| Capex | 25.2 | 3.9 | 122.2 | 188.9 | 70.4 | -62.7% |
Ratios
|
|---|
| Revenue growth | 130.2% | 17.2% | 50.6% | -18.1% | -39.8% | |
| EBITDA growth | -14.9% | -49.1% | 492.8% | -34.1% | 64.7% | |
| Gross Margin | 15.6% | 21.7% | 17.3% | 46.7% | 26.9% | -19.8% |
| EBITDA Margin | -67.8% | -29.4% | -115.8% | -93.2% | -255.2% | -162.0% |
| Net Income Margin | -1,177.3% | -132.0% | -3,043.0% | -425.9% | -3,712.7% | -3,286.8% |
| SG&A, % of revenue | | 69.2% | 157.7% | 219.6% | 356.9% | 137.3% |
| CAPEX, % of revenue | 34.3% | 4.6% | 94.2% | 177.8% | 110.2% | -67.6% |
| ROIC | -4.8% | -6.1% | -4.5% | -2.2% | -3.8% | -1.7% |
| ROE | -111.9% | -39.9% | | | | 0.0% |
Revenue and profitability
The company's Revenue dropped on 39.8% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 162 pp from -93.2% to -255% in 2015.
Gross Margin dropped on 19.8 pp from 46.7% to 26.9% in 2015. SG&A as a % of Revenue surged on 137 pp from 220% to 357% in 2015.
Net Income marign dropped on 3,287 pp from -426% to -3,713% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 North Asia Resources Holdings Ltd had CAPEX/Revenue of 110%. North Asia Resources Holdings Ltd's CAPEX/Revenue surged on 106 pp from 4.6% in 2012 to 110% in 2015. Average CAPEX/Revenue for the last three years was 127%.
Leverage (Debt)
Debt level is -0.6x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt dropped on 52.2% in 2015 while cash dropped on 15.2% in 2015.
Appendix 1: Peers in Computers
Below you can find North Asia Resources Holdings Ltd benchmarking vs. other companies in Computers 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 |
|---|
| Peking University Resources Holdings Co Ltd ($618) | 16.2% | -49.6% | 11.2% | 106.0% | |
| Alibaba Health Information Technology Ltd ($241) | | 29.4% | -96.7% | 73.0% | 35.3% |
| Thiz Technology Group Ltd ($8119) | | -4.1% | -95.1% | 72.2% | 31.9% |
| Universal Technologies Holdings Ltd ($1026) | 95.5% | -47.3% | 49.8% | 67.1% | |
| PAX Global Technology Ltd ($327) | | 19.0% | 12.1% | 61.2% | 21.0% |
| |
|---|
| Median (24 companies) | 10.7% | 3.8% | -1.8% | 11.0% | 6.6% |
|---|
| North Asia Resources Holdings Ltd ($61) | | 17.2% | 50.6% | -18.1% | -39.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Universal Technologies Holdings Ltd ($1026) | 86.0% | 87.3% | 79.7% | 90.3% | |
| Thiz Technology Group Ltd ($8119) | 2.9% | 8.8% | 63.8% | 86.2% | 96.0% |
| Computer & Technologies Holdings Ltd ($46) | 27.4% | 45.3% | 54.0% | 52.1% | 54.2% |
| CCID Consulting Co Ltd ($8235) | 46.5% | 43.7% | 49.1% | 51.8% | |
| Alibaba Health Information Technology Ltd ($241) | 10.1% | 11.4% | -12.6% | 49.3% | 53.7% |
| |
|---|
| Median (22 companies) | 11.0% | 12.7% | 16.0% | 15.4% | 21.3% |
|---|
| North Asia Resources Holdings Ltd ($61) | 15.6% | 21.7% | 17.3% | 46.7% | 26.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Computer & Technologies Holdings Ltd ($46) | 4.8% | 12.9% | 19.9% | 20.1% | 23.2% |
| Ju Teng International Holdings Ltd ($3336) | 9.5% | 15.1% | 19.9% | 19.3% | 23.8% |
| PAX Global Technology Ltd ($327) | 18.9% | 16.5% | 17.4% | 18.8% | 22.7% |
| CCID Consulting Co Ltd ($8235) | 19.0% | 10.6% | 10.8% | 12.3% | |
| Universal Technologies Holdings Ltd ($1026) | 29.5% | 12.8% | 1.5% | 9.9% | |
| |
|---|
| Median (24 companies) | 3.0% | 3.2% | 2.7% | 1.8% | 7.7% |
|---|
| North Asia Resources Holdings Ltd ($61) | -67.8% | -29.4% | -115.8% | -93.2% | -255.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Beautiful China Holdings Co Ltd ($706) | 44.9% | 8.4% | 2.2% | 26.2% | |
| Ju Teng International Holdings Ltd ($3336) | 17.6% | 14.1% | 18.7% | 20.0% | 17.3% |
| Alibaba Health Information Technology Ltd ($241) | 2.1% | 4.4% | 46.3% | 17.2% | 11.7% |
| Universal Technologies Holdings Ltd ($1026) | 8.5% | 20.0% | 5.7% | 14.2% | |
| Powerleader Science & Technology Group Ltd ($8236) | 0.8% | 1.4% | 3.4% | 11.0% | |
| |
|---|
| Median (24 companies) | 1.3% | 1.0% | 1.3% | 1.6% | 1.4% |
|---|
| North Asia Resources Holdings Ltd ($61) | 34.3% | 4.6% | 94.2% | 177.8% | 110.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lenovo Group Ltd ($992) | 18.9% | 26.2% | 30.5% | 34.7% | 24.5% |
| PAX Global Technology Ltd ($327) | 14.1% | 12.3% | 12.8% | 18.7% | 22.4% |
| CCID Consulting Co Ltd ($8235) | 20.6% | 11.3% | 10.7% | 10.2% | |
| TPV Technology Ltd ($903) | 6.4% | 7.7% | 1.8% | 10.1% | 12.0% |
| Computer & Technologies Holdings Ltd ($46) | 4.1% | 6.0% | 8.6% | 9.4% | 10.8% |
| |
|---|
| Median (25 companies) | 3.9% | 2.1% | 1.4% | -0.1% | 8.9% |
|---|
| North Asia Resources Holdings Ltd ($61) | -4.8% | -6.1% | -4.5% | -2.2% | -3.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| EVOC Intelligent Technology Co Ltd ($2308) | 6.4x | 0.5x | 5.8x | 5.7x | |
| Powerleader Science & Technology Group Ltd ($8236) | 2.0x | 2.7x | 3.6x | 4.6x | |
| Ju Teng International Holdings Ltd ($3336) | 2.5x | 2.1x | 1.8x | 1.7x | 1.6x |
| Wong's International Hldgs ($99) | -1.8x | -3.5x | 2.7x | 1.4x | |
| TPV Technology Ltd ($903) | 0.5x | -0.2x | 0.6x | -0.0x | 0.3x |
| |
|---|
| Median (13 companies) | -1.7x | -2.3x | -1.8x | -3.9x | 0.2x |
|---|
