Century Legend Holdings Ltd Net Income dropped on 232% in 2015 while Revenue increased on 6.1%
22/03/2016 • About Century Legend Holdings Ltd (
$79) • By InTwits
Century Legend Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Century Legend Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -5.5%
- The company operates at negative EBITDA Margin: -101.1%
- Century Legend 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 -55.4% for the sames years0
- Century Legend Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.2%. At the same time it's a lot of higher than industry average of 6.1%.
- CAPEX is quite volatile: 0.12 in 2015, 0.18 in 2014, 1.1 in 2013, 0.13 in 2012, 15.4 in 2011
- The company has unprofitable business model: ROIC is at -5.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Century Legend Holdings Ltd ($79) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 27.456 | 28.647 | 30.721 | 32.115 | 34.065 | 6.1% |
| Gross Profit | 18.813 | 20.069 | 22.221 | 22.805 | 23.962 | 5.1% |
| SG&A | | | | 41.120 | 49.935 | 21.4% |
| EBITDA | -9.406 | -9.721 | -8.990 | -22.243 | -34.450 | 54.9% |
| Net Income | 9.567 | 11.209 | 16.398 | 14.489 | -19.132 | -232.0% |
Balance Sheet
|
|---|
| Cash | 106.612 | 86.730 | 126.825 | 157.262 | 131.977 | -16.1% |
| Short Term Debt | 55.441 | 51.396 | 222.486 | 249.602 | 247.554 | -0.8% |
| Long Term Debt | 5.861 | 5.622 | 0.211 | 0.090 | 0.338 | 275.6% |
Cash flow
|
|---|
| Capex | 15.403 | 0.125 | 1.074 | 0.176 | 0.115 | -34.7% |
Ratios
|
|---|
| Revenue growth | -0.9% | 4.3% | 7.2% | 4.5% | 6.1% | |
| EBITDA growth | 31.4% | 3.3% | -7.5% | 147.4% | 54.9% | |
| Gross Margin | 68.5% | 70.1% | 72.3% | 71.0% | 70.3% | -0.7% |
| EBITDA Margin | -34.3% | -33.9% | -29.3% | -69.3% | -101.1% | -31.9% |
| Net Income Margin | 34.8% | 39.1% | 53.4% | 45.1% | -56.2% | -101.3% |
| SG&A, % of revenue | | | | 128.0% | 146.6% | 18.5% |
| CAPEX, % of revenue | 56.1% | 0.4% | 3.5% | 0.5% | 0.3% | -0.2% |
| ROIC | -2.5% | -2.5% | -2.0% | -3.7% | -5.5% | -1.8% |
| ROE | 2.8% | 3.2% | 4.4% | 3.7% | -4.9% | -8.7% |
Revenue and profitability
The company's Revenue increased on 6.1% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 34.1 pp from -574% to -540% in 2015.
Gross Margin decreased slightly on 0.67 pp from 71.0% to 70.3% in 2015. SG&A as a % of Revenue jumped on 18.5 pp from 128% to 147% in 2015.
Net Income marign dropped on 101 pp from 45.1% to -56.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.34%. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 1.5%.
Return on investment
The company operates at negative ROIC (-5.51%) and ROE (-4.95%). ROIC decreased slightly on 1.8 pp from -3.7% to -5.5% in 2015. ROE decreased on 8.7 pp from 3.7% to -4.9% in 2015.
Leverage (Debt)
Debt level is -5.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt decreased slightly on 0.72% in 2015 while cash dropped on 16.1% in 2015.
Appendix 1: Peers in Holding Companies-Divers
Below we provide Century Legend Holdings Ltd benchmarking against other companies in Holding Companies-Divers 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 |
|---|
| Kong Sun Holdings Ltd ($295) | -18.7% | -88.3% | 5.1% | 7,067.0% | |
| Goldin Properties Holdings Ltd ($283) | | | 126.0% | 2,065.8% | -79.6% |
| China Primary Energy Holdings Ltd ($8117) | -43.1% | -56.3% | -23.6% | 195.4% | |
| Carnival Group International Holdings Ltd ($996) | | | | 159.1% | |
| 21 Holdings Ltd ($1003) | 20.3% | -57.4% | -12.4% | 106.4% | |
| |
|---|
| Median (42 companies) | 14.4% | 12.2% | 3.3% | 15.7% | 0.5% |
|---|
| Century Legend Holdings Ltd ($79) | | 4.3% | 7.2% | 4.5% | 6.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Multifield International Holdings Ltd ($898) | 66.4% | 87.5% | 84.7% | 89.1% | |
| New Century Group Hong Kong Ltd ($234) | 76.7% | 27.3% | 85.2% | 82.8% | 91.5% |
| Emperor International Holdings Ltd ($163) | 74.5% | 71.3% | 64.9% | 79.2% | 75.3% |
| China Renji Medical Group Ltd/Hong Kong ($648) | 54.9% | 70.0% | 67.3% | 78.6% | 22.3% |
| Orient Victory China Holdings Ltd ($265) | 68.5% | 69.4% | 61.6% | 67.4% | |
| |
|---|
| Median (39 companies) | 27.9% | 32.9% | 34.6% | 30.8% | 37.6% |
|---|
| Century Legend Holdings Ltd ($79) | 68.5% | 70.1% | 72.3% | 71.0% | 70.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Emperor International Holdings Ltd ($163) | 224.8% | 180.7% | 131.8% | 100.6% | 73.9% |
| Multifield International Holdings Ltd ($898) | 49.8% | 80.1% | 68.3% | 97.5% | |
| New Century Group Hong Kong Ltd ($234) | 82.5% | -5.5% | 78.8% | 58.3% | 85.0% |
| Magnificent Estates ($201) | 42.1% | 45.5% | 47.8% | 53.0% | 40.6% |
| China Merchants Holdings International Co Ltd ($144) | 63.7% | 56.4% | 50.8% | 45.2% | |
| |
|---|
| Median (44 companies) | 6.3% | 2.8% | 2.8% | 7.4% | 7.8% |
|---|
| Century Legend Holdings Ltd ($79) | -34.3% | -33.9% | -29.3% | -69.3% | -101.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Far East Holdings International Ltd ($36) | 2.7% | 0.1% | 13.2% | 422.1% | 0.8% |
| China Investments Holdings Ltd ($132) | 20.7% | 4.8% | 81.9% | 382.2% | |
| Heng Fai Enterprises Ltd ($185) | 217.5% | 4.8% | 77.1% | 310.0% | 458.1% |
| New Century Group Hong Kong Ltd ($234) | 1.0% | 97.2% | 1.0% | 142.7% | 32.2% |
| Chinney Investments Ltd ($216) | 37.6% | 17.5% | 103.4% | 111.3% | 230.9% |
| |
|---|
| Median (44 companies) | 4.1% | 2.7% | 3.8% | 7.0% | 13.0% |
|---|
| Century Legend Holdings Ltd ($79) | 56.1% | 0.4% | 3.5% | 0.5% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wisdom Holdings Group ($1661) | 62.7% | 68.6% | 42.1% | 28.8% | |
| Chinney Alliance Group Ltd ($385) | 3.4% | 6.4% | 8.1% | 13.6% | |
| Hutchison Whampoa Ltd ($13) | 3.3% | 3.7% | 4.2% | 8.1% | |
| Code Agriculture Holdings Ltd ($8153) | -0.1% | 2.4% | -3.3% | 7.9% | -6.2% |
| C C Land Holdings Ltd ($1224) | 4.5% | 7.4% | 5.3% | 7.9% | |
| |
|---|
| Median (44 companies) | 0.6% | 0.1% | 0.2% | 0.8% | 0.3% |
|---|
| Century Legend Holdings Ltd ($79) | -2.5% | -2.5% | -2.0% | -3.7% | -5.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chinney Investments Ltd ($216) | 111.3x | 10.3x | 63.7x | 48.6x | 93.7x |
| Carnival Group International Holdings Ltd ($996) | | | | 23.7x | |
| Van Shung Chong Holdings Ltd ($1001) | 3.4x | | 0.9x | 12.3x | 7.7x |
| Southeast Asia Properties & Finance Ltd ($252) | 6.8x | 6.7x | 5.7x | 9.2x | 4.3x |
| Code Agriculture Holdings Ltd ($8153) | 24.3x | 11.9x | 42.8x | 8.7x | |
| |
|---|
| Median (27 companies) | 3.0x | 2.5x | 3.1x | 3.0x | 3.7x |
|---|
