Futong Technology Development Holdings Ltd EBITDA dropped on 28.8% in 2015 and Revenue dropped on 17.5%
22/03/2016 • About Futong Technology Development Holdings Ltd (
$465) • By InTwits
Futong Technology Development Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 2.8% in 2015 vs. 3.2% in 2014 vs. 4.7% in 2011
- Futong Technology Development Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has potentially unprofitable business model: ROIC is at 4.6%
- It operates with high leverage: Net Debt/EBITDA is 5.0x while industry average is 1.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Futong Technology Development Holdings Ltd ($465) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,451 | 3,571 | 3,699 | 3,101 | 2,559 | -17.5% |
| Gross Profit | 252 | 259 | 287 | 289 | 233 | -19.2% |
| SG&A | | 165 | 191 | 181 | 169 | -6.8% |
| EBITDA | 116 | 106 | 107 | 100 | 71 | -28.8% |
| Net Income | 71 | 43 | 42 | 34 | 24 | -31.1% |
Balance Sheet
|
|---|
| Cash | 496 | 360 | 273 | 278 | 342 | 22.8% |
| Short Term Debt | 747 | 958 | 1,187 | 972 | 698 | -28.2% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 15 | 5 | 4 | 5 | 5 | 7.3% |
Ratios
|
|---|
| Revenue growth | -1.2% | 45.7% | 3.6% | -16.2% | -17.5% | |
| EBITDA growth | 7.4% | -8.0% | 0.0% | -6.1% | -28.8% | |
| Gross Margin | 10.3% | 7.3% | 7.8% | 9.3% | 9.1% | -0.2% |
| EBITDA Margin | 4.7% | 3.0% | 2.9% | 3.2% | 2.8% | -0.4% |
| Net Income Margin | 2.9% | 1.2% | 1.1% | 1.1% | 0.9% | -0.2% |
| SG&A, % of revenue | | 4.6% | 5.2% | 5.8% | 6.6% | 0.8% |
| CAPEX, % of revenue | 0.6% | 0.1% | 0.1% | 0.2% | 0.2% | 0.0% |
| ROIC | 9.9% | 7.0% | 6.2% | 5.7% | 4.6% | -1.1% |
| ROE | 15.5% | 8.8% | 8.2% | 6.3% | 4.2% | -2.1% |
| Net Debt/EBITDA | 2.2x | 5.6x | 8.6x | 6.9x | 5.0x | -1.9x |
Revenue and profitability
The company's Revenue dropped on 17.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.62 pp from 1.1% to 1.8% in FY2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased slightly on 0.76 pp from 5.8% to 6.6% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.20%. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 0.15%.
Return on investment
The company operates at low ROIC (4.59%) and ROE (4.23%). ROIC decreased slightly on 1.1 pp from 5.7% to 4.6% in 2015. ROE decreased on 2.1 pp from 6.3% to 4.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.0x and Debt / EBITDA is 9.8x. Net Debt / EBITDA dropped on 1.9x from 6.9x to 5.0x in 2015. Debt dropped on 28.2% in 2015 while cash surged on 22.8% in 2015.
Appendix 1: Peers in Distribution/Wholesale
Below you can find Futong Technology Development Holdings Ltd benchmarking vs. other companies in Distribution/Wholesale 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 |
|---|
| 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) | 13.8% | 2.6% | 0.0% | 1.4% | -1.3% |
|---|
| Futong Technology Development Holdings Ltd ($465) | | 45.7% | 3.6% | -16.2% | -17.5% |
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) | 16.4% | 17.5% | 18.2% | 19.3% | 22.8% |
|---|
| Futong Technology Development Holdings Ltd ($465) | 10.3% | 7.3% | 7.8% | 9.3% | 9.1% |
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% | 2.1% | 1.9% | 4.6% | 2.9% |
|---|
| Futong Technology Development Holdings Ltd ($465) | 4.7% | 3.0% | 2.9% | 3.2% | 2.8% |
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% |
|---|
| Futong Technology Development Holdings Ltd ($465) | 0.6% | 0.1% | 0.1% | 0.2% | 0.2% |
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% | 2.1% | 0.9% | 3.1% | 1.3% |
|---|
| Futong Technology Development Holdings Ltd ($465) | 9.9% | 7.0% | 6.2% | 5.7% | 4.6% |
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 (26 companies) | -0.4x | -0.3x | -0.8x | -0.1x | -0.2x |
|---|
| Futong Technology Development Holdings Ltd ($465) | 2.2x | 5.6x | 8.6x | 6.9x | 5.0x |
