MOBI Development Co Ltd reports 8.1% Net Income decline and 3.8% Revenue decline
22/03/2016 • About MOBI Development Co Ltd (
$947) • By InTwits
MOBI Development Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 10.6% in 2015, 10.1% in 2014, 6.1% in 2013, -3.0% in 2012, 9.8% in 2011
- MOBI Development Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.2%. At the same time it's a lot of higher than industry average of 5.9%.
- CAPEX is quite volatile: 54.2 in 2015, 105 in 2014, 80.9 in 2013, 43.0 in 2012, 46.3 in 2011
- The company has business model with low profitability: ROIC is at 7.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
MOBI Development Co Ltd ($947) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 798 | 688 | 888 | 1,648 | 1,586 | -3.8% |
| Gross Profit | 212 | 116 | 194 | 376 | 375 | -0.3% |
| SG&A | | 124 | 134 | 182 | 190 | 4.3% |
| EBITDA | 78 | -21 | 54 | 167 | 168 | 0.7% |
| Net Income | 42 | -39 | 19 | 98 | 90 | -8.1% |
Balance Sheet
|
|---|
| Cash | 300 | 264 | 230 | 213 | 259 | 21.9% |
| Short Term Debt | 170 | 143 | 285 | 544 | 168 | -69.1% |
| Long Term Debt | 0 | 0 | 0 | 0 | 70 | |
Cash flow
|
|---|
| Capex | 46 | 43 | 81 | 105 | 54 | -48.5% |
Ratios
|
|---|
| Revenue growth | -23.4% | -13.8% | 29.1% | 85.6% | -3.8% | |
| EBITDA growth | -40.8% | -126.3% | -363.5% | 208.6% | 0.7% | |
| Gross Margin | 26.6% | 16.8% | 21.8% | 22.8% | 23.6% | 0.8% |
| EBITDA Margin | 9.8% | -3.0% | 6.1% | 10.1% | 10.6% | 0.5% |
| Net Income Margin | 5.3% | -5.7% | 2.1% | 5.9% | 5.7% | -0.3% |
| SG&A, % of revenue | | 18.0% | 15.1% | 11.0% | 12.0% | 0.9% |
| CAPEX, % of revenue | 5.8% | 6.3% | 9.1% | 6.4% | 3.4% | -3.0% |
| ROIC | 4.4% | -4.0% | 1.5% | 8.1% | 7.4% | -0.7% |
| ROE | 4.0% | -3.8% | 1.9% | 9.0% | 7.7% | -1.3% |
| Net Debt/EBITDA | -1.7x | | 1.0x | 2.0x | -0.1x | -2.1x |
Revenue and profitability
MOBI Development Co Ltd's Revenue decreased on 3.8% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 10.0 pp from 15.2% to 5.2% in 2015.
Gross Margin increased slightly on 0.82 pp from 22.8% to 23.6% in 2015. SG&A as a % of Revenue increased slightly on 0.93 pp from 11.0% to 12.0% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 MOBI Development Co Ltd had CAPEX/Revenue of 3.4%. The company's CAPEX/Revenue decreased on 2.8 pp from 6.3% in 2012 to 3.4% in 2015. It's average CAPEX/Revenue for the last three years was 6.3%.
Return on investment
The company operates at low ROIC (7.40%) and ROE (7.70%). ROIC decreased slightly on 0.67 pp from 8.1% to 7.4% in 2015. ROE decreased slightly on 1.3 pp from 9.0% to 7.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.1x and Debt / EBITDA is 1.4x. Net Debt / EBITDA dropped on 2.1x from 2.0x to -0.1x in 2015. Debt dropped on 56.3% in 2015 while cash surged on 21.9% in 2015.
Appendix 1: Peers in Telecommunications
Below we provide MOBI Development Co Ltd benchmarking against other companies in Telecommunications 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 |
|---|
| China Energine International Holdings Ltd ($1185) | -41.8% | 143.6% | 34.3% | 103.1% | |
| Vodatel Networks Holdings Ltd ($8033) | | -5.9% | -4.6% | 81.7% | -25.8% |
| Gold Tat Group International Ltd ($8266) | | 29.4% | 1,582.2% | 77.0% | 26.5% |
| Great World Co Holdings Ltd ($8003) | | 1,651.8% | -81.7% | 61.9% | -3.7% |
| TCL Communication Technology Holdings Ltd ($2618) | 22.4% | 12.9% | 60.9% | 58.5% | |
| |
|---|
| Median (53 companies) | 16.4% | 9.1% | 8.1% | 6.9% | 4.3% |
|---|
| MOBI Development Co Ltd ($947) | | -13.8% | 29.1% | 85.6% | -3.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HKBN Ltd ($1310) | | | 84.3% | 86.5% | 86.9% |
| Synertone Communication Corp ($1613) | 65.4% | 68.1% | 64.1% | 70.5% | 50.3% |
| Zhi Cheng Holdings Ltd ($8130) | 61.6% | 45.9% | 41.0% | 64.0% | 19.6% |
| APT Satellite Holdings Ltd ($1045) | 52.3% | 58.7% | 64.1% | 62.5% | 61.0% |
| Hong Kong Television Network Ltd ($1137) | | -59.6% | -101.3% | 59.7% | |
| |
|---|
| Median (47 companies) | 28.1% | 25.5% | 28.1% | 27.1% | 31.5% |
|---|
| MOBI Development Co Ltd ($947) | 26.6% | 16.8% | 21.8% | 22.8% | 23.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 83.5% | 86.5% | 85.8% | 81.6% | 82.4% |
| APT Satellite Holdings Ltd ($1045) | 76.7% | 81.0% | 78.9% | 77.5% | 78.8% |
| Synertone Communication Corp ($1613) | 49.5% | 44.9% | 48.5% | 49.4% | 51.5% |
| HKBN Ltd ($1310) | | | 39.2% | 40.1% | 39.0% |
| PCCW Ltd ($8) | 31.4% | 32.0% | 31.9% | 39.2% | 30.6% |
| |
|---|
| Median (53 companies) | 14.0% | 9.5% | 6.7% | 7.5% | 12.6% |
|---|
| MOBI Development Co Ltd ($947) | 9.8% | -3.0% | 6.1% | 10.1% | 10.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hong Kong Television Network Ltd ($1137) | | 12,435.9% | 504.9% | 1,283.5% | |
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 61.8% | 93.8% | 71.7% | 75.0% | 52.8% |
| Hanny Holdings Ltd ($275) | 80.8% | 19.8% | 11.6% | 28.3% | 0.2% |
| APT Satellite Holdings Ltd ($1045) | 155.2% | 74.3% | 2.5% | 27.2% | 115.8% |
| China Electronics Corp Holdings Co Ltd ($85) | 1.5% | 1.8% | 8.3% | 27.1% | |
| |
|---|
| Median (52 companies) | 3.0% | 2.3% | 3.6% | 3.4% | 2.5% |
|---|
| MOBI Development Co Ltd ($947) | 5.8% | 6.3% | 9.1% | 6.4% | 3.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| VTech Holdings Ltd ($303) | 40.5% | 37.6% | 39.5% | 40.0% | 39.8% |
| Telecom Service One Holdings Ltd ($8145) | | 95.0% | 5.4% | 26.7% | 39.8% |
| TCL Communication Technology Holdings Ltd ($2618) | 6.4% | -1.6% | 6.0% | 17.2% | |
| China Fiber Optic Network System Group Ltd ($3777) | 23.1% | 18.8% | 17.6% | 16.6% | |
| China U-Ton Holdings Ltd ($6168) | 69.5% | 35.7% | 25.0% | 16.2% | |
| |
|---|
| Median (53 companies) | 7.4% | 6.3% | 5.8% | 5.8% | 6.2% |
|---|
| MOBI Development Co Ltd ($947) | 4.4% | -4.0% | 1.5% | 8.1% | 7.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CCT Land Holdings Ltd ($261) | | 10.1x | 23.8x | 48.4x | |
| China Energine International Holdings Ltd ($1185) | | | | 13.3x | |
| China Electronics Corp Holdings Co Ltd ($85) | -2.1x | -2.0x | -1.3x | 12.5x | |
| China All Access Holdings Ltd ($633) | -1.0x | 0.9x | 1.8x | 5.2x | |
| Synertone Communication Corp ($1613) | -0.3x | -0.4x | -2.2x | 4.8x | 2.5x |
| |
|---|
| Median (38 companies) | -0.2x | -0.2x | 0.6x | 0.4x | 0.2x |
|---|
| MOBI Development Co Ltd ($947) | -1.7x | | 1.0x | 2.0x | -0.1x |
