Sino-Life Group Ltd CAPEX dropped on 15.0% in 2015 and Revenue dropped on 11.5%
22/03/2016 • About Sino-Life Group Ltd (
$8296) • By InTwits
Sino-Life Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sino-Life Group Ltd doesn't have a profitable business model yet: 2015 ROIC is -4.8%
- The company operates at negative EBITDA Margin: -5.4%
- Sino-Life Group Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -14.8%0
- Sino-Life Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 14.5%. At the same time it's a lot of higher than industry average of 8.9%.
- CAPEX is quite volatile: 3.5 in 2015, 4.1 in 2014, 14.8 in 2013, 14.2 in 2012, 10.6 in 2011
- The company has unprofitable business model: ROIC is at -4.8%
- It operates with high leverage: Net Debt/EBITDA is -14.1x while industry average is -21.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sino-Life Group Ltd ($8296) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 72.521 | 61.767 | 63.106 | 69.648 | 61.633 | -11.5% |
| Gross Profit | 45.564 | 46.288 | 47.131 | 36.779 | 35.246 | -4.2% |
| SG&A | 69.813 | 69.219 | 61.476 | 43.962 | 41.292 | -6.1% |
| EBITDA | -19.038 | -17.429 | -8.113 | -0.745 | -3.331 | 347.1% |
| Net Income | -30.079 | -29.487 | -16.175 | -11.142 | -9.402 | -15.6% |
Balance Sheet
|
|---|
| Cash | 194.171 | 159.729 | 122.820 | 109.086 | 98.712 | -9.5% |
| Short Term Debt | 0.797 | 10.912 | 0.708 | 0.594 | 0.614 | 3.4% |
| Long Term Debt | 10.063 | 9.560 | 8.309 | 7.460 | 6.952 | -6.8% |
Cash flow
|
|---|
| Capex | 10.562 | 14.153 | 14.846 | 4.103 | 3.487 | -15.0% |
Ratios
|
|---|
| Revenue growth | 7.3% | -14.8% | 2.2% | 10.4% | -11.5% | |
| EBITDA growth | -806.9% | -8.5% | -53.5% | -90.8% | 347.1% | |
| Gross Margin | 62.8% | 74.9% | 74.7% | 52.8% | 57.2% | 4.4% |
| EBITDA Margin | -26.3% | -28.2% | -12.9% | -1.1% | -5.4% | -4.3% |
| Net Income Margin | -41.5% | -47.7% | -25.6% | -16.0% | -15.3% | 0.7% |
| SG&A, % of revenue | 96.3% | 112.1% | 97.4% | 63.1% | 67.0% | 3.9% |
| CAPEX, % of revenue | 14.6% | 22.9% | 23.5% | 5.9% | 5.7% | -0.2% |
| ROIC | -8.6% | -9.1% | -6.6% | -3.2% | -4.8% | -1.7% |
| ROE | -11.9% | -13.4% | -8.3% | -6.2% | -5.6% | 0.6% |
Revenue and profitability
The company's Revenue dropped on 11.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 38.0 pp from -70.9% to -33.0% in 2015.
Gross Margin increased on 4.4 pp from 52.8% to 57.2% in 2015. SG&A as a % of Revenue increased on 3.9 pp from 63.1% to 67.0% in 2015.
Net Income marign increased slightly on 0.74 pp from -16.0% to -15.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 5.7% in 2015. The company's CAPEX/Revenue dropped on 17.3 pp from 22.9% in 2012 to 5.7% in 2015. Average CAPEX/Revenue for the last three years was 11.7%.
Return on investment
The company operates at negative ROIC (-4.84%) and ROE (-5.61%). ROIC decreased slightly on 1.7 pp from -3.2% to -4.8% in 2015. ROE increased slightly on 0.63 pp from -6.2% to -5.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -14.1x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt decreased on 6.1% in 2015 while cash decreased on 9.5% in 2015.
Appendix 1: Peers in Commercial Services
Below you can find Sino-Life Group Ltd benchmarking vs. other companies in Commercial Services 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 |
|---|
| Global Energy Resources International Group Ltd ($8192) | 429.3% | -61.9% | -27.8% | 2,912.9% | |
| Dingyi Group Investment Ltd ($508) | | 8.8% | -95.9% | 1,361.2% | -32.6% |
| China Smartpay Group Holdings Ltd ($8325) | | 60.0% | 274.7% | 75.6% | 124.5% |
| Goldpac Group Ltd ($3315) | | 52.3% | 64.4% | 36.8% | 10.8% |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | | 21.3% | 4.5% | 33.5% | 14.2% |
| |
|---|
| Median (60 companies) | 25.5% | 8.9% | 4.7% | 8.0% | 5.8% |
|---|
| Sino-Life Group Ltd ($8296) | | -14.8% | 2.2% | 10.4% | -11.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HC International Inc ($2280) | 84.7% | 87.5% | 91.9% | 92.5% | |
| Fu Shou Yuan International Group Ltd ($1448) | 81.6% | 80.5% | 80.4% | 80.0% | 77.6% |
| China Communication Telecom Services Co Ltd ($8206) | -56.6% | 61.6% | 58.6% | 69.1% | 70.2% |
| Dingyi Group Investment Ltd ($508) | 76.5% | 75.8% | | 64.5% | 86.0% |
| Yuexiu Transport Infrastructure Ltd ($1052) | 67.1% | 66.2% | 66.8% | 62.8% | 65.2% |
| |
|---|
| Median (56 companies) | 32.9% | 31.0% | 29.2% | 30.8% | 28.7% |
|---|
| Sino-Life Group Ltd ($8296) | 62.8% | 74.9% | 74.7% | 52.8% | 57.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shenzhen International Holdings Ltd ($152) | 69.3% | 60.2% | 65.8% | 97.1% | 73.6% |
| Shenzhen Expressway Co Ltd ($548) | 80.4% | 74.3% | 79.4% | 76.6% | 53.0% |
| Yuexiu Transport Infrastructure Ltd ($1052) | 74.3% | 78.3% | 74.5% | 74.0% | 71.6% |
| Anhui Expressway Co Ltd ($995) | 62.7% | 56.9% | 54.1% | 60.4% | |
| Dragon Crown Group Holdings Ltd ($935) | 57.8% | 67.3% | 62.9% | 60.2% | |
| |
|---|
| Median (60 companies) | 17.1% | 16.9% | 14.2% | 11.1% | 8.1% |
|---|
| Sino-Life Group Ltd ($8296) | -26.3% | -28.2% | -12.9% | -1.1% | -5.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 16.8% | 3.9% | 7.0% | 59.8% | |
| COSCO Pacific Ltd ($1199) | 111.3% | 96.6% | 66.6% | 43.3% | |
| Finet Group Ltd ($8317) | 3.9% | 10.3% | 9.1% | 26.0% | 8.4% |
| HC International Inc ($2280) | 15.1% | 8.5% | 28.7% | 24.7% | |
| Dragon Crown Group Holdings Ltd ($935) | 2.5% | 37.2% | 52.0% | 23.0% | |
| |
|---|
| Median (59 companies) | 3.8% | 3.2% | 4.0% | 4.0% | 2.7% |
|---|
| Sino-Life Group Ltd ($8296) | 14.6% | 22.9% | 23.5% | 5.9% | 5.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mega Expo Holdings Ltd ($1360) | | 270.5% | 481.1% | 54.4% | 10.1% |
| China Packaging Holdings Development Ltd ($1439) | 50.0% | 52.0% | 46.6% | 34.1% | |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 136.8% | 51.5% | 26.6% | 30.0% | 29.5% |
| PPS International Holdings Ltd ($8201) | | 101.6% | 35.6% | 23.8% | -13.7% |
| 1010 Printing Group Ltd ($1127) | 14.4% | 13.5% | 20.8% | 17.8% | 19.9% |
| |
|---|
| Median (60 companies) | 5.2% | 6.0% | 5.2% | 4.2% | 5.8% |
|---|
| Sino-Life Group Ltd ($8296) | -8.6% | -9.1% | -6.6% | -3.2% | -4.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dalian Port PDA Co Ltd ($2880) | 5.7x | 5.7x | 4.8x | 4.7x | |
| Sichuan Expressway Co Ltd ($107) | 1.8x | 2.7x | 3.8x | 4.3x | |
| Anxian Yuan China Holdings Ltd ($922) | | | 4.6x | 3.8x | 0.8x |
| Eagle Legend Asia Ltd ($936) | 4.3x | 4.0x | 4.0x | 3.3x | 6.2x |
| Yuexiu Transport Infrastructure Ltd ($1052) | 2.9x | 4.5x | 3.1x | 2.7x | 5.3x |
| |
|---|
| Median (40 companies) | -0.1x | -0.0x | -0.7x | -0.7x | -0.6x |
|---|
