Zheda Lande Scitech Ltd revenue surged on 34.3% in 2015 and EBITDA Margin increased on 4.2 pp from -19.4% to -15.2%
22/03/2016 • About Zheda Lande Scitech Ltd (
$8106) • By InTwits
Zheda Lande Scitech Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Zheda Lande Scitech Ltd doesn't have a profitable business model yet: 2015 ROIC is -10.8%
- The company operates at negative EBITDA Margin: -15.2%
- Zheda Lande Scitech Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -3.3% for the sames years0
- Zheda Lande Scitech Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's in pair with industry average of 4.0%.
- CAPEX is quite volatile: 0.14 in 2015, 0.53 in 2014, 0.47 in 2013, 1.4 in 2012, 1.7 in 2011
- The company has unprofitable business model: ROIC is at -10.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Zheda Lande Scitech Ltd ($8106) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 62.918 | 57.421 | 61.410 | 48.130 | 64.654 | 34.3% |
| Gross Profit | 23.151 | 30.003 | 31.255 | 18.216 | 14.222 | -21.9% |
| SG&A | 27.919 | 26.535 | 22.904 | 19.855 | 25.609 | 29.0% |
| EBITDA | -1.159 | 9.877 | 0.717 | -9.353 | -9.853 | 5.3% |
| Net Income | -3.582 | 8.327 | -0.758 | -11.237 | -9.381 | -16.5% |
Balance Sheet
|
|---|
| Cash | 25.005 | 14.774 | 16.082 | 27.869 | 104.586 | 275.3% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 1.690 | 1.428 | 0.472 | 0.529 | 0.136 | -74.3% |
Ratios
|
|---|
| Revenue growth | -55.5% | -8.7% | 6.9% | -21.6% | 34.3% | |
| EBITDA growth | -421.9% | -952.2% | -92.7% | -1,404.5% | 5.3% | |
| Gross Margin | 36.8% | 52.3% | 50.9% | 37.8% | 22.0% | -15.9% |
| EBITDA Margin | -1.8% | 17.2% | 1.2% | -19.4% | -15.2% | 4.2% |
| Net Income Margin | -5.7% | 14.5% | -1.2% | -23.3% | -14.5% | 8.8% |
| SG&A, % of revenue | 44.4% | 46.2% | 37.3% | 41.3% | 39.6% | -1.6% |
| CAPEX, % of revenue | 2.7% | 2.5% | 0.8% | 1.1% | 0.2% | -0.9% |
| ROIC | -3.2% | 9.2% | -0.7% | -11.8% | -10.8% | 1.0% |
| ROE | -4.6% | 10.4% | -0.9% | -14.5% | -10.8% | 3.7% |
| Net Debt/EBITDA | | -1.5x | -22.4x | | | 0.0x |
Revenue and profitability
Zheda Lande Scitech Ltd's Revenue surged on 34.3% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.2 pp from -19.4% to -15.2% in 2015.
Gross Margin dropped on 15.9 pp from 37.8% to 22.0% in 2015. SG&A as a % of Revenue decreased slightly on 1.6 pp from 41.3% to 39.6% in 2015.
Net Income marign increased on 8.8 pp from -23.3% to -14.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Zheda Lande Scitech Ltd had CAPEX/Revenue of 0.21%. CAPEX/Revenue decreased on 2.3 pp from 2.5% in 2012 to 0.21% in 2015. Average CAPEX/Revenue for the last three years was 0.69%.
Return on investment
The company operates at negative ROIC (-10.80%) and ROE (-10.76%). ROIC increased slightly on 1.0 pp from -11.8% to -10.8% in 2015. ROE increased on 3.7 pp from -14.5% to -10.8% in 2015.
Leverage (Debt)
The company has no debt. Cash surged on 275% in 2015.
Appendix 1: Peers in Telecommunications
Below we provide Zheda Lande Scitech 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% | |
| MOBI Development Co Ltd ($947) | | -13.8% | 29.1% | 85.6% | -3.8% |
| 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% |
| |
|---|
| Median (53 companies) | 16.4% | 9.1% | 8.3% | 7.5% | 3.5% |
|---|
| Zheda Lande Scitech Ltd ($8106) | | -8.7% | 6.9% | -21.6% | 34.3% |
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) | 28.0% | 22.1% | 25.8% | 26.1% | 31.5% |
|---|
| Zheda Lande Scitech Ltd ($8106) | 36.8% | 52.3% | 50.9% | 37.8% | 22.0% |
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% | 8.3% | 6.7% | 7.9% | 12.6% |
|---|
| Zheda Lande Scitech Ltd ($8106) | -1.8% | 17.2% | 1.2% | -19.4% | -15.2% |
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% | 3.7% | 4.1% | 3.0% |
|---|
| Zheda Lande Scitech Ltd ($8106) | 2.7% | 2.5% | 0.8% | 1.1% | 0.2% |
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% | 6.0% | 5.8% | 6.6% | 7.2% |
|---|
| Zheda Lande Scitech Ltd ($8106) | -3.2% | 9.2% | -0.7% | -11.8% | -10.8% |
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 (39 companies) | -0.2x | -0.2x | 0.6x | 0.4x | 0.1x |
|---|
