21 Holdings Ltd revenue growth decelerated from 106% in 2014 to 31.0% in 2015
23/03/2016 • About 21 Holdings Ltd (
$1003) • By InTwits
21 Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- 21 Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -12.4%
- The company operates at negative EBITDA Margin: -31.1%
- 21 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 -16.1% for the sames years0
- 21 Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has unprofitable business model: ROIC is at -12.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
21 Holdings Ltd ($1003) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 264.6 | 112.7 | 98.8 | 203.8 | 266.9 | 31.0% |
| Gross Profit | 29.3 | 32.4 | 26.2 | 30.1 | 47.6 | 58.3% |
| SG&A | | 40.3 | 49.3 | 38.9 | 48.3 | 24.0% |
| EBITDA | -21.9 | -15.3 | -24.0 | -8.3 | -83.1 | 906.6% |
| Net Income | -189.5 | -56.5 | 35.6 | -13.1 | -92.8 | 606.0% |
Balance Sheet
|
|---|
| Cash | 84.7 | 108.1 | 120.2 | 231.9 | 726.6 | 213.3% |
| Short Term Debt | 0.2 | 0.1 | 0.0 | 6.0 | 0.0 | -100.0% |
| Long Term Debt | 0.1 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 2.0 | 0.4 | 0.0 | 0.0 | 1.7 | 21,325.0% |
Ratios
|
|---|
| Revenue growth | 20.3% | -57.4% | -12.4% | 106.4% | 31.0% | |
| EBITDA growth | 42.7% | -29.8% | 56.6% | -65.6% | 906.6% | |
| Gross Margin | 11.1% | 28.8% | 26.6% | 14.8% | 17.8% | 3.1% |
| EBITDA Margin | -8.3% | -13.6% | -24.3% | -4.1% | -31.1% | -27.1% |
| Net Income Margin | -71.6% | -50.1% | 36.1% | -6.4% | -34.8% | -28.3% |
| SG&A, % of revenue | | 35.8% | 49.9% | 19.1% | 18.1% | -1.0% |
| CAPEX, % of revenue | 0.8% | 0.4% | 0.0% | 0.0% | 0.6% | 0.6% |
| ROIC | -22.6% | -16.6% | -18.0% | -3.2% | -12.4% | -9.1% |
| ROE | -142.4% | -30.1% | 19.4% | -4.8% | -14.0% | -9.2% |
Revenue and profitability
The company's Revenue jumped on 31.0% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.4 pp from 16.2% to 9.8% in 2015.
Gross Margin increased on 3.1 pp from 14.8% to 17.8% in 2015. SG&A as a % of Revenue decreased slightly on 1.0 pp from 19.1% to 18.1% in 2015.
Net Income marign dropped on 28.3 pp from -6.4% to -34.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
21 Holdings Ltd's CAPEX/Revenue was 0.64% in 2015. 21 Holdings Ltd's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 0.22%.
Return on investment
The company operates at negative ROIC (-12.36%) and ROE (-13.99%). ROIC decreased on 9.1 pp from -3.2% to -12.4% in 2015. ROE decreased on 9.2 pp from -4.8% to -14.0% in 2015.
Leverage (Debt)
The company paid down all the debt in 2015. Cash jumped on 213% in 2015.
Appendix 1: Peers in Holding Companies-Divers
Below you can find 21 Holdings Ltd benchmarking vs. other companies in Holding Companies-Divers 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 |
|---|
| 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% | |
| Lippo Ltd ($226) | | 26.8% | 724.4% | 90.4% | -55.8% |
| |
|---|
| Median (42 companies) | 11.6% | 12.2% | 4.9% | 12.6% | 6.6% |
|---|
| 21 Holdings Ltd ($1003) | | -57.4% | -12.4% | 106.4% | 31.0% |
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% |
| Century Legend Holdings Ltd ($79) | 68.5% | 70.1% | 72.3% | 71.0% | 70.3% |
| |
|---|
| Median (39 companies) | 29.5% | 33.4% | 36.0% | 34.4% | 37.6% |
|---|
| 21 Holdings Ltd ($1003) | 11.1% | 28.8% | 26.6% | 14.8% | 17.8% |
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% | 6.3% |
|---|
| 21 Holdings Ltd ($1003) | -8.3% | -13.6% | -24.3% | -4.1% | -31.1% |
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% | 222.5% |
| 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) | 4.9% | 2.7% | 3.8% | 7.0% | 12.3% |
|---|
| 21 Holdings Ltd ($1003) | 0.8% | 0.4% | 0.0% | 0.0% | 0.6% |
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% | 15.0% |
| |
|---|
| Median (44 companies) | 0.6% | 0.1% | 0.2% | 0.8% | 0.3% |
|---|
| 21 Holdings Ltd ($1003) | -22.6% | -16.6% | -18.0% | -3.2% | -12.4% |
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 | 3.1x |
|---|
