Blue Sky Power Holdings Ltd reports 262% CAPEX growth and 6.3% Revenue growth
23/03/2016 • About Blue Sky Power Holdings Ltd (
$6828) • By InTwits
Blue Sky Power Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Blue Sky Power Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -6.1%
- The company operates at negative EBITDA Margin: -27.5%
- Blue Sky Power Holdings 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 -8.7%0
- Blue Sky Power Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 20.6%. At the same time it's a lot of higher than industry average of 9.7%.
- CAPEX is quite volatile: 101 in 2015, 27.9 in 2014, 13.9 in 2013, 40.8 in 2012, 29.7 in 2011
- The company has unprofitable business model: ROIC is at -6.1%
- It operates with high leverage: Net Debt/EBITDA is -2.0x while industry average is -20.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Blue Sky Power Holdings Ltd ($6828) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 257.9 | 191.9 | 154.5 | 200.4 | 213.1 | 6.3% |
| Gross Profit | 56.2 | 29.5 | 19.5 | 24.8 | 2.7 | -89.0% |
| SG&A | | 36.4 | 35.4 | 70.3 | 111.1 | 57.9% |
| EBITDA | 28.1 | 0.7 | -7.3 | -51.4 | -58.6 | 13.9% |
| Net Income | 1.1 | -14.7 | -58.6 | -70.8 | 17.2 | -124.2% |
Balance Sheet
|
|---|
| Cash | 46.3 | 17.5 | 30.3 | 18.6 | 102.7 | 452.0% |
| Short Term Debt | 65.3 | 35.5 | 23.6 | 24.1 | 100.2 | 316.5% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 24.7 | 319.0 | 1,192.2% |
Cash flow
|
|---|
| Capex | 29.7 | 40.8 | 13.9 | 27.9 | 101.0 | 262.0% |
Ratios
|
|---|
| Revenue growth | 27.9% | -25.6% | -19.5% | 29.7% | 6.3% | |
| EBITDA growth | -31.4% | -97.7% | -1,208.9% | 609.1% | 13.9% | |
| Gross Margin | 21.8% | 15.4% | 12.6% | 12.4% | 1.3% | -11.1% |
| EBITDA Margin | 10.9% | 0.3% | -4.7% | -25.7% | -27.5% | -1.8% |
| Net Income Margin | 0.4% | -7.7% | -37.9% | -35.3% | 8.1% | 43.4% |
| SG&A, % of revenue | | 19.0% | 22.9% | 35.1% | 52.1% | 17.0% |
| CAPEX, % of revenue | 11.5% | 21.3% | 9.0% | 13.9% | 47.4% | 33.5% |
| ROIC | 5.9% | -4.3% | -8.0% | -10.5% | -6.1% | 4.3% |
| ROE | 0.6% | -6.9% | -28.5% | -13.5% | 1.4% | 15.0% |
| Net Debt/EBITDA | 0.7x | 27.4x | | | | 0.0x |
Revenue and profitability
The company's Revenue increased on 6.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.6 pp from -9.1% to -7.5% in FY2015.
Gross Margin dropped on 11.1 pp from 12.4% to 1.3% in 2015. SG&A as a % of Revenue surged on 17.0 pp from 35.1% to 52.1% in 2015.
Net Income marign jumped on 43.4 pp from -35.3% to 8.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 47.4%. Blue Sky Power Holdings Ltd showed fast CAPEX/Revenue growth of 26.1 pp from 21.3% in 2012 to 47.4% in 2015. It's average level of CAPEX/Revenue for the last three years was 23.4%.
Return on investment
The company operates at negative ROIC (-6.13%) and low but positive ROE (1.44%). ROIC increased on 4.3 pp from -10.5% to -6.1% in 2015. ROE surged on 15.0 pp from -13.5% to 1.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.0x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt surged on 760% in 2015 while cash surged on 452% in 2015.
Appendix 1: Peers in Commercial Services
Below you can find Blue Sky Power Holdings 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) | | -61.9% | -27.8% | 2,912.9% | 19.7% |
| Dingyi Group Investment Ltd ($508) | | 8.8% | -95.9% | 1,361.2% | -32.6% |
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | | | 34.6% | 86.9% | 37.2% |
| 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% |
| |
|---|
| Median (61 companies) | 23.2% | 8.9% | 4.8% | 8.9% | 6.7% |
|---|
| Blue Sky Power Holdings Ltd ($6828) | | -25.6% | -19.5% | 29.7% | 6.3% |
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) | 33.0% | 31.5% | 30.5% | 30.9% | 30.1% |
|---|
| Blue Sky Power Holdings Ltd ($6828) | 21.8% | 15.4% | 12.6% | 12.4% | 1.3% |
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% |
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | | 61.6% | 84.9% | 75.9% | 80.9% |
| 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% | |
| |
|---|
| Median (61 companies) | 17.1% | 17.6% | 14.9% | 11.2% | 8.1% |
|---|
| Blue Sky Power Holdings Ltd ($6828) | 10.9% | 0.3% | -4.7% | -25.7% | -27.5% |
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 (60 companies) | 3.8% | 3.1% | 4.0% | 3.4% | 2.7% |
|---|
| Blue Sky Power Holdings Ltd ($6828) | 11.5% | 21.3% | 9.0% | 13.9% | 47.4% |
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 (61 companies) | 5.0% | 6.0% | 5.5% | 5.2% | 3.7% |
|---|
| Blue Sky Power Holdings Ltd ($6828) | 5.9% | -4.3% | -8.0% | -10.5% | -6.1% |
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 (41 companies) | -0.1x | -0.0x | -0.7x | -0.5x | -0.6x |
|---|
