China Investments Holdings Ltd Net Income dropped on 92.9% in 2015 while Revenue jumped on 21.0%
23/03/2016 • About China Investments Holdings Ltd (
$132) • By InTwits
China Investments Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Investments Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -1.9%
- The company operates at negative EBITDA Margin: -38.9%
- China Investments 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 -15.4% for the sames years0
- China Investments Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 142.4%. At the same time it's a lot of higher than industry average of 39.0%.
- CAPEX is quite volatile: 87.4 in 2015, 124 in 2014, 24.3 in 2013, 1.7 in 2012, 7.6 in 2011
- The company has unprofitable business model: ROIC is at -1.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Investments Holdings Ltd ($132) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 36.560 | 35.738 | 29.616 | 32.448 | 39.275 | 21.0% |
| Gross Profit | 19.437 | 20.712 | 14.195 | 12.925 | 16.829 | 30.2% |
| SG&A | 27.674 | 29.380 | 32.273 | 56.001 | 56.058 | 0.1% |
| EBITDA | 18.758 | 2.557 | -8.050 | -24.703 | -15.263 | -38.2% |
| Net Income | -60.956 | 105.529 | -1.419 | 81.038 | 5.773 | -92.9% |
Balance Sheet
|
|---|
| Cash | 62.708 | 375.422 | 378.888 | 145.359 | 158.952 | 9.4% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 116.444 | 30.661 | -73.7% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 219.893 | 225.340 | 2.5% |
Cash flow
|
|---|
| Capex | 7.574 | 1.709 | 24.258 | 124.032 | 87.401 | -29.5% |
Ratios
|
|---|
| Revenue growth | 33.9% | -2.2% | -17.1% | 9.6% | 21.0% | |
| EBITDA growth | 342.0% | -86.4% | -414.8% | 206.9% | -38.2% | |
| Gross Margin | 53.2% | 58.0% | 47.9% | 39.8% | 42.8% | 3.0% |
| EBITDA Margin | 51.3% | 7.2% | -27.2% | -76.1% | -38.9% | 37.3% |
| Net Income Margin | -166.7% | 295.3% | -4.8% | 249.7% | 14.7% | -235.0% |
| SG&A, % of revenue | 75.7% | 82.2% | 109.0% | 172.6% | 142.7% | -29.9% |
| CAPEX, % of revenue | 20.7% | 4.8% | 81.9% | 382.2% | 222.5% | -159.7% |
| ROIC | -2.2% | -0.9% | -2.7% | -3.4% | -1.9% | 1.5% |
| ROE | -12.0% | 19.8% | -0.2% | 10.2% | 0.6% | -9.6% |
| Net Debt/EBITDA | -3.3x | -146.8x | | | | 0.0x |
Revenue and profitability
China Investments Holdings Ltd's Revenue jumped on 21.0% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 37.3 pp from -76.1% to -38.9% in 2015.
Gross Margin increased on 3.0 pp from 39.8% to 42.8% in 2015. SG&A as a % of Revenue dropped on 29.9 pp from 173% to 143% in 2015.
Net Income marign dropped on 235 pp from 250% to 14.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
China Investments Holdings Ltd's CAPEX/Revenue was 223% in 2015. The company showed fast CAPEX/Revenue growth of 218 pp from 4.8% in 2012 to 223% in 2015. It's average CAPEX/Revenue for the last three years was 229%.
Return on investment
The company operates at negative ROIC (-1.92%) and low but positive ROE (0.59%). ROIC increased slightly on 1.5 pp from -3.4% to -1.9% in 2015. ROE decreased on 9.6 pp from 10.2% to 0.59% in 2015.
Leverage (Debt)
Debt level is -6.5x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt dropped on 23.9% in 2015 while cash increased on 9.4% in 2015.
Appendix 1: Peers in Holding Companies-Divers
Below you can find China Investments 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% | |
| 21 Holdings Ltd ($1003) | | -57.4% | -12.4% | 106.4% | 31.0% |
| |
|---|
| Median (42 companies) | 11.6% | 12.2% | 4.9% | 15.7% | 6.6% |
|---|
| China Investments Holdings Ltd ($132) | | -2.2% | -17.1% | 9.6% | 21.0% |
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) | 27.9% | 32.9% | 34.6% | 30.8% | 34.2% |
|---|
| China Investments Holdings Ltd ($132) | 53.2% | 58.0% | 47.9% | 39.8% | 42.8% |
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) | 5.2% | 1.7% | 2.8% | 7.4% | 6.3% |
|---|
| China Investments Holdings Ltd ($132) | 51.3% | 7.2% | -27.2% | -76.1% | -38.9% |
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% |
| 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% |
| Emperor International Holdings Ltd ($163) | 93.5% | 100.9% | 48.5% | 105.9% | 110.6% |
| |
|---|
| Median (44 companies) | 4.1% | 2.2% | 3.6% | 6.1% | 10.6% |
|---|
| China Investments Holdings Ltd ($132) | 20.7% | 4.8% | 81.9% | 382.2% | 222.5% |
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% |
|---|
| China Investments Holdings Ltd ($132) | -2.2% | -0.9% | -2.7% | -3.4% | -1.9% |
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) | 3.1x | 2.6x | 3.1x | 3.0x | 3.1x |
|---|
