Evershine Group Holdings Ltd reports 61.1% revenue growth in 2015 and 7.4 pp EBITDA Margin growth from -31.8% to -24.4%
23/03/2016 • About Evershine Group Holdings Ltd (
$8022) • By InTwits
Evershine Group Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Evershine Group Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -16.2%
- The company operates at negative EBITDA Margin: -24.4%
- Evershine Group 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 -30.1% for the sames years0
- Evershine Group Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.1%. At the same time it's a lot of higher than industry average of 38.8%.
- CAPEX is quite volatile: 0.39 in 2015, 0.033 in 2014, 0.53 in 2013, 2.7 in 2012, 7.7 in 2011
- The company has unprofitable business model: ROIC is at -16.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Evershine Group Holdings Ltd ($8022) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 24.176 | 23.194 | 32.703 | 45.792 | 73.772 | 61.1% |
| Gross Profit | 2.596 | 4.334 | 3.127 | 3.374 | 3.963 | 17.5% |
| SG&A | | | 31.871 | 20.218 | 34.247 | 69.4% |
| EBITDA | -10.683 | -2.252 | -14.599 | -14.576 | -18.031 | 23.7% |
| Net Income | -68.878 | -46.192 | -50.582 | -19.926 | -11.996 | -39.8% |
Balance Sheet
|
|---|
| Cash | 37.101 | 4.491 | 4.973 | 7.163 | 40.188 | 461.0% |
| Short Term Debt | 55.693 | 122.626 | 0.097 | 45.000 | 29.170 | -35.2% |
| Long Term Debt | 117.306 | 27.937 | 0.000 | 0.000 | 38.523 | |
Cash flow
|
|---|
| Capex | 7.727 | 2.682 | 0.528 | 0.033 | 0.394 | 1,093.9% |
Ratios
|
|---|
| Revenue growth | -2.3% | -4.1% | 41.0% | 40.0% | 61.1% | |
| EBITDA growth | -146.0% | -78.9% | 548.3% | -0.2% | 23.7% | |
| Gross Margin | 10.7% | 18.7% | 9.6% | 7.4% | 5.4% | -2.0% |
| EBITDA Margin | -44.2% | -9.7% | -44.6% | -31.8% | -24.4% | 7.4% |
| Net Income Margin | -284.9% | -199.2% | -154.7% | -43.5% | -16.3% | 27.3% |
| SG&A, % of revenue | | | 97.5% | 44.2% | 46.4% | 2.3% |
| CAPEX, % of revenue | 32.0% | 11.6% | 1.6% | 0.1% | 0.5% | 0.5% |
| ROIC | -21.5% | -10.5% | -16.4% | -21.0% | -16.2% | 4.8% |
| ROE | | | | -30.0% | -9.1% | 20.9% |
Revenue and profitability
The company's Revenue surged on 61.1% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 7.4 pp from -31.8% to -24.4% in 2015.
Gross Margin decreased slightly on 2.0 pp from 7.4% to 5.4% in 2015. SG&A as a % of Revenue increased on 2.3 pp from 44.2% to 46.4% in 2015.
Net Income marign surged on 27.3 pp from -43.5% to -16.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.53% in 2015. CAPEX/Revenue dropped on 11.0 pp from 11.6% in 2012 to 0.53% in 2015. It's average level of CAPEX/Revenue for the last three years was 0.74%.
Return on investment
The company operates at negative ROIC (-16.19%) and ROE (-9.07%). ROIC increased on 4.8 pp from -21.0% to -16.2% in 2015. ROE surged on 20.9 pp from -30.0% to -9.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -13.8x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt surged on 50.4% in 2015 while cash jumped on 461% in 2015.
Appendix 1: Peers in Holding Companies-Divers
Below we provide Evershine Group Holdings Ltd benchmarking against other companies in Holding Companies-Divers 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 |
|---|
| 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% | 3.3% | 12.6% | 6.6% |
|---|
| Evershine Group Holdings Ltd ($8022) | | -4.1% | 41.0% | 40.0% | 61.1% |
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% |
|---|
| Evershine Group Holdings Ltd ($8022) | 10.7% | 18.7% | 9.6% | 7.4% | 5.4% |
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% |
|---|
| Evershine Group Holdings Ltd ($8022) | -44.2% | -9.7% | -44.6% | -31.8% | -24.4% |
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) | 4.1% | 2.2% | 3.8% | 7.0% | 12.3% |
|---|
| Evershine Group Holdings Ltd ($8022) | 32.0% | 11.6% | 1.6% | 0.1% | 0.5% |
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% |
|---|
| Evershine Group Holdings Ltd ($8022) | -21.5% | -10.5% | -16.4% | -21.0% | -16.2% |
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 |
|---|
