Global Energy Resources International Group Ltd reports 257% CAPEX growth and 19.7% Revenue growth
23/03/2016 • About Global Energy Resources International Group Ltd (
$8192) • By InTwits
Global Energy Resources International Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Global Energy Resources International Group Ltd doesn't have a profitable business model yet: 2015 ROIC is -9.8%
- The company operates at negative EBITDA Margin: -10.1%
- Global Energy Resources International Group 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 -18.1%0
- Global Energy Resources International Group Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.8%. At the same time it's in pair with industry average of 9.7%.
- CAPEX is quite volatile: 52.2 in 2015, 14.6 in 2014, 0 in 2013, 0.024 in 2012, 1.5 in 2011
- The company has unprofitable business model: ROIC is at -9.8%
- It operates with high leverage: Net Debt/EBITDA is 15.7x 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.
Global Energy Resources International Group Ltd ($8192) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 25.4 | 9.7 | 7.0 | 210.1 | 251.5 | 19.7% |
| Gross Profit | 8.0 | 1.5 | 1.5 | 2.7 | 9.5 | 246.4% |
| SG&A | 23.4 | 14.4 | 12.1 | 26.5 | 75.9 | 186.5% |
| EBITDA | -17.8 | -16.3 | -9.3 | -22.4 | -25.4 | 13.5% |
| Net Income | -21.3 | -17.2 | -14.9 | -22.9 | -106.0 | 362.2% |
Balance Sheet
|
|---|
| Cash | 8.9 | 1.3 | 43.2 | 49.6 | 82.7 | 66.9% |
| Short Term Debt | 6.0 | 0.0 | 2.3 | 0.0 | 0.1 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.4 | |
Cash flow
|
|---|
| Capex | 1.5 | 0.0 | 0.0 | 14.6 | 52.2 | 256.8% |
Ratios
|
|---|
| Revenue growth | 429.3% | -61.9% | -27.8% | 2,912.9% | 19.7% | |
| EBITDA growth | 0.7% | -8.4% | -42.7% | 139.4% | 13.5% | |
| Gross Margin | 31.4% | 15.6% | 22.1% | 1.3% | 3.8% | 2.5% |
| EBITDA Margin | -70.2% | -168.9% | -134.0% | -10.7% | -10.1% | 0.5% |
| Net Income Margin | -83.7% | -177.9% | -213.0% | -10.9% | -42.1% | -31.2% |
| SG&A, % of revenue | 92.0% | 149.5% | 172.8% | 12.6% | 30.2% | 17.6% |
| CAPEX, % of revenue | 5.9% | 0.2% | 0.0% | 7.0% | 20.8% | 13.8% |
| ROIC | -42.6% | -51.4% | -27.5% | -14.8% | -9.8% | 4.9% |
| ROE | -70.2% | -122.6% | -69.3% | -15.1% | -34.9% | -19.8% |
Revenue and profitability
The company's Revenue jumped on 19.7% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.54 pp from -10.7% to -10.1% in 2015.
Gross Margin increased on 2.5 pp from 1.3% to 3.8% in 2015. SG&A as a % of Revenue jumped on 17.6 pp from 12.6% to 30.2% in 2015.
Net Income marign dropped on 31.2 pp from -10.9% to -42.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 20.8% in 2015. CAPEX/Revenue jumped on 20.5 pp from 0.25% in 2012 to 20.8% in 2015.
Return on investment
The company operates at negative ROIC (-9.85%) and ROE (-34.87%). ROIC increased on 4.9 pp from -14.8% to -9.8% in 2015. ROE dropped on 19.8 pp from -15.1% to -34.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 15.7x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt surged while cash jumped on 66.9% in 2015.
Appendix 1: Peers in Commercial Services
Below we provide Global Energy Resources International Group Ltd benchmarking against other companies in Commercial Services 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 |
|---|
| 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% |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | | 21.3% | 4.5% | 33.5% | 14.2% |
| |
|---|
| Median (61 companies) | 23.2% | 8.9% | 4.8% | 8.9% | 6.3% |
|---|
| Global Energy Resources International Group Ltd ($8192) | | -61.9% | -27.8% | 2,912.9% | 19.7% |
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% |
|---|
| Global Energy Resources International Group Ltd ($8192) | 31.4% | 15.6% | 22.1% | 1.3% | 3.8% |
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% |
|---|
| Global Energy Resources International Group Ltd ($8192) | -70.2% | -168.9% | -134.0% | -10.7% | -10.1% |
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% | 3.2% | 4.2% | 3.4% | 2.7% |
|---|
| Global Energy Resources International Group Ltd ($8192) | 5.9% | 0.2% | 0.0% | 7.0% | 20.8% |
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) | 5.2% | 6.0% | 5.5% | 5.2% | 3.7% |
|---|
| Global Energy Resources International Group Ltd ($8192) | -42.6% | -51.4% | -27.5% | -14.8% | -9.8% |
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 |
|---|
