Soundwill Holdings Ltd Net Income dropped on 103% in 2015 and Revenue dropped on 81.6%
23/03/2016 • About Soundwill Holdings Ltd (
$878) • By InTwits
Soundwill Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Soundwill Holdings Ltd is a company in decline: 2015 revenue growth was -81.6%, 5 years revenue CAGR was -10.0%
- EBITDA Margin is quite volatile: 56.5% in 2015, 37.3% in 2014, 31.7% in 2013, 39.7% in 2012, 21.7% in 2011
- Soundwill Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 103.1%. At the same time it's a lot of higher than industry average of 8.1%.
- CAPEX is quite volatile: 237 in 2015, 147 in 2014, 1,945 in 2013, 726 in 2012, 907 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Soundwill Holdings Ltd ($878) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 902 | 1,724 | 601 | 2,937 | 540 | -81.6% |
| Gross Profit | 321 | 915 | 447 | 1,376 | 517 | -62.4% |
| SG&A | | 67 | 54 | 57 | 220 | 288.4% |
| EBITDA | 195 | 684 | 191 | 1,095 | 306 | -72.1% |
| Net Income | 2,111 | 3,330 | 1,340 | 1,625 | -53 | -103.2% |
Balance Sheet
|
|---|
| Cash | 572 | 615 | 311 | 1,070 | 720 | -32.7% |
| Short Term Debt | 3,509 | 2,994 | 3,956 | 2,198 | 2,137 | -2.8% |
| Long Term Debt | 0 | 0 | 0 | 24 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 907 | 726 | 1,945 | 147 | 237 | 61.2% |
Ratios
|
|---|
| Revenue growth | -1.3% | 91.2% | -65.2% | 389.1% | -81.6% | |
| EBITDA growth | -43.9% | 250.0% | -72.1% | 474.4% | -72.1% | |
| Gross Margin | 35.6% | 53.1% | 74.5% | 46.9% | 95.7% | 48.9% |
| EBITDA Margin | 21.7% | 39.7% | 31.7% | 37.3% | 56.5% | 19.3% |
| Net Income Margin | 234.1% | 193.2% | 223.2% | 55.3% | -9.7% | -65.1% |
| SG&A, % of revenue | | 3.9% | 9.0% | 1.9% | 40.7% | 38.8% |
| CAPEX, % of revenue | 100.6% | 42.1% | 323.9% | 5.0% | 43.9% | 38.9% |
| ROIC | 1.5% | 4.4% | 1.0% | 5.7% | 1.6% | -4.1% |
| ROE | 23.5% | 28.1% | 9.5% | 10.4% | -0.3% | -10.7% |
| Net Debt/EBITDA | 15.0x | 3.5x | 19.1x | 1.1x | 4.6x | 3.6x |
Revenue and profitability
Soundwill Holdings Ltd's Revenue dropped on 81.6% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 19.3 pp from 37.3% to 56.5% in 2015.
Gross Margin jumped on 48.9 pp from 46.9% to 95.7% in 2015. SG&A as a % of Revenue jumped on 38.8 pp from 1.9% to 40.7% in 2015.
Net Income marign dropped on 65.1 pp from 55.3% to -9.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
Soundwill Holdings Ltd's CAPEX/Revenue was 43.9% in 2015. CAPEX/Revenue increased slightly on 1.8 pp from 42.1% in 2012 to 43.9% in 2015. Average CAPEX/Revenue for the last three years was 124%.The company invested a big chunk of EBITDA (77.7%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low but positive ROIC (1.59%) and negative ROE (-0.32%). ROIC decreased on 4.1 pp from 5.7% to 1.6% in 2015. ROE dropped on 10.7 pp from 10.4% to -0.32% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.6x and Debt / EBITDA is 7.0x. Net Debt / EBITDA jumped on 3.6x from 1.1x to 4.6x in 2015. Debt decreased on 3.8% in 2015 while cash dropped on 32.7% in 2015.
Appendix 1: Peers in Real Estate
Below we provide Soundwill Holdings Ltd benchmarking against other companies in Real Estate 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 |
|---|
| Common Splendor International Health Industry Group Ltd ($286) | -0.9% | -0.5% | 1.9% | 4,120.2% | |
| Landsea Green Properties Co Ltd ($106) | | -35.1% | -51.2% | 3,097.3% | 188.5% |
| LVGEM China Real Estate Invest ($95) | -0.1% | -27.5% | -21.9% | 3,008.3% | |
| Rivera Holdings Ltd ($281) | | 197.1% | -89.9% | 2,067.2% | -92.7% |
| Ceneric Holdings Ltd ($542) | -94.0% | -73.9% | -49.8% | 1,922.5% | |
| |
|---|
| Median (175 companies) | 10.1% | 15.8% | 14.0% | 5.0% | 4.5% |
|---|
| Soundwill Holdings Ltd ($878) | | 91.2% | -65.2% | 389.1% | -81.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tern Properties Co Ltd ($277) | 96.9% | 96.7% | 98.4% | 98.4% | 98.7% |
| GR Properties Ltd ($108) | 37.4% | 39.3% | | 98.2% | |
| Renhe Commercial Holdings Co Ltd ($1387) | 71.1% | 79.0% | 95.2% | 97.9% | 99.9% |
| YT Realty Group Ltd ($75) | 91.5% | 94.4% | 96.6% | 96.7% | 97.6% |
| ITC Properties Group Ltd ($199) | 29.8% | 22.8% | 92.9% | 95.2% | 62.7% |
| |
|---|
| Median (157 companies) | 44.2% | 41.9% | 41.8% | 39.1% | 42.6% |
|---|
| Soundwill Holdings Ltd ($878) | 35.6% | 53.1% | 74.5% | 46.9% | 95.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ITC Properties Group Ltd ($199) | 24.0% | -125.5% | -2,995.7% | 1,685.3% | -525.1% |
| Beijing Properties Holdings Ltd ($925) | 33.2% | -606.3% | 2,162.6% | 224.3% | |
| Chinese Estates Holdings Ltd ($127) | 340.9% | 356.2% | 91.6% | 195.5% | 397.4% |
| Zall Development Group Ltd ($2098) | 73.6% | 105.3% | 133.1% | 143.2% | |
| Ceneric Holdings Ltd ($542) | -5.9% | -382.7% | -1,024.0% | 126.8% | |
| |
|---|
| Median (174 companies) | 35.4% | 29.1% | 28.2% | 26.9% | 28.7% |
|---|
| Soundwill Holdings Ltd ($878) | 21.7% | 39.7% | 31.7% | 37.3% | 56.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| LT Commercial Real Estate Ltd ($112) | 0.0% | 0.0% | 18.0% | 27,965.5% | |
| ITC Properties Group Ltd ($199) | 25.6% | 56.2% | 4,202.4% | 1,304.7% | 189.7% |
| Wanda Hotel Development Co Ltd ($169) | | 5.9% | 24.1% | 1,091.1% | 190.4% |
| Pacific Century Premium Developments Ltd ($432) | 6.5% | 2.9% | 323.1% | 351.2% | 340.6% |
| Liu Chong Hing Investment Ltd ($194) | 9.4% | 18.5% | 6.1% | 269.7% | 0.9% |
| |
|---|
| Median (176 companies) | 5.8% | 5.4% | 6.1% | 4.7% | 3.3% |
|---|
| Soundwill Holdings Ltd ($878) | 100.6% | 42.1% | 323.9% | 5.0% | 43.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rykadan Capital Ltd ($2288) | 17.2% | -1.8% | -2.6% | 48.4% | -3.7% |
| Colour Life Services Group Co Ltd ($1778) | | 44.2% | 47.9% | 29.3% | 14.5% |
| LVGEM China Real Estate Invest ($95) | 0.2% | -0.2% | -1.1% | 22.1% | |
| Zall Development Group Ltd ($2098) | 39.0% | 19.2% | 17.6% | 18.7% | |
| China Overseas Land & Investment Ltd ($688) | 18.0% | 18.4% | 15.1% | 18.5% | 15.4% |
| |
|---|
| Median (179 companies) | 4.6% | 4.1% | 4.0% | 3.9% | 2.9% |
|---|
| Soundwill Holdings Ltd ($878) | 1.5% | 4.4% | 1.0% | 5.7% | 1.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Properties Group Ltd ($1838) | 16.9x | 43.0x | 21.4x | 1,523.0x | |
| SRE Group Ltd ($1207) | 10.6x | 14.1x | 24.7x | 1,184.6x | |
| Cheuk Nang Holdings Ltd ($131) | 53.2x | | 177.3x | 901.7x | |
| Tian An China Investment Co Ltd ($28) | 2.4x | 13.2x | 15.1x | 486.6x | |
| Greenland Hong Kong Holdings Ltd ($337) | 3.7x | | 6.2x | 49.3x | 38.4x |
| |
|---|
| Median (141 companies) | 2.1x | 2.2x | 2.7x | 3.0x | 3.2x |
|---|
| Soundwill Holdings Ltd ($878) | 15.0x | 3.5x | 19.1x | 1.1x | 4.6x |
