Perception Digital Holdings Ltd revenue growth accelerated from 11.1% in 2014 to 23.9% in 2015
24/03/2016 • About Perception Digital Holdings Ltd (
$1822) • By InTwits
Perception Digital Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Perception Digital Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is 0.2%
- EBITDA Margin is expanding: 5.4% in 2015 vs. -9.8% in 2014 vs. -1.7% in 2011
- Perception Digital 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 -6.9% for the sames years0
- Perception Digital Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's a lot of higher than industry average of 1.1%.
- CAPEX is quite volatile: 10.5 in 2015, 5.9 in 2014, 0.058 in 2013, 2.7 in 2012, 8.0 in 2011
- The company has potentially unprofitable business model: ROIC is at 0.2%
- It operates with high leverage: Net Debt/EBITDA is 1.8x while industry average is -3.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Perception Digital Holdings Ltd ($1822) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 533.4 | 340.9 | 200.0 | 222.3 | 275.3 | 23.9% |
| Gross Profit | 46.4 | 25.5 | 20.6 | 16.9 | 23.8 | 41.0% |
| SG&A | | 39.3 | 19.4 | 25.4 | 39.7 | 56.1% |
| EBITDA | -8.8 | -59.2 | -33.9 | -21.8 | 14.8 | -167.6% |
| Net Income | -22.0 | -96.6 | -65.2 | -49.6 | -7.6 | -84.7% |
Balance Sheet
|
|---|
| Cash | 40.4 | 43.2 | 26.1 | 8.1 | 5.1 | -37.6% |
| Short Term Debt | 70.2 | 92.1 | 31.3 | 8.4 | 26.1 | 211.3% |
| Long Term Debt | 7.4 | 45.0 | 12.3 | 5.3 | 5.4 | 1.8% |
Cash flow
|
|---|
| Capex | 8.0 | 2.7 | 0.1 | 5.9 | 10.5 | 78.6% |
Ratios
|
|---|
| Revenue growth | 7.2% | -36.1% | -41.3% | 11.1% | 23.9% | |
| EBITDA growth | -123.1% | 570.4% | -42.8% | -35.5% | -167.6% | |
| Gross Margin | 8.7% | 7.5% | 10.3% | 7.6% | 8.7% | 1.1% |
| EBITDA Margin | -1.7% | -17.4% | -16.9% | -9.8% | 5.4% | 15.2% |
| Net Income Margin | -4.1% | -28.4% | -32.6% | -22.3% | -2.8% | 19.6% |
| SG&A, % of revenue | | 11.5% | 9.7% | 11.4% | 14.4% | 3.0% |
| CAPEX, % of revenue | 1.5% | 0.8% | 0.0% | 2.6% | 3.8% | 1.2% |
| ROIC | -13.4% | -47.1% | -45.1% | -15.9% | 0.2% | 16.1% |
| ROE | -20.2% | -180.0% | -580.5% | -31.4% | -1.2% | 30.2% |
| Net Debt/EBITDA | | | | | 1.8x | 1.8x |
Revenue and profitability
Perception Digital Holdings Ltd's Revenue surged on 23.9% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.4 pp from 8.0% to 11.4% in 2015.
Gross Margin increased slightly on 1.1 pp from 7.6% to 8.7% in 2015. SG&A as a % of Revenue increased on 3.0 pp from 11.4% to 14.4% in 2015.
Net Income marign jumped on 19.6 pp from -22.3% to -2.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Perception Digital Holdings Ltd had CAPEX/Revenue of 3.8%. CAPEX/Revenue increased on 3.0 pp from 0.80% in 2012 to 3.8% in 2015. For the last three years the average CAPEX/Revenue was 2.2%.To fuel this fast growth the company invested a large share of EBITDA (70.9%) to CAPEX.
Return on investment
The company operates at low but positive ROIC (0.22%) and negative ROE (-1.23%). ROIC surged on 16.1 pp from -15.9% to 0.22% in 2015. ROE jumped on 30.2 pp from -31.4% to -1.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.8x and Debt / EBITDA is 2.1x. Net Debt / EBITDA jumped1.8x from to 1.8x in 2015. Debt surged on 130% in 2015 while cash dropped on 37.6% in 2015.
Appendix 1: Peers in Computers
Below you can find Perception Digital Holdings Ltd benchmarking vs. other companies in Computers 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 |
|---|
| Peking University Resources Holdings Co Ltd ($618) | | -49.6% | 11.2% | 106.0% | 25.1% |
| Alibaba Health Information Technology Ltd ($241) | | 29.4% | -96.7% | 73.0% | 35.3% |
| Thiz Technology Group Ltd ($8119) | | -4.1% | -95.1% | 72.2% | 31.9% |
| Universal Technologies Holdings Ltd ($1026) | 95.5% | -47.3% | 49.8% | 67.1% | |
| PAX Global Technology Ltd ($327) | | 19.0% | 12.1% | 61.2% | 21.0% |
| |
|---|
| Median (24 companies) | 10.7% | 6.5% | 0.0% | 7.2% | 0.0% |
|---|
| Perception Digital Holdings Ltd ($1822) | | -36.1% | -41.3% | 11.1% | 23.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Universal Technologies Holdings Ltd ($1026) | 86.0% | 87.3% | 79.7% | 90.3% | |
| Thiz Technology Group Ltd ($8119) | 2.9% | 8.8% | 63.8% | 86.2% | 96.0% |
| Computer & Technologies Holdings Ltd ($46) | 27.4% | 45.3% | 54.0% | 52.1% | 54.2% |
| CCID Consulting Co Ltd ($8235) | 46.5% | 43.7% | 49.1% | 51.8% | 48.7% |
| Alibaba Health Information Technology Ltd ($241) | 10.1% | 11.4% | -12.6% | 49.3% | 53.7% |
| |
|---|
| Median (22 companies) | 13.2% | 14.2% | 17.0% | 17.2% | 24.1% |
|---|
| Perception Digital Holdings Ltd ($1822) | 8.7% | 7.5% | 10.3% | 7.6% | 8.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Computer & Technologies Holdings Ltd ($46) | 4.8% | 12.9% | 19.9% | 20.1% | 23.2% |
| Ju Teng International Holdings Ltd ($3336) | 9.5% | 15.1% | 19.9% | 19.3% | 23.8% |
| PAX Global Technology Ltd ($327) | 18.9% | 16.5% | 17.4% | 18.8% | 22.7% |
| CCID Consulting Co Ltd ($8235) | 19.0% | 10.6% | 10.8% | 12.3% | 20.3% |
| Universal Technologies Holdings Ltd ($1026) | 29.5% | 12.8% | 1.5% | 9.9% | |
| |
|---|
| Median (24 companies) | 3.0% | 3.2% | 2.7% | 1.8% | 5.2% |
|---|
| Perception Digital Holdings Ltd ($1822) | -1.7% | -17.4% | -16.9% | -9.8% | 5.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| North Asia Resources Holdings Ltd ($61) | 34.3% | 4.6% | 94.2% | 177.8% | 110.2% |
| Beautiful China Holdings Co Ltd ($706) | 44.9% | 8.4% | 2.2% | 26.2% | |
| Ju Teng International Holdings Ltd ($3336) | 17.6% | 14.1% | 18.7% | 20.0% | 17.3% |
| Alibaba Health Information Technology Ltd ($241) | 2.1% | 4.4% | 46.3% | 17.2% | 11.7% |
| Universal Technologies Holdings Ltd ($1026) | 8.5% | 20.0% | 5.7% | 14.2% | |
| |
|---|
| Median (24 companies) | 1.3% | 1.2% | 1.6% | 1.6% | 0.7% |
|---|
| Perception Digital Holdings Ltd ($1822) | 1.5% | 0.8% | 0.0% | 2.6% | 3.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lenovo Group Ltd ($992) | 18.9% | 26.2% | 30.5% | 34.7% | 24.5% |
| PAX Global Technology Ltd ($327) | 14.1% | 12.3% | 12.8% | 18.7% | 22.4% |
| CCID Consulting Co Ltd ($8235) | 20.6% | 11.3% | 10.7% | 10.2% | 15.0% |
| TPV Technology Ltd ($903) | 6.4% | 7.7% | 1.8% | 10.1% | 12.0% |
| Computer & Technologies Holdings Ltd ($46) | 4.1% | 6.0% | 8.6% | 9.4% | 10.8% |
| |
|---|
| Median (25 companies) | 3.9% | 2.1% | 1.4% | -0.1% | 5.2% |
|---|
| Perception Digital Holdings Ltd ($1822) | -13.4% | -47.1% | -45.1% | -15.9% | 0.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Thiz Technology Group Ltd ($8119) | | | | | 8.2x |
| Ju Teng International Holdings Ltd ($3336) | 2.5x | 2.1x | 1.8x | 1.7x | 1.6x |
| Proview International Holdings Ltd ($334) | | | | | 1.0x |
| Wong's International Hldgs ($99) | -1.8x | -3.5x | 2.7x | 1.4x | 0.8x |
| TPV Technology Ltd ($903) | 0.5x | -0.2x | 0.6x | -0.0x | 0.3x |
| |
|---|
| Median (12 companies) | -1.7x | -2.3x | -1.8x | -3.9x | -1.5x |
|---|
| Perception Digital Holdings Ltd ($1822) | | | | | 1.8x |
