Realord Group Holdings Ltd Net Income surged on 361% in 2015 while EBITDA Margin dropped on 18.4 pp from 4.6% to -13.8%
24/03/2016 • About Realord Group Holdings Ltd (
$1196) • By InTwits
Realord Group Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Realord Group Holdings Ltd is a company in decline: 2015 revenue growth was -61.5%, 5 years revenue CAGR was -15.1%
- EBITDA Margin is quite volatile: -13.8% in 2015, 4.6% in 2014, 3.5% in 2013, 1.3% in 2012, 9.1% in 2011
- Realord Group Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.5%. At the same time it's in pair with industry average of 8.3%.
- CAPEX is quite volatile: 0.74 in 2015, 4.4 in 2014, 2.2 in 2013, 0.19 in 2012, 2.9 in 2011
- The company has unprofitable business model: ROIC is at -4.1%
- It operates with high leverage: Net Debt/EBITDA is 2.4x while industry average is -20.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Realord Group Holdings Ltd ($1196) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 517.4 | 503.8 | 429.7 | 524.5 | 202.0 | -61.5% |
| Gross Profit | 144.8 | 113.7 | 109.7 | 131.4 | 65.4 | -50.2% |
| SG&A | | 107.5 | 108.6 | 125.1 | 104.2 | -16.7% |
| EBITDA | 47.0 | 6.5 | 14.9 | 24.3 | -27.8 | -214.6% |
| Net Income | 34.9 | -12.1 | 17.8 | -12.4 | 32.4 | -360.6% |
Balance Sheet
|
|---|
| Cash | 172.4 | 124.0 | 102.5 | 134.6 | 107.8 | -19.8% |
| Short Term Debt | 29.6 | 29.1 | 24.5 | 13.6 | 186.8 | 1,271.9% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 19.2 | 15.4 | 15.3 | 10.1 | 10.4 | 3.9% |
Ratios
|
|---|
| Revenue growth | 12.8% | -2.6% | -14.7% | 22.1% | -61.5% | |
| EBITDA growth | 27.9% | -86.2% | 129.7% | 62.8% | -214.6% | |
| Gross Margin | 28.0% | 22.6% | 25.5% | 25.0% | 32.4% | 7.3% |
| EBITDA Margin | 9.1% | 1.3% | 3.5% | 4.6% | -13.8% | -18.4% |
| Net Income Margin | 6.7% | -2.4% | 4.1% | -2.4% | 16.1% | 18.4% |
| SG&A, % of revenue | | 21.3% | 25.3% | 23.8% | 51.6% | 27.7% |
| CAPEX, % of revenue | 3.7% | 3.0% | 3.6% | 1.9% | 5.2% | 3.3% |
| ROIC | 6.3% | -1.7% | 0.1% | 1.4% | -4.1% | -5.5% |
| ROE | 7.6% | -2.5% | 3.5% | -2.5% | 4.8% | 7.3% |
| Net Debt/EBITDA | -3.0x | -14.6x | -5.2x | -5.0x | | 5.0x |
Revenue and profitability
Realord Group Holdings Ltd's Revenue dropped on 61.5% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 18.4 pp from 4.6% to -13.8% in 2015.
Gross Margin increased on 7.3 pp from 25.0% to 32.4% in 2015. SG&A as a % of Revenue surged on 27.7 pp from 23.8% to 51.6% in 2015.
Net Income marign jumped on 18.4 pp from -2.4% to 16.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Realord Group Holdings Ltd had CAPEX/Revenue of 5.2%. The company's CAPEX/Revenue increased on 2.1 pp from 3.0% in 2012 to 5.2% in 2015. It's average level of CAPEX/Revenue for the last three years was 3.6%.
Return on investment
The company operates at negative ROIC (-4.07%) and low but positive ROE (4.84%). ROIC decreased on 5.5 pp from 1.4% to -4.1% in 2015. ROE increased on 7.3 pp from -2.5% to 4.8% in 2015.
Leverage (Debt)
Debt level is 2.4x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA surged on 5.0x from -5.0x to in 2015. Debt jumped on 1,272% in 2015 while cash dropped on 19.8% in 2015.
Appendix 1: Peers in Commercial Services
Below you can find Realord Group Holdings Ltd benchmarking vs. other companies in Commercial Services 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 |
|---|
| Global Energy Resources International Group Ltd ($8192) | | -61.9% | -27.8% | 2,912.9% | 19.7% |
| 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% |
| |
|---|
| Median (62 companies) | 34.2% | 9.0% | 6.7% | 9.4% | 6.5% |
|---|
| Realord Group Holdings Ltd ($1196) | | -2.6% | -14.7% | 22.1% | -61.5% |
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% |
| U Banquet Group Holding Ltd ($8107) | | | | 76.5% | 74.5% |
| 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% |
| |
|---|
| Median (57 companies) | 33.0% | 31.5% | 30.5% | 31.0% | 30.9% |
|---|
| Realord Group Holdings Ltd ($1196) | 28.0% | 22.6% | 25.5% | 25.0% | 32.4% |
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 (62 companies) | 16.8% | 16.9% | 14.2% | 11.1% | 10.9% |
|---|
| Realord Group Holdings Ltd ($1196) | 9.1% | 1.3% | 3.5% | 4.6% | -13.8% |
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% | 13.0% |
| |
|---|
| Median (61 companies) | 3.9% | 3.2% | 4.5% | 4.0% | 4.3% |
|---|
| Realord Group Holdings Ltd ($1196) | 3.7% | 3.0% | 3.6% | 1.9% | 5.2% |
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% |
| U Banquet Group Holding Ltd ($8107) | | 98.5% | 23.9% | 28.0% | -3.7% |
| PPS International Holdings Ltd ($8201) | | 101.6% | 35.6% | 23.8% | -13.7% |
| |
|---|
| Median (62 companies) | 5.0% | 6.2% | 5.7% | 5.5% | 3.7% |
|---|
| Realord Group Holdings Ltd ($1196) | 6.3% | -1.7% | 0.1% | 1.4% | -4.1% |
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 | 4.1x |
| 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 | -0.4x | -0.5x |
|---|
| Realord Group Holdings Ltd ($1196) | -3.0x | -14.6x | -5.2x | -5.0x | |
