AVIC Joy Holdings HK Ltd EBITDA dropped on 164% in 2015 and Revenue dropped on 23.7%
28/03/2016 • About AVIC Joy Holdings HK Ltd (
$260) • By InTwits
AVIC Joy Holdings HK Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- AVIC Joy Holdings HK Ltd doesn't have a profitable business model yet: 2015 ROIC is -1.8%
- EBITDA Margin is quite volatile: -1.6% in 2015, 1.9% in 2014, 4.9% in 2013, 4.7% in 2012, 9.1% in 2011
- AVIC Joy Holdings HK Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.7%. At the same time it's in pair with industry average of 17.9%.
- CAPEX is quite volatile: 22.8 in 2015, 59.1 in 2014, 75.9 in 2013, 87.9 in 2012, 47.8 in 2011
- The company has unprofitable business model: ROIC is at -1.8%
- It operates with high leverage: Net Debt/EBITDA is -4.2x while industry average is -37.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
AVIC Joy Holdings HK Ltd ($260) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,025 | 1,178 | 1,283 | 1,620 | 1,236 | -23.7% |
| Gross Profit | 209 | 229 | 268 | 227 | 202 | -10.9% |
| SG&A | 173 | 222 | 274 | 271 | 285 | 5.3% |
| EBITDA | 93 | 55 | 63 | 31 | -20 | -164.1% |
| Net Income | 8 | -26 | -25 | -80 | -295 | 269.6% |
Balance Sheet
|
|---|
| Cash | 183 | 354 | 382 | 649 | 447 | -31.1% |
| Short Term Debt | 136 | 143 | 1,078 | 332 | 567 | 71.0% |
| Long Term Debt | 0 | 221 | 246 | 923 | 1,781 | 92.9% |
Cash flow
|
|---|
| Capex | 48 | 88 | 76 | 59 | 23 | -61.5% |
Ratios
|
|---|
| Revenue growth | 26.7% | 14.9% | 8.9% | 26.3% | -23.7% | |
| EBITDA growth | 540.4% | -40.3% | 13.5% | -50.8% | -164.1% | |
| Gross Margin | 20.4% | 19.5% | 20.9% | 14.0% | 16.3% | 2.3% |
| EBITDA Margin | 9.1% | 4.7% | 4.9% | 1.9% | -1.6% | -3.5% |
| Net Income Margin | 0.8% | -2.2% | -2.0% | -4.9% | -23.9% | -18.9% |
| SG&A, % of revenue | 16.8% | 18.8% | 21.4% | 16.7% | 23.0% | 6.3% |
| CAPEX, % of revenue | 4.7% | 7.5% | 5.9% | 3.6% | 1.8% | -1.8% |
| ROIC | 4.2% | 0.3% | 0.4% | -0.9% | -1.8% | -0.9% |
| ROE | 1.3% | -3.2% | -2.5% | -7.3% | -24.6% | -17.4% |
| Net Debt/EBITDA | -0.5x | 0.2x | 15.0x | 19.6x | | -19.6x |
Revenue and profitability
AVIC Joy Holdings HK Ltd's Revenue dropped on 23.7% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.5 pp from 1.9% to -1.6% in 2015.
Gross Margin increased on 2.3 pp from 14.0% to 16.3% in 2015. SG&A as a % of Revenue increased on 6.3 pp from 16.7% to 23.0% in 2015.
Net Income marign dropped on 18.9 pp from -4.9% to -23.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 AVIC Joy Holdings HK Ltd had CAPEX/Revenue of 1.8%. The company's CAPEX/Revenue decreased on 5.6 pp from 7.5% in 2012 to 1.8% in 2015. For the last three years the average CAPEX/Revenue was 3.8%.
Return on investment
The company operates at negative ROIC (-1.80%) and ROE (-24.64%). ROIC decreased slightly on 0.91 pp from -0.89% to -1.8% in 2015. ROE dropped on 17.4 pp from -7.3% to -24.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -4.2x and Debt / EBITDA is . Net Debt / EBITDA dropped on 19.6x from 19.6x to in 2015. Debt jumped on 87.1% in 2015 while cash dropped on 31.1% in 2015.
Appendix 1: Peers in Investment Companies
Below you can find AVIC Joy Holdings HK Ltd benchmarking vs. other companies in Investment Companies 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 |
|---|
| DT Capital Ltd ($356) | | | -49.8% | 1,065.5% | 132.7% |
| Capital VC Ltd ($2324) | | | | 489.2% | 861.9% |
| Oriental Explorer Holdings Ltd ($430) | | | -62.7% | 414.5% | |
| China Merchants China Direct Investments Ltd ($133) | | | 59.1% | 255.9% | |
| Eternity Investment Ltd ($764) | 1.2% | -14.8% | -61.8% | 243.8% | |
| |
|---|
| Median (24 companies) | 1.2% | -10.9% | 3.2% | 3.4% | 130.2% |
|---|
| AVIC Joy Holdings HK Ltd ($260) | | 14.9% | 8.9% | 26.3% | -23.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Eternity Investment Ltd ($764) | 100.0% | | | 86.6% | |
| City e-Solutions Ltd ($557) | 69.0% | 81.1% | 81.5% | 81.6% | 79.1% |
| China Properties Investment Holdings Ltd ($736) | 10.6% | 47.5% | 40.8% | 46.2% | 87.2% |
| Infinity Financial Group Holdings Ltd ($1152) | 24.3% | 19.0% | 17.5% | 22.4% | 15.8% |
| Harmonic Strait Financial Holdings Ltd ($33) | 16.9% | 40.8% | 8.4% | 11.8% | |
| |
|---|
| Median (6 companies) | 24.3% | 40.8% | 17.5% | 34.3% | 47.5% |
|---|
| AVIC Joy Holdings HK Ltd ($260) | 20.4% | 19.5% | 20.9% | 14.0% | 16.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Capital VC Ltd ($2324) | -2,944.6% | | 36.7% | 93.1% | 99.3% |
| Unity Investments Holdings Ltd ($913) | | | 89.0% | 90.8% | 95.7% |
| Oriental Explorer Holdings Ltd ($430) | | 93.6% | 100.5% | 90.4% | |
| China Merchants China Direct Investments Ltd ($133) | | 68.6% | 82.2% | 89.3% | |
| Langham Hospitality Investments and Langham Hospitality Investments Ltd ($1270) | 39.4% | | 101.3% | 85.9% | 85.8% |
| |
|---|
| Median (27 companies) | 4.6% | 7.9% | -28.8% | 0.2% | 19.3% |
|---|
| AVIC Joy Holdings HK Ltd ($260) | 9.1% | 4.7% | 4.9% | 1.9% | -1.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CK Hutchison Holdings Ltd ($1) | 3.9% | 0.7% | 1.0% | 503.6% | 13.5% |
| Opes Asia Development Ltd ($810) | | | 11.3% | 76.1% | |
| Cosmopolitan International Holdings Ltd ($120) | 0.0% | 0.4% | 1.8% | 55.2% | |
| Great China Properties Holdings Ltd ($21) | 1.7% | 6.8% | 0.9% | 30.9% | |
| China Properties Investment Holdings Ltd ($736) | 215.9% | 55.3% | 3.0% | 20.8% | 58.1% |
| |
|---|
| Median (29 companies) | 2.3% | 0.9% | 0.6% | 0.2% | 0.3% |
|---|
| AVIC Joy Holdings HK Ltd ($260) | 4.7% | 7.5% | 5.9% | 3.6% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Unity Investments Holdings Ltd ($913) | -69.6% | -36.2% | 26.4% | 47.4% | 17.5% |
| China Merchants China Direct Investments Ltd ($133) | -3.2% | 4.8% | 8.8% | 28.6% | |
| Capital VC Ltd ($2324) | -5.0% | | | 21.8% | 100.7% |
| Shanghai International Shanghai Growth Investment Ltd ($770) | 9.7% | -15.9% | -51.2% | 18.4% | -37.7% |
| Oriental Explorer Holdings Ltd ($430) | -8.5% | 9.3% | 3.2% | 14.4% | |
| |
|---|
| Median (37 companies) | -5.0% | -3.1% | -2.4% | -5.3% | -0.2% |
|---|
| AVIC Joy Holdings HK Ltd ($260) | 4.2% | 0.3% | 0.4% | -0.9% | -1.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Langham Hospitality Investments and Langham Hospitality Investments Ltd ($1270) | 9.3x | | 12.5x | 9.5x | 11.2x |
| CK Hutchison Holdings Ltd ($1) | 1.8x | 1.9x | 0.6x | 7.2x | 5.5x |
| China Financial International Investments Ltd ($721) | -2.0x | | | | 2.4x |
| Capital VC Ltd ($2324) | | | 2.2x | -1.2x | -0.2x |
| Unity Investments Holdings Ltd ($913) | | | 0.0x | -0.0x | -0.3x |
| |
|---|
| Median (12 companies) | -0.6x | -1.2x | 0.0x | -1.0x | -2.8x |
|---|
