GET Holdings Ltd EBITDA dropped on 40.6% in 2015 and EBITDA Margin dropped on 37.9 pp from 66.4% to 28.5%
28/03/2016 • About GET Holdings Ltd (
$8100) • By InTwits
GET Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- GET Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 41.6%. At the same time it's a lot of higher than industry average of 4.6%.
- CAPEX is quite volatile: 1.2 in 2015, 1.6 in 2014, 0.79 in 2013, 5.8 in 2012, 2.4 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
GET Holdings Ltd ($8100) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3.6 | 4.1 | 92.1 | 234.3 | 324.7 | 38.6% |
| Gross Profit | 3.4 | 3.9 | 74.1 | 144.7 | 165.2 | 14.2% |
| SG&A | 10.8 | 14.4 | 32.2 | 62.2 | 95.3 | 53.4% |
| EBITDA | -6.6 | -9.8 | 52.3 | 155.5 | 92.4 | -40.6% |
| Net Income | -6.1 | -26.6 | -207.4 | 52.7 | 60.5 | 14.7% |
Balance Sheet
|
|---|
| Cash | 118.1 | 140.7 | 69.8 | 148.9 | 214.3 | 43.9% |
| Short Term Debt | 0.0 | 17.2 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 12.7 | 0.0 | 281.0 | |
Cash flow
|
|---|
| Capex | 2.4 | 5.8 | 0.8 | 1.6 | 1.2 | -28.2% |
Ratios
|
|---|
| Revenue growth | -4.3% | 13.8% | 2,126.4% | 154.4% | 38.6% | |
| EBITDA growth | -42.2% | 48.6% | -631.5% | 197.4% | -40.6% | |
| Gross Margin | 92.7% | 94.5% | 80.5% | 61.7% | 50.9% | -10.9% |
| EBITDA Margin | -182.0% | -237.7% | 56.8% | 66.4% | 28.5% | -37.9% |
| Net Income Margin | -169.0% | -643.6% | -225.2% | 22.5% | 18.6% | -3.9% |
| SG&A, % of revenue | 298.3% | 349.1% | 35.0% | 26.5% | 29.4% | 2.8% |
| CAPEX, % of revenue | 66.6% | 139.4% | 0.9% | 0.7% | 0.4% | -0.3% |
| ROIC | -6.8% | -6.5% | 10.8% | 19.3% | 6.7% | -12.5% |
| ROE | -6.3% | -18.0% | -60.0% | 8.2% | 6.9% | -1.3% |
| Net Debt/EBITDA | | | -1.1x | -1.0x | 0.7x | 1.7x |
Revenue and profitability
The company's Revenue surged on 38.6% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 13.9 pp from 31.9% to 45.8% in 2015.
Gross Margin dropped on 10.9 pp from 61.7% to 50.9% in 2015. SG&A as a % of Revenue increased on 2.8 pp from 26.5% to 29.4% in 2015.
Net Income marign decreased on 3.9 pp from 22.5% to 18.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.35% in 2015. The company's CAPEX/Revenue dropped on 139 pp from 139% in 2012 to 0.35% in 2015. For the last three years the average CAPEX/Revenue was 0.63%.
Return on investment
The company operates at low ROIC (6.71%) and ROE (6.95%). ROIC dropped on 12.5 pp from 19.3% to 6.7% in 2015. ROE decreased slightly on 1.3 pp from 8.2% to 6.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.7x and Debt / EBITDA is 3.0x. Net Debt / EBITDA surged on 1.7x from -1.0x to 0.7x in 2015. Debt surged while cash jumped on 43.9% in 2015.
Appendix 1: Peers in Internet
Below you can find GET Holdings Ltd benchmarking vs. other companies in Internet 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 |
|---|
| China Public Procurement Ltd ($1094) | -78.5% | 5,077.0% | -67.5% | 1,258.9% | |
| China Digital Culture Group Ltd ($8175) | 320.4% | -47.9% | 180.8% | 168.8% | |
| China Healthcare Holdings Ltd ($673) | | -14.8% | -52.9% | 63.1% | 0.3% |
| ABC Multiactive Ltd ($8131) | | -15.2% | -13.2% | 59.4% | -32.4% |
| Tencent Holdings Ltd ($700) | | 54.0% | 37.7% | 30.6% | 30.3% |
| |
|---|
| Median (19 companies) | 4.1% | 11.9% | 3.7% | 10.7% | 9.8% |
|---|
| GET Holdings Ltd ($8380) | | 13.8% | 2,126.4% | 154.4% | 38.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ABC Multiactive Ltd ($8131) | 73.0% | 86.7% | 83.5% | 86.2% | 82.1% |
| Sino-I Technology Ltd ($250) | 74.2% | 75.3% | 82.7% | 78.8% | |
| AcrossAsia Ltd ($8061) | 78.7% | 70.9% | 73.0% | 72.5% | |
| Pacific Online Ltd ($543) | 69.1% | 71.0% | 70.5% | 67.3% | 64.8% |
| Forgame Holdings Ltd ($484) | 82.1% | 89.8% | 84.7% | 66.1% | 33.5% |
| |
|---|
| Median (16 companies) | 62.1% | 61.4% | 57.3% | 55.8% | 41.9% |
|---|
| GET Holdings Ltd ($8380) | 92.7% | 94.5% | 80.5% | 61.7% | 50.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SUNeVision Holdings Ltd ($8008) | 61.1% | 64.2% | 71.6% | 71.6% | 72.4% |
| AcrossAsia Ltd ($8061) | 15.4% | 20.8% | 24.2% | 44.7% | |
| Tencent Holdings Ltd ($700) | 48.2% | 38.4% | 34.7% | 42.5% | 43.5% |
| China Digital Culture Group Ltd ($8175) | -12.1% | -66.7% | 22.5% | 40.8% | |
| Tradelink Electronic Commerce Ltd ($536) | 42.1% | 38.6% | 33.8% | 33.1% | |
| |
|---|
| Median (20 companies) | 9.3% | 5.1% | 15.2% | 7.3% | 3.0% |
|---|
| GET Holdings Ltd ($8380) | -182.0% | -237.7% | 56.8% | 66.4% | 28.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SUNeVision Holdings Ltd ($8008) | 14.2% | 7.6% | 10.2% | 62.8% | 12.4% |
| AcrossAsia Ltd ($8061) | 61.2% | 56.6% | 65.9% | 36.3% | |
| China E-Learning Group Ltd ($8055) | 1.3% | 0.0% | 2.7% | 15.3% | |
| Asian Capital Resources Holdings Ltd ($8025) | 0.0% | 0.0% | | 12.2% | |
| Capinfo Co Ltd ($1075) | 1.6% | 17.3% | 13.1% | 9.7% | 4.3% |
| |
|---|
| Median (20 companies) | 10.8% | 3.2% | 2.9% | 3.4% | 0.8% |
|---|
| GET Holdings Ltd ($8380) | 66.6% | 139.4% | 0.9% | 0.7% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tencent Holdings Ltd ($700) | 33.4% | 29.5% | 26.7% | 29.1% | 24.3% |
| Pacific Online Ltd ($543) | 41.7% | 37.9% | 36.4% | 28.6% | 21.6% |
| Tradelink Electronic Commerce Ltd ($536) | 19.5% | 22.4% | 18.2% | 17.4% | |
| SUNeVision Holdings Ltd ($8008) | 9.9% | 10.8% | 13.3% | 14.4% | 15.3% |
| China Digital Culture Group Ltd ($8175) | -2.3% | -11.2% | 4.0% | 11.7% | |
| |
|---|
| Median (20 companies) | -0.8% | -2.5% | 3.0% | -3.1% | 1.0% |
|---|
| GET Holdings Ltd ($8380) | -6.8% | -6.5% | 10.8% | 19.3% | 6.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ABC Multiactive Ltd ($8131) | | | | 9.5x | |
| AcrossAsia Ltd ($8061) | 1.7x | 2.3x | 2.9x | 1.5x | |
| Tencent Holdings Ltd ($700) | -0.1x | -0.2x | -0.2x | -0.2x | 0.5x |
| China Digital Culture Group Ltd ($8175) | | | -2.2x | -0.4x | |
| Pacific Online Ltd ($543) | -1.5x | -1.4x | -1.3x | -1.3x | -1.7x |
| |
|---|
| Median (12 companies) | -1.8x | -1.4x | -1.4x | -1.5x | -1.7x |
|---|
| GET Holdings Ltd ($8380) | | | -1.1x | -1.0x | 0.7x |
