Orient Victory China Holdings Ltd reports 47.9% revenue decline in 2015 and 31.3 pp EBITDA Margin decline from -2.0% to -33.2%
28/03/2016 • About Orient Victory China Holdings Ltd (
$265) • By InTwits
Orient Victory China Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Orient Victory China Holdings Ltd is a company in decline: 2015 revenue growth was -47.9%, 5 years revenue CAGR was -12.6%
- The company operates at negative EBITDA Margin: -33.2%
- Orient Victory China 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 13.8%.
- CAPEX is quite volatile: 0.22 in 2015, 1.6 in 2014, 2.8 in 2013, 2.5 in 2012, 7.1 in 2011
- The company has unprofitable business model: ROIC is at -4.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Orient Victory China Holdings Ltd ($265) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 152.3 | 164.2 | 200.6 | 127.4 | 66.4 | -47.9% |
| Gross Profit | 104.3 | 113.9 | 123.4 | 85.9 | 32.6 | -62.0% |
| SG&A | 95.8 | 93.1 | 107.6 | 90.4 | 54.8 | -39.3% |
| EBITDA | 8.7 | 27.1 | 20.7 | -2.5 | -22.1 | 784.5% |
| Net Income | -14.8 | 19.2 | 21.8 | 1.0 | 1.4 | 33.0% |
Balance Sheet
|
|---|
| Cash | 57.1 | 31.9 | 34.2 | 56.9 | 318.3 | 459.1% |
| Short Term Debt | 87.6 | 62.8 | 37.4 | 15.6 | 65.7 | 321.5% |
| Long Term Debt | 55.2 | 57.9 | 60.8 | 0.0 | 440.7 | |
Cash flow
|
|---|
| Capex | 7.1 | 2.5 | 2.8 | 1.6 | 0.2 | -86.4% |
Ratios
|
|---|
| Revenue growth | 17.2% | 7.8% | 22.2% | -36.5% | -47.9% | |
| EBITDA growth | -58.7% | 210.7% | -23.8% | -112.1% | 784.5% | |
| Gross Margin | 68.5% | 69.4% | 61.6% | 67.4% | 49.1% | -18.3% |
| EBITDA Margin | 5.7% | 16.5% | 10.3% | -2.0% | -33.2% | -31.3% |
| Net Income Margin | -9.7% | 11.7% | 10.9% | 0.8% | 2.1% | 1.3% |
| SG&A, % of revenue | 62.9% | 56.7% | 53.6% | 70.9% | 82.5% | 11.6% |
| CAPEX, % of revenue | 4.7% | 1.5% | 1.4% | 1.3% | 0.3% | -1.0% |
| ROIC | 1.5% | 8.0% | 5.7% | -2.0% | -4.3% | -2.3% |
| ROE | -10.5% | 12.9% | 12.2% | 0.7% | 0.5% | -0.1% |
| Net Debt/EBITDA | 9.8x | 3.3x | 3.1x | | | 0.0x |
Revenue and profitability
Orient Victory China Holdings Ltd's Revenue dropped on 47.9% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 31.3 pp from -2.0% to -33.2% in 2015.
Gross Margin dropped on 18.3 pp from 67.4% to 49.1% in 2015. SG&A as a % of Revenue jumped on 11.6 pp from 70.9% to 82.5% in 2015.
Net Income marign increased slightly on 1.3 pp from 0.81% to 2.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
Orient Victory China Holdings Ltd's CAPEX/Revenue was 0.33% in 2015. CAPEX/Revenue decreased slightly on 1.2 pp from 1.5% in 2012 to 0.33% in 2015. For the last three years the average CAPEX/Revenue was 1.0%.
Return on investment
The company operates at negative ROIC (-4.26%) and low but positive ROE (0.54%). ROIC decreased on 2.3 pp from -2.0% to -4.3% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt level is -1.5x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt jumped on 3,148% in 2015 while cash jumped on 459% in 2015.
Appendix 1: Peers in Holding Companies-Divers
Below you can find Orient Victory China Holdings Ltd benchmarking vs. other companies in Holding Companies-Divers 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 |
|---|
| CIAM Group Ltd ($378) | | -62.2% | 47.9% | -40.0% | 211.5% |
| New Century Group Hong Kong Ltd ($234) | | -68.9% | 326.7% | -70.3% | 118.2% |
| Greater China Holdings Ltd ($431) | | -35.8% | -72.1% | 67.3% | 110.3% |
| Heng Fai Enterprises Ltd ($185) | | 8.2% | -30.5% | -42.6% | 86.7% |
| China Primary Energy Holdings Ltd ($8117) | | -56.3% | -23.6% | 195.4% | 83.7% |
| |
|---|
| Median (34 companies) | 11.6% | 12.2% | 3.3% | 15.7% | 8.4% |
|---|
| Orient Victory China Holdings Ltd ($265) | | 7.8% | 22.2% | -36.5% | -47.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Multifield International Holdings Ltd ($898) | 66.4% | 87.5% | 84.7% | 89.1% | |
| New Century Group Hong Kong Ltd ($234) | 76.7% | 27.3% | 85.2% | 82.8% | 91.5% |
| Emperor International Holdings Ltd ($163) | 74.5% | 71.3% | 64.9% | 79.2% | 75.3% |
| China Renji Medical Group Ltd/Hong Kong ($648) | 54.9% | 70.0% | 67.3% | 78.6% | 22.3% |
| Century Legend Holdings Ltd ($79) | 68.5% | 70.1% | 72.3% | 71.0% | 70.3% |
| |
|---|
| Median (39 companies) | 27.9% | 32.9% | 34.6% | 30.8% | 34.2% |
|---|
| Orient Victory China Holdings Ltd ($265) | 68.5% | 69.4% | 61.6% | 67.4% | 49.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Emperor International Holdings Ltd ($163) | 224.8% | 180.7% | 131.8% | 100.6% | 73.9% |
| Multifield International Holdings Ltd ($898) | 49.8% | 80.1% | 68.3% | 97.5% | |
| New Century Group Hong Kong Ltd ($234) | 82.5% | -5.5% | 78.8% | 58.3% | 85.0% |
| Magnificent Estates ($201) | 42.1% | 45.5% | 47.8% | 53.0% | 40.6% |
| China Merchants Holdings International Co Ltd ($144) | 63.7% | 56.4% | 50.8% | 45.2% | |
| |
|---|
| Median (44 companies) | 5.7% | 1.7% | 1.9% | 7.4% | 4.3% |
|---|
| Orient Victory China Holdings Ltd ($265) | 5.7% | 16.5% | 10.3% | -2.0% | -33.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Far East Holdings International Ltd ($36) | 2.7% | 0.1% | 13.2% | 422.1% | 0.8% |
| China Investments Holdings Ltd ($132) | 20.7% | 4.8% | 81.9% | 382.2% | 222.5% |
| Heng Fai Enterprises Ltd ($185) | 217.5% | 4.8% | 77.1% | 310.0% | 458.1% |
| New Century Group Hong Kong Ltd ($234) | 1.0% | 97.2% | 1.0% | 142.7% | 32.2% |
| Chinney Investments Ltd ($216) | 37.6% | 17.5% | 103.4% | 111.3% | 230.9% |
| |
|---|
| Median (44 companies) | 4.4% | 2.7% | 3.8% | 7.0% | 12.3% |
|---|
| Orient Victory China Holdings Ltd ($265) | 4.7% | 1.5% | 1.4% | 1.3% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wisdom Holdings Group ($1661) | 62.7% | 68.6% | 42.1% | 28.8% | |
| Chinney Alliance Group Ltd ($385) | 3.4% | 6.4% | 8.1% | 13.6% | |
| Hutchison Whampoa Ltd ($13) | 3.3% | 3.7% | 4.2% | 8.1% | |
| Code Agriculture Holdings Ltd ($8153) | -0.1% | 2.4% | -3.3% | 7.9% | -6.2% |
| C C Land Holdings Ltd ($1224) | 4.5% | 7.4% | 5.3% | 7.9% | 15.0% |
| |
|---|
| Median (44 companies) | 0.3% | -0.2% | -0.2% | 0.8% | 0.2% |
|---|
| Orient Victory China Holdings Ltd ($265) | 1.5% | 8.0% | 5.7% | -2.0% | -4.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chinney Investments Ltd ($216) | 111.3x | 10.3x | 63.7x | 48.6x | 93.7x |
| Carnival Group International Holdings Ltd ($996) | | | | 23.7x | |
| Van Shung Chong Holdings Ltd ($1001) | 3.4x | | 0.9x | 12.3x | 7.7x |
| Southeast Asia Properties & Finance Ltd ($252) | 6.8x | 6.7x | 5.7x | 9.2x | 4.3x |
| Code Agriculture Holdings Ltd ($8153) | 24.3x | 11.9x | 42.8x | 8.7x | |
| |
|---|
| Median (27 companies) | 2.7x | 2.4x | 2.9x | 3.0x | 3.1x |
|---|
