Beautiful China Holdings Co Ltd reports 10,323% CAPEX growth and 267% Revenue growth
29/03/2016 • About Beautiful China Holdings Co Ltd (
$706) • By InTwits
Beautiful China Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Beautiful China Holdings Co Ltd doesn't have a profitable business model yet: 2015 ROIC is -13.0%
- The company operates at negative EBITDA Margin: -265.1%
- Beautiful China Holdings Co Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -316.4%0
- Beautiful China Holdings Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 165.1%. At the same time it's a lot of higher than industry average of 35.1%.
- CAPEX is quite volatile: 164 in 2015, 1.6 in 2014, 0.22 in 2013, 1.0 in 2012, 6.1 in 2011
- The company has unprofitable business model: ROIC is at -13.0%
- It operates with high leverage: Net Debt/EBITDA is -3.0x while industry average is -3.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Beautiful China Holdings Co Ltd ($706) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 13.519 | 12.463 | 9.561 | 6.013 | 22.073 | 267.1% |
| Gross Profit | | | | | 1.549 | |
| SG&A | | | | 58.153 | 62.298 | 7.1% |
| EBITDA | -29.584 | -32.507 | -34.203 | -46.537 | -58.507 | 25.7% |
| Net Income | -46.808 | -40.403 | -43.626 | -51.117 | -61.490 | 20.3% |
Balance Sheet
|
|---|
| Cash | 148.262 | 131.108 | 103.213 | 217.108 | 143.037 | -34.1% |
| Short Term Debt | 0.818 | 0.876 | 0.934 | 0.991 | 0.430 | -56.6% |
| Long Term Debt | 3.231 | 2.355 | 1.421 | 0.430 | 14.079 | 3,174.2% |
Cash flow
|
|---|
| Capex | 6.075 | 1.049 | 0.215 | 1.575 | 164.159 | 10,322.8% |
Ratios
|
|---|
| Revenue growth | 12.4% | -7.8% | -23.3% | -37.1% | 267.1% | |
| EBITDA growth | -45.0% | 9.9% | 5.2% | 36.1% | 25.7% | |
| Gross Margin | | | | | 7.0% | 7.0% |
| EBITDA Margin | -218.8% | -260.8% | -357.7% | -773.9% | -265.1% | 508.9% |
| Net Income Margin | -346.2% | -324.2% | -456.3% | -850.1% | -278.6% | 571.5% |
| SG&A, % of revenue | | | | 967.1% | 282.2% | -684.9% |
| CAPEX, % of revenue | 44.9% | 8.4% | 2.2% | 26.2% | 743.7% | 717.5% |
| ROIC | -19.5% | -22.3% | -28.5% | -18.1% | -13.0% | 5.0% |
| ROE | -20.5% | -21.1% | -28.7% | -17.8% | -13.1% | 4.7% |
Revenue and profitability
The company's Revenue jumped on 267% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 509 pp from -774% to -265% in 2015.
SG&A as a % of Revenue dropped on 685 pp from 967% to 282% in 2015.
Net Income marign surged on 572 pp from -850% to -279% in 2015.
Capital expenditures (CAPEX) and working capital investments
Beautiful China Holdings Co Ltd's CAPEX/Revenue was 744% in 2015. CAPEX/Revenue jumped on 735 pp from 8.4% in 2012 to 744% in 2015. It's average level of CAPEX/Revenue for the last three years was 257%.
Return on investment
The company operates at negative ROIC (-13.04%) and ROE (-13.09%). ROIC increased on 5.0 pp from -18.1% to -13.0% in 2015. ROE increased on 4.7 pp from -17.8% to -13.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.0x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt surged on 921% in 2015 while cash dropped on 34.1% in 2015.
Appendix 1: Peers in Computers
Below you can find Beautiful China Holdings Co 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 |
|---|
| Powerleader Science & Technology Group Ltd ($8236) | | 2.5% | -10.3% | 18.8% | 45.0% |
| 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% |
| Peking University Resources Holdings Co Ltd ($618) | | -49.6% | 11.2% | 106.0% | 25.1% |
| Perception Digital Holdings Ltd ($1822) | | -36.1% | -41.3% | 11.1% | 23.9% |
| |
|---|
| Median (19 companies) | 8.9% | 6.5% | 0.0% | 11.0% | 3.9% |
|---|
| Beautiful China Holdings Co Ltd ($706) | | -7.8% | -23.3% | -37.1% | 267.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% |
| Alibaba Health Information Technology Ltd ($241) | 10.1% | 11.4% | -12.6% | 49.3% | 53.7% |
| CCID Consulting Co Ltd ($8235) | 46.5% | 43.7% | 49.1% | 51.8% | 48.7% |
| Founder Holdings Ltd ($418) | 21.2% | 19.8% | 28.4% | 33.7% | 41.3% |
| |
|---|
| Median (19 companies) | 11.1% | 13.2% | 16.6% | 15.6% | 19.5% |
|---|
| Beautiful China Holdings Co Ltd ($706) | | | | | 7.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Thiz Technology Group Ltd ($8119) | -39.1% | -47.4% | -847.3% | -506.6% | 74.0% |
| World Wide Touch Technology Holdings Ltd ($1282) | 14.0% | 3.4% | -6.4% | -6.4% | 35.7% |
| Ju Teng International Holdings Ltd ($3336) | 9.5% | 15.1% | 19.9% | 19.3% | 23.8% |
| Computer & Technologies Holdings Ltd ($46) | 4.8% | 12.9% | 19.9% | 20.1% | 23.2% |
| PAX Global Technology Ltd ($327) | 18.9% | 16.5% | 17.4% | 18.8% | 22.7% |
| |
|---|
| Median (20 companies) | 3.0% | 3.2% | 2.7% | 1.8% | 5.3% |
|---|
| Beautiful China Holdings Co Ltd ($706) | -218.8% | -260.8% | -357.7% | -773.9% | -265.1% |
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% |
| China Uptown Group Co Ltd ($2330) | 0.0% | 0.0% | 0.2% | 1.0% | 20.5% |
| 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% |
| Perception Digital Holdings Ltd ($1822) | 1.5% | 0.8% | 0.0% | 2.6% | 3.8% |
| |
|---|
| Median (20 companies) | 1.3% | 1.0% | 1.3% | 1.6% | 1.3% |
|---|
| Beautiful China Holdings Co Ltd ($706) | 44.9% | 8.4% | 2.2% | 26.2% | 743.7% |
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 (20 companies) | 3.9% | 2.1% | 1.4% | -0.1% | 4.2% |
|---|
| Beautiful China Holdings Co Ltd ($706) | -19.5% | -22.3% | -28.5% | -18.1% | -13.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Thiz Technology Group Ltd ($8119) | | | | | 8.2x |
| Powerleader Science & Technology Group Ltd ($8236) | 2.0x | 2.7x | 3.6x | 4.6x | 6.7x |
| Perception Digital Holdings Ltd ($1822) | | | | | 1.8x |
| Ju Teng International Holdings Ltd ($3336) | 2.5x | 2.1x | 1.8x | 1.7x | 1.6x |
| Proview International Holdings Ltd ($334) | | | | | 1.0x |
| |
|---|
| Median (14 companies) | -1.7x | -2.3x | -1.8x | -3.9x | 0.2x |
|---|
