CCT Fortis Holdings Ltd revenue jumped on 207% in 2015 and EBITDA Margin surged on 264 pp from -288% to -24.0%
29/03/2016 • About CCT Fortis Holdings Ltd (
$138) • By InTwits
CCT Fortis Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CCT Fortis Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -4.5%
- The company operates at negative EBITDA Margin: -24.0%
- CCT Fortis Holdings 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 -11.9%0
- CCT Fortis Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.4%. At the same time it's a lot of higher than industry average of 10.8%.
- CAPEX is quite volatile: 72 in 2015, 37 in 2014, 219 in 2013, 190 in 2012, 47 in 2011
- The company has unprofitable business model: ROIC is at -4.5%
- It operates with high leverage: Net Debt/EBITDA is 39.3x while industry average is 2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CCT Fortis Holdings Ltd ($138) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,034 | 1,544 | 690 | 198 | 608 | 207.1% |
| Gross Profit | 140 | 81 | 309 | -31 | 355 | -1,245.2% |
| SG&A | 312 | 183 | 128 | 79 | 120 | 51.9% |
| EBITDA | -127 | -15 | 255 | -570 | -146 | -74.4% |
| Net Income | -194 | -31 | 232 | 358 | 369 | 3.1% |
Balance Sheet
|
|---|
| Cash | 573 | 459 | 643 | 122 | 355 | 191.0% |
| Short Term Debt | 549 | 507 | 811 | 470 | 443 | -5.7% |
| Long Term Debt | 412 | 522 | 452 | 612 | 527 | -13.9% |
Cash flow
|
|---|
| Capex | 47 | 190 | 219 | 37 | 72 | 94.6% |
Ratios
|
|---|
| Revenue growth | 6.0% | -24.1% | -55.3% | -71.3% | 207.1% | |
| EBITDA growth | -227.0% | -88.2% | -1,800.0% | -323.5% | -74.4% | |
| Gross Margin | 6.9% | 5.2% | 44.8% | -15.7% | 58.4% | 74.0% |
| EBITDA Margin | -6.2% | -1.0% | 37.0% | -287.9% | -24.0% | 263.9% |
| Net Income Margin | -9.5% | -2.0% | 33.6% | 180.8% | 60.7% | -120.1% |
| SG&A, % of revenue | 15.3% | 11.9% | 18.6% | 39.9% | 19.7% | -20.2% |
| CAPEX, % of revenue | 2.3% | 12.3% | 31.7% | 18.7% | 11.8% | -6.8% |
| ROIC | -6.6% | -2.8% | 5.6% | -17.3% | -4.5% | 12.8% |
| ROE | -9.7% | -1.7% | 12.0% | 15.6% | 13.6% | -2.0% |
| Net Debt/EBITDA | | | 2.4x | | | 0.0x |
Revenue and profitability
CCT Fortis Holdings Ltd's Revenue surged on 207% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.4 pp from 23.8% to 26.2% in 2015.
Gross Margin surged on 74.0 pp from -15.7% to 58.4% in 2015. SG&A as a % of Revenue dropped on 20.2 pp from 39.9% to 19.7% in 2015.
Net Income marign dropped on 120 pp from 181% to 60.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 CCT Fortis Holdings Ltd had CAPEX/Revenue of 11.8%. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 20.8%.
Return on investment
The company operates at negative ROIC (-4.50%) and low but positive ROE (13.62%). ROIC jumped on 12.8 pp from -17.3% to -4.5% in 2015. ROE decreased slightly on 2.0 pp from 15.6% to 13.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 39.3x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt dropped on 10.4% in 2015 while cash surged on 191% in 2015.
Appendix 1: Peers in Telecommunications
Below we provide CCT Fortis Holdings Ltd benchmarking against other companies in Telecommunications industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hong Kong Television Network Ltd ($1137) | | | 107.4% | -82.2% | 8,010.0% |
| Hanny Holdings Ltd ($275) | | 236.4% | 131.2% | -85.2% | 349.3% |
| Xi'an Haitian Antenna Technologies Co Ltd ($8227) | | -8.5% | -45.9% | -56.2% | 111.6% |
| China Trends Holdings Ltd ($8171) | | 167.0% | -70.2% | -16.7% | 106.0% |
| Synertone Communication Corp ($1613) | | -0.3% | -47.0% | 50.8% | 89.0% |
| |
|---|
| Median (45 companies) | 24.6% | 10.2% | 8.3% | 9.3% | 3.5% |
|---|
| CCT Fortis Holdings Ltd ($138) | | -24.1% | -55.3% | -71.3% | 207.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HKBN Ltd ($1310) | | | 84.3% | 86.5% | 86.9% |
| Netel Technology Holdings Ltd ($8256) | 40.8% | 27.9% | 42.1% | 54.9% | 72.3% |
| Great World Co Holdings Ltd ($8003) | 34.2% | -11.0% | 43.0% | 45.5% | 67.9% |
| APT Satellite Holdings Ltd ($1045) | 52.3% | 58.7% | 64.1% | 62.5% | 61.0% |
| Cisco Systems Inc ($4333) | 61.4% | 61.2% | 60.6% | 58.9% | 60.4% |
| |
|---|
| Median (39 companies) | 28.0% | 22.1% | 24.2% | 26.1% | 21.0% |
|---|
| CCT Fortis Holdings Ltd ($138) | 6.9% | 5.2% | 44.8% | -15.7% | 58.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 83.5% | 86.5% | 85.8% | 81.6% | 82.4% |
| APT Satellite Holdings Ltd ($1045) | 76.7% | 81.0% | 78.9% | 77.5% | 78.8% |
| Synertone Communication Corp ($1613) | 49.5% | 44.9% | 48.5% | 49.4% | 51.5% |
| HKBN Ltd ($1310) | | | 39.2% | 40.1% | 39.0% |
| China Mobile Ltd ($941) | 47.1% | 43.7% | 38.2% | 36.9% | 36.0% |
| |
|---|
| Median (45 companies) | 10.0% | 9.5% | 6.1% | 7.9% | 9.1% |
|---|
| CCT Fortis Holdings Ltd ($138) | -6.2% | -1.0% | 37.0% | -287.9% | -24.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| APT Satellite Holdings Ltd ($1045) | 155.2% | 74.3% | 2.5% | 27.2% | 115.8% |
| Hong Kong Television Network Ltd ($1137) | | 12,435.9% | 504.9% | 1,283.5% | 79.4% |
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 61.8% | 93.8% | 71.7% | 75.0% | 52.8% |
| China Unicom Hong Kong Ltd ($762) | 37.2% | 34.9% | 24.7% | 24.4% | 31.9% |
| China Telecom Corp Ltd ($728) | 19.8% | 17.7% | 22.1% | 24.8% | 30.8% |
| |
|---|
| Median (45 companies) | 3.0% | 2.3% | 3.0% | 3.4% | 2.6% |
|---|
| CCT Fortis Holdings Ltd ($138) | 2.3% | 12.3% | 31.7% | 18.7% | 11.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Telecom Service One Holdings Ltd ($8145) | | 95.0% | 5.4% | 26.7% | 39.8% |
| VTech Holdings Ltd ($303) | 40.5% | 37.6% | 39.5% | 40.0% | 39.8% |
| Coolpad Group Ltd ($2369) | 7.2% | 8.1% | 6.0% | 9.6% | 29.1% |
| SmarTone Telecommunications Holdings Ltd ($315) | 30.2% | 37.2% | 23.1% | 12.8% | 17.7% |
| TCL Communication Technology Holdings Ltd ($2618) | 6.4% | -1.6% | 6.0% | 17.2% | 13.4% |
| |
|---|
| Median (46 companies) | 7.4% | 7.3% | 6.0% | 7.1% | 6.8% |
|---|
| CCT Fortis Holdings Ltd ($138) | -6.6% | -2.8% | 5.6% | -17.3% | -4.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CCT Land Holdings Ltd ($261) | | 10.1x | 23.8x | 48.4x | 44.8x |
| China Energine International Holdings Ltd ($1185) | | | | 13.3x | 31.7x |
| Beijing Digital Telecom Co Ltd ($6188) | 2.1x | 2.4x | 3.5x | 2.9x | 4.1x |
| Asia Satellite Telecommunications Holdings Ltd ($1135) | -1.7x | -1.4x | -1.2x | -1.0x | 3.2x |
| CITIC Telecom International Holdings Ltd ($1883) | -0.3x | -0.2x | 3.5x | 3.4x | 3.2x |
| |
|---|
| Median (33 companies) | -0.2x | -0.1x | 0.6x | 0.7x | 0.2x |
|---|
