CCT Land Holdings Ltd Debt dropped on 76.0% in 2015 and Net Debt / EBITDA dropped on 3.7x from 48.4x to 44.8x
29/03/2016 • About CCT Land Holdings Ltd (
$261) • By InTwits
CCT Land Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CCT Land Holdings Ltd is a company in decline: 2015 revenue growth was -21.7%, 5 years revenue CAGR was -12.4%
- EBITDA Margin is quite volatile: 0.5% in 2015, 2.6% in 2014, 4.3% in 2013, 2.1% in 2012, -6.7% in 2011
- CCT Land Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has unprofitable business model: ROIC is at -1.4%
- It operates with high leverage: Net Debt/EBITDA is 44.8x 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 Land Holdings Ltd ($261) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,553 | 1,342 | 1,193 | 1,034 | 810 | -21.7% |
| Gross Profit | 47 | 45 | 66 | 43 | 69 | 60.5% |
| SG&A | | 91 | 98 | 114 | 109 | -4.4% |
| EBITDA | -104 | 28 | 51 | 27 | 4 | -85.2% |
| Net Income | -165 | -58 | -31 | -53 | -74 | 39.6% |
Balance Sheet
|
|---|
| Cash | 320 | 263 | 346 | 208 | 185 | -11.1% |
| Short Term Debt | 368 | 397 | 507 | 475 | 296 | -37.7% |
| Long Term Debt | 105 | 149 | 1,055 | 1,040 | 68 | -93.5% |
Cash flow
|
|---|
| Capex | 13 | 7 | 2 | 8 | 8 | 0.0% |
Ratios
|
|---|
| Revenue growth | -1.3% | -13.6% | -11.1% | -13.3% | -21.7% | |
| EBITDA growth | -533.3% | -126.9% | 82.1% | -47.1% | -85.2% | |
| Gross Margin | 3.0% | 3.4% | 5.5% | 4.2% | 8.5% | 4.4% |
| EBITDA Margin | -6.7% | 2.1% | 4.3% | 2.6% | 0.5% | -2.1% |
| Net Income Margin | -10.6% | -4.3% | -2.6% | -5.1% | -9.1% | -4.0% |
| SG&A, % of revenue | | 6.8% | 8.2% | 11.0% | 13.5% | 2.4% |
| CAPEX, % of revenue | 0.8% | 0.5% | 0.2% | 0.8% | 1.0% | 0.2% |
| ROIC | -14.2% | -1.6% | 0.4% | -0.7% | -1.4% | -0.7% |
| ROE | -26.2% | -11.2% | -6.4% | -11.9% | -7.4% | 4.5% |
| Net Debt/EBITDA | | 10.1x | 23.8x | 48.4x | 44.8x | -3.7x |
Revenue and profitability
The company's Revenue dropped on 21.7% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 16.9 pp from 30.7% to 47.6% in 2015.
Gross Margin increased on 4.4 pp from 4.2% to 8.5% in 2015. SG&A as a % of Revenue increased on 2.4 pp from 11.0% to 13.5% in 2015.
Net Income marign decreased on 4.0 pp from -5.1% to -9.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.99% in 2015. CCT Land Holdings Ltd's CAPEX/Revenue showed almost no change from 2012 to 2015. For the last three years the average CAPEX/Revenue was 0.64%.The company has spent a lot to CAPEX (200% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-1.40%) and ROE (-7.39%). ROIC decreased slightly on 0.74 pp from -0.66% to -1.4% in 2015. ROE increased on 4.5 pp from -11.9% to -7.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 44.8x and Debt / EBITDA is 91.0x. Net Debt / EBITDA dropped on 3.7x from 48.4x to 44.8x in 2015. Debt dropped on 76.0% in 2015 while cash dropped on 11.1% in 2015.
Appendix 1: Peers in Telecommunications
Below we provide CCT Land 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% |
| CCT Fortis Holdings Ltd ($138) | | -24.1% | -55.3% | -71.3% | 207.1% |
| 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% |
| |
|---|
| Median (45 companies) | 24.6% | 10.2% | 8.3% | 9.3% | 4.3% |
|---|
| CCT Land Holdings Ltd ($261) | | -13.6% | -11.1% | -13.3% | -21.7% |
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% | 25.8% | 26.1% | 21.1% |
|---|
| CCT Land Holdings Ltd ($261) | 3.0% | 3.4% | 5.5% | 4.2% | 8.5% |
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% | 6.7% | 7.9% | 9.1% |
|---|
| CCT Land Holdings Ltd ($261) | -6.7% | 2.1% | 4.3% | 2.6% | 0.5% |
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% | 2.5% | 3.6% | 4.1% | 2.7% |
|---|
| CCT Land Holdings Ltd ($261) | 0.8% | 0.5% | 0.2% | 0.8% | 1.0% |
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 Land Holdings Ltd ($261) | -14.2% | -1.6% | 0.4% | -0.7% | -1.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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 |
| HKBN Ltd ($1310) | | | 3.8x | 3.0x | 3.0x |
| |
|---|
| Median (32 companies) | -0.2x | -0.2x | 0.6x | 0.6x | 0.2x |
|---|
| CCT Land Holdings Ltd ($261) | | 10.1x | 23.8x | 48.4x | 44.8x |
