Honbridge Holdings Ltd reports 1,542% CAPEX growth and 57.0% Revenue growth
29/03/2016 • About Honbridge Holdings Ltd (
$8137) • By InTwits
Honbridge Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Honbridge Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -1.1%
- The company operates at negative EBITDA Margin: -1.3%
- Honbridge 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 -11.2%0
- Honbridge Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.4%. At the same time it's in pair with industry average of 33.8%.
- CAPEX is quite volatile: 11.7 in 2015, 0.71 in 2014, 5.2 in 2013, 0.47 in 2012, 3.4 in 2011
- The company has unprofitable business model: ROIC is at -1.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Honbridge Holdings Ltd ($8137) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,757 | 415 | 10 | 73 | 115 | 57.0% |
| Gross Profit | 16 | 3 | 8 | 21 | 24 | 10.2% |
| SG&A | | | 61 | 80 | 101 | 26.8% |
| EBITDA | -63 | -62 | -96 | -42 | -1 | -96.4% |
| Net Income | -305 | -222 | 9,183 | -3,241 | -1,985 | -38.8% |
Balance Sheet
|
|---|
| Cash | 36 | 2 | 86 | 57 | 1,229 | 2,052.6% |
| Short Term Debt | 300 | 194 | 7 | 15 | 588 | 3,745.9% |
| Long Term Debt | 489 | 600 | 662 | 710 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 3 | 0 | 5 | 1 | 12 | 1,541.9% |
Ratios
|
|---|
| Revenue growth | 3,428.4% | -76.4% | -97.5% | 608.9% | 57.0% | |
| EBITDA growth | -83.1% | -1.6% | 54.1% | -56.6% | -96.4% | |
| Gross Margin | 0.9% | 0.7% | 73.2% | 29.2% | 20.5% | -8.7% |
| EBITDA Margin | -3.6% | -15.0% | -927.7% | -56.8% | -1.3% | 55.5% |
| Net Income Margin | -17.4% | -53.4% | 88,592.4% | -4,411.3% | -1,720.2% | 2,691.1% |
| SG&A, % of revenue | | | 584.4% | 108.7% | 87.8% | -20.9% |
| CAPEX, % of revenue | 0.2% | 0.1% | 50.6% | 1.0% | 10.1% | 9.2% |
| ROIC | -2.8% | -3.6% | -1.3% | -0.5% | -1.1% | -0.5% |
| ROE | -45.4% | -51.4% | 226.3% | -54.7% | -71.5% | -16.8% |
Revenue and profitability
The company's Revenue surged on 57.0% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 55.5 pp from -56.8% to -1.3% in 2015.
Gross Margin decreased on 8.7 pp from 29.2% to 20.5% in 2015. SG&A as a % of Revenue dropped on 20.9 pp from 109% to 87.8% in 2015.
Net Income marign surged on 2,691 pp from -4,411% to -1,720% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 10.1% in 2015. Honbridge Holdings Ltd's CAPEX/Revenue jumped on 10.0 pp from 0.11% in 2012 to 10.1% in 2015. It's average CAPEX/Revenue for the last three years was 20.6%.
Return on investment
The company operates at negative ROIC (-1.08%) and ROE (-71.47%). ROIC decreased slightly on 0.54 pp from -0.54% to -1.1% in 2015. ROE dropped on 16.8 pp from -54.7% to -71.5% in 2015.
Leverage (Debt)
Debt level is -5.3x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt dropped on 18.9% in 2015 while cash surged on 2,053% in 2015.
Appendix 1: Peers in Semiconductors
Below you can find Honbridge Holdings Ltd benchmarking vs. other companies in Semiconductors 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 |
|---|
| Phoenitron Holdings Ltd ($8066) | | -7.2% | 4.0% | 243.8% | 405.3% |
| Jun Yang Solar Power Investments Ltd ($397) | | -81.0% | 256.8% | 1.1% | 168.9% |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | | 15.5% | 16.0% | 3.3% | 23.2% |
| Shunfeng International Clean Energy Ltd ($1165) | | -46.3% | 44.4% | 275.6% | 22.4% |
| Solomon Systech International Ltd ($2878) | | 26.2% | -15.3% | 8.9% | 18.0% |
| |
|---|
| Median (18 companies) | -10.9% | -11.2% | 3.8% | 10.4% | -0.6% |
|---|
| Honbridge Holdings Ltd ($8137) | | -76.4% | -97.5% | 608.9% | 57.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jun Yang Solar Power Investments Ltd ($397) | -2.4% | 87.3% | 79.3% | 53.8% | 73.8% |
| Intel Corp ($4335) | 62.5% | 62.1% | 59.8% | 63.7% | 62.6% |
| PacMOS Technologies Holdings Ltd ($1010) | 68.1% | 68.8% | 65.7% | 65.7% | 57.5% |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 43.7% | 47.7% | 48.7% | 47.5% | 52.9% |
| Applied Materials Inc ($4336) | 41.5% | 38.0% | 39.8% | 42.4% | 40.9% |
| |
|---|
| Median (18 companies) | 21.6% | 24.5% | 23.7% | 32.2% | 31.3% |
|---|
| Honbridge Holdings Ltd ($8137) | 0.9% | 0.7% | 73.2% | 29.2% | 20.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Intel Corp ($4335) | 43.6% | 41.5% | 38.6% | 42.8% | 41.0% |
| Jun Yang Solar Power Investments Ltd ($397) | 3.9% | -218.5% | -16.7% | -9.9% | 35.0% |
| Semiconductor Manufacturing International Corp ($981) | 26.9% | 34.3% | 35.5% | 34.5% | 33.3% |
| Hua Hong Semiconductor Ltd ($1347) | 41.9% | 38.5% | 29.7% | 31.5% | 30.0% |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 22.4% | 26.5% | 23.9% | 25.4% | 26.8% |
| |
|---|
| Median (18 companies) | 12.5% | 9.3% | 9.5% | 7.1% | 9.1% |
|---|
| Honbridge Holdings Ltd ($8137) | -3.6% | -15.0% | -927.7% | -56.8% | -1.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Heng Xin China Holdings Ltd ($8046) | 17.3% | 16.1% | 4.1% | 11.9% | 110.8% |
| Jun Yang Solar Power Investments Ltd ($397) | 390.5% | 671.1% | 25.9% | 78.9% | 104.2% |
| Semiconductor Manufacturing International Corp ($981) | 70.6% | 23.5% | 35.1% | 33.2% | 55.0% |
| Hua Hong Semiconductor Ltd ($1347) | 14.6% | 9.0% | 5.5% | 11.4% | 28.0% |
| China Jinhai International Group Ltd ($139) | 12.8% | | 1.2% | 0.1% | 18.4% |
| |
|---|
| Median (18 companies) | 10.6% | 4.7% | 4.1% | 7.0% | 5.2% |
|---|
| Honbridge Holdings Ltd ($8137) | 0.2% | 0.1% | 50.6% | 1.0% | 10.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 22.2% | 25.5% | 22.7% | 21.1% | 20.9% |
| Intel Corp ($4335) | 32.4% | 23.7% | 17.1% | 20.6% | 17.7% |
| Applied Materials Inc ($4336) | 25.6% | 4.0% | 4.6% | 15.9% | 15.2% |
| ASM Pacific Technology Ltd ($522) | 52.1% | 12.3% | 9.2% | 21.9% | 13.7% |
| Hua Hong Semiconductor Ltd ($1347) | | 5.3% | 4.8% | 7.8% | 6.7% |
| |
|---|
| Median (18 companies) | 2.7% | -0.8% | 0.6% | 3.1% | 0.9% |
|---|
| Honbridge Holdings Ltd ($8137) | -2.8% | -3.6% | -1.3% | -0.5% | -1.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Solargiga Energy Holdings Ltd ($757) | 5.9x | | 13.8x | 4.4x | 9.0x |
| Shunfeng International Clean Energy Ltd ($1165) | 8.2x | | 25.8x | 3.4x | 5.7x |
| Semiconductor Manufacturing International Corp ($981) | 1.9x | 1.3x | 1.0x | 1.0x | 0.5x |
| Intel Corp ($4335) | 0.1x | 0.2x | 0.4x | 0.5x | 0.3x |
| ASM Pacific Technology Ltd ($522) | -0.4x | -0.5x | -0.8x | -0.1x | 0.2x |
| |
|---|
| Median (10 companies) | -0.0x | 0.2x | 0.4x | 0.2x | 0.1x |
|---|
