China All Access Holdings Ltd Net Income jumped on 481% in 2015 and Revenue jumped on 14.2%
30/03/2016 • About China All Access Holdings Ltd (
$633) • By InTwits
China All Access Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 16.9% in 2015, 11.7% in 2014, 8.8% in 2013, 32.9% in 2012, 34.8% in 2011
- China All Access Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's a lot of higher than industry average of 25.5%.
- CAPEX is quite volatile: 73.8 in 2015, 162 in 2014, 132 in 2013, 2.1 in 2012, 15.2 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.3%
- It operates with high leverage: Net Debt/EBITDA is 5.6x while industry average is 2.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China All Access Holdings Ltd ($633) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 624 | 607 | 4,694 | 2,489 | 2,842 | 14.2% |
| Gross Profit | 255 | 236 | 649 | 480 | 599 | 24.8% |
| SG&A | | 53 | 288 | 287 | 204 | -28.8% |
| EBITDA | 217 | 200 | 414 | 291 | 482 | 65.5% |
| Net Income | 205 | 170 | 223 | -73 | 278 | -481.3% |
Balance Sheet
|
|---|
| Cash | 241 | 333 | 671 | 462 | 275 | -40.4% |
| Short Term Debt | 1 | 444 | 985 | 1,515 | 1,860 | 22.8% |
| Long Term Debt | 14 | 79 | 423 | 456 | 1,090 | 139.4% |
Cash flow
|
|---|
| Capex | 15 | 2 | 132 | 162 | 74 | -54.5% |
Ratios
|
|---|
| Revenue growth | 24.6% | -2.7% | 673.3% | -47.0% | 14.2% | |
| EBITDA growth | 18.7% | -8.2% | 107.4% | -29.7% | 65.5% | |
| Gross Margin | 40.9% | 38.9% | 13.8% | 19.3% | 21.1% | 1.8% |
| EBITDA Margin | 34.8% | 32.9% | 8.8% | 11.7% | 16.9% | 5.3% |
| Net Income Margin | 32.9% | 28.1% | 4.7% | -2.9% | 9.8% | 12.7% |
| SG&A, % of revenue | | 8.8% | 6.1% | 11.5% | 7.2% | -4.3% |
| CAPEX, % of revenue | 2.4% | 0.3% | 2.8% | 6.5% | 2.6% | -3.9% |
| ROIC | 17.5% | 8.4% | 8.4% | 4.0% | 6.3% | 2.3% |
| ROE | 18.5% | 12.0% | 13.6% | -3.4% | 9.7% | 13.1% |
| Net Debt/EBITDA | -1.0x | 0.9x | 1.8x | 5.2x | 5.6x | 0.4x |
Revenue and profitability
The company's Revenue surged on 14.2% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.66 pp from 4.4% to 5.1% in 2015.
Gross Margin increased slightly on 1.8 pp from 19.3% to 21.1% in 2015. SG&A as a % of Revenue decreased on 4.3 pp from 11.5% to 7.2% in 2015.
Net Income marign surged on 12.7 pp from -2.9% to 9.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 China All Access Holdings Ltd had CAPEX/Revenue of 2.6%. CAPEX/Revenue increased on 2.2 pp from 0.35% in 2012 to 2.6% in 2015. For the last three years the average CAPEX/Revenue was 4.0%.
Return on investment
The company operates at low ROIC (6.33%) and ROE (9.67%). ROIC increased on 2.3 pp from 4.0% to 6.3% in 2015. ROE surged on 13.1 pp from -3.4% to 9.7% in 2015.
Leverage (Debt)
Debt level is 5.6x Net Debt / EBITDA and 6.1x Debt / EBITDA. Net Debt / EBITDA surged on 0.4x from 5.2x to 5.6x in 2015. Debt jumped on 49.7% in 2015 while cash dropped on 40.4% in 2015.
Appendix 1: Peers in Telecommunications
Below we provide China All Access 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 (50 companies) | 23.4% | 9.7% | 8.3% | 8.4% | 3.9% |
|---|
| China All Access Holdings Ltd ($633) | | -2.7% | 673.3% | -47.0% | 14.2% |
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 (44 companies) | 27.3% | 21.9% | 24.5% | 26.6% | 22.8% |
|---|
| China All Access Holdings Ltd ($633) | 40.9% | 38.9% | 13.8% | 19.3% | 21.1% |
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 (50 companies) | 9.9% | 9.0% | 6.4% | 7.3% | 9.2% |
|---|
| China All Access Holdings Ltd ($633) | 34.8% | 32.9% | 8.8% | 11.7% | 16.9% |
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 Fiber Optic Network System Group Ltd ($3777) | 24.5% | 4.8% | 16.3% | 13.1% | 31.9% |
| |
|---|
| Median (50 companies) | 3.0% | 2.5% | 3.3% | 3.2% | 3.2% |
|---|
| China All Access Holdings Ltd ($633) | 2.4% | 0.3% | 2.8% | 6.5% | 2.6% |
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 (51 companies) | 7.1% | 6.6% | 5.9% | 6.8% | 5.4% |
|---|
| China All Access Holdings Ltd ($633) | 17.5% | 8.4% | 8.4% | 4.0% | 6.3% |
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 |
| China Ground Source Energy Industry Group Ltd ($8128) | -0.6x | -1.6x | 3.5x | 14.3x | 11.3x |
| 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 |
| |
|---|
| Median (36 companies) | -0.2x | -0.2x | 0.6x | 0.7x | 0.3x |
|---|
| China All Access Holdings Ltd ($633) | -1.0x | 0.9x | 1.8x | 5.2x | 5.6x |
