China City Railway Transportation Technology Holdings Co Ltd reports 43.9% Net Income decline and 37.0% Revenue decline
30/03/2016 • About China City Railway Transportation Technology Holdings Co Ltd (
$1522) • By InTwits
China City Railway Transportation Technology Holdings Co 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: 17.7% in 2015, 16.2% in 2014, 29.3% in 2013, 61.9% in 2012, 45.6% in 2011
- The company has potentially unprofitable business model: ROIC is at 2.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China City Railway Transportation Technology Holdings Co Ltd ($1522) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 72.0 | 190.2 | 254.1 | 509.6 | 320.8 | -37.0% |
| Gross Profit | 47.5 | 133.8 | 98.1 | 160.3 | 121.5 | -24.2% |
| SG&A | | 29.7 | 33.9 | 92.8 | 94.3 | 1.6% |
| EBITDA | 32.9 | 117.7 | 74.5 | 82.8 | 56.7 | -31.5% |
| Net Income | 40.5 | 80.7 | 59.0 | 40.9 | 22.9 | -43.9% |
Balance Sheet
|
|---|
| Cash | 33.0 | 203.2 | 207.2 | 528.0 | 626.8 | 18.7% |
| Short Term Debt | 0.0 | 0.0 | 14.1 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.3 | 1.9 | 26.5 | | 2.4 | |
Ratios
|
|---|
| Revenue growth | 194.6% | 164.0% | 33.6% | 100.5% | -37.0% | |
| EBITDA growth | 373.2% | 258.2% | -36.7% | 11.1% | -31.5% | |
| Gross Margin | 65.9% | 70.4% | 38.6% | 31.5% | 37.9% | 6.4% |
| EBITDA Margin | 45.6% | 61.9% | 29.3% | 16.2% | 17.7% | 1.4% |
| Net Income Margin | 56.2% | 42.4% | 23.2% | 8.0% | 7.2% | -0.9% |
| SG&A, % of revenue | | 15.6% | 13.3% | 18.2% | 29.4% | 11.2% |
| CAPEX, % of revenue | 0.4% | 1.0% | 10.4% | | 0.8% | 0.8% |
| ROIC | 102.3% | 52.3% | 15.2% | 8.6% | 2.3% | -6.3% |
| ROE | 128.3% | 42.4% | 14.3% | 5.6% | 2.1% | -3.5% |
| Net Debt/EBITDA | -1.0x | -1.7x | -2.6x | -6.4x | -11.1x | -4.7x |
Revenue and profitability
The company's Revenue dropped on 37.0% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.4 pp from 16.2% to 17.7% in 2015.
Gross Margin increased on 6.4 pp from 31.5% to 37.9% in 2015. SG&A as a % of Revenue jumped on 11.2 pp from 18.2% to 29.4% in 2015.
Net Income marign decreased slightly on 0.87 pp from 8.0% to 7.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.76% in 2015. CAPEX/Revenue showed almost no change from 2012 to 2015.
Return on investment
The company operates at low ROIC (2.30%) and ROE (2.09%). ROIC decreased on 6.3 pp from 8.6% to 2.3% in 2015. ROE decreased on 3.5 pp from 5.6% to 2.1% in 2015.
Leverage (Debt)
The company has no debt. Cash surged on 18.7% in 2015.
Appendix 1: Peers in Software
Below you can find China City Railway Transportation Technology Holdings Co Ltd benchmarking vs. other companies in Software 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 |
|---|
| Yunbo Digital Synergy Group Ltd ($8050) | | -84.6% | 241.6% | -31.9% | 348.0% |
| Pizu Group Holdings Ltd ($8053) | | 40.3% | -42.9% | 1,742.9% | 157.9% |
| China Eco-Farming Ltd ($8166) | | -23.6% | -7.7% | 21.8% | 155.5% |
| Aurum Pacific China Group Ltd ($8148) | | | | 50.0% | 92.7% |
| Kingsoft Corp Ltd ($3888) | | 38.3% | 54.0% | 54.2% | 69.4% |
| |
|---|
| Median (33 companies) | -14.9% | 10.6% | 11.1% | 20.9% | 10.7% |
|---|
| China City Railway Transportation Technology Holdings Co Ltd ($1522) | | 164.0% | 33.6% | 100.5% | -37.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Bio Cassava Holdings Ltd ($8129) | 90.2% | 90.4% | 97.4% | 98.4% | 98.3% |
| Chanjet Information Technology Co Ltd ($1588) | 91.9% | 89.2% | 91.3% | 92.4% | 91.4% |
| China Binary Sale Technology Ltd ($8255) | 60.0% | 63.5% | 68.5% | 67.7% | 85.9% |
| Kingdee International Software Group Co Ltd ($268) | 70.1% | 65.0% | 75.3% | 82.5% | 81.5% |
| Tian Ge Interactive Holdings Ltd ($1980) | 87.5% | 88.5% | 87.6% | 84.8% | 77.7% |
| |
|---|
| Median (33 companies) | 49.2% | 45.4% | 43.8% | 43.4% | 43.6% |
|---|
| China City Railway Transportation Technology Holdings Co Ltd ($1522) | 65.9% | 70.4% | 38.6% | 31.5% | 37.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| International Entertainment Corp ($1009) | 235.1% | 50.8% | 64.0% | 54.9% | 62.0% |
| Sinosoft Technology Group Ltd ($1297) | 55.5% | 62.6% | 54.9% | 57.2% | 59.0% |
| China Binary Sale Technology Ltd ($8255) | 41.3% | 35.1% | 35.4% | 44.4% | 50.5% |
| Boyaa Interactive International Ltd ($434) | 38.9% | 38.5% | 25.8% | 30.7% | 47.6% |
| Kingdee International Software Group Co Ltd ($268) | 19.5% | 7.8% | 33.2% | 37.2% | 31.9% |
| |
|---|
| Median (33 companies) | 11.9% | 11.1% | 14.0% | 10.1% | 9.1% |
|---|
| China City Railway Transportation Technology Holdings Co Ltd ($1522) | 45.6% | 61.9% | 29.3% | 16.2% | 17.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| NetDragon Websoft Inc ($777) | 13.3% | 21.1% | 34.6% | 54.6% | 42.9% |
| Aurum Pacific China Group Ltd ($8148) | 0.0% | | 2.9% | 7.5% | 20.6% |
| Kingsoft Corp Ltd ($3888) | 6.8% | 4.3% | 3.8% | 14.3% | 11.1% |
| Beijing Beida Jade Bird Universal Sci-Tech Co Ltd ($8095) | 3.5% | 8.7% | 5.5% | 4.3% | 10.9% |
| Tian Ge Interactive Holdings Ltd ($1980) | 3.2% | 18.0% | 7.9% | 7.3% | 7.4% |
| |
|---|
| Median (33 companies) | 3.0% | 1.5% | 1.8% | 3.5% | 2.0% |
|---|
| China City Railway Transportation Technology Holdings Co Ltd ($1522) | 0.4% | 1.0% | 10.4% | | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pizu Group Holdings Ltd ($8053) | -3.2% | -21.8% | -13.4% | -6.8% | 120.0% |
| IGG Inc ($8002) | | | 55.9% | 41.4% | 25.9% |
| Boyaa Interactive International Ltd ($434) | 100.4% | 75.3% | 21.3% | 20.0% | 21.4% |
| Sinosoft Technology Group Ltd ($1297) | 31.6% | 34.0% | 21.9% | 20.2% | 20.8% |
| ITE Holdings Ltd ($8092) | -19.6% | -15.0% | 10.6% | 16.8% | 19.8% |
| |
|---|
| Median (33 companies) | 1.6% | 5.2% | 6.1% | 3.3% | 2.2% |
|---|
| China City Railway Transportation Technology Holdings Co Ltd ($1522) | 102.3% | 52.3% | 15.2% | 8.6% | 2.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pizu Group Holdings Ltd ($8053) | | | | 346.1x | -0.4x |
| Epicurean and Co Ltd ($8213) | 2.9x | 2.3x | 4.7x | 12.3x | 12.0x |
| Sing Lee Software Group Ltd ($8076) | | | | 6.2x | 4.4x |
| China Technology Solar Power Holdings Ltd ($8111) | | | 7.4x | 3.3x | 0.2x |
| Chinasoft International Ltd ($354) | -1.3x | -0.7x | 0.7x | 1.5x | 0.7x |
| |
|---|
| Median (24 companies) | -0.7x | -0.9x | -1.4x | -1.3x | -0.4x |
|---|
| China City Railway Transportation Technology Holdings Co Ltd ($1522) | -1.0x | -1.7x | -2.6x | -6.4x | -11.1x |
