New Times Energy Corp Ltd revenue dropped on 16.6% in 2015 while EBITDA Margin jumped on 16.1 pp from -107% to -90.4%
30/03/2016 • About New Times Energy Corp Ltd (
$166) • By InTwits
New Times Energy Corp Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- New Times Energy Corp Ltd doesn't have a profitable business model yet: 2015 ROIC is -2.1%
- The company operates at negative EBITDA Margin: -90.4%
- New Times Energy Corp 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 -47.7%0
- New Times Energy Corp Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 27.1%. At the same time it's a lot of higher than industry average of 19.7%.
- CAPEX is quite volatile: 41.3 in 2015, 42.2 in 2014, 5.6 in 2013, 14.7 in 2012, 11.5 in 2011
- The company has unprofitable business model: ROIC is at -2.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
New Times Energy Corp Ltd ($166) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 128.9 | 129.0 | 321.8 | 81.1 | 67.6 | -16.6% |
| Gross Profit | 1.3 | -3.5 | 2.6 | 18.3 | 3.1 | -83.0% |
| SG&A | | | 94.9 | 135.5 | 89.0 | -34.3% |
| EBITDA | -65.7 | -61.2 | -73.0 | -86.4 | -61.1 | -29.3% |
| Net Income | -87.4 | -39.9 | 3.8 | -120.4 | -1,666.3 | 1,283.4% |
Balance Sheet
|
|---|
| Cash | 41.0 | 36.1 | 87.1 | 21.7 | 29.6 | 36.4% |
| Short Term Debt | 175.9 | 41.0 | 240.2 | 156.2 | 127.7 | -18.3% |
| Long Term Debt | 0.0 | 35.5 | 95.3 | 327.8 | 292.4 | -10.8% |
Cash flow
|
|---|
| Capex | 11.5 | 14.7 | 5.6 | 42.2 | 41.3 | -2.1% |
Ratios
|
|---|
| Revenue growth | 125.1% | 0.1% | 149.4% | -74.8% | -16.6% | |
| EBITDA growth | 3.9% | -6.8% | 19.3% | 18.5% | -29.3% | |
| Gross Margin | 1.0% | -2.7% | 0.8% | 22.6% | 4.6% | -18.0% |
| EBITDA Margin | -51.0% | -47.4% | -22.7% | -106.6% | -90.4% | 16.1% |
| Net Income Margin | -67.8% | -30.9% | 1.2% | -148.5% | -2,464.8% | -2,316.2% |
| SG&A, % of revenue | | | 29.5% | 167.1% | 131.7% | -35.4% |
| CAPEX, % of revenue | 9.0% | 11.4% | 1.7% | 52.1% | 61.1% | 9.1% |
| ROIC | -1.8% | -1.7% | -1.8% | -2.6% | -2.1% | 0.5% |
| ROE | -2.3% | -1.1% | 0.1% | -3.1% | -54.3% | -51.2% |
Revenue and profitability
New Times Energy Corp Ltd's Revenue dropped on 16.6% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 16.1 pp from -107% to -90.4% in 2015.
Gross Margin dropped on 18.0 pp from 22.6% to 4.6% in 2015. SG&A as a % of Revenue dropped on 35.4 pp from 167% to 132% in 2015.
Net Income marign dropped on 2,316 pp from -149% to -2,465% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 61.1% in 2015. The company's CAPEX/Revenue surged on 49.8 pp from 11.4% in 2012 to 61.1% in 2015. It's average CAPEX/Revenue for the last three years was 38.3%.
Return on investment
The company operates at negative ROIC (-2.10%) and ROE (-54.31%). ROIC increased slightly on 0.52 pp from -2.6% to -2.1% in 2015. ROE dropped on 51.2 pp from -3.1% to -54.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -112.6x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt dropped on 13.2% in 2015 while cash surged on 36.4% in 2015.
Appendix 1: Peers in Metal Fabricate/Hardware
Below we provide New Times Energy Corp Ltd benchmarking against other companies in Metal Fabricate/Hardware 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 |
|---|
| Burwill Holdings Ltd ($24) | 25.4% | -35.5% | -9.2% | 39.2% | |
| Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd ($1938) | 100.8% | 16.3% | -48.4% | 32.2% | |
| EVA Precision Industrial Holdings Ltd ($838) | | 19.7% | 12.2% | 30.1% | 2.3% |
| China Zhongwang Holdings Ltd ($1333) | | 31.0% | 6.0% | 11.6% | 1.3% |
| Lung Kee Bermuda Holdings ($255) | | -5.2% | -7.5% | 8.2% | -5.2% |
| |
|---|
| Median (8 companies) | 63.1% | 10.8% | 8.0% | 9.9% | -2.7% |
|---|
| New Times Energy Corp Ltd ($166) | | 0.1% | 149.4% | -74.8% | -16.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Zhongwang Holdings Ltd ($1333) | 21.6% | 24.2% | 26.8% | 28.0% | 32.9% |
| EVA Precision Industrial Holdings Ltd ($838) | 24.7% | 21.6% | 24.1% | 26.2% | 26.5% |
| Ka Shui International Holdings Ltd ($822) | 19.4% | 22.5% | 22.1% | 19.6% | 19.0% |
| Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd ($1938) | 15.1% | 17.0% | 15.4% | 11.6% | |
| Shougang Concord Century Holdings Ltd ($103) | 9.3% | 1.0% | 11.5% | 7.5% | 1.3% |
| |
|---|
| Median (7 companies) | 15.1% | 17.0% | 15.4% | 11.6% | 19.0% |
|---|
| New Times Energy Corp Ltd ($166) | 1.0% | -2.7% | 0.8% | 22.6% | 4.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Zhongwang Holdings Ltd ($1333) | 22.0% | 22.3% | 24.3% | 24.2% | 29.1% |
| EVA Precision Industrial Holdings Ltd ($838) | 16.8% | 10.4% | 9.9% | 16.7% | 14.9% |
| Ka Shui International Holdings Ltd ($822) | 12.6% | 14.3% | 9.5% | 12.0% | 6.1% |
| Lung Kee Bermuda Holdings ($255) | 19.3% | 15.3% | 14.8% | 11.7% | 15.2% |
| Shougang Concord Century Holdings Ltd ($103) | 8.8% | -0.2% | 11.2% | 5.2% | -4.0% |
| |
|---|
| Median (8 companies) | 11.8% | 11.7% | 9.7% | 8.4% | 10.5% |
|---|
| New Times Energy Corp Ltd ($166) | -51.0% | -47.4% | -22.7% | -106.6% | -90.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Zhongwang Holdings Ltd ($1333) | 25.1% | 56.3% | 41.6% | 54.8% | 63.1% |
| Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd ($1938) | 20.3% | 25.9% | 71.7% | 31.4% | |
| Ka Shui International Holdings Ltd ($822) | 5.0% | 9.3% | 7.4% | 11.1% | 6.5% |
| Lung Kee Bermuda Holdings ($255) | 21.9% | 11.6% | 9.6% | 11.0% | 4.5% |
| EVA Precision Industrial Holdings Ltd ($838) | 15.3% | 9.2% | 6.3% | 6.3% | 8.0% |
| |
|---|
| Median (8 companies) | 15.3% | 10.4% | 8.1% | 8.6% | 5.5% |
|---|
| New Times Energy Corp Ltd ($166) | 9.0% | 11.4% | 1.7% | 52.1% | 61.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| EVA Precision Industrial Holdings Ltd ($838) | 10.5% | 3.3% | 1.9% | 9.1% | 6.4% |
| Ka Shui International Holdings Ltd ($822) | 10.5% | 14.6% | 7.1% | 7.6% | 0.5% |
| China Zhongwang Holdings Ltd ($1333) | 7.8% | 9.5% | 8.8% | 7.4% | 6.9% |
| Lung Kee Bermuda Holdings ($255) | 12.3% | 6.7% | 4.9% | 3.2% | 4.8% |
| Burwill Holdings Ltd ($24) | 0.8% | -1.8% | -1.5% | -1.6% | |
| |
|---|
| Median (8 companies) | 8.0% | 5.0% | 1.9% | 0.8% | 2.6% |
|---|
| New Times Energy Corp Ltd ($166) | -1.8% | -1.7% | -1.8% | -2.6% | -2.1% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Zhongwang Holdings Ltd ($1333) | -0.8x | 1.3x | 2.6x | 4.1x | 6.2x |
| Ka Shui International Holdings Ltd ($822) | 0.7x | 0.9x | 1.3x | 1.7x | 3.6x |
| EVA Precision Industrial Holdings Ltd ($838) | -0.4x | 1.1x | 1.8x | 1.2x | 0.7x |
| Lung Kee Bermuda Holdings ($255) | -0.7x | -1.5x | -1.6x | -0.9x | -1.4x |
| |
|---|
| Median (4 companies) | 1.3x | 1.2x | 2.6x | 1.7x | 2.2x |
|---|
