Sino Golf Holdings Ltd reports 224% EBITDA decline and 22.7 pp EBITDA Margin decline from 7.8% to -14.9%
30/03/2016 • About Sino Golf Holdings Ltd (
$361) • By InTwits
Sino Golf Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sino Golf Holdings Ltd is a company in decline: 2015 revenue growth was -34.7%, 5 years revenue CAGR was -9.4%
- EBITDA Margin is quite volatile: -14.9% in 2015, 7.8% in 2014, 10.4% in 2013, 4.3% in 2012, 5.7% in 2011
- Sino Golf Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.5%. At the same time it's in pair with industry average of 5.9%.
- CAPEX is quite volatile: 3.8 in 2015, 13.0 in 2014, 12.3 in 2013, 8.3 in 2012, 5.0 in 2011
- The company has unprofitable business model: ROIC is at -19.4%
- It operates with high leverage: Net Debt/EBITDA is -3.1x while industry average is -30.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sino Golf Holdings Ltd ($361) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 278.6 | 272.1 | 434.1 | 401.0 | 261.8 | -34.7% |
| Gross Profit | 43.8 | 31.9 | 75.6 | 72.4 | 21.7 | -70.1% |
| SG&A | 52.5 | 43.8 | 51.9 | 58.2 | 62.8 | 7.9% |
| EBITDA | 16.0 | 11.8 | 45.0 | 31.4 | -38.9 | -223.7% |
| Net Income | -16.2 | -18.5 | 13.7 | 8.3 | -91.1 | -1,197.9% |
Balance Sheet
|
|---|
| Cash | 39.0 | 14.0 | 26.2 | 16.7 | 17.1 | 2.3% |
| Short Term Debt | 122.3 | 127.6 | 109.4 | 112.0 | 78.5 | -29.9% |
| Long Term Debt | 33.9 | 4.4 | 0.4 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 5.0 | 8.3 | 12.3 | 13.0 | 3.8 | -70.7% |
Ratios
|
|---|
| Revenue growth | -34.9% | -2.3% | 59.5% | -7.6% | -34.7% | |
| EBITDA growth | -70.9% | -25.9% | 280.9% | -30.2% | -223.7% | |
| Gross Margin | 15.7% | 11.7% | 17.4% | 18.1% | 8.3% | -9.8% |
| EBITDA Margin | 5.7% | 4.3% | 10.4% | 7.8% | -14.9% | -22.7% |
| Net Income Margin | -5.8% | -6.8% | 3.1% | 2.1% | -34.8% | -36.9% |
| SG&A, % of revenue | 18.8% | 16.1% | 11.9% | 14.5% | 24.0% | 9.5% |
| CAPEX, % of revenue | 1.8% | 3.0% | 2.8% | 3.2% | 1.5% | -1.8% |
| ROIC | -0.5% | -1.9% | 6.8% | 3.8% | -19.4% | -23.3% |
| ROE | -5.7% | -6.2% | 4.6% | 2.7% | -37.7% | -40.4% |
| Net Debt/EBITDA | 7.3x | 10.0x | 1.9x | 3.0x | | -3.0x |
Revenue and profitability
Sino Golf Holdings Ltd's Revenue dropped on 34.7% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 22.7 pp from 7.8% to -14.9% in 2015.
Gross Margin decreased on 9.8 pp from 18.1% to 8.3% in 2015. SG&A as a % of Revenue increased on 9.5 pp from 14.5% to 24.0% in 2015.
Net Income marign dropped on 36.9 pp from 2.1% to -34.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Sino Golf Holdings Ltd had CAPEX/Revenue of 1.5%. The company showed small CAPEX/Revenue decline of 1.6 pp from 3.0% in 2012 to 1.5% in 2015. For the last three years the average CAPEX/Revenue was 2.5%.
Return on investment
The company operates at negative ROIC (-19.44%) and ROE (-37.67%). ROIC dropped on 23.3 pp from 3.8% to -19.4% in 2015. ROE dropped on 40.4 pp from 2.7% to -37.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.1x and Debt / EBITDA is . Net Debt / EBITDA dropped on 3.0x from 3.0x to in 2015. Debt dropped on 29.9% in 2015 while cash increased on 2.3% in 2015.
Appendix 1: Peers in Leisure Time
Below we provide Sino Golf Holdings Ltd benchmarking against other companies in Leisure Time 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 |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | | 23.4% | 16.2% | 6.1% | 55.0% |
| Genting Hong Kong Ltd ($678) | | 5.3% | 6.6% | 2.9% | 20.9% |
| Travel Expert Asia Enterprises Ltd ($1235) | | 11.9% | 15.3% | 19.5% | 18.9% |
| China Jiuhao Health Industry Corp Ltd ($419) | | 61.8% | -23.6% | -12.7% | 11.5% |
| EGL Holdings Co Ltd ($6882) | | 9.5% | 20.7% | 2.3% | 10.3% |
| |
|---|
| Median (11 companies) | | 9.5% | -6.6% | 2.8% | 1.9% |
|---|
| Sino Golf Holdings Ltd ($361) | | -2.3% | 59.5% | -7.6% | -34.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | | | | | 90.7% |
| Feiyu Technology International Co Ltd ($1022) | 99.1% | 96.9% | 95.4% | 87.5% | 83.1% |
| Sino Splendid Holdings Ltd ($8006) | 55.1% | 51.7% | 51.4% | 51.9% | 53.9% |
| China Travel International Investment Hong Kong Ltd ($308) | 48.2% | 46.1% | 47.8% | 46.0% | 45.6% |
| China Jiuhao Health Industry Corp Ltd ($419) | 15.5% | 57.0% | 13.5% | 23.4% | 44.9% |
| |
|---|
| Median (8 companies) | 32.9% | 48.9% | 34.6% | 23.4% | 45.3% |
|---|
| Sino Golf Holdings Ltd ($361) | 15.7% | 11.7% | 17.4% | 18.1% | 8.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Travel International Investment Hong Kong Ltd ($308) | 25.6% | 28.2% | 29.1% | 48.5% | 31.7% |
| Feiyu Technology International Co Ltd ($1022) | 74.8% | 77.0% | 44.0% | 51.0% | 30.0% |
| Perfect Shape PRC Holdings Ltd ($1830) | 26.3% | 27.5% | 29.1% | 26.5% | 29.8% |
| Travel Expert Asia Enterprises Ltd ($1235) | 20.1% | 17.4% | 16.2% | 18.3% | 15.0% |
| Water Oasis Group Ltd ($1161) | 11.3% | 6.5% | 4.7% | 11.4% | 13.1% |
| |
|---|
| Median (11 companies) | 11.3% | 17.4% | 8.1% | 8.6% | 9.8% |
|---|
| Sino Golf Holdings Ltd ($361) | 5.7% | 4.3% | 10.4% | 7.8% | -14.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Genting Hong Kong Ltd ($678) | 7.3% | 16.6% | 25.4% | 33.0% | 58.1% |
| China Jiuhao Health Industry Corp Ltd ($419) | 4.2% | 2.1% | 31.8% | 67.3% | 43.3% |
| Perfect Shape PRC Holdings Ltd ($1830) | 7.9% | 6.1% | 8.9% | 7.7% | 24.8% |
| China Travel International Investment Hong Kong Ltd ($308) | 14.6% | 13.4% | 28.3% | 29.9% | 10.9% |
| Water Oasis Group Ltd ($1161) | 2.7% | 3.7% | 4.0% | 2.8% | 3.5% |
| |
|---|
| Median (11 companies) | 4.1% | 3.7% | 4.0% | 2.8% | 3.1% |
|---|
| Sino Golf Holdings Ltd ($361) | 1.8% | 3.0% | 2.8% | 3.2% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| EGL Holdings Co Ltd ($6882) | | 30.4% | 63.2% | 39.4% | 58.3% |
| Perfect Shape PRC Holdings Ltd ($1830) | 140.4% | 62.8% | 44.1% | 37.7% | 44.1% |
| Travel Expert Asia Enterprises Ltd ($1235) | 179.4% | 50.9% | 26.7% | 29.8% | 23.0% |
| Water Oasis Group Ltd ($1161) | 21.6% | 5.3% | 1.7% | 15.7% | 19.2% |
| Feiyu Technology International Co Ltd ($1022) | | 329.5% | 19.2% | 17.1% | 6.1% |
| |
|---|
| Median (11 companies) | 4.6% | 5.3% | 1.7% | 9.6% | 5.0% |
|---|
| Sino Golf Holdings Ltd ($361) | -0.5% | -1.9% | 6.8% | 3.8% | -19.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | -2.3x | -1.3x | -1.2x | -1.7x | -0.3x |
| Perfect Shape PRC Holdings Ltd ($1830) | -0.9x | -2.0x | -0.8x | -1.4x | -1.8x |
| China Travel International Investment Hong Kong Ltd ($308) | -2.4x | -1.7x | -1.1x | -1.1x | -2.0x |
| EGL Holdings Co Ltd ($6882) | -10.0x | -4.5x | -2.5x | -3.3x | -2.4x |
| Water Oasis Group Ltd ($1161) | -2.2x | -3.2x | -5.1x | -2.8x | -2.6x |
| |
|---|
| Median (7 companies) | -2.3x | -1.5x | -1.9x | -2.8x | -2.4x |
|---|
