Success Universe Group Ltd Net Income dropped on 107% in 2015 and Revenue dropped on 22.5%
30/03/2016 • About Success Universe Group Ltd (
$487) • By InTwits
Success Universe Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Success Universe Group Ltd is a company in decline: 2015 revenue growth was -22.5%, 5 years revenue CAGR was -6.9%
- The company operates at negative EBITDA Margin: -3.6%
- Success Universe Group 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 -4.0%0
- Success Universe Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has unprofitable business model: ROIC is at -3.7%
- It operates with high leverage: Net Debt/EBITDA is 1.3x 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.
Success Universe Group Ltd ($487) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,469 | 1,635 | 1,501 | 1,305 | 1,011 | -22.5% |
| Gross Profit | 72 | 88 | 31 | 83 | 37 | -55.1% |
| SG&A | | 155 | 97 | 109 | 102 | -6.5% |
| EBITDA | -65 | -40 | -122 | -12 | -37 | 203.8% |
| Net Income | -78 | -33 | 19 | 97 | -7 | -106.9% |
Balance Sheet
|
|---|
| Cash | 72 | 240 | 80 | 72 | 82 | 14.3% |
| Short Term Debt | 547 | 226 | 1 | 1 | 0 | -100.0% |
| Long Term Debt | 86 | 13 | 61 | 10 | 46 | 375.1% |
Cash flow
|
|---|
| Capex | 7 | 6 | 2 | 6 | 2 | -58.2% |
Ratios
|
|---|
| Revenue growth | 1.6% | 11.3% | -8.2% | -13.1% | -22.5% | |
| EBITDA growth | 347.4% | -37.6% | 203.8% | -90.1% | 203.8% | |
| Gross Margin | 4.9% | 5.4% | 2.1% | 6.3% | 3.7% | -2.7% |
| EBITDA Margin | -4.4% | -2.5% | -8.2% | -0.9% | -3.6% | -2.7% |
| Net Income Margin | -5.3% | -2.0% | 1.2% | 7.4% | -0.7% | -8.1% |
| SG&A, % of revenue | | 9.5% | 6.4% | 8.4% | 10.1% | 1.7% |
| CAPEX, % of revenue | 0.5% | 0.4% | 0.1% | 0.4% | 0.2% | -0.2% |
| ROIC | -6.4% | -4.8% | -12.7% | -1.7% | -3.7% | -1.9% |
| ROE | -15.3% | -5.5% | 2.2% | 9.4% | -0.6% | -10.0% |
Revenue and profitability
Success Universe Group Ltd's Revenue dropped on 22.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 70.7 pp from 143% to 214% in 2015.
Gross Margin decreased on 2.7 pp from 6.3% to 3.7% in 2015. SG&A as a % of Revenue increased slightly on 1.7 pp from 8.4% to 10.1% in 2015.
Net Income marign decreased on 8.1 pp from 7.4% to -0.66% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Success Universe Group Ltd had CAPEX/Revenue of 0.23%. Success Universe Group Ltd showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 0.26%.
Return on investment
The company operates at negative ROIC (-3.66%) and ROE (-0.62%). ROIC decreased slightly on 1.9 pp from -1.7% to -3.7% in 2015. ROE dropped on 10.0 pp from 9.4% to -0.62% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt surged on 348% in 2015 while cash surged on 14.3% in 2015.
Appendix 1: Peers in Leisure Time
Below we provide Success Universe Group 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) | | 7.2% | 2.0% | 2.8% | 1.9% |
|---|
| Success Universe Group Ltd ($487) | | 11.3% | -8.2% | -13.1% | -22.5% |
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% |
|---|
| Success Universe Group Ltd ($487) | 4.9% | 5.4% | 2.1% | 6.3% | 3.7% |
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% | 8.5% | 8.6% | 9.8% |
|---|
| Success Universe Group Ltd ($487) | -4.4% | -2.5% | -8.2% | -0.9% | -3.6% |
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% | 3.2% | 3.1% |
|---|
| Success Universe Group Ltd ($487) | 0.5% | 0.4% | 0.1% | 0.4% | 0.2% |
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% | 5.0% | 9.6% | 5.0% |
|---|
| Success Universe Group Ltd ($487) | -6.4% | -4.8% | -12.7% | -1.7% | -3.7% |
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 | -1.3x | -1.6x | -2.2x | -2.4x |
|---|
