China Best Group Holding Ltd revenue jumped on 25.9% in 2015 while EBITDA Margin decreased on 4.0 pp from -2.6% to -6.6%
31/03/2016 • About China Best Group Holding Ltd (
$370) • By InTwits
China Best Group Holding Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Best Group Holding Ltd doesn't have a profitable business model yet: 2015 ROIC is -4.7%
- The company operates at negative EBITDA Margin: -6.6%
- China Best Group Holding Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -5.5% for the sames years0
- China Best Group Holding Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.3%. At the same time it's in pair with industry average of 18.2%.
- CAPEX is quite volatile: 8.9 in 2015, 3.7 in 2014, 13.3 in 2013, 4.1 in 2012, 0.19 in 2011
- The company has unprofitable business model: ROIC is at -4.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Best Group Holding Ltd ($370) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 34.0 | 102.9 | 47.7 | 267.0 | 336.3 | 25.9% |
| Gross Profit | 7.2 | 31.0 | -12.2 | 12.1 | 32.3 | 166.6% |
| SG&A | | 16.8 | 25.3 | 22.6 | 58.2 | 157.1% |
| EBITDA | 7.3 | 14.1 | -35.5 | -6.9 | -22.0 | 221.1% |
| Net Income | 5.9 | -2.9 | -76.2 | -17.5 | -48.7 | 177.6% |
Balance Sheet
|
|---|
| Cash | 302.9 | 236.3 | 170.0 | 99.8 | 87.5 | -12.3% |
| Short Term Debt | 44.3 | 38.6 | 41.2 | 28.1 | 0.0 | -100.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.2 | 4.1 | 13.3 | 3.7 | 8.9 | 137.8% |
Ratios
|
|---|
| Revenue growth | 333.1% | 202.4% | -53.6% | 459.4% | 25.9% | |
| EBITDA growth | -113.6% | 92.0% | -351.7% | -80.7% | 221.1% | |
| Gross Margin | 21.2% | 30.2% | -25.7% | 4.5% | 9.6% | 5.1% |
| EBITDA Margin | 21.6% | 13.7% | -74.4% | -2.6% | -6.6% | -4.0% |
| Net Income Margin | 17.3% | -2.8% | -159.5% | -6.6% | -14.5% | -7.9% |
| SG&A, % of revenue | | 16.3% | 53.1% | 8.5% | 17.3% | 8.8% |
| CAPEX, % of revenue | 0.6% | 4.0% | 27.8% | 1.4% | 2.6% | 1.2% |
| ROIC | 1.6% | 1.9% | -11.7% | -2.8% | -4.7% | -1.8% |
| ROE | 1.8% | -0.8% | -24.8% | -5.7% | -9.2% | -3.5% |
| Net Debt/EBITDA | -35.2x | -14.0x | | | | 0.0x |
Revenue and profitability
The company's Revenue surged on 25.9% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 13.9 pp from 31.9% to 45.8% in 2015.
Gross Margin increased on 5.1 pp from 4.5% to 9.6% in 2015. SG&A as a % of Revenue increased on 8.8 pp from 8.5% to 17.3% in 2015.
Net Income marign decreased on 7.9 pp from -6.6% to -14.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
China Best Group Holding Ltd's CAPEX/Revenue was 2.6% in 2015. China Best Group Holding Ltd's CAPEX/Revenue decreased slightly on 1.4 pp from 4.0% in 2012 to 2.6% in 2015. Average CAPEX/Revenue for the last three years was 10.6%.
Return on investment
The company operates at negative ROIC (-4.70%) and ROE (-9.18%). ROIC decreased slightly on 1.8 pp from -2.8% to -4.7% in 2015. ROE decreased on 3.5 pp from -5.7% to -9.2% in 2015.
Leverage (Debt)
The company paid down all the debt in 2015. Cash dropped on 12.3% in 2015.
Appendix 1: Peers in Transportation
Below you can find China Best Group Holding Ltd benchmarking vs. other companies in Transportation 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 |
|---|
| Noble Century Investment Holdings Ltd ($2322) | | | | | 2,388.3% |
| Changan Minsheng APLL Logistics Co Ltd ($1292) | | 10.9% | 27.9% | 15.0% | 13.3% |
| Kwoon Chung Bus Holdings Ltd ($306) | | -8.6% | 7.9% | 5.5% | 7.9% |
| Guangshen Railway Co Ltd ($525) | | 2.7% | 4.7% | -6.9% | 6.9% |
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | | 9.4% | 6.9% | 12.9% | 5.1% |
| |
|---|
| Median (31 companies) | | 5.1% | 4.6% | 5.1% | -6.7% |
|---|
| China Best Group Holding Ltd ($370) | | 202.4% | -53.6% | 459.4% | 25.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CIG Yangtze Ports PLC ($8233) | 51.0% | 51.3% | 44.8% | 46.6% | 48.7% |
| Qinhuangdao Port Co Ltd ($3369) | 43.2% | 43.1% | 42.4% | 43.3% | 40.5% |
| Kwoon Chung Bus Holdings Ltd ($306) | 17.6% | 18.9% | 20.4% | 22.7% | 26.8% |
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | 21.5% | 23.1% | 25.1% | 24.1% | 23.1% |
| Tianjin Port Development Holdings Ltd ($3382) | 21.7% | 22.5% | 18.4% | 13.6% | 22.7% |
| |
|---|
| Median (27 companies) | 17.0% | 13.0% | 11.3% | 11.3% | 12.6% |
|---|
| China Best Group Holding Ltd ($370) | 21.2% | 30.2% | -25.7% | 4.5% | 9.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| MTR Corp Ltd ($66) | 49.1% | 42.7% | 37.6% | 45.2% | 41.6% |
| Qinhuangdao Port Co Ltd ($3369) | 45.3% | 46.0% | 44.6% | 46.5% | 41.1% |
| CIG Yangtze Ports PLC ($8233) | 29.9% | 30.2% | 27.6% | 38.5% | 39.5% |
| China Shipping Development Co Ltd ($1138) | 24.7% | 12.5% | 3.0% | 24.7% | 26.7% |
| Kwoon Chung Bus Holdings Ltd ($306) | 15.4% | 13.3% | 16.1% | 20.7% | 26.1% |
| |
|---|
| Median (31 companies) | 13.9% | 8.8% | 7.4% | 7.8% | 9.5% |
|---|
| China Best Group Holding Ltd ($370) | 21.6% | 13.7% | -74.4% | -2.6% | -6.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Great Harvest Maeta Group Holdings Ltd ($3683) | 150.5% | 4.0% | 6.1% | 40.7% | 164.7% |
| Frontier Services Group Ltd ($500) | 5.4% | 6.3% | 3.6% | 63.3% | 75.9% |
| MTR Corp Ltd ($66) | 30.0% | 31.1% | 34.5% | 30.8% | 52.0% |
| CIG Yangtze Ports PLC ($8233) | 31.4% | 17.8% | 24.8% | 2.1% | 50.7% |
| Transport International Holdings Ltd ($62) | 10.9% | 7.9% | 16.2% | 16.0% | 26.2% |
| |
|---|
| Median (31 companies) | 11.1% | 7.9% | 8.5% | 7.4% | 9.2% |
|---|
| China Best Group Holding Ltd ($370) | 0.6% | 4.0% | 27.8% | 1.4% | 2.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Changan Minsheng APLL Logistics Co Ltd ($1292) | 34.2% | 21.1% | 20.9% | 19.1% | 19.3% |
| Kwoon Chung Bus Holdings Ltd ($306) | 6.9% | 3.6% | 5.7% | 9.2% | 14.6% |
| SITC International Holdings Co Ltd ($1308) | 9.0% | 8.2% | 9.1% | 9.1% | 11.2% |
| CIG Yangtze Ports PLC ($8233) | 4.3% | 4.9% | 5.7% | 11.0% | 11.1% |
| On Time Logistics Holdings Ltd ($6123) | | 15.6% | 15.5% | 16.7% | 11.1% |
| |
|---|
| Median (31 companies) | 5.3% | 3.5% | 3.7% | 3.7% | 3.9% |
|---|
| China Best Group Holding Ltd ($370) | 1.6% | 1.9% | -11.7% | -2.8% | -4.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jinhui Holdings Co Ltd ($137) | 2.8x | 5.0x | 4.2x | 17.5x | 19.6x |
| China Shipping Development Co Ltd ($1138) | 7.2x | 20.2x | 92.8x | 12.8x | 11.4x |
| China COSCO Holdings Co Ltd ($1919) | | | 18.8x | 9.0x | 8.1x |
| Pacific Basin Shipping Ltd ($2343) | 0.8x | 2.1x | 4.6x | | 4.7x |
| AMS Public Transport Holdings Ltd ($77) | 0.7x | 1.2x | 11.6x | 7.7x | 4.5x |
| |
|---|
| Median (21 companies) | 0.5x | 1.2x | 1.5x | 0.8x | 1.1x |
|---|
