Harmonic Strait Financial Holdings Ltd EBITDA dropped on 10,933% in 2015 and Revenue dropped on 48.3%
31/03/2016 • About Harmonic Strait Financial Holdings Ltd (
$33) • By InTwits
Harmonic Strait Financial Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Harmonic Strait Financial Holdings Ltd is a company in decline: 2015 revenue growth was -48.3%, 5 years revenue CAGR was -34.3%
- The company operates at negative EBITDA Margin: -39.1%
- Harmonic Strait Financial Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's a lot of higher than industry average of 19.7%.
- CAPEX is quite volatile: 3.0 in 2015, 0.32 in 2014, 3.0 in 2013, 3.3 in 2012, 12.3 in 2011
- The company has unprofitable business model: ROIC is at -14.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Harmonic Strait Financial Holdings Ltd ($33) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 588.1 | 270.3 | 144.8 | 130.4 | 67.4 | -48.3% |
| Gross Profit | 99.4 | 110.4 | 12.1 | 15.4 | 6.1 | -60.6% |
| EBITDA | 29.0 | 64.2 | -8.0 | 0.2 | -26.3 | -10,932.9% |
| Net Income | -255.7 | -2,981.6 | -96.7 | -75.1 | -64.2 | -14.6% |
Balance Sheet
|
|---|
| Cash | 113.4 | 159.3 | 135.3 | 55.1 | 116.8 | 111.7% |
| Short Term Debt | 9.7 | 8.2 | 5.0 | 94.6 | 0.0 | -100.0% |
| Long Term Debt | 154.9 | 71.7 | 81.9 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 12.3 | 3.3 | 3.0 | 0.3 | 3.0 | 849.8% |
Ratios
|
|---|
| Revenue growth | 6.9% | -54.0% | -46.4% | -10.0% | -48.3% | |
| EBITDA growth | -23.7% | 121.5% | -112.5% | -103.0% | -10,932.9% | |
| Gross Margin | 16.9% | 40.8% | 8.4% | 11.8% | 9.0% | -2.8% |
| EBITDA Margin | 4.9% | 23.7% | -5.5% | 0.2% | -39.1% | -39.3% |
| Net Income Margin | -43.5% | -1,103.1% | -66.7% | -57.6% | -95.3% | -37.7% |
| CAPEX, % of revenue | 2.1% | 1.2% | 2.1% | 0.2% | 4.5% | 4.2% |
| ROIC | 0.6% | 3.4% | -13.8% | -4.5% | -14.6% | -10.2% |
| ROE | -11.0% | -198.9% | | | | 0.0% |
| Net Debt/EBITDA | 1.8x | -1.2x | | 162.5x | | -162.5x |
Revenue and profitability
The company's Revenue dropped on 48.3% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 39.3 pp from 0.19% to -39.1% in 2015.
Gross Margin decreased on 2.8 pp from 11.8% to 9.0% in 2015.
Net Income marign dropped on 37.7 pp from -57.6% to -95.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
Harmonic Strait Financial Holdings Ltd's CAPEX/Revenue was 4.5% in 2015. The company's CAPEX/Revenue increased on 3.3 pp from 1.2% in 2012 to 4.5% in 2015. For the last three years the average CAPEX/Revenue was 2.3%.
Leverage (Debt)
The company paid down all the debt in 2015. Cash surged on 112% in 2015.
Appendix 1: Peers in Investment Companies
Below we provide Harmonic Strait Financial Holdings Ltd benchmarking against other companies in Investment Companies 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 |
|---|
| CK Hutchison Holdings Ltd ($1) | | -41.8% | -11.4% | -90.8% | 10,576.1% |
| UBA Investments Ltd ($768) | | | | -32.2% | 4,559.4% |
| Capital VC Ltd ($2324) | | | | 489.2% | 861.9% |
| Prosperity Investment Holdings Ltd ($310) | | | 20.9% | -48.8% | 559.5% |
| China Innovation Investment Ltd ($1217) | | | | | 517.9% |
| |
|---|
| Median (21 companies) | | 14.9% | 5.5% | 25.4% | 108.4% |
|---|
| Harmonic Strait Financial Holdings Ltd ($33) | | -54.0% | -46.4% | -10.0% | -48.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Properties Investment Holdings Ltd ($736) | 10.6% | 47.5% | 40.8% | 46.2% | 87.2% |
| City e-Solutions Ltd ($557) | 69.0% | 81.1% | 81.5% | 81.6% | 79.1% |
| Eternity Investment Ltd ($764) | 100.0% | | | 86.6% | 48.2% |
| AVIC Joy Holdings HK Ltd ($260) | 20.4% | 19.5% | 20.9% | 14.0% | 16.3% |
| Infinity Financial Group Holdings Ltd ($1152) | 24.3% | 19.0% | 17.5% | 22.4% | 15.8% |
| |
|---|
| Median (6 companies) | 24.3% | 19.5% | 20.9% | 34.3% | 32.3% |
|---|
| Harmonic Strait Financial Holdings Ltd ($33) | 16.9% | 40.8% | 8.4% | 11.8% | 9.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Capital VC Ltd ($2324) | -2,944.6% | | 36.7% | 93.1% | 99.3% |
| Harmony Asset Ltd ($428) | | 39.8% | | | 95.7% |
| Unity Investments Holdings Ltd ($913) | | | 89.0% | 90.8% | 95.7% |
| Langham Hospitality Investments and Langham Hospitality Investments Ltd ($1270) | 39.4% | | 101.3% | 85.9% | 85.8% |
| China Development Bank International Investment Ltd ($1062) | -544.1% | -74.4% | 26.1% | 69.2% | 85.6% |
| |
|---|
| Median (24 companies) | 5.9% | 7.1% | -7.8% | 2.1% | 11.1% |
|---|
| Harmonic Strait Financial Holdings Ltd ($33) | 4.9% | 23.7% | -5.5% | 0.2% | -39.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Properties Investment Holdings Ltd ($736) | 215.9% | 55.3% | 3.0% | 20.8% | 58.1% |
| Langham Hospitality Investments and Langham Hospitality Investments Ltd ($1270) | 2.2% | | 13.7% | 17.1% | 39.8% |
| Heritage International Holdings Ltd ($412) | | | 10.9% | 7.4% | 37.9% |
| Opes Asia Development Ltd ($810) | | | 11.3% | 76.1% | 25.0% |
| CK Hutchison Holdings Ltd ($1) | 3.9% | 0.7% | 1.0% | 503.6% | 13.5% |
| |
|---|
| Median (24 companies) | 2.5% | 0.7% | 0.6% | 0.6% | 0.6% |
|---|
| Harmonic Strait Financial Holdings Ltd ($33) | 2.1% | 1.2% | 2.1% | 0.2% | 4.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Capital VC Ltd ($2324) | -5.0% | | | 21.8% | 100.7% |
| Harmony Asset Ltd ($428) | -14.0% | 3.2% | -13.7% | -15.4% | 88.0% |
| Build King Holdings Ltd ($240) | 11.0% | -2.5% | 3.5% | 13.4% | 18.3% |
| Unity Investments Holdings Ltd ($913) | -69.6% | -36.2% | 26.4% | 47.4% | 17.5% |
| UBA Investments Ltd ($768) | 11.0% | -22.2% | -1.9% | -8.6% | 13.2% |
| |
|---|
| Median (38 companies) | -5.0% | -3.1% | -2.0% | -5.2% | -2.0% |
|---|
| Harmonic Strait Financial Holdings Ltd ($33) | 0.6% | 3.4% | -13.8% | -4.5% | -14.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Langham Hospitality Investments and Langham Hospitality Investments Ltd ($1270) | 9.3x | | 12.5x | 9.5x | 11.2x |
| CK Hutchison Holdings Ltd ($1) | 1.8x | 1.9x | 0.6x | 7.2x | 5.5x |
| China Financial International Investments Ltd ($721) | -2.0x | | | | 2.4x |
| Harmony Asset Ltd ($428) | | -3.2x | | | -0.1x |
| Capital VC Ltd ($2324) | | | 2.2x | -1.2x | -0.2x |
| |
|---|
| Median (15 companies) | -0.6x | -1.5x | 0.0x | -0.8x | -0.9x |
|---|
