SkyOcean International Holdings Ltd CAPEX jumped on 11,085% in 2015 and Revenue jumped on 38.1%
31/03/2016 • About SkyOcean International Holdings Ltd (
$593) • By InTwits
SkyOcean International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- SkyOcean International Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is 0.7%
- SkyOcean International Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 78.8%. At the same time it's in pair with industry average of 82.2%.
- CAPEX is quite volatile: 527 in 2015, 4.7 in 2014, 1.8 in 2013, 1.4 in 2012, 2.2 in 2011
- The company has potentially unprofitable business model: ROIC is at 0.7%
- It operates with high leverage: Net Debt/EBITDA is 83.1x while industry average is 18.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
SkyOcean International Holdings Ltd ($593) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 133.1 | 153.9 | 142.5 | 99.0 | 136.7 | 38.1% |
| EBITDA | 25.2 | 43.8 | 44.9 | -149.6 | 40.2 | -126.9% |
| Net Income | 13.2 | 96.0 | 28.8 | -143.6 | 551.8 | -484.3% |
Balance Sheet
|
|---|
| Cash | 1,092.7 | 906.9 | 530.3 | 55.3 | 242.3 | 338.2% |
| Short Term Debt | 0.0 | 0.0 | 310.3 | 1,094.4 | 2,102.8 | 92.1% |
| Long Term Debt | 0.0 | 0.0 | 182.3 | 1,245.2 | 1,485.1 | 19.3% |
Cash flow
|
|---|
| Capex | 2.2 | 1.4 | 1.8 | 4.7 | 526.7 | 11,085.0% |
Ratios
|
|---|
| Revenue growth | 31.9% | 15.7% | -7.4% | -30.5% | 38.1% | |
| EBITDA growth | 12.2% | 73.7% | 2.6% | -433.3% | -126.9% | |
| EBITDA Margin | 18.9% | 28.4% | 31.5% | -151.1% | 29.4% | 180.6% |
| Net Income Margin | 9.9% | 62.4% | 20.2% | -145.0% | 403.7% | 548.7% |
| CAPEX, % of revenue | 1.7% | 0.9% | 1.3% | 4.8% | 385.3% | 380.5% |
| ROIC | 1.5% | 2.8% | 2.4% | -5.2% | 0.7% | 5.9% |
| ROE | 0.8% | 6.3% | 1.8% | -9.5% | 26.5% | 36.0% |
| Net Debt/EBITDA | -43.4x | -20.7x | -0.8x | | 83.1x | 83.1x |
Revenue and profitability
SkyOcean International Holdings Ltd's Revenue jumped on 38.1% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 181 pp from -151% to 29.4% in 2015.
Net Income marign surged on 549 pp from -145% to 404% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 385% in 2015. CAPEX/Revenue jumped on 384 pp from 0.90% in 2012 to 385% in 2015. It's average level of CAPEX/Revenue for the last three years was 130%.SkyOcean International Holdings Ltd has spent a lot to CAPEX (1,309% of EBITDA) to fuel its growth.
Return on investment
The company operates at good ROE (26.52%) while ROIC is low (0.73%). ROIC increased on 5.9 pp from -5.2% to 0.73% in 2015. ROE surged on 36.0 pp from -9.5% to 26.5% in 2015.
Leverage (Debt)
Debt level is 83.1x Net Debt / EBITDA and 89.1x Debt / EBITDA. Net Debt / EBITDA jumped83.1x from to 83.1x in 2015. Debt jumped on 53.4% in 2015 while cash jumped on 338% in 2015.
Appendix 1: Peers in Healthcare-Services
Below we provide SkyOcean International Holdings Ltd benchmarking against other companies in Healthcare-Services 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Town Health International Medical Group Ltd ($3886) | | 0.7% | 3.7% | 39.5% | 127.0% |
| China Natural Investment Co Ltd ($8250) | | 22.3% | -13.8% | 509.5% | 21.9% |
| Phoenix Healthcare Group Co Ltd ($1515) | | 48.8% | 17.1% | 35.9% | 13.8% |
| Hua Xia Healthcare Holdings Ltd ($8143) | | 25.4% | 10.1% | 11.0% | -20.6% |
| |
|---|
| Median (4 companies) | | 23.9% | 6.9% | 37.7% | 17.9% |
|---|
| SkyOcean International Holdings Ltd ($593) | | 15.7% | -7.4% | -30.5% | 38.1% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Town Health International Medical Group Ltd ($3886) | 33.6% | 34.7% | 33.9% | 32.5% | 42.7% |
| Phoenix Healthcare Group Co Ltd ($1515) | 24.1% | 24.4% | 24.0% | 24.7% | 24.0% |
| Hua Xia Healthcare Holdings Ltd ($8143) | 13.0% | 12.8% | 11.8% | 12.0% | 15.6% |
| China Natural Investment Co Ltd ($8250) | 45.6% | 38.1% | 32.4% | 10.6% | 12.4% |
| |
|---|
| Median (4 companies) | 28.9% | 29.5% | 28.2% | 18.3% | 19.8% |
|---|
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | 21.8% | 26.5% | 26.5% | 25.8% | 20.4% |
| Town Health International Medical Group Ltd ($3886) | 28.6% | -135.5% | -44.4% | -0.3% | 19.4% |
| Hua Xia Healthcare Holdings Ltd ($8143) | 5.9% | 5.5% | 4.6% | 5.2% | 2.1% |
| China Natural Investment Co Ltd ($8250) | -24.9% | -33.3% | -39.5% | -7.2% | -9.6% |
| |
|---|
| Median (4 companies) | 13.9% | -13.9% | -17.5% | 2.5% | 10.8% |
|---|
| SkyOcean International Holdings Ltd ($593) | 18.9% | 28.4% | 31.5% | -151.1% | 29.4% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Town Health International Medical Group Ltd ($3886) | 23.5% | 5.0% | 48.6% | 16.8% | 22.1% |
| Phoenix Healthcare Group Co Ltd ($1515) | 6.7% | 3.7% | 2.4% | 3.0% | 2.3% |
| Hua Xia Healthcare Holdings Ltd ($8143) | 0.3% | 0.9% | 0.5% | 0.5% | 1.2% |
| China Natural Investment Co Ltd ($8250) | 197.7% | 36.8% | 16.8% | 2.1% | 0.2% |
| |
|---|
| Median (4 companies) | 15.1% | 4.3% | 9.6% | 2.6% | 1.8% |
|---|
| SkyOcean International Holdings Ltd ($593) | 1.7% | 0.9% | 1.3% | 4.8% | 385.3% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | 11.9% | 17.9% | 14.3% | 14.6% | 12.8% |
| Town Health International Medical Group Ltd ($3886) | 3.8% | -29.7% | -10.9% | -2.3% | 4.4% |
| Hua Xia Healthcare Holdings Ltd ($8143) | 6.7% | 7.5% | 6.5% | 8.1% | 2.2% |
| China Natural Investment Co Ltd ($8250) | -5.4% | -6.4% | -4.9% | -4.5% | -5.6% |
| |
|---|
| Median (4 companies) | 5.2% | 0.6% | 0.8% | 2.9% | 3.3% |
|---|
| SkyOcean International Holdings Ltd ($593) | 1.5% | 2.8% | 2.4% | -5.2% | 0.7% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hua Xia Healthcare Holdings Ltd ($8143) | 2.3x | 1.7x | 1.9x | 0.9x | 3.5x |
| Phoenix Healthcare Group Co Ltd ($1515) | -1.2x | 0.6x | -3.8x | -3.2x | -3.4x |
| Town Health International Medical Group Ltd ($3886) | 0.7x | | | | -7.7x |
| |
|---|
| Median (3 companies) | 0.7x | 1.2x | -1.0x | -1.1x | -3.4x |
|---|
| SkyOcean International Holdings Ltd ($593) | -43.4x | -20.7x | -0.8x | | 83.1x |
