iOne Holdings Ltd Net Income dropped on 25.7% in 2015 and EBITDA Margin showed almost no change
31/03/2016 • About iOne Holdings Ltd (
$982) • By InTwits
iOne Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 10.8% in 2015, 11.2% in 2014, 24.5% in 2013, 26.4% in 2012, 26.2% in 2011
- iOne Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.5%. At the same time it's a lot of higher than industry average of 6.1%.
- CAPEX is quite volatile: 7.6 in 2015, 2.1 in 2014, 7.8 in 2013, 1.0 in 2012, 0.88 in 2011
- The company has highly profitable business model: ROIC is at 19.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
iOne Holdings Ltd ($982) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 165.6 | 125.9 | 130.5 | 165.8 | 184.0 | 11.0% |
| Gross Profit | 86.7 | 67.4 | 56.4 | 78.7 | 94.7 | 20.3% |
| SG&A | | 10.1 | 11.4 | 13.9 | 15.0 | 7.4% |
| EBITDA | 43.5 | 33.2 | 31.9 | 18.5 | 19.9 | 7.6% |
| Net Income | 38.9 | 31.9 | 19.9 | 17.7 | 13.1 | -25.7% |
Balance Sheet
|
|---|
| Cash | 103.9 | 106.9 | 121.4 | 29.7 | 57.6 | 94.0% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.9 | 1.0 | 7.8 | 2.1 | 7.6 | 263.2% |
Ratios
|
|---|
| Revenue growth | -23.3% | -24.0% | 3.6% | 27.1% | 11.0% | |
| EBITDA growth | -40.8% | -23.6% | -3.8% | -42.0% | 7.6% | |
| Gross Margin | 52.3% | 53.5% | 43.2% | 47.5% | 51.4% | 4.0% |
| EBITDA Margin | 26.2% | 26.4% | 24.5% | 11.2% | 10.8% | -0.3% |
| Net Income Margin | 23.5% | 25.3% | 15.3% | 10.7% | 7.1% | -3.5% |
| SG&A, % of revenue | | 8.0% | 8.8% | 8.4% | 8.1% | -0.3% |
| CAPEX, % of revenue | 0.5% | 0.8% | 6.0% | 1.3% | 4.1% | 2.9% |
| ROIC | 17.9% | 12.5% | 11.1% | 9.4% | 19.2% | 9.9% |
| ROE | 17.2% | 12.7% | 7.3% | 9.8% | 15.5% | 5.7% |
| Net Debt/EBITDA | -2.4x | -3.2x | -3.8x | -1.6x | -2.9x | -1.3x |
Revenue and profitability
IOne Holdings Ltd's Revenue jumped on 11.0% in 2015. EBITDA Margin showed almost no change in 2015.
Gross Margin increased on 4.0 pp from 47.5% to 51.4% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased on 3.5 pp from 10.7% to 7.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
iOne Holdings Ltd's CAPEX/Revenue was 4.1% in 2015. IOne Holdings Ltd showed CAPEX/Revenue growth of 3.3 pp from 0.80% in 2012 to 4.1% in 2015. For the last three years the average CAPEX/Revenue was 3.8%.
Return on investment
The company operates at good ROIC (19.24%) and ROE (15.52%). ROIC increased on 9.9 pp from 9.4% to 19.2% in 2015. ROE increased on 5.7 pp from 9.8% to 15.5% in 2015.
Leverage (Debt)
The company has no debt. Cash jumped on 94.0% in 2015.
Appendix 1: Peers in Commercial Services
Below you can find iOne Holdings Ltd benchmarking vs. other companies in Commercial Services 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 |
|---|
| Kai Yuan Holdings Ltd ($1215) | | 99.1% | 14.9% | -88.3% | 271.8% |
| China Seven Star Holdings Ltd ($245) | | 6.7% | -81.8% | -39.3% | 195.3% |
| China Smartpay Group Holdings Ltd ($8325) | | 60.0% | 274.7% | 75.6% | 124.5% |
| Celebrate International Holdings Ltd ($8212) | | -90.1% | 1,437.6% | -6.3% | 117.0% |
| Haier Healthwise Holdings Ltd ($348) | | -22.0% | -50.1% | -7.5% | 101.1% |
| |
|---|
| Median (65 companies) | | 8.0% | 8.6% | 9.8% | 4.0% |
|---|
| iOne Holdings Ltd ($982) | | -24.0% | 3.6% | 27.1% | 11.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HC International Inc ($2280) | 84.7% | 87.5% | 91.9% | 92.5% | 89.6% |
| Winto Group Holdings Ltd ($8238) | 91.8% | 90.2% | 93.4% | 92.0% | 88.4% |
| Dingyi Group Investment Ltd ($508) | 76.5% | 75.8% | | 64.5% | 86.0% |
| Fu Shou Yuan International Group Ltd ($1448) | 81.6% | 80.5% | 80.4% | 80.0% | 77.6% |
| Nirvana Asia Ltd ($1438) | 65.6% | 68.3% | 69.6% | 70.5% | 75.7% |
| |
|---|
| Median (60 companies) | 33.4% | 31.6% | 30.7% | 31.0% | 31.2% |
|---|
| iOne Holdings Ltd ($982) | 52.3% | 53.5% | 43.2% | 47.5% | 51.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | | 61.6% | 84.9% | 75.9% | 80.9% |
| Shenzhen International Holdings Ltd ($152) | 69.3% | 60.2% | 65.8% | 97.1% | 73.6% |
| Yuexiu Transport Infrastructure Ltd ($1052) | 74.3% | 78.3% | 74.5% | 74.0% | 71.6% |
| CAR Inc ($699) | 31.6% | 43.6% | 30.1% | 43.1% | 67.4% |
| Jiangsu Expressway Co Ltd ($177) | 60.8% | 57.0% | 60.7% | 59.3% | 61.5% |
| |
|---|
| Median (65 companies) | 17.1% | 17.5% | 14.9% | 12.9% | 9.8% |
|---|
| iOne Holdings Ltd ($982) | 26.2% | 26.4% | 24.5% | 11.2% | 10.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Blue Sky Power Holdings Ltd ($6828) | 11.5% | 21.3% | 9.0% | 13.9% | 47.4% |
| COSCO Pacific Ltd ($1199) | 111.3% | 96.6% | 66.6% | 43.3% | 45.8% |
| Shenzhen International Holdings Ltd ($152) | 28.3% | 23.0% | 22.1% | 20.9% | 35.0% |
| Celebrate International Holdings Ltd ($8212) | 140.9% | 211.7% | 12.0% | 6.2% | 34.2% |
| China Maple Leaf Educational Systems Ltd ($1317) | 39.5% | 25.7% | 50.9% | 21.1% | 32.8% |
| |
|---|
| Median (65 companies) | 3.6% | 3.1% | 3.8% | 3.2% | 2.8% |
|---|
| iOne Holdings Ltd ($982) | 0.5% | 0.8% | 6.0% | 1.3% | 4.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 136.8% | 51.5% | 26.6% | 30.0% | 29.5% |
| 1010 Printing Group Ltd ($1127) | 14.4% | 13.5% | 20.8% | 17.8% | 19.9% |
| China Packaging Holdings Development Ltd ($1439) | 50.0% | 52.0% | 46.6% | 34.1% | 19.8% |
| CAR Inc ($699) | | 5.2% | 2.7% | 12.2% | 19.0% |
| eprint Group Ltd ($1884) | | 33.0% | 34.8% | 15.4% | 18.5% |
| |
|---|
| Median (65 companies) | 5.0% | 6.3% | 5.8% | 5.8% | 3.2% |
|---|
| iOne Holdings Ltd ($982) | 17.9% | 12.5% | 11.1% | 9.4% | 19.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Celebrate International Holdings Ltd ($8212) | | | | | 22.2x |
| Kai Yuan Holdings Ltd ($1215) | -15.6x | -143.8x | -0.7x | | 18.8x |
| Eagle Legend Asia Ltd ($936) | 4.3x | 4.0x | 4.0x | 3.3x | 6.2x |
| Sichuan Expressway Co Ltd ($107) | 1.8x | 2.7x | 3.8x | 4.3x | 5.5x |
| Yuexiu Transport Infrastructure Ltd ($1052) | 2.9x | 4.5x | 3.1x | 2.7x | 5.3x |
| |
|---|
| Median (42 companies) | -0.0x | 0.0x | -0.7x | -0.5x | -0.5x |
|---|
| iOne Holdings Ltd ($982) | -2.4x | -3.2x | -3.8x | -1.6x | -2.9x |
