Energy International Investments Holdings Ltd EBITDA dropped on 364% in 2015 and Revenue dropped on 61.6%
25/04/2016 • About Energy International Investments Holdings Ltd (
$353) • By InTwits
Energy International Investments Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Energy International Investments Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -12.9%
- EBITDA Margin is declining: -106.4% in 2015 vs. 15.5% in 2014 vs. 37.1% in 2011
- EBITDA Margin is quite volatile: -106.4% in 2015, 15.5% in 2014, 31.6% in 2013, 37.3% in 2012, 37.1% in 2011
- Energy International Investments Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 26.7%. At the same time it's a lot of higher than industry average of 5.7%.
- CAPEX is quite volatile: 0.059 in 2015, 62.2 in 2014, 55.4 in 2013, 103 in 2012, 124 in 2011
- The company has unprofitable business model: ROIC is at -12.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Energy International Investments Holdings Ltd ($353) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 231.4 | 307.1 | 292.1 | 227.9 | 87.5 | -61.6% |
| Gross Profit | 28.2 | 43.9 | 61.7 | 17.5 | -44.4 | -354.5% |
| SG&A | | 40.7 | 36.1 | 36.5 | 46.4 | 27.0% |
| EBITDA | 85.9 | 114.7 | 92.3 | 35.3 | -93.0 | -363.8% |
| Net Income | -61.8 | -332.7 | -346.8 | -673.6 | -492.6 | -26.9% |
Balance Sheet
|
|---|
| Cash | 97.3 | 70.0 | 90.1 | 76.0 | 238.3 | 213.3% |
| Short Term Debt | 14.4 | 37.9 | 82.1 | 43.4 | 74.6 | 71.9% |
| Long Term Debt | 65.5 | 0.8 | 0.5 | 42.0 | 150.6 | 258.9% |
Cash flow
|
|---|
| Capex | 123.9 | 103.1 | 55.4 | 62.2 | 0.1 | -99.9% |
Ratios
|
|---|
| Revenue growth | 421.0% | 32.7% | -4.9% | -22.0% | -61.6% | |
| EBITDA growth | -3,798.7% | 33.5% | -19.5% | -61.8% | -363.8% | |
| Gross Margin | 12.2% | 14.3% | 21.1% | 7.7% | -50.8% | -58.5% |
| EBITDA Margin | 37.1% | 37.3% | 31.6% | 15.5% | -106.4% | -121.8% |
| Net Income Margin | -26.7% | -108.3% | -118.7% | -295.5% | -563.1% | -267.5% |
| SG&A, % of revenue | | 13.3% | 12.4% | 16.0% | 53.0% | 37.0% |
| CAPEX, % of revenue | 53.5% | 33.6% | 19.0% | 27.3% | 0.1% | -27.2% |
| ROIC | 0.2% | 1.4% | 0.9% | -1.4% | -12.9% | -11.6% |
| ROE | -2.9% | -17.0% | -21.1% | -58.3% | -71.1% | -12.7% |
| Net Debt/EBITDA | -0.2x | -0.3x | -0.1x | 0.3x | | -0.3x |
Revenue and profitability
The company's Revenue dropped on 61.6% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 122 pp from 15.5% to -106% in 2015.
Gross Margin dropped on 58.5 pp from 7.7% to -50.8% in 2015. SG&A as a % of Revenue surged on 37.0 pp from 16.0% to 53.0% in 2015.
Net Income marign dropped on 268 pp from -296% to -563% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.067%. Energy International Investments Holdings Ltd showed big decline in CAPEX/Revenue of 33.5 pp from 33.6% in 2012 to 0.067% in 2015. For the last three years the average CAPEX/Revenue was 15.4%.
Return on investment
The company operates at negative ROIC (-12.95%) and ROE (-71.06%). ROIC dropped on 11.6 pp from -1.4% to -12.9% in 2015. ROE dropped on 12.7 pp from -58.3% to -71.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -12.7x and Debt / EBITDA is . Net Debt / EBITDA dropped on 0.3x from 0.3x to in 2015. Debt surged on 164% in 2015 while cash jumped on 213% in 2015.
Appendix 1: Peers in Retail
Below you can find Energy International Investments Holdings Ltd benchmarking vs. other companies in Retail 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 |
|---|
| China Nuclear Industry 23 International Corp Ltd ($611) | | 1.4% | 85.6% | -42.1% | 419.8% |
| Noble House China Holdings Ltd ($8246) | | -5.0% | -20.2% | -24.8% | 117.2% |
| Vongroup Ltd ($318) | | -46.9% | 23.7% | -80.2% | 90.3% |
| Nanjing Sinolife United Co Ltd ($3332) | | 45.6% | 29.5% | 29.6% | 57.3% |
| Shanghai La Chapelle Fashion Co Ltd ($6116) | | 54.9% | 72.8% | 23.0% | 48.3% |
| |
|---|
| Median (116 companies) | | 11.1% | 6.5% | 3.7% | -0.9% |
|---|
| Energy International Investments Holdings Ltd ($353) | | 32.7% | -4.9% | -22.0% | -61.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vongroup Ltd ($318) | | | | 95.1% | 99.1% |
| Modern Beauty Salon Holdings Ltd ($919) | 97.3% | 97.4% | 95.9% | 96.8% | 96.7% |
| Moiselle International Holdings Ltd ($130) | 81.4% | 81.2% | 83.8% | 80.6% | 83.2% |
| Embry Holdings Ltd ($1388) | 82.3% | 81.2% | 80.4% | 82.3% | 81.6% |
| Nanjing Sinolife United Co Ltd ($3332) | 80.6% | 86.5% | 89.3% | 90.9% | 80.6% |
| |
|---|
| Median (103 companies) | 39.4% | 37.2% | 36.4% | 35.5% | 33.9% |
|---|
| Energy International Investments Holdings Ltd ($353) | 12.2% | 14.3% | 21.1% | 7.7% | -50.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Energy Development Holdings Ltd ($228) | -44.2% | -58.1% | -72.3% | -84.0% | 1,070.6% |
| Golden Eagle Retail Group Ltd ($3308) | 52.1% | 48.5% | 47.3% | 42.8% | 55.4% |
| Nanjing Sinolife United Co Ltd ($3332) | 47.8% | 51.6% | 56.9% | 54.4% | 44.8% |
| Lifestyle International Holdings Ltd ($1212) | 49.6% | 47.5% | 47.0% | 44.7% | 43.4% |
| China Dongxiang Group Co Ltd ($3818) | 5.6% | 6.0% | 5.6% | 58.3% | 41.4% |
| |
|---|
| Median (116 companies) | 13.2% | 9.9% | 7.3% | 8.8% | 7.2% |
|---|
| Energy International Investments Holdings Ltd ($353) | 37.1% | 37.3% | 31.6% | 15.5% | -106.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Culture Landmark Investment Ltd ($674) | 4.6% | 11.6% | 19.4% | 15.7% | 47.2% |
| Springland International Holdings Ltd ($1700) | 20.7% | 31.9% | 17.4% | 26.5% | 36.9% |
| Merry Garden Holdings Ltd ($1237) | 22.7% | 18.6% | 28.6% | 15.1% | 34.2% |
| China Energy Development Holdings Ltd ($228) | 1.4% | 1.6% | 0.2% | 0.0% | 27.4% |
| Golden Eagle Retail Group Ltd ($3308) | 30.6% | 28.5% | 9.4% | 26.7% | 25.4% |
| |
|---|
| Median (116 companies) | 3.9% | 4.1% | 3.6% | 3.7% | 3.3% |
|---|
| Energy International Investments Holdings Ltd ($353) | 53.5% | 33.6% | 19.0% | 27.3% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Modern Beauty Salon Holdings Ltd ($919) | 48.1% | 50.7% | -4.6% | 81.3% | 71.8% |
| Starbucks Corp ($4337) | 36.4% | 36.4% | -6.0% | 52.8% | 51.4% |
| Sa Sa International Holdings Ltd ($178) | 45.7% | 53.5% | 52.7% | 49.0% | 39.8% |
| Noble House China Holdings Ltd ($8246) | 60.3% | 17.7% | -67.7% | -113.8% | 35.6% |
| Fairwood Holdings Ltd ($52) | 27.4% | 28.0% | 29.1% | 28.6% | 32.1% |
| |
|---|
| Median (116 companies) | 17.2% | 12.4% | 8.8% | 8.5% | 5.8% |
|---|
| Energy International Investments Holdings Ltd ($353) | 0.2% | 1.4% | 0.9% | -1.4% | -12.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sparkle Roll Group Ltd ($970) | -0.8x | 0.6x | 4.0x | 9.3x | 23.5x |
| Trinity Ltd ($891) | -0.6x | -0.2x | 0.2x | 0.6x | 18.2x |
| Parkson Retail Group Ltd ($3368) | 0.4x | 0.8x | 2.3x | 3.6x | 9.8x |
| Maoye International Holdings Ltd ($848) | 1.7x | 2.9x | 3.3x | 3.4x | 9.0x |
| Century Ginwa Retail Holdings Ltd ($162) | 6.5x | 2.0x | 2.5x | 4.8x | 7.3x |
| |
|---|
| Median (91 companies) | -0.8x | -0.5x | -0.8x | -0.2x | -0.5x |
|---|
