C Y Foundation Group Ltd CAPEX surged on 548% while Revenue dropped on 14.6%
16/05/2016 • About C Y Foundation Group Ltd (
$1182) • By InTwits
C Y Foundation Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- C Y Foundation Group Ltd doesn't have a profitable business model yet: FY2016 ROIC is -18.1%
- The company operates at negative EBITDA Margin: -7.4%
- C Y Foundation Group Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -20.0%0
- C Y Foundation Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 34.0%. At the same time it's a lot of higher than industry average of 6.2%.
- CAPEX is quite volatile: 109 in FY2016, 16.8 in FY2015, 47.0 in FY2014, 2.8 in FY2013, 3.9 in FY2012
- The company has unprofitable business model: ROIC is at -18.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
C Y Foundation Group Ltd ($1182) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 157.2 | 54.0 | 57.2 | 180.0 | 153.7 | -14.6% |
| Gross Profit | 46.8 | 0.1 | 17.4 | 48.4 | 37.5 | -22.6% |
| SG&A | 103.7 | 48.8 | 54.4 | 98.1 | 179.5 | 82.9% |
| EBITDA | -45.0 | -45.0 | -4.9 | -14.0 | -11.3 | |
| Net Income | -73.5 | -65.2 | -11.8 | -47.3 | -231.5 | |
Balance Sheet
|
|---|
| Cash | 19.7 | 28.8 | 79.1 | 73.7 | 28.1 | -61.8% |
| Short Term Debt | 15.3 | 19.7 | 2.1 | 1.9 | 10.4 | 459.7% |
| Long Term Debt | 0.0 | 0.0 | 50.0 | 50.5 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 3.9 | 2.8 | 47.0 | 16.8 | 108.8 | 548.3% |
Ratios
|
|---|
| Revenue growth | 8.3% | -65.6% | 5.9% | 214.6% | -14.6% | |
| EBITDA growth | 115.7% | -0.0% | -89.2% | 187.5% | -19.4% | |
| Gross Margin | 29.7% | 0.2% | 30.4% | 26.9% | 24.4% | -2.5% |
| EBITDA Margin | -28.6% | -83.3% | -8.5% | -7.8% | -7.4% | 0.4% |
| Net Income Margin | -46.8% | -120.7% | -20.6% | -26.3% | -150.6% | -124.4% |
| SG&A, % of revenue | 66.0% | 90.4% | 95.1% | 54.5% | 116.8% | 62.3% |
| CAPEX, % of revenue | 2.5% | 5.2% | 82.2% | 9.3% | 70.8% | 61.5% |
| ROIC | -18.7% | -20.4% | -5.9% | -15.6% | -18.1% | -2.5% |
| ROE | -32.6% | -35.7% | -6.6% | -27.4% | -145.6% | -118.2% |
Revenue and profitability
The company's Revenue dropped on 14.6%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 8.9 pp from 16.0% to 24.9% in FY2016.
Gross Margin decreased on 2.5 pp from 26.9% to 24.4% in FY2016. SG&A as a % of Revenue surged on 62.3 pp from 54.5% to 117% in FY2016.
Net Income marign dropped on 124 pp from -26.3% to -151% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 70.8%. The company's CAPEX/Revenue surged on 65.7 pp from 5.2% in FY2013 to 70.8% in FY2016. For the last three years the average CAPEX/Revenue was 54.1%.
Return on investment
The company operates at negative ROIC (-18.07%) and ROE (-145.63%). ROIC decreased on 2.5 pp from -15.6% to -18.1% in FY2016. ROE dropped on 118 pp from -27.4% to -146% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -7.5x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt dropped on 80.1% while cash dropped on 61.8%.
Appendix 1: Peers in Distribution/Wholesale
Below we provide C Y Foundation Group Ltd benchmarking against other companies in Distribution/Wholesale 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Fortune Holdings Ltd ($110) | -64.7% | -68.2% | -71.0% | 174.2% | |
| Hailiang International Holdings Ltd ($2336) | 9.7% | -30.8% | -69.1% | 99.7% | |
| Forefront Group Ltd ($885) | | 504.6% | 3,871.0% | 72.0% | |
| Yestar International Holdings Co Ltd ($2393) | -2.2% | 22.8% | 30.5% | 60.3% | |
| Goldin Financial Holdings Ltd ($530) | -39.4% | 63.5% | 60.3% | 42.9% | |
| |
|---|
| Median (35 companies) | 2.6% | 2.1% | 0.8% | -2.0% | |
|---|
| C Y Foundation Group Ltd ($1182) | | -65.6% | 5.9% | 214.6% | -14.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Yunnan Tin Minerals Group Co Ltd ($263) | 79.6% | 66.3% | | 98.7% | |
| Goldin Financial Holdings Ltd ($530) | 75.3% | 71.7% | 74.8% | 73.8% | |
| YGM Trading Ltd ($375) | 66.5% | 67.4% | 64.0% | 62.5% | |
| Goldlion Holdings Ltd ($533) | 56.4% | 54.1% | 55.7% | 60.0% | |
| E.Bon Holdings Ltd ($599) | 40.3% | 37.4% | 35.8% | 39.6% | |
| |
|---|
| Median (33 companies) | 17.3% | 18.2% | 18.0% | 20.8% | |
|---|
| C Y Foundation Group Ltd ($1182) | 29.7% | 0.2% | 30.4% | 26.9% | 24.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China LNG Group Ltd ($931) | 95.1% | 76.4% | 97.9% | 1,277.8% | |
| Goldin Financial Holdings Ltd ($530) | 163.7% | 613.4% | 285.7% | 364.1% | |
| China Infrastructure Investment Ltd ($600) | -274.9% | 120.0% | 52.0% | 134.5% | |
| China Yunnan Tin Minerals Group Co Ltd ($263) | -1,064.4% | -252.1% | | 62.8% | |
| Goldlion Holdings Ltd ($533) | 25.8% | 23.4% | 22.5% | 22.8% | |
| |
|---|
| Median (36 companies) | 2.6% | 2.5% | 4.6% | 4.9% | |
|---|
| C Y Foundation Group Ltd ($1182) | -28.6% | -83.3% | -8.5% | -7.8% | -7.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SIS International Holdings ($529) | 13.4% | 31.8% | 14.8% | 49.8% | |
| Inspur International Ltd ($596) | 8.4% | 12.2% | 33.6% | 25.6% | |
| China LNG Group Ltd ($931) | 11.1% | 0.3% | 0.6% | 15.6% | |
| YGM Trading Ltd ($375) | 1.8% | 2.1% | 3.5% | 14.5% | |
| Victory Group Ltd ($1139) | 0.7% | 0.1% | 6.1% | 12.6% | |
| |
|---|
| Median (35 companies) | 1.3% | 1.7% | 1.6% | 1.2% | |
|---|
| C Y Foundation Group Ltd ($1182) | 2.5% | 5.2% | 82.2% | 9.3% | 70.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China LNG Group Ltd ($931) | 8.4% | 7.4% | 87.0% | 56.2% | |
| Powerwell Pacific Holdings Ltd ($8265) | 6.4% | 6.4% | 23.6% | 27.1% | |
| Yestar International Holdings Co Ltd ($2393) | 28.8% | 24.1% | 26.2% | 25.4% | |
| E.Bon Holdings Ltd ($599) | 7.0% | 7.2% | 3.3% | 16.9% | |
| Goldin Financial Holdings Ltd ($530) | 5.9% | 20.6% | 10.4% | 16.0% | |
| |
|---|
| Median (37 companies) | 2.7% | 1.7% | 3.2% | 2.8% | |
|---|
| C Y Foundation Group Ltd ($1182) | -18.7% | -20.4% | -5.9% | -15.6% | -18.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SIS International Holdings ($529) | -1.8x | 7.0x | 7.2x | 16.8x | |
| Leeport Holdings Ltd ($387) | | | | 16.1x | |
| Takson Holdings Ltd ($918) | | 11.5x | 11.7x | 15.7x | |
| Sheng Yuan Holdings Ltd ($851) | | | 19.3x | 15.4x | |
| Forefront Group Ltd ($885) | | | -0.0x | 15.3x | |
| |
|---|
| Median (27 companies) | -0.2x | -0.6x | -0.0x | -0.2x | |
|---|
