Louis XIII Holdings Ltd EBITDA dropped on 454% in 2016 and Revenue dropped on 26.9%
15/06/2016 • About Louis XIII Holdings Ltd (
$577) • By InTwits
Louis XIII Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Louis XIII Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -2.4%
- EBITDA Margin is declining: -2.6% in FY2016 vs. 0.5% in FY2015 vs. 0.9% in FY2012
- EBITDA Margin is quite volatile: -2.6% in FY2016, 0.5% in FY2015, 0.7% in FY2014, 0.8% in FY2013, 0.9% in FY2012
- Louis XIII Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 20.7%. At the same time it's a lot of higher than industry average of 8.6%.
- CAPEX is quite volatile: 3,221 in FY2016, 1,499 in FY2015, 798 in FY2014, 2,105 in FY2013, 52.4 in FY2012
- The company has unprofitable business model: ROIC is at -2.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Louis XIII Holdings Ltd ($577) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,304 | 7,132 | 8,580 | 9,323 | 6,812 | -26.9% |
| Gross Profit | 187 | 226 | 289 | 284 | 198 | -30.3% |
| SG&A | | | | 260 | 406 | 56.5% |
| EBITDA | 41 | 60 | 58 | 50 | -178 | -453.9% |
| Net Income | 30 | 18 | -51 | -30 | -197 | |
Balance Sheet
|
|---|
| Cash | 306 | 1,356 | 2,039 | 1,036 | 942 | -9.1% |
| Short Term Debt | 226 | 402 | 441 | 488 | 459 | -5.8% |
| Long Term Debt | 113 | 206 | 242 | 1,508 | 3,048 | 102.1% |
Cash flow
|
|---|
| Capex | 52 | 2,105 | 798 | 1,499 | 3,221 | 115.0% |
Ratios
|
|---|
| Revenue growth | -0.7% | 65.7% | 20.3% | 8.7% | -26.9% | |
| EBITDA growth | -17.0% | 47.3% | -2.1% | -14.0% | -453.9% | |
| Gross Margin | 4.3% | 3.2% | 3.4% | 3.0% | 2.9% | -0.1% |
| EBITDA Margin | 0.9% | 0.8% | 0.7% | 0.5% | -2.6% | -3.2% |
| Net Income Margin | 0.7% | 0.2% | -0.6% | -0.3% | -2.9% | -2.6% |
| SG&A, % of revenue | | | | 2.8% | 6.0% | 3.2% |
| CAPEX, % of revenue | 1.2% | 29.5% | 9.3% | 16.1% | 47.3% | 31.2% |
| ROIC | 1.8% | 1.2% | 0.5% | 0.3% | -2.4% | -2.7% |
| ROE | 4.9% | 1.0% | -1.4% | -0.6% | -3.4% | -2.8% |
| Net Debt/EBITDA | 0.8x | -12.5x | -23.2x | 19.1x | | -19.1x |
Revenue and profitability
Louis XIII Holdings Ltd's Revenue dropped on 26.9%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 23.0 pp from 62.1% to 85.1% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue increased on 3.2 pp from 2.8% to 6.0% in FY2016.
Net Income marign decreased on 2.6 pp from -0.32% to -2.9% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 47.3%. CAPEX/Revenue jumped on 17.8 pp from 29.5% in FY2013 to 47.3% in FY2016. It's average CAPEX/Revenue for the last three years was 24.2%.
Return on investment
The company operates at negative ROIC (-2.44%) and ROE (-3.40%). ROIC decreased on 2.7 pp from 0.26% to -2.4% in FY2016. ROE decreased on 2.8 pp from -0.61% to -3.4% in FY2016.
Leverage (Debt)
Debt level is 0.9x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 19.1x from 19.1x to in FY2016. Debt surged on 75.7% while cash decreased on 9.1%.
Appendix 1: Peers in Engineering&Construction
Below we provide Louis XIII Holdings Ltd benchmarking against other companies in Engineering&Construction 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 |
|---|
| CNQC International Holdings Ltd ($1240) | 21.6% | 91.0% | 103.7% | 807.4% | |
| China National Culture Group Ltd ($745) | -39.1% | -76.8% | -55.8% | 592.3% | |
| Vision Fame International Holding Ltd ($1315) | -9.9% | 45.9% | -10.5% | 105.6% | |
| Sino Credit Holdings Ltd ($628) | -13.8% | | | 97.4% | |
| Grand Ming Group Holdings Ltd ($1271) | | -26.9% | -37.4% | 74.8% | 14.3% |
| |
|---|
| Median (40 companies) | 12.8% | 22.8% | 19.2% | 10.3% | 8.5% |
|---|
| Louis XIII Holdings Ltd ($577) | | 65.7% | 20.3% | 8.7% | -26.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HNA Infrastructure Company Ltd ($357) | 66.4% | 62.1% | 62.4% | 61.1% | |
| Huayu Expressway Group Ltd ($1823) | 43.6% | 65.6% | 64.0% | 58.9% | |
| Broad Greenstate International Co Ltd ($1253) | 20.1% | 28.7% | 35.8% | 36.7% | |
| China National Culture Group Ltd ($745) | 0.9% | 12.1% | 10.3% | 32.3% | |
| Kingbo Strike Ltd ($1421) | 32.4% | 44.4% | 40.3% | 30.7% | |
| |
|---|
| Median (35 companies) | 17.5% | 16.9% | 15.4% | 16.3% | 16.0% |
|---|
| Louis XIII Holdings Ltd ($577) | 4.3% | 3.2% | 3.4% | 3.0% | 2.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huayu Expressway Group Ltd ($1823) | 46.2% | 73.8% | 77.1% | 76.2% | |
| HNA Infrastructure Company Ltd ($357) | 62.8% | 63.7% | 62.8% | 61.7% | |
| Cheung Kong Infrastructure Holdings Ltd ($1038) | 31.2% | 20.6% | 36.2% | 60.9% | |
| Beijing Capital International Airport Co Ltd ($694) | 53.4% | 52.9% | 50.3% | 51.6% | |
| China National Culture Group Ltd ($745) | -30.4% | -72.7% | -279.2% | 45.3% | |
| |
|---|
| Median (40 companies) | 10.0% | 9.6% | 9.1% | 8.3% | 8.8% |
|---|
| Louis XIII Holdings Ltd ($577) | 0.9% | 0.8% | 0.7% | 0.5% | -2.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HNA Infrastructure Company Ltd ($357) | 36.8% | 5.7% | 85.4% | 155.4% | |
| Grand Ming Group Holdings Ltd ($1271) | 0.0% | 16.1% | 8.7% | 33.8% | 14.0% |
| Beijing Capital International Airport Co Ltd ($694) | 3.5% | 6.6% | 7.2% | 28.2% | |
| PYI Corp Ltd ($498) | 3.7% | 4.2% | 24.5% | 13.1% | |
| KFM Kingdom Holdings Ltd ($3816) | 4.6% | 11.5% | 14.9% | 9.6% | |
| |
|---|
| Median (40 companies) | 2.5% | 2.5% | 1.6% | 2.0% | 2.5% |
|---|
| Louis XIII Holdings Ltd ($577) | 1.2% | 29.5% | 9.3% | 16.1% | 47.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chun Sing Engineering Holdings Ltd ($2277) | | 98.3% | 54.9% | 43.7% | |
| Ngai Shun Holdings Ltd ($1246) | 68.8% | 77.2% | 45.2% | 31.0% | |
| Broad Greenstate International Co Ltd ($1253) | 33.2% | 85.1% | 51.2% | 26.0% | |
| China Saite Group Co Ltd ($153) | 64.0% | 53.2% | 35.3% | 24.5% | |
| CNQC International Holdings Ltd ($1240) | 12.2% | 22.3% | 40.4% | 21.8% | |
| |
|---|
| Median (42 companies) | 6.5% | 5.5% | 4.1% | 4.4% | 3.5% |
|---|
| Louis XIII Holdings Ltd ($577) | 1.8% | 1.2% | 0.5% | 0.3% | -2.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Deson Development International Holdings ($262) | 3.8x | 4.9x | 13.7x | 47.0x | |
| Hsin Chong Construction Group Ltd ($404) | 1.8x | 8.0x | 10.2x | 41.7x | |
| China Resources and Transportation Group Ltd ($269) | | | 66.7x | 29.7x | |
| CNC Holdings Ltd ($8356) | | 22.0x | 21.9x | 24.3x | 2.7x |
| Chun Wo Development Holdings Ltd ($711) | 14.3x | 8.1x | 12.6x | 15.9x | 10.5x |
| |
|---|
| Median (34 companies) | 1.0x | 0.5x | 0.9x | 2.1x | 4.3x |
|---|
| Louis XIII Holdings Ltd ($577) | 0.8x | -12.5x | -23.2x | 19.1x | |
