Hua Xia Healthcare Holdings Ltd reports 109% EBITDA decline in 2016 and 11.6% Revenue decline
16/06/2016 • About Hua Xia Healthcare Holdings Ltd (
$8143) • By InTwits
Hua Xia Healthcare Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hua Xia Healthcare Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -3.8%
- EBITDA Margin is quite volatile: -0.2% in FY2016, 2.1% in FY2015, 5.2% in FY2014, 4.6% in FY2013, 5.5% in FY2012
- The company has unprofitable business model: ROIC is at -3.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hua Xia Healthcare Holdings Ltd ($8143) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,836 | 2,021 | 2,243 | 1,780 | 1,575 | -11.6% |
| Gross Profit | 235 | 239 | 269 | 278 | 279 | 0.6% |
| SG&A | | 166 | 187 | 262 | 310 | 18.3% |
| EBITDA | 102 | 93 | 117 | 37 | -3 | -109.0% |
| Net Income | 50 | 43 | 22 | -506 | -43 | |
Balance Sheet
|
|---|
| Cash | 109 | 80 | 92 | 89 | 250 | 181.2% |
| Short Term Debt | 82 | 55 | 124 | 140 | 50 | -64.0% |
| Long Term Debt | 202 | 197 | 76 | 78 | 157 | 101.3% |
Cash flow
|
|---|
| Capex | 16 | 9 | 10 | 21 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 25.4% | 10.1% | 11.0% | -20.6% | -11.6% | |
| EBITDA growth | 16.6% | -8.7% | 26.7% | -68.1% | -109.0% | |
| Gross Margin | 12.8% | 11.8% | 12.0% | 15.6% | 17.7% | 2.1% |
| EBITDA Margin | 5.5% | 4.6% | 5.2% | 2.1% | -0.2% | -2.3% |
| Net Income Margin | 2.7% | 2.1% | 1.0% | -28.4% | -2.8% | 25.6% |
| SG&A, % of revenue | | 8.2% | 8.3% | 14.7% | 19.7% | 5.0% |
| CAPEX, % of revenue | 0.9% | 0.5% | 0.5% | 1.2% | | -1.2% |
| ROIC | 7.5% | 6.5% | 8.1% | 2.2% | -3.8% | -6.0% |
| ROE | 6.7% | 4.6% | 2.6% | -107.7% | -21.5% | 86.1% |
| Net Debt/EBITDA | 1.7x | 1.9x | 0.9x | 3.5x | | -3.5x |
Revenue and profitability
Hua Xia Healthcare Holdings Ltd's Revenue dropped on 11.6%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 2.3 pp from 2.1% to -0.21% in FY2016.
Gross Margin increased on 2.1 pp from 15.6% to 17.7% in FY2016. SG&A as a % of Revenue increased on 5.0 pp from 14.7% to 19.7% in FY2016.
Net Income marign jumped on 25.6 pp from -28.4% to -2.8% in FY2016.
Return on investment
The company operates at negative ROIC (-3.83%) and ROE (-21.54%). ROIC decreased on 6.0 pp from 2.2% to -3.8% in FY2016. ROE surged on 86.1 pp from -108% to -21.5% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.1x and Debt / EBITDA is . Net Debt / EBITDA dropped on 3.5x from 3.5x to in FY2016. Debt decreased on 4.9% while cash surged on 181%.
Appendix 1: Peers in Healthcare-Services
Below we provide Hua Xia Healthcare 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Town Health International Medical Group Ltd ($3886) | 0.7% | 3.7% | 39.5% | 127.0% | |
| SkyOcean International Holdings Ltd ($593) | 15.7% | -7.4% | -30.5% | 38.1% | |
| 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% | |
| |
|---|
| Median (4 companies) | 19.0% | -1.8% | 37.7% | 30.0% | |
|---|
| Hua Xia Healthcare Holdings Ltd ($8143) | | 10.1% | 11.0% | -20.6% | -11.6% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Town Health International Medical Group Ltd ($3886) | 34.7% | 33.9% | 32.5% | 42.7% | |
| Phoenix Healthcare Group Co Ltd ($1515) | 24.4% | 24.0% | 24.7% | 24.0% | |
| China Natural Investment Co Ltd ($8250) | 38.1% | 32.4% | 10.6% | 12.4% | |
| |
|---|
| Median (3 companies) | 34.7% | 32.4% | 24.7% | 24.0% | |
|---|
| Hua Xia Healthcare Holdings Ltd ($8143) | 12.8% | 11.8% | 12.0% | 15.6% | 17.7% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SkyOcean International Holdings Ltd ($593) | 28.4% | 31.5% | -151.1% | 29.4% | |
| Phoenix Healthcare Group Co Ltd ($1515) | 26.5% | 26.5% | 25.8% | 20.4% | |
| Town Health International Medical Group Ltd ($3886) | -135.5% | -44.4% | -0.3% | 19.4% | |
| China Natural Investment Co Ltd ($8250) | -33.3% | -39.5% | -7.2% | -9.6% | |
| |
|---|
| Median (4 companies) | -3.4% | -6.5% | -3.7% | 19.9% | |
|---|
| Hua Xia Healthcare Holdings Ltd ($8143) | 5.5% | 4.6% | 5.2% | 2.1% | -0.2% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SkyOcean International Holdings Ltd ($593) | 0.9% | 1.3% | 4.8% | 385.3% | |
| Town Health International Medical Group Ltd ($3886) | 5.0% | 48.6% | 16.8% | 22.1% | |
| Phoenix Healthcare Group Co Ltd ($1515) | 3.7% | 2.4% | 3.0% | 2.3% | |
| China Natural Investment Co Ltd ($8250) | 36.8% | 16.8% | 2.1% | 0.2% | |
| |
|---|
| Median (4 companies) | 4.3% | 9.6% | 3.9% | 12.2% | |
|---|
| Hua Xia Healthcare Holdings Ltd ($8143) | 0.9% | 0.5% | 0.5% | 1.2% | |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | 17.9% | 14.3% | 14.6% | 12.8% | |
| Town Health International Medical Group Ltd ($3886) | -29.7% | -10.9% | -2.3% | 4.4% | |
| SkyOcean International Holdings Ltd ($593) | 2.8% | 2.4% | -5.2% | 0.7% | |
| China Natural Investment Co Ltd ($8250) | -6.4% | -4.9% | -4.5% | -5.6% | |
| |
|---|
| Median (4 companies) | -1.8% | -1.2% | -3.4% | 2.6% | |
|---|
| Hua Xia Healthcare Holdings Ltd ($8143) | 7.5% | 6.5% | 8.1% | 2.2% | -3.8% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SkyOcean International Holdings Ltd ($593) | -20.7x | -0.8x | | 83.1x | |
| Phoenix Healthcare Group Co Ltd ($1515) | 0.6x | -3.8x | -3.2x | -3.4x | |
| Town Health International Medical Group Ltd ($3886) | | | | -7.7x | |
| |
|---|
| Median (3 companies) | -10.0x | -2.3x | -3.2x | -3.4x | |
|---|
| Hua Xia Healthcare Holdings Ltd ($8143) | 1.7x | 1.9x | 0.9x | 3.5x | |
