Yunbo Digital Synergy Group Ltd reports 99.6% revenue growth in FY2016 and almost no change in EBITDA Margin of -1.6%
17/06/2016 • About Yunbo Digital Synergy Group Ltd (
$8050) • By InTwits
Yunbo Digital Synergy Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Yunbo Digital Synergy Group Ltd doesn't have a profitable business model yet: FY2016 ROIC is -4.5%
- The company operates at negative EBITDA Margin: -1.6%
- Yunbo Digital Synergy 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 -5.6%0
- Yunbo Digital Synergy Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has unprofitable business model: ROIC is at -4.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Yunbo Digital Synergy Group Ltd ($8050) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 15.7 | 53.7 | 36.6 | 163.9 | 327.0 | 99.6% |
| Gross Profit | 5.6 | 3.4 | 8.5 | 30.4 | 46.3 | 52.3% |
| SG&A | | 15.5 | 19.3 | 34.0 | 51.3 | 50.8% |
| EBITDA | -4.4 | -11.5 | -10.3 | -2.3 | -5.2 | |
| Net Income | 6.2 | -11.9 | -10.5 | -2.8 | -4.3 | |
Balance Sheet
|
|---|
| Cash | 65.8 | 28.2 | 112.1 | 133.0 | 149.8 | 12.6% |
| Short Term Debt | 60.0 | 10.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.0 | 0.6 | 1.0 | 0.1 | 0.1 | -13.9% |
Ratios
|
|---|
| Revenue growth | -84.6% | 241.6% | -31.9% | 348.0% | 99.6% | |
| EBITDA growth | -28.5% | 160.4% | -10.9% | -77.9% | 131.2% | |
| Gross Margin | 35.6% | 6.4% | 23.3% | 18.6% | 14.2% | -4.4% |
| EBITDA Margin | -28.1% | -21.4% | -28.1% | -1.4% | -1.6% | -0.2% |
| Net Income Margin | 39.6% | -22.1% | -28.7% | -1.7% | -1.3% | 0.4% |
| SG&A, % of revenue | | 28.9% | 52.9% | 20.8% | 15.7% | -5.1% |
| CAPEX, % of revenue | 0.2% | 1.2% | 2.6% | 0.0% | 0.0% | -0.0% |
| ROIC | -8.3% | -21.8% | -12.9% | -2.2% | -4.5% | -2.3% |
| ROE | 27.4% | -66.5% | -13.6% | -2.3% | -3.7% | -1.3% |
Revenue and profitability
The company's Revenue jumped on 99.6%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.7 pp from -1.7% to -3.4% in FY2016.
Gross Margin decreased on 4.4 pp from 18.6% to 14.2% in FY2016. SG&A as a % of Revenue decreased on 5.1 pp from 20.8% to 15.7% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.021% in FY2016. The company's CAPEX/Revenue decreased slightly on 1.2 pp from 1.2% in FY2013 to 0.021% in FY2016. Average CAPEX/Revenue for the last three years was 0.90%.
Return on investment
The company operates at negative ROIC (-4.50%) and ROE (-3.66%). ROIC decreased on 2.3 pp from -2.2% to -4.5% in FY2016. ROE decreased slightly on 1.3 pp from -2.3% to -3.7% in FY2016.
Leverage (Debt)
The company has no debt. Cash jumped on 12.6%.
Appendix 1: Peers in Software
Below we provide Yunbo Digital Synergy Group Ltd benchmarking against other companies in Software 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 |
|---|
| Pizu Group Holdings Ltd ($8053) | 40.3% | -42.9% | 1,742.9% | 157.9% | |
| China Eco-Farming Ltd ($8166) | -23.6% | -7.7% | 21.8% | 155.5% | |
| Aurum Pacific China Group Ltd ($8148) | | | 50.0% | 92.7% | |
| Kingsoft Corp Ltd ($3888) | 38.3% | 54.0% | 54.2% | 69.4% | |
| China Technology Solar Power Holdings Ltd ($8111) | 0.2% | 63.9% | 42.3% | 52.1% | |
| |
|---|
| Median (36 companies) | 18.6% | 11.2% | 21.8% | 5.5% | -10.2% |
|---|
| Yunbo Digital Synergy Group Ltd ($8050) | | 241.6% | -31.9% | 348.0% | 99.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Bio Cassava Holdings Ltd ($8129) | 90.4% | 97.4% | 98.4% | 98.3% | |
| Chanjet Information Technology Co Ltd ($1588) | 89.2% | 91.3% | 92.4% | 91.4% | |
| China Binary Sale Technology Ltd ($8255) | 63.5% | 68.5% | 67.7% | 85.9% | |
| Kingdee International Software Group Co Ltd ($268) | 65.0% | 75.3% | 82.5% | 81.5% | |
| Tian Ge Interactive Holdings Ltd ($1980) | 88.5% | 87.6% | 84.8% | 77.7% | |
| |
|---|
| Median (35 companies) | 46.5% | 43.1% | 43.4% | 43.6% | 52.6% |
|---|
| Yunbo Digital Synergy Group Ltd ($8050) | 35.6% | 6.4% | 23.3% | 18.6% | 14.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| International Entertainment Corp ($1009) | 50.8% | 64.0% | 54.9% | 62.0% | |
| Sinosoft Technology Group Ltd ($1297) | 62.6% | 54.9% | 57.2% | 59.0% | |
| China Binary Sale Technology Ltd ($8255) | 35.1% | 35.4% | 44.4% | 50.5% | |
| Boyaa Interactive International Ltd ($434) | 38.5% | 25.8% | 30.7% | 47.6% | |
| TravelSky Technology Ltd ($696) | 38.1% | 35.8% | 31.9% | 41.1% | |
| |
|---|
| Median (36 companies) | 11.4% | 17.0% | 13.7% | 10.3% | 19.3% |
|---|
| Yunbo Digital Synergy Group Ltd ($8050) | -28.1% | -21.4% | -28.1% | -1.4% | -1.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| NetDragon Websoft Inc ($777) | 21.1% | 34.6% | 54.6% | 42.9% | |
| China Information Technology Development Ltd ($8178) | 4.1% | 1.1% | 0.5% | 40.7% | |
| Aurum Pacific China Group Ltd ($8148) | | 2.9% | 7.5% | 20.6% | |
| TravelSky Technology Ltd ($696) | 8.9% | 21.7% | 18.1% | 18.1% | |
| Kingsoft Corp Ltd ($3888) | 4.3% | 3.8% | 14.3% | 11.1% | |
| |
|---|
| Median (36 companies) | 1.5% | 2.0% | 3.6% | 2.4% | 4.7% |
|---|
| Yunbo Digital Synergy Group Ltd ($8050) | 0.2% | 1.2% | 2.6% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pizu Group Holdings Ltd ($8053) | -21.8% | -13.4% | -6.8% | 120.0% | |
| IGG Inc ($8002) | | 55.9% | 41.4% | 25.9% | |
| Boyaa Interactive International Ltd ($434) | 75.3% | 21.3% | 20.0% | 21.4% | |
| Sinosoft Technology Group Ltd ($1297) | 34.0% | 21.9% | 20.2% | 20.8% | |
| ITE Holdings Ltd ($8092) | -15.0% | 10.6% | 16.8% | 19.8% | 4.1% |
| |
|---|
| Median (36 companies) | 5.6% | 6.4% | 5.6% | 2.2% | 12.0% |
|---|
| Yunbo Digital Synergy Group Ltd ($8050) | -8.3% | -21.8% | -12.9% | -2.2% | -4.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Epicurean and Co Ltd ($8213) | 2.3x | 4.7x | 12.3x | 12.0x | |
| Sing Lee Software Group Ltd ($8076) | | | 6.2x | 4.4x | |
| Century Sage Scientific Holdings Ltd ($1450) | 0.2x | 0.0x | -0.2x | 1.8x | |
| Microsoft Corp ($4338) | | | 0.4x | 1.2x | 1.4x |
| Chinasoft International Ltd ($354) | -0.7x | 0.7x | 1.5x | 0.7x | |
| |
|---|
| Median (21 companies) | -1.1x | -1.7x | -1.5x | -1.0x | -3.8x |
|---|
