Vantage International Holdings Ltd reports 474% Net Income growth in 2016 and 23.8% Revenue growth
21/06/2016 • About Vantage International Holdings Ltd (
$15) • By InTwits
Vantage International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 11.3% in FY2016, 4.7% in FY2015, 3.4% in FY2014, 8.3% in FY2013, 4.3% in FY2012
- Vantage International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has business model with low profitability: ROIC is at 8.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Vantage International Holdings Ltd ($15) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,957 | 3,477 | 3,380 | 1,952 | 2,417 | 23.8% |
| Gross Profit | 179 | 202 | 185 | 136 | 331 | 144.1% |
| SG&A | | | | 52 | 66 | 27.0% |
| EBITDA | 128 | 289 | 115 | 92 | 274 | 198.5% |
| Net Income | 234 | 319 | 115 | 135 | 772 | 474.3% |
Balance Sheet
|
|---|
| Cash | 359 | 366 | 403 | 568 | 1,190 | 109.3% |
| Short Term Debt | 442 | 544 | 591 | 855 | 825 | -3.5% |
| Long Term Debt | 442 | 123 | 181 | 23 | 56 | 137.9% |
Cash flow
|
|---|
| Capex | 28 | 55 | 22 | 12 | 6 | -50.7% |
Ratios
|
|---|
| Revenue growth | 13.7% | 17.6% | -2.8% | -42.2% | 23.8% | |
| EBITDA growth | -23.2% | 125.7% | -60.3% | -19.9% | 198.5% | |
| Gross Margin | 6.0% | 5.8% | 5.5% | 7.0% | 13.7% | 6.8% |
| EBITDA Margin | 4.3% | 8.3% | 3.4% | 4.7% | 11.3% | 6.6% |
| Net Income Margin | 7.9% | 9.2% | 3.4% | 6.9% | 32.0% | 25.1% |
| SG&A, % of revenue | | | | 2.6% | 2.7% | 0.1% |
| CAPEX, % of revenue | 0.9% | 1.6% | 0.6% | 0.6% | 0.2% | -0.4% |
| ROIC | 6.5% | 13.2% | 4.3% | 2.9% | 8.0% | 5.0% |
| ROE | 22.4% | 23.6% | 6.7% | 6.7% | 31.9% | 25.2% |
| Net Debt/EBITDA | 4.1x | 1.0x | 3.2x | 3.4x | -1.1x | -4.5x |
Revenue and profitability
The company's Revenue jumped on 23.8%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.4 pp from -3.2% to -7.6% in FY2016.
Gross Margin increased on 6.8 pp from 7.0% to 13.7% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign surged on 25.1 pp from 6.9% to 32.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.25% in FY2016. CAPEX/Revenue decreased slightly on 1.3 pp from 1.6% in FY2013 to 0.25% in FY2016. For the last three years the average CAPEX/Revenue was 0.51%.
Return on investment
The company operates at good ROE (31.90%) while ROIC is low (7.95%). ROIC increased on 5.0 pp from 2.9% to 8.0% in FY2016. ROE jumped on 25.2 pp from 6.7% to 31.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.1x and Debt / EBITDA is 3.2x. Net Debt / EBITDA dropped on 4.5x from 3.4x to -1.1x in FY2016. Debt showed almost no change in FY2016 while cash jumped on 109%.
Appendix 1: Peers in Engineering&Construction
Below you can find Vantage International Holdings Ltd benchmarking vs. other companies in Engineering&Construction 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 | 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 (41 companies) | 12.7% | 24.5% | 21.3% | 10.5% | 1.5% |
|---|
| Vantage International Holdings Ltd ($15) | | 17.6% | -2.8% | -42.2% | 23.8% |
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 (36 companies) | 17.0% | 16.1% | 15.4% | 16.0% | 11.8% |
|---|
| Vantage International Holdings Ltd ($15) | 6.0% | 5.8% | 5.5% | 7.0% | 13.7% |
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 (41 companies) | 10.0% | 9.7% | 9.1% | 8.0% | 3.1% |
|---|
| Vantage International Holdings Ltd ($15) | 4.3% | 8.3% | 3.4% | 4.7% | 11.3% |
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% | |
| Louis XIII Holdings Ltd ($577) | 1.2% | 29.5% | 9.3% | 16.1% | 47.3% |
| PYI Corp Ltd ($498) | 3.7% | 4.2% | 24.5% | 13.1% | 19.7% |
| |
|---|
| Median (41 companies) | 2.4% | 3.9% | 1.7% | 2.0% | 2.7% |
|---|
| Vantage International Holdings Ltd ($15) | 0.9% | 1.6% | 0.6% | 0.6% | 0.2% |
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 (43 companies) | 5.8% | 5.2% | 3.8% | 5.4% | 3.1% |
|---|
| Vantage International Holdings Ltd ($15) | 6.5% | 13.2% | 4.3% | 2.9% | 8.0% |
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 |
| Louis XIII Holdings Ltd ($577) | 0.8x | -12.5x | -23.2x | 19.1x | |
| |
|---|
| Median (35 companies) | 0.8x | 0.2x | 0.3x | 1.9x | 2.7x |
|---|
| Vantage International Holdings Ltd ($15) | 4.1x | 1.0x | 3.2x | 3.4x | -1.1x |
