Alibaba Health Information Technology Ltd CAPEX surged on 145% and Revenue surged on 85.8%
22/06/2016 • About Alibaba Health Information Technology Ltd (
$241) • By InTwits
Alibaba Health Information Technology Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Alibaba Health Information Technology Ltd doesn't have a profitable business model yet: FY2016 ROIC is -17.7%
- The company operates at negative EBITDA Margin: -380.5%
- Alibaba Health Information Technology Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -75.4% for the sames years0
- Alibaba Health Information Technology Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.0%. At the same time it's a lot of higher than industry average of 58.8%.
- CAPEX is quite volatile: 10.7 in FY2016, 4.4 in FY2015, 4.7 in FY2014, 7.4 in FY2013, 21.4 in FY2012
- The company has unprofitable business model: ROIC is at -17.7%
- It operates with high leverage: Net Debt/EBITDA is 0.6x while industry average is 0.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Alibaba Health Information Technology Ltd ($241) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 481.7 | 15.9 | 27.5 | 37.2 | 69.1 | 85.8% |
| Gross Profit | 54.9 | -2.0 | 13.6 | 20.0 | 46.4 | 132.3% |
| SG&A | 88.5 | 40.9 | 41.8 | 141.2 | 210.6 | 49.2% |
| EBITDA | -20.8 | -30.7 | -36.5 | -125.2 | -262.8 | |
| Net Income | -7.7 | -41.3 | -39.2 | -101.5 | -233.8 | |
Balance Sheet
|
|---|
| Cash | 133.8 | 105.7 | 66.4 | 159.3 | 38.8 | -75.7% |
| Short Term Debt | 12.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 21.4 | 7.4 | 4.7 | 4.4 | 10.7 | 145.0% |
Ratios
|
|---|
| Revenue growth | 29.4% | -96.7% | 73.0% | 35.3% | 85.8% | |
| EBITDA growth | 27.6% | 47.6% | 18.8% | 243.4% | 109.9% | |
| Gross Margin | 11.4% | -12.6% | 49.3% | 53.7% | 67.1% | 13.5% |
| EBITDA Margin | -4.3% | -193.1% | -132.6% | -336.7% | -380.5% | -43.8% |
| Net Income Margin | -1.6% | -260.2% | -142.6% | -273.1% | -338.6% | -65.5% |
| SG&A, % of revenue | 18.4% | 257.3% | 152.1% | 379.8% | 304.9% | -74.8% |
| CAPEX, % of revenue | 4.4% | 46.3% | 17.2% | 11.7% | 15.4% | 3.7% |
| ROIC | -11.1% | -13.1% | -13.0% | -13.7% | -17.7% | -4.0% |
| ROE | -1.9% | -10.9% | -10.0% | -9.8% | -15.0% | -5.3% |
Revenue and profitability
The company's Revenue jumped on 85.8%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 43.8 pp from -337% to -380% in FY2016.
Gross Margin surged on 13.5 pp from 53.7% to 67.1% in FY2016. SG&A as a % of Revenue dropped on 74.8 pp from 380% to 305% in FY2016.
Net Income marign dropped on 65.5 pp from -273% to -339% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 15.4%. The company's CAPEX/Revenue dropped on 30.8 pp from 46.3% in FY2013 to 15.4% in FY2016. It's average level of CAPEX/Revenue for the last three years was 14.8%.
Return on investment
The company operates at negative ROIC (-17.68%) and ROE (-15.05%). ROIC decreased on 4.0 pp from -13.7% to -17.7% in FY2016. ROE decreased on 5.3 pp from -9.8% to -15.0% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 75.7%.
Appendix 1: Peers in Computers
Below you can find Alibaba Health Information Technology Ltd benchmarking vs. other companies in Computers 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 |
|---|
| Shinhint Acoustic Link Holdings Ltd ($2728) | -65.4% | 8.8% | 27.1% | 759.3% | |
| Beautiful China Holdings Co Ltd ($706) | -7.8% | -23.3% | -37.1% | 267.1% | |
| Powerleader Science & Technology Group Ltd ($8236) | 2.5% | -10.3% | 18.8% | 45.0% | |
| Thiz Technology Group Ltd ($8119) | -4.1% | -95.1% | 72.2% | 31.9% | |
| Peking University Resources Holdings Co Ltd ($618) | -49.6% | 11.2% | 106.0% | 25.1% | |
| |
|---|
| Median (25 companies) | 3.1% | 0.1% | 10.9% | -3.9% | 14.0% |
|---|
| Alibaba Health Information Technology Ltd ($241) | | -96.7% | 73.0% | 35.3% | 85.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Universal Technologies Holdings Ltd ($1026) | 87.3% | 79.7% | 90.3% | 98.4% | |
| Thiz Technology Group Ltd ($8119) | 8.8% | 63.8% | 86.2% | 96.0% | |
| Computer & Technologies Holdings Ltd ($46) | 45.3% | 54.0% | 52.1% | 54.2% | |
| CCID Consulting Co Ltd ($8235) | 43.7% | 49.1% | 51.8% | 48.7% | |
| Founder Holdings Ltd ($418) | 19.8% | 28.4% | 33.7% | 41.3% | |
| |
|---|
| Median (25 companies) | 13.2% | 16.6% | 15.1% | 18.4% | 9.9% |
|---|
| Alibaba Health Information Technology Ltd ($241) | 11.4% | -12.6% | 49.3% | 53.7% | 67.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Thiz Technology Group Ltd ($8119) | -47.4% | -847.3% | -506.6% | 74.0% | |
| World Wide Touch Technology Holdings Ltd ($1282) | 3.4% | -6.4% | -6.4% | 35.7% | |
| Ju Teng International Holdings Ltd ($3336) | 15.1% | 19.9% | 19.3% | 23.8% | |
| Computer & Technologies Holdings Ltd ($46) | 12.9% | 19.9% | 20.1% | 23.2% | |
| PAX Global Technology Ltd ($327) | 16.5% | 17.4% | 18.8% | 22.7% | |
| |
|---|
| Median (26 companies) | 3.2% | 3.1% | 2.0% | 4.3% | 2.7% |
|---|
| Alibaba Health Information Technology Ltd ($241) | -4.3% | -193.1% | -132.6% | -336.7% | -380.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Beautiful China Holdings Co Ltd ($706) | 8.4% | 2.2% | 26.2% | 743.7% | |
| North Asia Resources Holdings Ltd ($61) | 4.6% | 94.2% | 177.8% | 110.2% | |
| China Uptown Group Co Ltd ($2330) | 0.0% | 0.2% | 1.0% | 20.5% | |
| Universal Technologies Holdings Ltd ($1026) | 20.0% | 5.7% | 14.2% | 20.3% | |
| Ju Teng International Holdings Ltd ($3336) | 14.1% | 18.7% | 20.0% | 17.3% | |
| |
|---|
| Median (26 companies) | 0.9% | 1.1% | 1.6% | 1.4% | 0.9% |
|---|
| Alibaba Health Information Technology Ltd ($241) | 4.4% | 46.3% | 17.2% | 11.7% | 15.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lenovo Group Ltd ($992) | 26.2% | 30.5% | 34.7% | 24.5% | 1.0% |
| PAX Global Technology Ltd ($327) | 12.3% | 12.8% | 18.7% | 22.4% | |
| CCID Consulting Co Ltd ($8235) | 11.3% | 10.7% | 10.2% | 15.0% | |
| TPV Technology Ltd ($903) | 7.7% | 1.8% | 10.1% | 12.0% | |
| Goldenmars Technology Holdings Ltd ($8036) | | 10.5% | 11.4% | 11.6% | 9.5% |
| |
|---|
| Median (26 companies) | 2.1% | 1.8% | 0.5% | 2.5% | 5.2% |
|---|
| Alibaba Health Information Technology Ltd ($241) | -11.1% | -13.1% | -13.0% | -13.7% | -17.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shinhint Acoustic Link Holdings Ltd ($2728) | -2.8x | -2.5x | -20.8x | 8.8x | |
| Thiz Technology Group Ltd ($8119) | | | | 8.2x | |
| Powerleader Science & Technology Group Ltd ($8236) | 2.7x | 3.6x | 4.6x | 6.7x | |
| EVOC Intelligent Technology Co Ltd ($2308) | 0.5x | 5.8x | 5.7x | 5.4x | |
| Perception Digital Holdings Ltd ($1822) | | | | 1.8x | |
| |
|---|
| Median (17 companies) | -2.1x | -1.3x | -3.2x | 0.4x | 0.3x |
|---|
