Emperor International Holdings Ltd reports 366% Net Income decline in 2016 while 98.6% Revenue growth
22/06/2016 • About Emperor International Holdings Ltd (
$163) • By InTwits
Emperor International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Emperor International Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -2.9%
- EBITDA Margin is declining: -20.1% in FY2016 vs. 73.9% in FY2015 vs. 180.7% in FY2012
- EBITDA Margin is quite volatile: -20.1% in FY2016, 73.9% in FY2015, 100.6% in FY2014, 131.8% in FY2013, 180.7% in FY2012
- Emperor International Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 85.3%. At the same time it's a lot of higher than industry average of 38.3%.
- CAPEX is quite volatile: 40.3 in FY2016, 44.4 in FY2015, 46.9 in FY2014, 42.5 in FY2013, 454 in FY2012
- The company has unprofitable business model: ROIC is at -2.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Emperor International Holdings Ltd ($163) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,960 | 5,703 | 3,014 | 2,821 | 5,603 | 98.6% |
| Gross Profit | 2,110 | 3,703 | 2,387 | 2,124 | 3,098 | 45.8% |
| SG&A | 884 | 974 | 1,025 | 1,056 | 1,123 | 6.4% |
| EBITDA | 5,348 | 7,518 | 3,031 | 2,085 | -1,128 | -154.1% |
| Net Income | 4,459 | 6,156 | 1,858 | 898 | -2,391 | -366.2% |
Balance Sheet
|
|---|
| Cash | 1,316 | 2,310 | 765 | 1,357 | 3,108 | 129.1% |
| Short Term Debt | 2,501 | 813 | 2,086 | 2,862 | 3,000 | 4.8% |
| Long Term Debt | 7,141 | 8,734 | 10,987 | 13,489 | 15,655 | 16.1% |
Cash flow
|
|---|
| Capex | 2,986 | 2,768 | 3,191 | 3,119 | 3,412 | 9.4% |
Ratios
|
|---|
| Revenue growth | 65.8% | 92.7% | -47.2% | -6.4% | 98.6% | |
| EBITDA growth | 33.3% | 40.6% | -59.7% | -31.2% | -154.1% | |
| Gross Margin | 71.3% | 64.9% | 79.2% | 75.3% | 55.3% | -20.0% |
| EBITDA Margin | 180.7% | 131.8% | 100.6% | 73.9% | -20.1% | -94.0% |
| Net Income Margin | 150.7% | 107.9% | 61.7% | 31.8% | -42.7% | -74.5% |
| SG&A, % of revenue | 29.9% | 17.1% | 34.0% | 37.4% | 20.0% | -17.4% |
| CAPEX, % of revenue | 100.9% | 48.5% | 105.9% | 110.6% | 60.9% | -49.7% |
| ROIC | 19.9% | 22.5% | 7.3% | 4.3% | -2.9% | -7.2% |
| ROE | 29.0% | 30.1% | 7.7% | 3.6% | -9.9% | -13.5% |
| Net Debt/EBITDA | 1.6x | 1.0x | 4.1x | 7.2x | | -7.2x |
Revenue and profitability
The company's Revenue jumped on 98.6%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 8.4 pp from 12.0% to 3.5% in FY2016.
Gross Margin dropped on 20.0 pp from 75.3% to 55.3% in FY2016. SG&A as a % of Revenue dropped on 17.4 pp from 37.4% to 20.0% in FY2016.
Net Income marign dropped on 74.5 pp from 31.8% to -42.7% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Emperor International Holdings Ltd's CAPEX/Revenue was 60.9% in FY2016. The company's CAPEX/Revenue jumped on 12.4 pp from 48.5% in FY2013 to 60.9% in FY2016. It's average level of CAPEX/Revenue for the last three years was 92.4%.
Return on investment
The company operates at negative ROIC (-2.92%) and ROE (-9.90%). ROIC decreased on 7.2 pp from 4.3% to -2.9% in FY2016. ROE dropped on 13.5 pp from 3.6% to -9.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.0x and Debt / EBITDA is . Net Debt / EBITDA dropped on 7.2x from 7.2x to in FY2016. Debt jumped on 14.1% while cash jumped on 129%.
Appendix 1: Peers in Holding Companies-Divers
Below we provide Emperor International Holdings Ltd benchmarking against other companies in Holding Companies-Divers 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 |
|---|
| Beijing Development HK Ltd ($154) | 12.5% | | | 1,048.9% | |
| CIAM Group Ltd ($378) | -62.2% | 47.9% | -40.0% | 211.5% | |
| Melco International Development Ltd ($200) | 16.5% | 21.7% | 3.0% | 134.9% | |
| New Century Group Hong Kong Ltd ($234) | -68.9% | 326.7% | -70.3% | 118.2% | |
| Greater China Holdings Ltd ($431) | -35.8% | -72.1% | 67.3% | 110.3% | |
| |
|---|
| Median (43 companies) | 11.0% | 4.1% | 15.5% | 6.1% | -4.5% |
|---|
| Emperor International Holdings Ltd ($163) | | 92.7% | -47.2% | -6.4% | 98.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Century Group Hong Kong Ltd ($234) | 27.3% | 85.2% | 82.8% | 91.5% | |
| Melco International Development Ltd ($200) | 63.1% | 52.9% | 54.5% | 79.4% | |
| CIAM Group Ltd ($378) | | | | 75.8% | |
| Heng Fai Enterprises Ltd ($185) | 89.0% | 89.5% | 58.3% | 74.7% | |
| Century Legend Holdings Ltd ($79) | 70.1% | 72.3% | 71.0% | 70.3% | |
| |
|---|
| Median (38 companies) | 32.9% | 34.6% | 30.8% | 34.2% | 22.1% |
|---|
| Emperor International Holdings Ltd ($163) | 71.3% | 64.9% | 79.2% | 75.3% | 55.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Century Group Hong Kong Ltd ($234) | -5.5% | 78.8% | 58.3% | 85.0% | |
| Pioneer Global Group Ltd ($224) | -0.5% | -9.9% | -11.6% | 64.3% | |
| C C Land Holdings Ltd ($1224) | 27.0% | 23.6% | 24.6% | 55.7% | |
| China Merchants Holdings International Co Ltd ($144) | 56.4% | 50.8% | 45.2% | 55.7% | |
| Magnificent Estates ($201) | 45.5% | 47.8% | 53.0% | 40.6% | |
| |
|---|
| Median (43 companies) | 2.2% | 2.0% | 5.8% | 6.2% | 12.0% |
|---|
| Emperor International Holdings Ltd ($163) | 180.7% | 131.8% | 100.6% | 73.9% | -20.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Heng Fai Enterprises Ltd ($185) | 4.8% | 77.1% | 310.0% | 458.1% | |
| Chinney Investments Ltd ($216) | 17.5% | 103.4% | 111.3% | 230.9% | |
| China Investments Holdings Ltd ($132) | 4.8% | 81.9% | 382.2% | 222.5% | |
| Goldin Properties Holdings Ltd ($283) | 2,178.4% | 1,190.0% | 50.1% | 202.4% | |
| Carnival Group International Holdings Ltd ($996) | | 137.9% | 61.0% | 133.3% | |
| |
|---|
| Median (43 companies) | 2.3% | 3.5% | 5.5% | 6.0% | 5.1% |
|---|
| Emperor International Holdings Ltd ($163) | 100.9% | 48.5% | 105.9% | 110.6% | 60.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| C C Land Holdings Ltd ($1224) | 7.4% | 5.3% | 7.9% | 15.0% | |
| Chinney Alliance Group Ltd ($385) | 6.4% | 8.1% | 13.6% | 15.0% | |
| Niraku GC Holdings Inc ($1245) | | 19.0% | 18.8% | 13.1% | 2.7% |
| Top Spring International Holdings Ltd ($3688) | 15.6% | 6.9% | 7.3% | 8.0% | |
| New Century Group Hong Kong Ltd ($234) | -1.7% | 11.7% | 1.7% | 7.3% | |
| |
|---|
| Median (43 companies) | -0.2% | 0.0% | 0.7% | 0.2% | 3.0% |
|---|
| Emperor International Holdings Ltd ($163) | 19.9% | 22.5% | 7.3% | 4.3% | -2.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chinney Investments Ltd ($216) | 10.3x | 63.7x | 48.6x | 93.7x | |
| Carnival Group International Holdings Ltd ($996) | | | 23.7x | 92.3x | |
| Multifield International Holdings Ltd ($898) | 3.2x | 7.3x | 3.0x | 55.9x | |
| CIAM Group Ltd ($378) | | | | 32.6x | |
| Chuang's Consortium International Ltd ($367) | 0.7x | 5.0x | | 23.9x | |
| |
|---|
| Median (24 companies) | 2.5x | 3.1x | 2.8x | 2.4x | 3.2x |
|---|
| Emperor International Holdings Ltd ($163) | 1.6x | 1.0x | 4.1x | 7.2x | |
