North Asia Strategic Holdings Ltd EBITDA dropped on 151% and EBITDA Margin decreased on 2.9 pp from 1.9% to -1.0%
23/06/2016 • About North Asia Strategic Holdings Ltd (
$8080) • By InTwits
North Asia Strategic Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- North Asia Strategic Holdings Ltd is a company in decline: FY2016 revenue growth was -3.9%, 5 years revenue CAGR was -10.5%
- The company operates at negative EBITDA Margin: -1.0%
- North Asia Strategic Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -1.5% for the sames years0
- The company has unprofitable business model: ROIC is at -1.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
North Asia Strategic Holdings Ltd ($8080) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,035 | 734 | 908 | 1,294 | 1,244 | -3.9% |
| Gross Profit | 223 | 139 | 130 | 178 | 182 | 2.2% |
| SG&A | 244 | 63 | 78 | 81 | 117 | 44.8% |
| EBITDA | -132 | 51 | -11 | 25 | -13 | -151.3% |
| Net Income | -241 | -33 | 47 | 26 | -271 | -1,161.8% |
Balance Sheet
|
|---|
| Cash | 884 | 556 | 573 | 487 | 593 | 21.7% |
| Short Term Debt | 62 | 17 | 3 | 17 | 0 | -100.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | 58 | |
Cash flow
|
|---|
| Capex | 13 | 3 | 5 | 5 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -52.2% | -29.1% | 23.7% | 42.6% | -3.9% | |
| EBITDA growth | -547.4% | -138.8% | -122.4% | -314.0% | -151.3% | |
| Gross Margin | 21.5% | 18.9% | 14.3% | 13.7% | 14.6% | 0.9% |
| EBITDA Margin | -12.8% | 7.0% | -1.3% | 1.9% | -1.0% | -2.9% |
| Net Income Margin | -23.3% | -4.6% | 5.2% | 2.0% | -21.8% | -23.8% |
| SG&A, % of revenue | 23.5% | 8.6% | 8.6% | 6.2% | 9.4% | 3.2% |
| CAPEX, % of revenue | 1.2% | 0.4% | 0.6% | 0.4% | | -0.4% |
| ROIC | -9.8% | 4.0% | -1.7% | 1.9% | -1.7% | -3.6% |
| ROE | -17.3% | -3.0% | 4.8% | 2.5% | -29.0% | -31.5% |
| Net Debt/EBITDA | | -10.5x | | -19.2x | | 19.2x |
Revenue and profitability
North Asia Strategic Holdings Ltd's Revenue decreased on 3.9%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 2.9 pp from 1.9% to -1.0% in FY2016.
Gross Margin increased slightly on 0.87 pp from 13.7% to 14.6% in FY2016. SG&A as a % of Revenue increased on 3.2 pp from 6.2% to 9.4% in FY2016.
Net Income marign dropped on 23.8 pp from 2.0% to -21.8% in FY2016.
Return on investment
The company operates at negative ROIC (-1.67%) and ROE (-29.01%). ROIC decreased on 3.6 pp from 1.9% to -1.7% in FY2016. ROE dropped on 31.5 pp from 2.5% to -29.0% in FY2016.
Leverage (Debt)
Debt level is 5.6x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA surged on 19.2x from -19.2x to in FY2016. Debt surged on 241% while cash surged on 21.7%.
Appendix 1: Peers in Machinery-Diversified
Below you can find North Asia Strategic Holdings Ltd benchmarking vs. other companies in Machinery-Diversified 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 |
|---|
| Shanghai Prime Machinery Co Ltd ($2345) | 2.6% | -8.9% | 37.3% | 52.8% | |
| Huazhang Technology Holding Ltd ($1673) | 131.6% | 9.5% | 22.9% | 23.5% | |
| Sinoref Holdings Ltd ($1020) | -0.2% | -42.2% | 29.2% | 19.9% | |
| LK Technology Holdings Ltd ($558) | 15.7% | -15.0% | 3.7% | 18.5% | |
| First Tractor Co Ltd ($38) | -1.7% | -4.2% | -18.4% | 6.9% | |
| |
|---|
| Median (20 companies) | -5.2% | -3.3% | -0.2% | -8.2% | |
|---|
| North Asia Strategic Holdings Ltd ($8080) | | -29.1% | 23.7% | 42.6% | -3.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jingwei Textile Machinery ($350) | 49.1% | 51.7% | 54.9% | 65.5% | |
| Renheng Enterprise Holdings Ltd ($3628) | 44.3% | 44.8% | 45.4% | 48.9% | |
| Haitian International Holdings Ltd ($1882) | 30.1% | 31.6% | 32.4% | 33.0% | |
| CHTC Fong's Industries Co Ltd ($641) | 24.4% | 30.0% | 32.3% | 31.2% | |
| Good Friend International Holdings Inc ($2398) | 20.1% | 22.9% | 26.5% | 27.1% | |
| |
|---|
| Median (20 companies) | 25.3% | 22.8% | 20.2% | 21.0% | |
|---|
| North Asia Strategic Holdings Ltd ($8080) | 21.5% | 18.9% | 14.3% | 13.7% | 14.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jingwei Textile Machinery ($350) | 24.0% | 26.9% | 28.0% | 28.5% | |
| Haitian International Holdings Ltd ($1882) | 19.7% | 20.7% | 21.9% | 22.8% | |
| Renheng Enterprise Holdings Ltd ($3628) | 24.7% | 23.9% | 20.7% | 17.3% | |
| Huazhang Technology Holding Ltd ($1673) | 11.6% | 11.2% | 12.5% | 11.3% | |
| Good Friend International Holdings Inc ($2398) | 6.7% | 9.1% | 12.9% | 9.9% | |
| |
|---|
| Median (20 companies) | 11.3% | 8.7% | 8.6% | 5.7% | |
|---|
| North Asia Strategic Holdings Ltd ($8080) | -12.8% | 7.0% | -1.3% | 1.9% | -1.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wuxi Sunlit Science and Technology Co Ltd ($1289) | 2.3% | 10.1% | 7.8% | 31.9% | |
| Honghua Group Ltd ($196) | 11.5% | 14.6% | 6.8% | 27.3% | |
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 20.5% | 20.3% | 11.6% | 15.6% | |
| Shenji Group Kunming Machine Tool Co Ltd ($300) | 9.5% | 6.7% | 5.0% | 8.3% | |
| Haitian International Holdings Ltd ($1882) | 4.2% | 6.8% | 6.3% | 6.3% | |
| |
|---|
| Median (20 companies) | 4.2% | 4.3% | 4.6% | 2.9% | |
|---|
| North Asia Strategic Holdings Ltd ($8080) | 1.2% | 0.4% | 0.6% | 0.4% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Haitian International Holdings Ltd ($1882) | 19.8% | 21.2% | 19.4% | 16.3% | |
| Huazhang Technology Holding Ltd ($1673) | 29.6% | 16.2% | 16.3% | 16.2% | |
| Jingwei Textile Machinery ($350) | 19.4% | 20.9% | 17.4% | 14.9% | |
| Good Friend International Holdings Inc ($2398) | 6.5% | 8.7% | 12.1% | 5.9% | |
| Shanghai Prime Machinery Co Ltd ($2345) | 2.5% | 2.8% | 2.5% | 5.8% | |
| |
|---|
| Median (20 companies) | 7.5% | 3.7% | 2.8% | 1.1% | |
|---|
| North Asia Strategic Holdings Ltd ($8080) | -9.8% | 4.0% | -1.7% | 1.9% | -1.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 3.0x | 11.4x | 5.6x | 129.4x | |
| Honghua Group Ltd ($196) | 1.2x | 3.2x | 5.2x | 14.2x | |
| First Tractor Co Ltd ($38) | 0.5x | 2.5x | 9.2x | 6.3x | |
| LK Technology Holdings Ltd ($558) | 2.5x | 5.1x | 4.9x | 4.6x | |
| Cosmos Machinery Enterprises Ltd ($118) | 2.2x | 1.7x | 2.1x | 3.9x | |
| |
|---|
| Median (15 companies) | -0.6x | 0.2x | -0.3x | 3.1x | |
|---|
| North Asia Strategic Holdings Ltd ($8080) | | -10.5x | | -19.2x | |
