Yau Lee Holdings Ltd EBITDA dropped on 168% in 2016 and EBITDA Margin decreased on 3.3 pp from 1.8% to -1.5%
23/06/2016 • About Yau Lee Holdings Ltd (
$406) • By InTwits
Yau Lee Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Yau Lee Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -5.7%
- EBITDA Margin is declining: -1.5% in FY2016 vs. 1.8% in FY2015 vs. 1.0% in FY2012
- EBITDA Margin is quite volatile: -1.5% in FY2016, 1.8% in FY2015, 2.4% in FY2014, 2.7% in FY2013, 1.0% in FY2012
- Yau Lee Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.1%. At the same time it's in pair with industry average of 57.6%.
- CAPEX is quite volatile: 234 in FY2016, 160 in FY2015, 107 in FY2014, 164 in FY2013, 466 in FY2012
- The company has unprofitable business model: ROIC is at -5.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Yau Lee Holdings Ltd ($406) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,665 | 4,197 | 6,553 | 9,476 | 7,450 | -21.4% |
| Gross Profit | 249 | 397 | 442 | 456 | 219 | -52.0% |
| SG&A | 257 | 360 | 390 | 416 | 441 | 5.8% |
| EBITDA | 47 | 112 | 157 | 166 | -113 | -168.2% |
| Net Income | 41 | 65 | 39 | 76 | -159 | -309.5% |
Balance Sheet
|
|---|
| Cash | 450 | 651 | 1,001 | 929 | 449 | -51.7% |
| Short Term Debt | 614 | 719 | 1,170 | 1,600 | 1,440 | -10.0% |
| Long Term Debt | 756 | 1,016 | 1,281 | 851 | 749 | -12.0% |
Cash flow
|
|---|
| Capex | 466 | 164 | 107 | 160 | 234 | 46.3% |
Ratios
|
|---|
| Revenue growth | 30.5% | -10.0% | 56.1% | 44.6% | -21.4% | |
| EBITDA growth | 40.0% | 137.3% | 40.7% | 5.7% | -168.2% | |
| Gross Margin | 5.3% | 9.5% | 6.7% | 4.8% | 2.9% | -1.9% |
| EBITDA Margin | 1.0% | 2.7% | 2.4% | 1.8% | -1.5% | -3.3% |
| Net Income Margin | 0.9% | 1.6% | 0.6% | 0.8% | -2.1% | -2.9% |
| SG&A, % of revenue | 5.5% | 8.6% | 6.0% | 4.4% | 5.9% | 1.5% |
| CAPEX, % of revenue | 10.0% | 3.9% | 1.6% | 1.7% | 3.1% | 1.5% |
| ROIC | -0.0% | 1.2% | 1.7% | 1.5% | -5.7% | -7.2% |
| ROE | 2.9% | 4.4% | 2.5% | 4.9% | -10.6% | -15.5% |
| Net Debt/EBITDA | 19.5x | 9.7x | 9.2x | 9.2x | | -9.2x |
Revenue and profitability
Yau Lee Holdings Ltd's Revenue dropped on 21.4%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 23.0 pp from 62.1% to 85.1% in FY2016.
Gross Margin decreased slightly on 1.9 pp from 4.8% to 2.9% in FY2016. SG&A as a % of Revenue increased slightly on 1.5 pp from 4.4% to 5.9% in FY2016.
Net Income marign decreased on 2.9 pp from 0.80% to -2.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.1% in FY2016. The company's CAPEX/Revenue decreased slightly on 0.77 pp from 3.9% in FY2013 to 3.1% in FY2016. For the last three years the average CAPEX/Revenue was 2.2%.
Return on investment
The company operates at negative ROIC (-5.69%) and ROE (-10.63%). ROIC decreased on 7.2 pp from 1.5% to -5.7% in FY2016. ROE dropped on 15.5 pp from 4.9% to -10.6% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.9x and Debt / EBITDA is . Net Debt / EBITDA dropped on 9.2x from 9.2x to in FY2016. Debt dropped on 10.7% while cash dropped on 51.7%.
Appendix 1: Peers in Engineering&Construction
Below you can find Yau Lee 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) | | -76.8% | -55.8% | 592.3% | 86.7% |
| 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% | 20.3% | 10.1% | 4.5% |
|---|
| Yau Lee Holdings Ltd ($406) | | -10.0% | 56.1% | 44.6% | -21.4% |
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% | 19.2% |
| Kingbo Strike Ltd ($1421) | 32.4% | 44.4% | 40.3% | 30.7% | |
| |
|---|
| Median (36 companies) | 17.0% | 16.1% | 15.4% | 16.0% | 14.1% |
|---|
| Yau Lee Holdings Ltd ($406) | 5.3% | 9.5% | 6.7% | 4.8% | 2.9% |
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% | -14.6% |
| |
|---|
| Median (41 companies) | 10.0% | 9.7% | 9.1% | 8.0% | 3.1% |
|---|
| Yau Lee Holdings Ltd ($406) | 1.0% | 2.7% | 2.4% | 1.8% | -1.5% |
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) | 2.2% | 2.6% | 1.7% | 2.0% | 1.5% |
|---|
| Yau Lee Holdings Ltd ($406) | 10.0% | 3.9% | 1.6% | 1.7% | 3.1% |
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) | 6.5% | 5.7% | 4.3% | 5.4% | 3.1% |
|---|
| Yau Lee Holdings Ltd ($406) | -0.0% | 1.2% | 1.7% | 1.5% | -5.7% |
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 | 0.8x |
|---|
| Yau Lee Holdings Ltd ($406) | 19.5x | 9.7x | 9.2x | 9.2x | |
