EverChina International Holdings Co Ltd reports 68.4% revenue growth in FY2016 and 7.3 pp EBITDA Margin decline from -8.2% to -15.6%
24/06/2016 • About EverChina International Holdings Co Ltd (
$202) • By InTwits
EverChina International Holdings Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EverChina International Holdings Co Ltd doesn't have a profitable business model yet: FY2016 ROIC is -0.6%
- The company operates at negative EBITDA Margin: -15.6%
- EverChina International Holdings Co Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -15.9%0
- EverChina International Holdings Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 16.7%. At the same time it's in pair with industry average of 18.3%.
- CAPEX is quite volatile: 2.3 in FY2016, 0.53 in FY2015, 6.6 in FY2014, 59.5 in FY2013, 193 in FY2012
- The company has unprofitable business model: ROIC is at -0.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
EverChina International Holdings Co Ltd ($202) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 405.5 | 370.6 | 40.8 | 51.5 | 86.8 | 68.4% |
| Gross Profit | 210.2 | 198.0 | 38.9 | 49.2 | 81.1 | 65.1% |
| SG&A | | | | 51.2 | 76.7 | 49.8% |
| EBITDA | 47.5 | -101.7 | -80.3 | -4.2 | -13.5 | |
| Net Income | -356.4 | 942.3 | 177.1 | -403.2 | -685.7 | |
Balance Sheet
|
|---|
| Cash | 398.8 | 975.3 | 321.8 | 468.9 | 305.5 | -34.9% |
| Short Term Debt | 1,866.2 | 954.1 | 442.6 | 734.0 | 553.4 | -24.6% |
| Long Term Debt | 127.1 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 193.0 | 59.5 | 6.6 | 0.5 | 2.3 | 329.3% |
Ratios
|
|---|
| Revenue growth | -1.9% | -8.6% | -89.0% | 26.4% | 68.4% | |
| EBITDA growth | -191.0% | -314.3% | -21.1% | -94.7% | 218.4% | |
| Gross Margin | 51.8% | 53.4% | 95.3% | 95.4% | 93.5% | -1.9% |
| EBITDA Margin | 11.7% | -27.5% | -196.9% | -8.2% | -15.6% | -7.3% |
| Net Income Margin | -87.9% | 254.3% | 434.3% | -782.2% | -789.8% | -7.7% |
| SG&A, % of revenue | | | | 99.3% | 88.3% | -11.0% |
| CAPEX, % of revenue | 47.6% | 16.1% | 16.2% | 1.0% | 2.6% | 1.6% |
| ROIC | -0.4% | -2.5% | -1.4% | -0.2% | -0.6% | -0.4% |
| ROE | -10.4% | 22.9% | 3.6% | -8.3% | -16.4% | -8.1% |
| Net Debt/EBITDA | 33.6x | | | | | 0.0x |
Revenue and profitability
EverChina International Holdings Co Ltd's Revenue surged on 68.4%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 37.9 pp from 12.6% to -25.3% in FY2016.
Gross Margin decreased slightly on 1.9 pp from 95.4% to 93.5% in FY2016. SG&A as a % of Revenue dropped on 11.0 pp from 99.3% to 88.3% in FY2016.
Net Income marign decreased on 7.7 pp from -782% to -790% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 EverChina International Holdings Co Ltd had CAPEX/Revenue of 2.6%. CAPEX/Revenue dropped on 13.5 pp from 16.1% in FY2013 to 2.6% in FY2016. Average CAPEX/Revenue for the last three years was 6.6%.
Return on investment
The company operates at negative ROIC (-0.59%) and ROE (-16.35%). ROIC showed almost no change in FY2016. ROE decreased on 8.1 pp from -8.3% to -16.4% in FY2016.
Leverage (Debt)
Debt level is -3.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt dropped on 24.6% while cash dropped on 34.9%.
Appendix 1: Peers in Environmental Control
Below we provide EverChina International Holdings Co Ltd benchmarking against other companies in Environmental Control 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 |
|---|
| Sky Forever Supply Chain Management Group Ltd ($8047) | -73.4% | 446.4% | -62.3% | 12,494.5% | |
| Pan Asia Environmental Protection Group Ltd ($556) | -13.7% | 43.1% | -1.8% | 85.0% | |
| CT Environmental Group Ltd ($1363) | -18.7% | 23.1% | 112.9% | 75.4% | |
| ELL Environmental Holdings Ltd ($1395) | 5.3% | 38.8% | 30.9% | 70.8% | |
| Ozner Water International Holding Ltd ($2014) | 183.9% | 38.5% | 27.2% | 45.7% | |
| |
|---|
| Median (24 companies) | 2.3% | 18.9% | 23.6% | 3.1% | 7,201.8% |
|---|
| EverChina International Holdings Co Ltd ($202) | | -8.6% | -89.0% | 26.4% | 68.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ozner Water International Holding Ltd ($2014) | 64.5% | 67.8% | 65.4% | 58.9% | |
| CT Environmental Group Ltd ($1363) | 65.8% | 63.1% | 56.4% | 49.9% | |
| Kangda International Environmental Co Ltd ($6136) | 44.2% | 38.3% | 40.0% | 47.6% | |
| China Water Affairs Group Ltd ($855) | 44.0% | 43.1% | 41.8% | 47.3% | |
| China Everbright International Ltd ($257) | 49.4% | 44.7% | 46.7% | 45.8% | |
| |
|---|
| Median (23 companies) | 33.2% | 30.5% | 31.3% | 32.7% | -125.1% |
|---|
| EverChina International Holdings Co Ltd ($202) | 51.8% | 53.4% | 95.3% | 95.4% | 93.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CT Environmental Group Ltd ($1363) | 63.6% | 62.8% | 58.7% | 64.6% | |
| Tianjin Capital Environmental Protection Group Co Ltd ($1065) | 57.5% | 56.6% | 57.8% | 57.9% | |
| China Everbright International Ltd ($257) | 44.6% | 40.7% | 43.6% | 44.1% | |
| China Water Affairs Group Ltd ($855) | 38.2% | 38.1% | 37.1% | 40.3% | |
| Kangda International Environmental Co Ltd ($6136) | 37.1% | 33.6% | 32.4% | 36.6% | |
| |
|---|
| Median (24 companies) | 16.1% | 11.7% | 5.1% | 16.2% | -157.1% |
|---|
| EverChina International Holdings Co Ltd ($202) | 11.7% | -27.5% | -196.9% | -8.2% | -15.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chaoyue Group Ltd ($147) | | 18.1% | 9.2% | 100.9% | 1.4% |
| Ozner Water International Holding Ltd ($2014) | 94.9% | 102.2% | 148.5% | 90.9% | |
| Integrated Waste Solutions Group Holdings Ltd ($923) | 13.2% | 10.6% | 41.7% | 88.1% | |
| Green Energy Group Ltd ($979) | 169.0% | 270.8% | 41.9% | 59.0% | |
| CT Environmental Group Ltd ($1363) | 65.0% | 27.1% | 51.4% | 40.5% | |
| |
|---|
| Median (23 companies) | 11.7% | 6.6% | 7.6% | 7.7% | 1.4% |
|---|
| EverChina International Holdings Co Ltd ($202) | 47.6% | 16.1% | 16.2% | 1.0% | 2.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CT Environmental Group Ltd ($1363) | 25.9% | 20.5% | 20.8% | 20.1% | |
| China Everbright International Ltd ($257) | 10.4% | 11.2% | 10.5% | 10.8% | |
| Sound Global Ltd ($967) | 12.8% | 11.5% | 10.8% | 9.3% | |
| Baguio Green Group Ltd ($1397) | 20.1% | 29.2% | 9.6% | 9.0% | |
| Tianjin Capital Environmental Protection Group Co Ltd ($1065) | 7.1% | 6.8% | 7.8% | 8.8% | |
| |
|---|
| Median (24 companies) | 3.9% | 6.8% | 4.9% | 5.2% | -18.9% |
|---|
| EverChina International Holdings Co Ltd ($202) | -0.4% | -2.5% | -1.4% | -0.2% | -0.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kangda International Environmental Co Ltd ($6136) | 4.4x | 5.1x | 4.8x | 5.2x | |
| China Water Affairs Group Ltd ($855) | 2.6x | 2.7x | 3.2x | 3.4x | |
| Dynagreen Environmental Protection Group Co Ltd ($1330) | 3.2x | | | 3.2x | |
| Sound Global Ltd ($967) | -0.1x | 0.3x | 1.9x | 2.8x | |
| China Everbright International Ltd ($257) | 2.1x | 0.5x | 1.5x | 2.6x | |
| |
|---|
| Median (16 companies) | 2.2x | 0.3x | 1.2x | 1.5x | |
|---|
