Tai Shing International Holdings Ltd reports 1,594% EBITDA decline in 2016 and 24.2 pp EBITDA Margin decline from 1.3% to -22.9%
24/06/2016 • About Tai Shing International Holdings Ltd (
$8103) • By InTwits
Tai Shing International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tai Shing International Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -19.5%
- The company operates at negative EBITDA Margin: -22.9%
- Tai Shing International Holdings 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 -68.8%0
- Tai Shing International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's a lot of higher than industry average of 5.5%.
- CAPEX is quite volatile: 0 in FY2016, 0.031 in FY2015, 2.8 in FY2014, 2.3 in FY2013, 0.059 in FY2012
- The company has unprofitable business model: ROIC is at -19.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tai Shing International Holdings Ltd ($8103) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 80.902 | 51.857 | 49.302 | 73.210 | 63.289 | -13.6% |
| Gross Profit | 37.078 | 17.563 | 0.110 | 5.454 | 2.105 | -61.4% |
| SG&A | 64.440 | 58.014 | 19.047 | 11.906 | 23.577 | 98.0% |
| EBITDA | -29.730 | -83.809 | -92.003 | 0.971 | -14.504 | -1,593.7% |
| Net Income | -22.790 | -260.531 | -207.019 | -0.460 | -19.802 | |
Balance Sheet
|
|---|
| Cash | 23.855 | 9.725 | 6.386 | 6.880 | 26.986 | 292.2% |
| Short Term Debt | 13.344 | 25.507 | 28.093 | 61.459 | 0.000 | -100.0% |
| Long Term Debt | 2.432 | 1.264 | 22.114 | 25.729 | 12.296 | -52.2% |
Cash flow
|
|---|
| Capex | 0.059 | 2.254 | 2.819 | 0.031 | 0.000 | -100.0% |
Ratios
|
|---|
| Revenue growth | 61.3% | -35.9% | -4.9% | 48.5% | -13.6% | |
| EBITDA growth | 15.6% | 181.9% | 9.8% | -101.1% | -1,593.7% | |
| Gross Margin | 45.8% | 33.9% | 0.2% | 7.4% | 3.3% | -4.1% |
| EBITDA Margin | -36.7% | -161.6% | -186.6% | 1.3% | -22.9% | -24.2% |
| Net Income Margin | -28.2% | -502.4% | -419.9% | -0.6% | -31.3% | -30.7% |
| SG&A, % of revenue | 79.7% | 111.9% | 38.6% | 16.3% | 37.3% | 21.0% |
| CAPEX, % of revenue | 0.1% | 4.3% | 5.7% | 0.0% | 0.0% | -0.0% |
| ROIC | -15.6% | -40.8% | -74.3% | 0.3% | -19.5% | -19.8% |
| ROE | -8.2% | -121.1% | | | | 0.0% |
| Net Debt/EBITDA | | | | 82.7x | | -82.7x |
Revenue and profitability
Tai Shing International Holdings Ltd's Revenue dropped on 13.6%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 10.8 pp from -53.8% to -43.0% in FY2016.
Gross Margin decreased on 4.1 pp from 7.4% to 3.3% in FY2016. SG&A as a % of Revenue jumped on 21.0 pp from 16.3% to 37.3% in FY2016.
Net Income marign dropped on 30.7 pp from -0.63% to -31.3% in FY2016.
Leverage (Debt)
Debt level is -6.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 82.7x from 82.7x to in FY2016. Debt dropped on 85.9% while cash surged on 292%.
Appendix 1: Peers in Internet
Below we provide Tai Shing International Holdings Ltd benchmarking against other companies in Internet 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 |
|---|
| Asian Capital Resources Holdings Ltd ($8025) | -5.6% | | | 1,114.6% | |
| China Public Procurement Ltd ($1094) | 5,077.0% | -67.5% | 1,258.9% | 105.7% | |
| Ourgame International Holdings Ltd ($6899) | 33.7% | 14.8% | 101.3% | 61.8% | |
| Media Asia Group Holdings Ltd ($8075) | 1,124.6% | 275.6% | 3.6% | 55.9% | |
| GET Holdings Ltd ($8380) | 13.8% | 2,126.4% | 154.4% | 38.6% | |
| |
|---|
| Median (19 companies) | 11.9% | 10.5% | 13.0% | 3.0% | |
|---|
| Tai Shing International Holdings Ltd ($8103) | | -35.9% | -4.9% | 48.5% | -13.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sino-I Technology Ltd ($250) | 75.3% | 82.7% | 78.8% | 82.8% | |
| ABC Multiactive Ltd ($8131) | 86.7% | 83.5% | 86.2% | 82.1% | |
| China Digital Culture Group Ltd ($8175) | 64.3% | 78.6% | 65.2% | 72.7% | |
| Prosten Technology Holdings Ltd ($8026) | 52.4% | 47.8% | 50.8% | 67.1% | |
| SUNeVision Holdings Ltd ($8008) | 53.5% | 60.5% | 64.7% | 65.6% | |
| |
|---|
| Median (16 companies) | 68.0% | 70.5% | 61.9% | 55.3% | |
|---|
| Tai Shing International Holdings Ltd ($8103) | 45.8% | 33.9% | 0.2% | 7.4% | 3.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SUNeVision Holdings Ltd ($8008) | 64.2% | 71.6% | 71.6% | 72.4% | |
| China Digital Culture Group Ltd ($8175) | -66.7% | 22.5% | 40.8% | 46.6% | |
| Tradelink Electronic Commerce Ltd ($536) | 38.6% | 33.8% | 33.1% | 31.1% | |
| GET Holdings Ltd ($8380) | -237.7% | 56.8% | 66.4% | 28.5% | |
| Media Asia Group Holdings Ltd ($8075) | -30.8% | 18.6% | 13.4% | 25.1% | |
| |
|---|
| Median (19 companies) | 6.0% | 20.6% | 14.2% | 9.6% | |
|---|
| Tai Shing International Holdings Ltd ($8103) | -36.7% | -161.6% | -186.6% | 1.3% | -22.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Asian Capital Resources Holdings Ltd ($8025) | 0.0% | | 12.2% | 14.0% | |
| SUNeVision Holdings Ltd ($8008) | 7.6% | 10.2% | 62.8% | 12.4% | |
| Ourgame International Holdings Ltd ($6899) | 1.8% | 3.1% | 1.7% | 6.4% | |
| Sino-I Technology Ltd ($250) | 9.3% | 12.7% | 4.0% | 6.0% | |
| Capinfo Co Ltd ($1075) | 17.3% | 13.1% | 9.7% | 4.3% | |
| |
|---|
| Median (19 companies) | 3.4% | 2.5% | 1.7% | 1.2% | |
|---|
| Tai Shing International Holdings Ltd ($8103) | 0.1% | 4.3% | 5.7% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pacific Online Ltd ($543) | 37.9% | 36.4% | 28.6% | 21.6% | |
| Tradelink Electronic Commerce Ltd ($536) | 22.4% | 18.2% | 17.4% | 16.7% | |
| SUNeVision Holdings Ltd ($8008) | 10.8% | 13.3% | 14.4% | 15.3% | |
| Ourgame International Holdings Ltd ($6899) | 42.8% | 33.3% | 17.5% | 12.7% | |
| China Digital Culture Group Ltd ($8175) | -11.2% | 4.0% | 11.7% | 8.2% | |
| |
|---|
| Median (20 companies) | -2.5% | 4.0% | -1.3% | 1.7% | |
|---|
| Tai Shing International Holdings Ltd ($8103) | -15.6% | -40.8% | -74.3% | 0.3% | -19.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sino-I Technology Ltd ($250) | | 9.4x | | 4.1x | |
| GET Holdings Ltd ($8380) | | -1.1x | -1.0x | 0.7x | |
| SUNeVision Holdings Ltd ($8008) | -2.2x | -2.0x | -1.5x | -1.2x | |
| China Digital Culture Group Ltd ($8175) | | -2.2x | -0.4x | -1.5x | |
| Pacific Online Ltd ($543) | -1.4x | -1.3x | -1.3x | -1.7x | |
| |
|---|
| Median (12 companies) | -1.6x | -1.2x | -1.5x | -2.1x | |
|---|
| Tai Shing International Holdings Ltd ($8103) | | | | 82.7x | |
