Code Agriculture Holdings Ltd CAPEX surged on 541% while Revenue dropped on 85.2%
27/06/2016 • About Code Agriculture Holdings Ltd (
$8153) • By InTwits
Code Agriculture Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Code Agriculture Holdings Ltd is a company in decline: FY2016 revenue growth was -85.2%, 5 years revenue CAGR was -49.6%
- The company operates at negative EBITDA Margin: -139.3%
- Code Agriculture Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 5.0%. At the same time it's in pair with industry average of 6.5%.
- CAPEX is quite volatile: 4.5 in FY2016, 0.70 in FY2015, 1.2 in FY2014, 2.5 in FY2013, 3.9 in FY2012
- The company has unprofitable business model: ROIC is at -13.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Code Agriculture Holdings Ltd ($8153) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 663.9 | 734.7 | 473.5 | 131.1 | 19.5 | -85.2% |
| Gross Profit | 229.4 | 234.1 | 142.7 | 40.4 | 3.4 | -91.6% |
| SG&A | 216.0 | 262.7 | 181.8 | 63.4 | 41.3 | -34.9% |
| EBITDA | 115.8 | 29.0 | 120.4 | -15.9 | -27.1 | |
| Net Income | 50.5 | -248.8 | -247.7 | -133.5 | -233.4 | |
Balance Sheet
|
|---|
| Cash | 160.8 | 11.3 | 2.8 | 8.0 | 64.1 | 702.7% |
| Short Term Debt | 740.9 | 496.7 | 993.2 | 344.9 | 286.7 | -16.9% |
| Long Term Debt | 793.5 | 758.1 | 52.6 | 0.0 | 102.1 | |
Cash flow
|
|---|
| Capex | 3.9 | 2.5 | 1.2 | 0.7 | 4.5 | 541.2% |
Ratios
|
|---|
| Revenue growth | 11.0% | 10.7% | -35.5% | -72.3% | -85.2% | |
| EBITDA growth | 181.7% | -74.9% | 314.5% | -113.2% | 70.4% | |
| Gross Margin | 34.6% | 31.9% | 30.1% | 30.8% | 17.4% | -13.4% |
| EBITDA Margin | 17.4% | 4.0% | 25.4% | -12.1% | -139.3% | -127.2% |
| Net Income Margin | 7.6% | -33.9% | -52.3% | -101.8% | -1,199.9% | -1,098.1% |
| SG&A, % of revenue | 32.5% | 35.8% | 38.4% | 48.3% | 212.2% | 163.8% |
| CAPEX, % of revenue | 0.6% | 0.3% | 0.3% | 0.5% | 23.2% | 22.7% |
| ROIC | 2.4% | -3.3% | 7.9% | -6.2% | -13.6% | -7.4% |
| ROE | 13.5% | | | | | 0.0% |
| Net Debt/EBITDA | 11.9x | 42.8x | 8.7x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 85.2%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 127 pp from -12.1% to -139% in FY2016.
Gross Margin dropped on 13.4 pp from 30.8% to 17.4% in FY2016. SG&A as a % of Revenue jumped on 164 pp from 48.3% to 212% in FY2016.
Net Income marign dropped on 1,098 pp from -102% to -1,200% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 23.2%. The company showed fast CAPEX/Revenue growth of 22.9 pp from 0.34% in FY2013 to 23.2% in FY2016. It's average level of CAPEX/Revenue for the last three years was 8.0%.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.5x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt jumped on 12.7% while cash jumped on 703%.
Appendix 1: Peers in Holding Companies-Divers
Below you can find Code Agriculture Holdings Ltd benchmarking vs. other companies in Holding Companies-Divers 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 |
|---|
| 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) | 12.2% | 4.1% | 15.5% | 6.1% | -5.8% |
|---|
| Code Agriculture Holdings Ltd ($8153) | | 10.7% | -35.5% | -72.3% | -85.2% |
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% | |
| Emperor International Holdings Ltd ($163) | 71.3% | 64.9% | 79.2% | 75.3% | 55.3% |
| Heng Fai Enterprises Ltd ($185) | 89.0% | 89.5% | 58.3% | 74.7% | |
| |
|---|
| Median (38 companies) | 32.9% | 36.0% | 34.4% | 37.6% | 40.7% |
|---|
| Code Agriculture Holdings Ltd ($8153) | 34.6% | 31.9% | 30.1% | 30.8% | 17.4% |
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% | |
| Emperor International Holdings Ltd ($163) | 180.7% | 131.8% | 100.6% | 73.9% | -20.1% |
| 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% | |
| |
|---|
| Median (43 companies) | 2.2% | 2.0% | 5.8% | 6.8% | 2.7% |
|---|
| Code Agriculture Holdings Ltd ($8153) | 17.4% | 4.0% | 25.4% | -12.1% | -139.3% |
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) | 2.6% | 3.7% | 6.6% | 9.2% | 7.0% |
|---|
| Code Agriculture Holdings Ltd ($8153) | 0.6% | 0.3% | 0.3% | 0.5% | 23.2% |
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% | 0.5% | 0.7% | 0.3% | 1.5% |
|---|
| Code Agriculture Holdings Ltd ($8153) | 2.4% | -3.3% | 7.9% | -6.2% | -13.6% |
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 (25 companies) | 2.4x | 2.7x | 2.8x | 2.8x | 4.4x |
|---|
