Gold Tat Group International Ltd revenue dropped on 44.0% and EBITDA Margin decreased on 5.9 pp from -0.41% to -6.3%
27/06/2016 • About Gold Tat Group International Ltd (
$8266) • By InTwits
Gold Tat Group International Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gold Tat Group International Ltd doesn't have a profitable business model yet: FY2016 ROIC is -10.5%
- The company operates at negative EBITDA Margin: -6.3%
- Gold Tat Group International 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 -2.8%0
- Gold Tat Group International Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 20.1%. At the same time it's a lot of higher than industry average of 9.7%.
- CAPEX is quite volatile: 0.95 in FY2016, 4.6 in FY2015, 5.3 in FY2014, 6.2 in FY2013, 31.1 in FY2012
- The company has unprofitable business model: ROIC is at -10.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Gold Tat Group International Ltd ($8266) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 32 | 532 | 941 | 1,191 | 667 | -44.0% |
| Gross Profit | | | 42 | 52 | 25 | -52.7% |
| EBITDA | -10 | -22 | -13 | -5 | -42 | |
| Net Income | -27 | -72 | -149 | -4 | -111 | |
Balance Sheet
|
|---|
| Cash | 9 | 16 | 33 | 58 | 39 | -33.5% |
| Short Term Debt | 29 | 163 | 137 | 181 | 93 | -48.3% |
| Long Term Debt | 9 | 18 | 145 | 40 | 40 | 0.0% |
Cash flow
|
|---|
| Capex | 31 | 6 | 5 | 5 | 1 | -79.4% |
Ratios
|
|---|
| Revenue growth | 29.4% | 1,582.2% | 77.0% | 26.5% | -44.0% | |
| EBITDA growth | 71.9% | 114.7% | -41.7% | -62.9% | 766.7% | |
| Gross Margin | | | 4.4% | 4.4% | 3.7% | -0.7% |
| EBITDA Margin | -33.0% | -4.2% | -1.4% | -0.4% | -6.3% | -5.9% |
| Net Income Margin | -84.4% | -13.5% | -15.9% | -0.3% | -16.6% | -16.2% |
| CAPEX, % of revenue | 98.4% | 1.2% | 0.6% | 0.4% | 0.1% | -0.2% |
| ROIC | -11.1% | -11.0% | -4.0% | -1.6% | -10.5% | -8.9% |
| ROE | -37.8% | -85.3% | -163.2% | -2.6% | -60.0% | -57.4% |
Revenue and profitability
Gold Tat Group International Ltd's Revenue dropped on 44.0%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 5.9 pp from -0.41% to -6.3% in FY2016.
Gross Margin decreased slightly on 0.68 pp from 4.4% to 3.7% in FY2016.
Net Income marign dropped on 16.2 pp from -0.35% to -16.6% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Gold Tat Group International Ltd's CAPEX/Revenue was 0.14% in FY2016. CAPEX/Revenue decreased slightly on 1.0 pp from 1.2% in FY2013 to 0.14% in FY2016. Average CAPEX/Revenue for the last three years was 0.36%.
Return on investment
The company operates at negative ROIC (-10.48%) and ROE (-60.05%). ROIC decreased on 8.9 pp from -1.6% to -10.5% in FY2016. ROE dropped on 57.4 pp from -2.6% to -60.0% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.1x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt dropped on 39.6% while cash dropped on 33.5%.
Appendix 1: Peers in Telecommunications
Below you can find Gold Tat Group International Ltd benchmarking vs. other companies in Telecommunications 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 |
|---|
| Hong Kong Television Network Ltd ($1137) | | 107.4% | -82.2% | 8,010.0% | |
| Hanny Holdings Ltd ($275) | 236.4% | 131.2% | -85.2% | 349.3% | |
| CCT Fortis Holdings Ltd ($138) | -24.1% | -55.3% | -71.3% | 207.1% | |
| Xi'an Haitian Antenna Technologies Co Ltd ($8227) | -8.5% | -45.9% | -56.2% | 111.6% | |
| China Trends Holdings Ltd ($8171) | 167.0% | -70.2% | -16.7% | 106.0% | |
| |
|---|
| Median (52 companies) | 8.7% | 8.1% | 9.6% | 6.1% | -2.2% |
|---|
| Gold Tat Group International Ltd ($8266) | | 1,582.2% | 77.0% | 26.5% | -44.0% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HKBN Ltd ($1310) | | 84.3% | 86.5% | 86.9% | |
| Netel Technology Holdings Ltd ($8256) | 27.9% | 42.1% | 54.9% | 72.3% | |
| Great World Co Holdings Ltd ($8003) | -11.0% | 43.0% | 45.5% | 67.9% | |
| APT Satellite Holdings Ltd ($1045) | 58.7% | 64.1% | 62.5% | 61.0% | |
| Cisco Systems Inc ($4333) | 61.2% | 60.6% | 58.9% | 60.4% | |
| |
|---|
| Median (49 companies) | 25.5% | 24.4% | 26.6% | 23.6% | 30.6% |
|---|
| Gold Tat Group International Ltd ($8266) | | | 4.4% | 4.4% | 3.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 86.5% | 85.8% | 81.6% | 82.4% | |
| APT Satellite Holdings Ltd ($1045) | 81.0% | 78.9% | 77.5% | 78.8% | |
| Synertone Communication Corp ($1613) | 44.9% | 48.5% | 49.4% | 51.5% | |
| HKBN Ltd ($1310) | | 39.2% | 40.1% | 39.0% | |
| HKT Trust & HKT Ltd ($6823) | 36.3% | 35.0% | 35.9% | 34.9% | |
| |
|---|
| Median (52 companies) | 8.3% | 5.5% | 6.4% | 9.2% | 10.0% |
|---|
| Gold Tat Group International Ltd ($8266) | -33.0% | -4.2% | -1.4% | -0.4% | -6.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| APT Satellite Holdings Ltd ($1045) | 74.3% | 2.5% | 27.2% | 115.8% | |
| Hong Kong Television Network Ltd ($1137) | 12,435.9% | 504.9% | 1,283.5% | 79.4% | |
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 93.8% | 71.7% | 75.0% | 52.8% | |
| China Fiber Optic Network System Group Ltd ($3777) | 4.8% | 16.3% | 13.1% | 31.9% | |
| Directel Holdings Ltd ($8337) | 2.1% | 0.1% | 0.6% | 30.2% | |
| |
|---|
| Median (52 companies) | 2.1% | 3.0% | 3.1% | 2.6% | 2.6% |
|---|
| Gold Tat Group International Ltd ($8266) | 98.4% | 1.2% | 0.6% | 0.4% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Telecom Service One Holdings Ltd ($8145) | 95.0% | 5.4% | 26.7% | 39.8% | 37.4% |
| VTech Holdings Ltd ($303) | 37.6% | 39.5% | 40.0% | 39.8% | 37.9% |
| Coolpad Group Ltd ($2369) | 8.1% | 6.0% | 9.6% | 29.1% | |
| Telecom Digital Holdings Ltd ($8336) | | 13.3% | 20.2% | 18.9% | 16.7% |
| SmarTone Telecommunications Holdings Ltd ($315) | 37.2% | 23.1% | 12.8% | 17.7% | |
| |
|---|
| Median (53 companies) | 7.7% | 6.0% | 6.6% | 6.3% | 27.0% |
|---|
| Gold Tat Group International Ltd ($8266) | -11.1% | -11.0% | -4.0% | -1.6% | -10.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CCT Land Holdings Ltd ($261) | 10.1x | 23.8x | 48.4x | 44.8x | |
| China Energine International Holdings Ltd ($1185) | | | 13.3x | 31.7x | |
| China Ground Source Energy Industry Group Ltd ($8128) | -1.6x | 3.5x | 14.3x | 11.3x | |
| China Electronics Corp Holdings Co Ltd ($85) | -2.0x | -1.3x | 12.5x | 7.6x | |
| China All Access Holdings Ltd ($633) | 0.9x | 1.8x | 5.2x | 5.6x | |
| |
|---|
| Median (39 companies) | -0.3x | 0.6x | 0.7x | 0.6x | 0.1x |
|---|
