Silver base Group Holdings Ltd reports 783% Net Income growth in 2016 and 9.5 pp EBITDA Margin growth from -5.2% to 4.2%
27/06/2016 • About Silver base Group Holdings Ltd (
$886) • By InTwits
Silver base Group Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Silver base Group 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 -15.9%0
- The company has potentially unprofitable business model: ROIC is at 2.6%
- It operates with high leverage: Net Debt/EBITDA is 10.9x while industry average is 1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Silver base Group Holdings Ltd ($886) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,974 | 390 | 489 | 419 | 1,260 | 200.9% |
| Gross Profit | 1,388 | 32 | -163 | 83 | 234 | 183.0% |
| SG&A | 426 | 476 | 357 | 291 | 284 | -2.4% |
| EBITDA | 934 | -1,102 | -743 | -22 | 53 | |
| Net Income | 698 | -1,133 | -787 | -19 | 130 | |
Balance Sheet
|
|---|
| Cash | 110 | 317 | 82 | 170 | 301 | 76.8% |
| Short Term Debt | 339 | 918 | 375 | 527 | 866 | 64.2% |
| Long Term Debt | 0 | 0 | 0 | 0 | 14 | |
Cash flow
|
|---|
| Capex | 8 | 24 | 6 | 1 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 34.1% | -86.9% | 25.4% | -14.4% | 200.9% | |
| EBITDA growth | 23.5% | -218.0% | -32.5% | -97.0% | -342.4% | |
| Gross Margin | 46.7% | 8.3% | -33.4% | 19.7% | 18.6% | -1.2% |
| EBITDA Margin | 31.4% | -282.5% | -152.0% | -5.2% | 4.2% | 9.5% |
| Net Income Margin | 23.5% | -290.5% | -161.0% | -4.6% | 10.3% | 14.9% |
| SG&A, % of revenue | 14.3% | 121.9% | 72.9% | 69.4% | 22.5% | -46.9% |
| CAPEX, % of revenue | 0.3% | 6.1% | 1.1% | 0.2% | | -0.2% |
| ROIC | 41.4% | -40.0% | -32.7% | -2.4% | 2.6% | 5.0% |
| ROE | 37.9% | -69.4% | -90.6% | -3.8% | 19.4% | 23.2% |
| Net Debt/EBITDA | 0.2x | | | | 10.9x | 10.9x |
Revenue and profitability
The company's Revenue jumped on 201%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 19.7 pp from 8.1% to -11.5% in FY2016.
Gross Margin decreased slightly on 1.2 pp from 19.7% to 18.6% in FY2016. SG&A as a % of Revenue dropped on 46.9 pp from 69.4% to 22.5% in FY2016.
Net Income marign surged on 14.9 pp from -4.6% to 10.3% in FY2016.
Return on investment
The company operates at good ROE (19.45%) while ROIC is low (2.65%). ROIC increased on 5.0 pp from -2.4% to 2.6% in FY2016. ROE surged on 23.2 pp from -3.8% to 19.4% in FY2016.
Leverage (Debt)
Debt level is 10.9x Net Debt / EBITDA and 16.5x Debt / EBITDA. Net Debt / EBITDA surged10.9x from to 10.9x in FY2016. Debt jumped on 66.8% while cash jumped on 76.8%.
Appendix 1: Peers in Beverages
Below we provide Silver base Group Holdings Ltd benchmarking against other companies in Beverages 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 |
|---|
| Sino Distillery Group Ltd ($39) | -62.4% | -34.9% | -15.0% | 882.1% | |
| China Huiyuan Juice Group Ltd ($1886) | 4.1% | 13.1% | 2.0% | 23.7% | |
| Besunyen Holdings Co Ltd ($926) | -43.5% | 2.6% | 15.7% | 17.5% | |
| Vitasoy International Holdings Ltd ($345) | | 9.0% | 10.9% | 12.4% | 9.9% |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 7.7% | 15.4% | -1.8% | 7.7% | |
| |
|---|
| Median (14 companies) | -2.7% | -8.1% | 2.0% | -3.9% | -2.6% |
|---|
| Silver base Group Holdings Ltd ($886) | | -86.9% | 25.4% | -14.4% | 200.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Besunyen Holdings Co Ltd ($926) | 82.5% | 83.3% | 84.3% | 89.7% | |
| Tenfu Cayman Holdings Co Ltd ($6868) | 64.1% | 61.2% | 62.2% | 61.4% | |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 81.4% | 73.2% | 62.7% | 60.3% | |
| Vitasoy International Holdings Ltd ($345) | 47.4% | 47.5% | 48.4% | 49.7% | 50.9% |
| JLF Investment Co Ltd ($472) | 50.9% | 48.7% | 42.4% | 41.8% | |
| |
|---|
| Median (14 companies) | 44.5% | 37.7% | 36.6% | 38.5% | 42.9% |
|---|
| Silver base Group Holdings Ltd ($886) | 46.7% | 8.3% | -33.4% | 19.7% | 18.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 73.3% | 73.2% | 69.2% | 52.8% | |
| China Tianyi Holdings Ltd ($756) | 28.4% | 26.1% | 29.7% | 23.0% | |
| Tenfu Cayman Holdings Co Ltd ($6868) | 27.5% | 25.3% | 26.1% | 22.5% | |
| China Huiyuan Juice Group Ltd ($1886) | 15.2% | 21.7% | 11.3% | 18.3% | |
| Yantai North Andre Juice Co ($2218) | 14.1% | 11.9% | 15.5% | 15.7% | |
| |
|---|
| Median (14 companies) | 15.2% | 10.5% | 11.3% | 11.6% | 4.6% |
|---|
| Silver base Group Holdings Ltd ($886) | 31.4% | -282.5% | -152.0% | -5.2% | 4.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Culiangwang Beverages Holdings Ltd ($904) | 26.8% | 52.2% | 81.8% | 75.8% | |
| China Huiyuan Juice Group Ltd ($1886) | 11.7% | 7.4% | 10.5% | 14.9% | |
| Sino Distillery Group Ltd ($39) | 32.4% | 6.5% | 0.4% | 12.0% | |
| Vitasoy International Holdings Ltd ($345) | 11.1% | 4.2% | 5.1% | 11.1% | 12.0% |
| JLF Investment Co Ltd ($472) | 17.7% | 9.1% | 9.4% | 9.5% | |
| |
|---|
| Median (14 companies) | 11.1% | 7.3% | 8.8% | 5.9% | 7.0% |
|---|
| Silver base Group Holdings Ltd ($886) | 0.3% | 6.1% | 1.1% | 0.2% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vitasoy International Holdings Ltd ($345) | 20.8% | 20.6% | 21.7% | 23.5% | 23.5% |
| Tenfu Cayman Holdings Co Ltd ($6868) | 19.4% | 17.9% | 15.7% | 11.0% | |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 23.3% | 20.3% | 14.9% | 11.0% | |
| Tsingtao Brewery Co Ltd ($168) | 13.4% | 12.0% | 12.2% | 6.7% | |
| Besunyen Holdings Co Ltd ($926) | -24.2% | -8.9% | 3.2% | 4.1% | |
| |
|---|
| Median (14 companies) | 9.6% | 3.7% | 3.2% | 3.2% | 8.3% |
|---|
| Silver base Group Holdings Ltd ($886) | 41.4% | -40.0% | -32.7% | -2.4% | 2.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Huiyuan Juice Group Ltd ($1886) | 5.4x | 4.3x | 7.9x | 4.3x | |
| San Miguel Brewery Hong Kong Ltd ($236) | | 2.0x | 1.0x | 3.8x | |
| Yantai North Andre Juice Co ($2218) | 2.3x | 2.4x | 2.2x | 3.0x | |
| China Tianyi Holdings Ltd ($756) | -1.0x | -0.8x | 0.9x | 1.1x | |
| Tenfu Cayman Holdings Co Ltd ($6868) | -1.0x | -0.2x | 0.8x | 0.1x | |
| |
|---|
| Median (10 companies) | -1.0x | 1.0x | 0.9x | -0.0x | 0.1x |
|---|
