Sky Forever Supply Chain Management Group Ltd revenue increased slightly on 1.5% while EBITDA Margin decreased on 6.9 pp from -3.1% to -10.1%
27/06/2016 • About Sky Forever Supply Chain Management Group Ltd (
$8047) • By InTwits
Sky Forever Supply Chain Management Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sky Forever Supply Chain Management Group Ltd doesn't have a profitable business model yet: FY2016 ROIC is -35.8%
- The company operates at negative EBITDA Margin: -10.1%
- Sky Forever Supply Chain Management Group Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -8.1% for the sames years0
- Sky Forever Supply Chain Management Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's in pair with industry average of 56.8%.
- CAPEX is quite volatile: 4.9 in FY2016, 16.1 in FY2015, 0.32 in FY2014, 0.39 in FY2013, 0.62 in FY2012
- The company has unprofitable business model: ROIC is at -35.8%
- It operates with high leverage: Net Debt/EBITDA is 11.7x while industry average is -0.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sky Forever Supply Chain Management Group Ltd ($8047) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6 | 35 | 13 | 1,640 | 1,665 | 1.5% |
| Gross Profit | 5 | 26 | 2 | 9 | 10 | 7.4% |
| SG&A | 63 | 37 | 29 | 68 | 69 | 1.8% |
| EBITDA | -35 | -8 | -10 | -52 | -168 | |
| Net Income | -68 | -78 | -76 | -59 | -206 | |
Balance Sheet
|
|---|
| Cash | 55 | 80 | 87 | 281 | 7 | -97.4% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 1 | 0 | 0 | 16 | 5 | -69.6% |
Ratios
|
|---|
| Revenue growth | -73.4% | 446.4% | -62.3% | 12,494.5% | 1.5% | |
| EBITDA growth | -38.5% | -76.6% | 19.3% | 423.0% | 224.6% | |
| Gross Margin | 86.2% | 75.9% | 12.1% | 0.6% | 0.6% | 0.0% |
| EBITDA Margin | -560.9% | -24.0% | -75.8% | -3.1% | -10.1% | -6.9% |
| Net Income Margin | -1,079.2% | -224.9% | -585.9% | -3.6% | -12.3% | -8.7% |
| SG&A, % of revenue | 994.1% | 108.2% | 224.9% | 4.1% | 4.2% | 0.0% |
| CAPEX, % of revenue | 9.7% | 1.1% | 2.5% | 1.0% | 0.3% | -0.7% |
| ROIC | -18.9% | -4.1% | -4.3% | -13.8% | -35.8% | -22.0% |
| ROE | -59.7% | -61.5% | -51.6% | -18.7% | -50.9% | -32.1% |
Revenue and profitability
The company's Revenue increased slightly on 1.5%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.0 pp from 0.18% to 2.2% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign decreased on 8.7 pp from -3.6% to -12.3% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.29%. The company showed small CAPEX/Revenue decline of 0.83 pp from 1.1% in FY2013 to 0.29% in FY2016. For the last three years the average CAPEX/Revenue was 1.3%.
Return on investment
The company operates at negative ROIC (-35.76%) and ROE (-50.87%). ROIC dropped on 22.0 pp from -13.8% to -35.8% in FY2016. ROE dropped on 32.1 pp from -18.7% to -50.9% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 97.4%.
Appendix 1: Peers in Environmental Control
Below you can find Sky Forever Supply Chain Management Group Ltd benchmarking vs. other companies in Environmental Control 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 |
|---|
| 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% | |
| China Everbright International Ltd ($257) | -2.2% | 56.0% | 19.5% | 34.3% | |
| |
|---|
| Median (24 companies) | 2.3% | 18.1% | 23.6% | 3.1% | 68.4% |
|---|
| Sky Forever Supply Chain Management Group Ltd ($8047) | | 446.4% | -62.3% | 12,494.5% | 1.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| EverChina International Holdings Co Ltd ($202) | 51.8% | 53.4% | 95.3% | 95.4% | 93.5% |
| 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% | 47.1% |
| |
|---|
| Median (23 companies) | 33.2% | 30.5% | 32.2% | 34.1% | 47.1% |
|---|
| Sky Forever Supply Chain Management Group Ltd ($8047) | 86.2% | 75.9% | 12.1% | 0.6% | 0.6% |
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% | 40.2% |
| Kangda International Environmental Co Ltd ($6136) | 37.1% | 33.6% | 32.4% | 36.6% | |
| |
|---|
| Median (24 companies) | 17.9% | 11.7% | 5.1% | 16.2% | -15.6% |
|---|
| Sky Forever Supply Chain Management Group Ltd ($8047) | -560.9% | -24.0% | -75.8% | -3.1% | -10.1% |
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) | 12.9% | 13.0% | 8.8% | 7.7% | 2.6% |
|---|
| Sky Forever Supply Chain Management Group Ltd ($8047) | 9.7% | 1.1% | 2.5% | 1.0% | 0.3% |
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% | -0.6% |
|---|
| Sky Forever Supply Chain Management Group Ltd ($8047) | -18.9% | -4.1% | -4.3% | -13.8% | -35.8% |
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 | 3.0x |
| 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) | 2.3x | 0.3x | 1.2x | 1.5x | 3.0x |
|---|
