Prosten Technology Holdings Ltd reports 2.9% revenue growth in FY2016 and 91.4 pp EBITDA Margin growth from -292% to -201%
28/06/2016 • About Prosten Technology Holdings Ltd (
$8026) • By InTwits
Prosten Technology Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Prosten Technology Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -62.5%
- The company operates at negative EBITDA Margin: -201.0%
- Prosten Technology 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 -84.5%0
- Prosten Technology Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.7%. At the same time it's a lot of higher than industry average of 4.6%.
- CAPEX is quite volatile: 0.40 in FY2016, 0.027 in FY2015, 1.1 in FY2014, 1.3 in FY2013, 1.6 in FY2012
- The company has unprofitable business model: ROIC is at -62.5%
- It operates with high leverage: Net Debt/EBITDA is 6.1x while industry average is -2.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Prosten Technology Holdings Ltd ($8026) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 67.244 | 57.161 | 24.209 | 9.763 | 10.050 | 2.9% |
| Gross Profit | 35.211 | 27.321 | 12.290 | 6.550 | 5.409 | -17.4% |
| SG&A | | 53.391 | 51.500 | 34.403 | 26.703 | -22.4% |
| EBITDA | -22.666 | -29.620 | -41.293 | -28.542 | -20.198 | |
| Net Income | -25.475 | -29.377 | -41.613 | -29.707 | -31.359 | |
Balance Sheet
|
|---|
| Cash | 67.135 | 39.050 | 12.570 | 1.778 | 28.761 | 1,517.6% |
| Short Term Debt | 0.000 | 11.400 | 0.000 | 1.125 | 0.000 | -100.0% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 1.573 | 1.335 | 1.068 | 0.027 | 0.395 | 1,363.0% |
Ratios
|
|---|
| Revenue growth | -21.7% | -15.0% | -57.6% | -59.7% | 2.9% | |
| EBITDA growth | -518.1% | 30.7% | 39.4% | -30.9% | -29.2% | |
| Gross Margin | 52.4% | 47.8% | 50.8% | 67.1% | 53.8% | -13.3% |
| EBITDA Margin | -33.7% | -51.8% | -170.6% | -292.3% | -201.0% | 91.4% |
| Net Income Margin | -37.9% | -51.4% | -171.9% | -304.3% | -312.0% | -7.7% |
| SG&A, % of revenue | | 93.4% | 212.7% | 352.4% | 265.7% | -86.7% |
| CAPEX, % of revenue | 2.3% | 2.3% | 4.4% | 0.3% | 3.9% | 3.7% |
| ROIC | -26.7% | -42.3% | -107.8% | -604.1% | -62.5% | 541.6% |
| ROE | -28.8% | -46.2% | -138.0% | | | 0.0% |
Revenue and profitability
Prosten Technology Holdings Ltd's Revenue increased on 2.9%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 91.4 pp from -292% to -201% in FY2016.
Gross Margin dropped on 13.3 pp from 67.1% to 53.8% in FY2016. SG&A as a % of Revenue dropped on 86.7 pp from 352% to 266% in FY2016.
Net Income marign decreased on 7.7 pp from -304% to -312% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Prosten Technology Holdings Ltd had CAPEX/Revenue of 3.9%. CAPEX/Revenue increased slightly on 1.6 pp from 2.3% in FY2013 to 3.9% in FY2016. It's average level of CAPEX/Revenue for the last three years was 2.9%.
Leverage (Debt)
The company paid down all the debt in FY2016. Cash surged on 1,518%.
Appendix 1: Peers in Internet
Below we provide Prosten Technology 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% | |
| Tai Shing International Holdings Ltd ($8103) | | -35.9% | -4.9% | 48.5% | -13.6% |
| |
|---|
| Median (19 companies) | 12.3% | 10.5% | 13.0% | 8.5% | -13.6% |
|---|
| Prosten Technology Holdings Ltd ($8026) | | -15.0% | -57.6% | -59.7% | 2.9% |
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% | |
| SUNeVision Holdings Ltd ($8008) | 53.5% | 60.5% | 64.7% | 65.6% | |
| Pacific Online Ltd ($543) | 71.0% | 70.5% | 67.3% | 64.8% | |
| |
|---|
| Median (16 companies) | 68.0% | 70.5% | 61.9% | 46.4% | 3.3% |
|---|
| Prosten Technology Holdings Ltd ($8026) | 52.4% | 47.8% | 50.8% | 67.1% | 53.8% |
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% | -22.9% |
|---|
| Prosten Technology Holdings Ltd ($8026) | -33.7% | -51.8% | -170.6% | -292.3% | -201.0% |
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% | 2.8% | 1.7% | 1.2% | 0.0% |
|---|
| Prosten Technology Holdings Ltd ($8026) | 2.3% | 2.3% | 4.4% | 0.3% | 3.9% |
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% | -19.5% |
|---|
| Prosten Technology Holdings Ltd ($8026) | -26.7% | -42.3% | -107.8% | -604.1% | -62.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tai Shing International Holdings Ltd ($8103) | | | | 82.7x | |
| 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 | |
| |
|---|
| Median (13 companies) | -1.6x | -1.2x | -1.5x | -2.0x | |
|---|
