Sino Prosper Group Holdings Ltd reports 55.0% EBITDA decline in 2016 and 14.4 pp EBITDA Margin decline from 42.9% to 28.5%
28/06/2016 • About Sino Prosper Group Holdings Ltd (
$766) • By InTwits
Sino Prosper Group Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sino Prosper Group Holdings Ltd is a company in decline: FY2016 revenue growth was -32.3%, 5 years revenue CAGR was -4.5%
- Sino Prosper Group Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -124.3% for the sames years0
- Sino Prosper Group Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 24.9%. At the same time it's in pair with industry average of 24.2%.
- CAPEX is quite volatile: 0.047 in FY2016, 0.32 in FY2015, 3.9 in FY2014, 31.0 in FY2013, 30.2 in FY2012
- The company has potentially unprofitable business model: ROIC is at 0.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sino Prosper Group Holdings Ltd ($766) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 50.287 | 54.483 | 53.830 | 55.957 | 37.892 | -32.3% |
| Gross Profit | 1.267 | 2.765 | 21.337 | 52.054 | 33.105 | -36.4% |
| SG&A | | 91.750 | 77.335 | 39.037 | 41.212 | 5.6% |
| EBITDA | -69.713 | -75.281 | -203.684 | 24.021 | 10.817 | -55.0% |
| Net Income | -46.799 | -70.687 | -66.314 | -514.793 | -194.039 | |
Balance Sheet
|
|---|
| Cash | 477.218 | 186.499 | 93.193 | 74.722 | 123.182 | 64.9% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 100.318 | 107.338 | 89.129 | -17.0% |
Cash flow
|
|---|
| Capex | 30.160 | 30.974 | 3.887 | 0.321 | 0.047 | -85.4% |
Ratios
|
|---|
| Revenue growth | 5.4% | 8.3% | -1.2% | 4.0% | -32.3% | |
| EBITDA growth | 14.9% | 8.0% | 170.6% | -111.8% | -55.0% | |
| Gross Margin | 2.5% | 5.1% | 39.6% | 93.0% | 87.4% | -5.7% |
| EBITDA Margin | -138.6% | -138.2% | -378.4% | 42.9% | 28.5% | -14.4% |
| Net Income Margin | -93.1% | -129.7% | -123.2% | -920.0% | -512.1% | 407.9% |
| SG&A, % of revenue | | 168.4% | 143.7% | 69.8% | 108.8% | 39.0% |
| CAPEX, % of revenue | 60.0% | 56.9% | 7.2% | 0.6% | 0.1% | -0.4% |
| ROIC | -4.1% | -4.3% | -10.3% | 0.8% | 0.2% | -0.6% |
| ROE | -2.7% | -3.7% | -3.5% | -31.2% | -15.0% | 16.2% |
| Net Debt/EBITDA | | | | 1.4x | -3.1x | -4.5x |
Revenue and profitability
Sino Prosper Group Holdings Ltd's Revenue dropped on 32.3%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 14.4 pp from 42.9% to 28.5% in FY2016.
Gross Margin decreased on 5.7 pp from 93.0% to 87.4% in FY2016. SG&A as a % of Revenue surged on 39.0 pp from 69.8% to 109% in FY2016.
Net Income marign surged on 408 pp from -920% to -512% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.12% in FY2016. CAPEX/Revenue dropped on 56.7 pp from 56.9% in FY2013 to 0.12% in FY2016. For the last three years the average CAPEX/Revenue was 2.6%.
Return on investment
The company operates at low but positive ROIC (0.17%) and negative ROE (-14.95%). ROIC decreased slightly on 0.61 pp from 0.78% to 0.17% in FY2016. ROE jumped on 16.2 pp from -31.2% to -15.0% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.1x and Debt / EBITDA is 8.2x. Net Debt / EBITDA dropped on 4.5x from 1.4x to -3.1x in FY2016. Debt dropped on 17.0% while cash jumped on 64.9%.
Appendix 1: Peers in Mining
Below we provide Sino Prosper Group Holdings Ltd benchmarking against other companies in Mining 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 |
|---|
| Mongolia Energy Corp Ltd ($276) | | 89.7% | -95.8% | 2,361.6% | 1,178.3% |
| Real Gold Mining Ltd ($246) | -44.0% | -68.0% | -26.2% | 106.2% | |
| REX Global Entertainment Holdings Ltd ($164) | | 81.6% | -15.5% | 96.4% | 30.4% |
| Hengxing Gold Holding Co Ltd ($2303) | | | 3,467.3% | 78.0% | |
| Zijin Mining Group Co Ltd ($2899) | 21.6% | 2.5% | 18.1% | 26.9% | |
| |
|---|
| Median (47 companies) | 6.7% | -1.7% | -5.9% | -20.8% | 8.9% |
|---|
| Sino Prosper Group Holdings Ltd ($766) | | 8.3% | -1.2% | 4.0% | -32.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| REX Global Entertainment Holdings Ltd ($164) | -15.8% | -7.8% | -0.8% | 88.6% | 87.3% |
| China Billion Resources Ltd ($274) | 71.4% | 47.2% | 73.4% | 79.7% | |
| Sun International Resources Ltd ($8029) | 83.2% | 73.1% | 64.8% | 69.4% | 58.8% |
| Timeless Software Ltd ($8028) | 17.7% | 48.5% | 29.4% | 42.1% | 39.9% |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 63.9% | 54.9% | 51.2% | 41.8% | |
| |
|---|
| Median (48 companies) | 15.8% | 14.4% | 15.4% | 12.7% | 28.2% |
|---|
| Sino Prosper Group Holdings Ltd ($766) | 2.5% | 5.1% | 39.6% | 93.0% | 87.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| G-Resources Group Ltd ($1051) | | 54.5% | 53.4% | 58.3% | |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 70.0% | 64.6% | 59.6% | 51.3% | |
| Timeless Software Ltd ($8028) | -113.1% | 24.7% | -13.7% | 46.1% | 28.0% |
| Hengxing Gold Holding Co Ltd ($2303) | | -766.2% | 24.5% | 43.9% | |
| Chinalco Mining Corp International ($3668) | | | | 37.8% | |
| |
|---|
| Median (48 companies) | 5.3% | 8.5% | 6.3% | 4.4% | -37.0% |
|---|
| Sino Prosper Group Holdings Ltd ($766) | -138.6% | -138.2% | -378.4% | 42.9% | 28.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mongolia Energy Corp Ltd ($276) | 8,006.5% | 1,061.7% | 30,555.4% | 1,973.0% | 20.9% |
| Kaz Minerals ($847) | 36.6% | 136.5% | 168.8% | 168.7% | |
| Chinalco Mining Corp International ($3668) | | | | 115.6% | |
| China Dynamics Holdings Ltd ($476) | 1.8% | 0.0% | 1.0% | 113.8% | 5.7% |
| MMG Ltd ($1208) | 25.7% | 22.6% | 41.9% | 100.4% | |
| |
|---|
| Median (48 companies) | 17.2% | 16.8% | 16.5% | 12.5% | 4.1% |
|---|
| Sino Prosper Group Holdings Ltd ($766) | 60.0% | 56.9% | 7.2% | 0.6% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CGN Mining Co Ltd ($1164) | 2.6% | 3.3% | 7.9% | 16.7% | |
| United Co RUSAL PLC ($486) | 0.3% | -9.0% | 6.3% | 12.3% | |
| Xingfa Aluminium Holdings Ltd ($98) | 7.6% | 8.8% | 11.7% | 11.8% | |
| Timeless Software Ltd ($8028) | -29.1% | 7.3% | -4.6% | 11.6% | 3.9% |
| China Hongqiao Group Ltd ($1378) | 24.8% | 17.0% | 14.1% | 10.6% | |
| |
|---|
| Median (49 companies) | 1.9% | 2.7% | 1.5% | -1.1% | -7.9% |
|---|
| Sino Prosper Group Holdings Ltd ($766) | -4.1% | -4.3% | -10.3% | 0.8% | 0.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Daye Non-Ferrous Metals Mining Ltd ($661) | 9.2x | 9.7x | 9.2x | 31.5x | |
| Chinalco Mining Corp International ($3668) | | | | 25.0x | |
| MMG Ltd ($1208) | 2.1x | 2.0x | 10.2x | 20.2x | |
| Kaz Minerals ($847) | 2.4x | 2.9x | 5.5x | 18.7x | |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 1.5x | 4.1x | 6.4x | 13.5x | |
| |
|---|
| Median (28 companies) | 2.0x | 1.9x | 4.5x | 3.8x | -1.4x |
|---|
| Sino Prosper Group Holdings Ltd ($766) | | | | 1.4x | -3.1x |
