Vision Fame International Holding Ltd revenue jumped on 40.9% and EBITDA Margin increased on 6.2 pp from -5.5% to 0.70%
28/06/2016 • About Vision Fame International Holding Ltd (
$1315) • By InTwits
Vision Fame International Holding Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vision Fame International Holding Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -1.0% for the sames years0
- Vision Fame International Holding Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has potentially unprofitable business model: ROIC is at 2.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Vision Fame International Holding Ltd ($1315) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 662 | 965 | 864 | 1,776 | 2,503 | 40.9% |
| Gross Profit | 89 | 71 | 22 | -23 | 75 | |
| SG&A | | | | 88 | 77 | -12.3% |
| EBITDA | 31 | 26 | -43 | -98 | 18 | |
| Net Income | 33 | 26 | -48 | -117 | 20 | |
Balance Sheet
|
|---|
| Cash | 66 | 50 | 267 | 189 | 398 | 110.8% |
| Short Term Debt | 67 | 49 | 3 | 33 | 2 | -94.0% |
| Long Term Debt | 0 | 0 | 178 | 174 | 185 | 6.1% |
Cash flow
|
|---|
| Capex | 4 | 6 | 9 | 32 | 3 | -91.0% |
Ratios
|
|---|
| Revenue growth | -9.9% | 45.9% | -10.5% | 105.6% | 40.9% | |
| EBITDA growth | -57.6% | -15.8% | -266.4% | 126.4% | -117.9% | |
| Gross Margin | 13.5% | 7.4% | 2.5% | -1.3% | 3.0% | 4.3% |
| EBITDA Margin | 4.7% | 2.7% | -5.0% | -5.5% | 0.7% | 6.2% |
| Net Income Margin | 5.0% | 2.7% | -5.6% | -6.6% | 0.8% | 7.4% |
| SG&A, % of revenue | | | | 4.9% | 3.1% | -1.9% |
| CAPEX, % of revenue | 0.6% | 0.6% | 1.0% | 1.8% | 0.1% | -1.7% |
| ROIC | 13.6% | 9.3% | -16.9% | -37.5% | 2.5% | 40.0% |
| ROE | 24.9% | 13.8% | -28.2% | -137.3% | 11.4% | 148.7% |
| Net Debt/EBITDA | 0.0x | -0.1x | | | -12.0x | -12.0x |
Revenue and profitability
Vision Fame International Holding Ltd's Revenue jumped on 40.9%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.3 pp from 2.1% to -0.21% in FY2016.
Gross Margin increased on 4.3 pp from -1.3% to 3.0% in FY2016. SG&A as a % of Revenue decreased slightly on 1.9 pp from 4.9% to 3.1% in FY2016.
Net Income marign increased on 7.4 pp from -6.6% to 0.80% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.11%. Vision Fame International Holding Ltd showed small CAPEX/Revenue decline of 0.52 pp from 0.63% in FY2013 to 0.11% in FY2016. It's average level of CAPEX/Revenue for the last three years was 0.96%.
Return on investment
The company operates at low ROIC (2.49%) and ROE (11.37%). ROIC surged on 40.0 pp from -37.5% to 2.5% in FY2016. ROE surged on 149 pp from -137% to 11.4% in FY2016.
Leverage (Debt)
Debt level is -12.0x Net Debt / EBITDA and 10.6x Debt / EBITDA. Net Debt / EBITDA dropped12.0x from to -12.0x in FY2016. Debt decreased on 9.8% while cash surged on 111%.
Appendix 1: Peers in Engineering&Construction
Below you can find Vision Fame International Holding Ltd benchmarking vs. other companies in Engineering&Construction 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 |
|---|
| CNQC International Holdings Ltd ($1240) | 21.6% | 91.0% | 103.7% | 807.4% | |
| China National Culture Group Ltd ($745) | | -76.8% | -55.8% | 592.3% | 86.7% |
| Sino Credit Holdings Ltd ($628) | -13.8% | | | 97.4% | |
| Grand Ming Group Holdings Ltd ($1271) | | -26.9% | -37.4% | 74.8% | 14.3% |
| Sam Woo Construction Group Ltd ($3822) | | 281.1% | 31.3% | 72.8% | 24.7% |
| |
|---|
| Median (44 companies) | 12.8% | 24.0% | 21.4% | 10.3% | 10.5% |
|---|
| Vision Fame International Holding Ltd ($1315) | | 45.9% | -10.5% | 105.6% | 40.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HNA Infrastructure Company Ltd ($357) | 66.4% | 62.1% | 62.4% | 61.1% | |
| Huayu Expressway Group Ltd ($1823) | 43.6% | 65.6% | 64.0% | 58.9% | |
| Broad Greenstate International Co Ltd ($1253) | 20.1% | 28.7% | 35.8% | 36.7% | |
| Sam Woo Construction Group Ltd ($3822) | 33.2% | 27.3% | 33.6% | 36.0% | 19.8% |
| China National Culture Group Ltd ($745) | 0.9% | 12.1% | 10.3% | 32.3% | 19.2% |
| |
|---|
| Median (39 companies) | 17.5% | 16.9% | 16.1% | 16.3% | 14.4% |
|---|
| Vision Fame International Holding Ltd ($1315) | 13.5% | 7.4% | 2.5% | -1.3% | 3.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huayu Expressway Group Ltd ($1823) | 46.2% | 73.8% | 77.1% | 76.2% | |
| HNA Infrastructure Company Ltd ($357) | 62.8% | 63.7% | 62.8% | 61.7% | |
| Cheung Kong Infrastructure Holdings Ltd ($1038) | 31.2% | 20.6% | 36.2% | 60.9% | |
| Beijing Capital International Airport Co Ltd ($694) | 53.4% | 52.9% | 50.3% | 51.6% | |
| China National Culture Group Ltd ($745) | -30.4% | -72.7% | -279.2% | 45.3% | -14.6% |
| |
|---|
| Median (44 companies) | 10.0% | 11.2% | 9.7% | 9.0% | 4.3% |
|---|
| Vision Fame International Holding Ltd ($1315) | 4.7% | 2.7% | -5.0% | -5.5% | 0.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HNA Infrastructure Company Ltd ($357) | 36.8% | 5.7% | 85.4% | 155.4% | |
| Grand Ming Group Holdings Ltd ($1271) | 0.0% | 16.1% | 8.7% | 33.8% | 14.0% |
| Beijing Capital International Airport Co Ltd ($694) | 3.5% | 6.6% | 7.2% | 28.2% | |
| NEW Concepts Holdings Ltd ($2221) | 1.7% | 1.2% | 3.1% | 20.5% | 0.3% |
| Louis XIII Holdings Ltd ($577) | 1.2% | 29.5% | 9.3% | 16.1% | 47.3% |
| |
|---|
| Median (44 companies) | 2.3% | 3.3% | 1.8% | 2.1% | 3.1% |
|---|
| Vision Fame International Holding Ltd ($1315) | 0.6% | 0.6% | 1.0% | 1.8% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| In Construction Holdings Ltd ($1500) | | 52.8% | 37.0% | 49.4% | 40.4% |
| Chun Sing Engineering Holdings Ltd ($2277) | | 98.3% | 54.9% | 43.7% | |
| NEW Concepts Holdings Ltd ($2221) | | 51.0% | 78.8% | 39.0% | 23.3% |
| Sam Woo Construction Group Ltd ($3822) | | 28.2% | 28.7% | 33.5% | 18.3% |
| Ngai Shun Holdings Ltd ($1246) | 68.8% | 77.2% | 45.2% | 31.0% | |
| |
|---|
| Median (46 companies) | 5.8% | 5.9% | 5.4% | 5.6% | 3.4% |
|---|
| Vision Fame International Holding Ltd ($1315) | 13.6% | 9.3% | -16.9% | -37.5% | 2.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Deson Development International Holdings ($262) | 3.8x | 4.9x | 13.7x | 47.0x | |
| Hsin Chong Construction Group Ltd ($404) | 1.8x | 8.0x | 10.2x | 41.7x | |
| China Resources and Transportation Group Ltd ($269) | | | 66.7x | 29.7x | |
| CNC Holdings Ltd ($8356) | | 22.0x | 21.9x | 24.3x | 2.7x |
| Louis XIII Holdings Ltd ($577) | 0.8x | -12.5x | -23.2x | 19.1x | |
| |
|---|
| Median (39 companies) | 0.9x | 0.3x | 0.3x | 0.7x | 0.4x |
|---|
