Anxian Yuan China Holdings Ltd reports 74.7% Net Income decline in 2016 and 30.3 pp EBITDA Margin decline from 55.5% to 25.1%
29/06/2016 • About Anxian Yuan China Holdings Ltd (
$922) • By InTwits
Anxian Yuan China Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 25.1% in FY2016, 55.5% in FY2015, 17.5% in FY2014, 25.2% in FY2013, -26.1% in FY2012
- Anxian Yuan China Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.2%. At the same time it's in pair with industry average of 24.2%.
- CAPEX is quite volatile: 1.1 in FY2016, 14.0 in FY2015, 1.9 in FY2014, 1.0 in FY2013, 2.3 in FY2012
- The company has potentially unprofitable business model: ROIC is at 2.0%
- It operates with high leverage: Net Debt/EBITDA is 5.2x while industry average is -0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Anxian Yuan China Holdings Ltd ($922) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 64.7 | 127.4 | 157.3 | 97.4 | 108.0 | 10.9% |
| Gross Profit | 47.9 | 69.6 | 62.6 | 69.0 | 81.8 | 18.5% |
| SG&A | | 54.5 | 53.5 | 56.2 | 71.1 | 26.5% |
| EBITDA | -16.9 | 32.1 | 27.5 | 54.0 | 27.2 | -49.8% |
| Net Income | -111.2 | -20.1 | 5.7 | 37.4 | 9.5 | -74.7% |
Balance Sheet
|
|---|
| Cash | 52.1 | 17.2 | 10.7 | 81.5 | 109.9 | 34.9% |
| Short Term Debt | 77.7 | 133.7 | 102.1 | 116.7 | 59.1 | -49.3% |
| Long Term Debt | 0.0 | 30.1 | 12.1 | 8.8 | 191.0 | 2,061.0% |
Cash flow
|
|---|
| Capex | 2.3 | 1.0 | 1.9 | 14.0 | 1.1 | -91.9% |
Ratios
|
|---|
| Revenue growth | -49.3% | 96.9% | 23.5% | -38.1% | 10.9% | |
| EBITDA growth | 121.4% | -290.3% | -14.4% | 96.4% | -49.8% | |
| Gross Margin | 74.0% | 54.7% | 39.8% | 70.8% | 75.7% | 4.8% |
| EBITDA Margin | -26.1% | 25.2% | 17.5% | 55.5% | 25.1% | -30.3% |
| Net Income Margin | -171.9% | -15.8% | 3.6% | 38.4% | 8.8% | -29.7% |
| SG&A, % of revenue | | 42.8% | 34.0% | 57.7% | 65.8% | 8.1% |
| CAPEX, % of revenue | 3.5% | 0.8% | 1.2% | 14.4% | 1.0% | -13.4% |
| ROIC | -3.7% | 2.9% | 2.3% | 6.1% | 2.0% | -4.1% |
| ROE | -33.4% | -5.2% | 1.3% | 7.6% | 1.7% | -5.8% |
| Net Debt/EBITDA | | 4.6x | 3.8x | 0.8x | 5.2x | 4.3x |
Revenue and profitability
The company's Revenue surged on 10.9%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.3 pp from 3.3% to 0.97% in FY2016.
Gross Margin increased on 4.8 pp from 70.8% to 75.7% in FY2016. SG&A as a % of Revenue increased on 8.1 pp from 57.7% to 65.8% in FY2016.
Net Income marign dropped on 29.7 pp from 38.4% to 8.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.0% in FY2016. Anxian Yuan China Holdings Ltd showed almost no change in CAPEX/Revenue from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 5.5%.
Return on investment
The company operates at low ROIC (2.04%) and ROE (1.75%). ROIC decreased on 4.1 pp from 6.1% to 2.0% in FY2016. ROE decreased on 5.8 pp from 7.6% to 1.7% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.2x and Debt / EBITDA is 9.2x. Net Debt / EBITDA surged on 4.3x from 0.8x to 5.2x in FY2016. Debt surged on 99.3% while cash jumped on 34.9%.
Appendix 1: Peers in Commercial Services
Below we provide Anxian Yuan China Holdings Ltd benchmarking against other companies in Commercial Services 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 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 99.1% | 14.9% | -88.3% | 271.8% | |
| China Seven Star Holdings Ltd ($245) | 6.7% | -81.8% | -39.3% | 195.3% | |
| China Smartpay Group Holdings Ltd ($8325) | | 274.7% | 75.6% | 124.5% | 79.5% |
| Celebrate International Holdings Ltd ($8212) | -90.1% | 1,437.6% | -6.3% | 117.0% | |
| Haier Healthwise Holdings Ltd ($348) | -22.0% | -50.1% | -7.5% | 101.1% | |
| |
|---|
| Median (65 companies) | 6.3% | 8.6% | 9.8% | 4.7% | 18.2% |
|---|
| Anxian Yuan China Holdings Ltd ($922) | | 96.9% | 23.5% | -38.1% | 10.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HC International Inc ($2280) | 87.5% | 91.9% | 92.5% | 89.6% | |
| Winto Group Holdings Ltd ($8238) | 90.2% | 93.4% | 92.0% | 88.4% | |
| Dingyi Group Investment Ltd ($508) | 75.8% | | 64.5% | 86.0% | 89.6% |
| Fu Shou Yuan International Group Ltd ($1448) | 80.5% | 80.4% | 80.0% | 77.6% | |
| Nirvana Asia Ltd ($1438) | 68.3% | 69.6% | 70.5% | 75.7% | |
| |
|---|
| Median (60 companies) | 31.6% | 30.7% | 31.0% | 31.2% | 34.7% |
|---|
| Anxian Yuan China Holdings Ltd ($922) | 74.0% | 54.7% | 39.8% | 70.8% | 75.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | 61.6% | 84.9% | 75.9% | 80.9% | |
| Shenzhen International Holdings Ltd ($152) | 60.2% | 65.8% | 97.1% | 73.6% | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 78.3% | 74.5% | 74.0% | 71.6% | |
| CAR Inc ($699) | 43.6% | 30.1% | 43.1% | 67.4% | |
| Jiangsu Expressway Co Ltd ($177) | 57.0% | 60.7% | 59.3% | 61.5% | |
| |
|---|
| Median (65 companies) | 17.6% | 14.9% | 11.2% | 9.8% | 2.0% |
|---|
| Anxian Yuan China Holdings Ltd ($922) | -26.1% | 25.2% | 17.5% | 55.5% | 25.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Blue Sky Power Holdings Ltd ($6828) | 21.3% | 9.0% | 13.9% | 47.4% | |
| COSCO Pacific Ltd ($1199) | 96.6% | 66.6% | 43.3% | 45.8% | |
| Shenzhen International Holdings Ltd ($152) | 23.0% | 22.1% | 20.9% | 35.0% | |
| Celebrate International Holdings Ltd ($8212) | 211.7% | 12.0% | 6.2% | 34.2% | |
| China Maple Leaf Educational Systems Ltd ($1317) | 25.7% | 50.9% | 21.1% | 32.8% | |
| |
|---|
| Median (65 companies) | 3.0% | 4.0% | 3.2% | 2.8% | 1.7% |
|---|
| Anxian Yuan China Holdings Ltd ($922) | 3.5% | 0.8% | 1.2% | 14.4% | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 51.5% | 26.6% | 30.0% | 29.5% | 19.8% |
| 1010 Printing Group Ltd ($1127) | 13.5% | 20.8% | 17.8% | 19.9% | |
| China Packaging Holdings Development Ltd ($1439) | 52.0% | 46.6% | 34.1% | 19.8% | |
| iOne Holdings Ltd ($982) | 12.5% | 11.1% | 9.4% | 19.2% | |
| CAR Inc ($699) | 5.2% | 2.7% | 12.2% | 19.0% | |
| |
|---|
| Median (65 companies) | 7.5% | 6.4% | 5.8% | 3.2% | 3.8% |
|---|
| Anxian Yuan China Holdings Ltd ($922) | -3.7% | 2.9% | 2.3% | 6.1% | 2.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Celebrate International Holdings Ltd ($8212) | | | | 22.2x | |
| Kai Yuan Holdings Ltd ($1215) | -143.8x | -0.7x | | 18.8x | |
| Eagle Legend Asia Ltd ($936) | 4.0x | 4.0x | 3.3x | 6.2x | |
| Sichuan Expressway Co Ltd ($107) | 2.7x | 3.8x | 4.3x | 5.5x | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 4.5x | 3.1x | 2.7x | 5.3x | |
| |
|---|
| Median (42 companies) | -0.0x | -0.7x | -0.7x | -0.6x | -2.3x |
|---|
| Anxian Yuan China Holdings Ltd ($922) | | 4.6x | 3.8x | 0.8x | 5.2x |
