Excel Development Holdings Ltd EBITDA dropped on 165% and EBITDA Margin decreased on 4.7 pp from 2.7% to -2.0%
29/06/2016 • About Excel Development Holdings Ltd (
$1372) • By InTwits
Excel Development Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Excel Development Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -2.7%
- EBITDA Margin is quite volatile: -2.0% in FY2016, 2.7% in FY2015, 2.4% in FY2014, 4.9% in FY2013, 5.0% in FY2012
- Excel Development Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.1%.
- The company has unprofitable business model: ROIC is at -2.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Excel Development Holdings Ltd ($1372) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 690 | 984 | 1,477 | 703 | 609 | -13.3% |
| Gross Profit | 49 | 56 | 60 | 41 | 6 | -85.7% |
| SG&A | | | | 25 | 38 | 53.5% |
| EBITDA | 34 | 48 | 36 | 19 | -12 | -164.7% |
| Net Income | 28 | 40 | 28 | 16 | -33 | -308.7% |
Balance Sheet
|
|---|
| Cash | 150 | 130 | 167 | 144 | 17 | -88.2% |
| Short Term Debt | 19 | 79 | 0 | 0 | 13 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 767 | |
Cash flow
|
|---|
| Capex | 0 | 0 | 0 | 2 | 2 | -14.9% |
Ratios
|
|---|
| Revenue growth | 2.5% | 42.6% | 50.1% | -52.4% | -13.3% | |
| EBITDA growth | 11.5% | 41.1% | -25.4% | -47.5% | -164.7% | |
| Gross Margin | 7.1% | 5.6% | 4.1% | 5.8% | 1.0% | -4.8% |
| EBITDA Margin | 5.0% | 4.9% | 2.4% | 2.7% | -2.0% | -4.7% |
| Net Income Margin | 4.1% | 4.1% | 1.9% | 2.3% | -5.4% | -7.7% |
| SG&A, % of revenue | | | | 3.5% | 6.3% | 2.7% |
| CAPEX, % of revenue | 0.0% | 0.0% | 0.0% | 0.3% | 0.3% | -0.0% |
| ROIC | 33.1% | 27.2% | 16.4% | 8.6% | -2.7% | -11.3% |
| ROE | 31.2% | 32.2% | 16.0% | 7.3% | -8.7% | -16.0% |
| Net Debt/EBITDA | -3.8x | -1.1x | -4.6x | -7.6x | | 7.6x |
Revenue and profitability
The company's Revenue dropped on 13.3%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.7 pp from 2.7% to -2.0% in FY2016.
Gross Margin decreased on 4.8 pp from 5.8% to 0.96% in FY2016. SG&A as a % of Revenue increased on 2.7 pp from 3.5% to 6.3% in FY2016.
Net Income marign decreased on 7.7 pp from 2.3% to -5.4% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.32% in FY2016. Excel Development Holdings Ltd showed almost no change in CAPEX/Revenue from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 0.22%.
Return on investment
The company operates at negative ROIC (-2.68%) and ROE (-8.73%). ROIC dropped on 11.3 pp from 8.6% to -2.7% in FY2016. ROE dropped on 16.0 pp from 7.3% to -8.7% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.7x and Debt / EBITDA is . Net Debt / EBITDA surged on 7.6x from -7.6x to in FY2016. Debt surged while cash dropped on 88.2%.
Appendix 1: Peers in Engineering&Construction
Below you can find Excel Development Holdings 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% |
| Vision Fame International Holding Ltd ($1315) | | 45.9% | -10.5% | 105.6% | 40.9% |
| Sino Credit Holdings Ltd ($628) | -13.8% | | | 97.4% | |
| Grand Ming Group Holdings Ltd ($1271) | | -26.9% | -37.4% | 74.8% | 14.3% |
| |
|---|
| Median (44 companies) | 15.2% | 24.0% | 20.8% | 10.8% | 10.5% |
|---|
| Excel Development Holdings Ltd ($1372) | | 42.6% | 50.1% | -52.4% | -13.3% |
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% |
|---|
| Excel Development Holdings Ltd ($1372) | 7.1% | 5.6% | 4.1% | 5.8% | 1.0% |
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% |
|---|
| Excel Development Holdings Ltd ($1372) | 5.0% | 4.9% | 2.4% | 2.7% | -2.0% |
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% | 1.7% |
|---|
| Excel Development Holdings Ltd ($1372) | 0.0% | 0.0% | 0.0% | 0.3% | 0.3% |
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% | 4.4% | 5.5% | 3.4% |
|---|
| Excel Development Holdings Ltd ($1372) | 33.1% | 27.2% | 16.4% | 8.6% | -2.7% |
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 (38 companies) | 0.9x | 0.3x | 0.4x | 1.3x | -1.1x |
|---|
| Excel Development Holdings Ltd ($1372) | -3.8x | -1.1x | -4.6x | -7.6x | |
