Takson Holdings Ltd EBITDA dropped on 380% and Revenue dropped on 37.9%
29/06/2016 • About Takson Holdings Ltd (
$918) • By InTwits
Takson Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Takson Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -11.3%
- The company operates at negative EBITDA Margin: -9.4%
- Takson 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 -0.8% for the sames years0
- Takson Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has unprofitable business model: ROIC is at -11.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Takson Holdings Ltd ($918) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 76.5 | 153.5 | 183.7 | 255.1 | 158.4 | -37.9% |
| Gross Profit | 18.5 | 31.4 | 39.1 | 45.5 | 39.7 | -12.9% |
| SG&A | | 28.7 | 35.0 | 44.7 | 49.2 | 10.2% |
| EBITDA | -8.1 | 4.5 | 6.3 | 5.3 | -15.0 | -379.6% |
| Net Income | -7.5 | 13.9 | 1.2 | 0.5 | -25.6 | -5,118.2% |
Balance Sheet
|
|---|
| Cash | 2.7 | 27.3 | 15.6 | 8.4 | 8.0 | -4.8% |
| Short Term Debt | 49.9 | 76.6 | 88.0 | 91.8 | 91.2 | -0.7% |
| Long Term Debt | 4.5 | 1.9 | 1.2 | 0.7 | 0.6 | -6.8% |
Cash flow
|
|---|
| Capex | 0.1 | 3.2 | 0.5 | 0.5 | 0.7 | 30.2% |
Ratios
|
|---|
| Revenue growth | -44.9% | 100.6% | 19.7% | 38.9% | -37.9% | |
| EBITDA growth | -37.4% | -155.2% | 41.3% | -15.2% | -379.6% | |
| Gross Margin | 24.2% | 20.4% | 21.3% | 17.8% | 25.1% | 7.2% |
| EBITDA Margin | -10.6% | 2.9% | 3.4% | 2.1% | -9.4% | -11.5% |
| Net Income Margin | -9.8% | 9.1% | 0.7% | 0.2% | -16.2% | -16.4% |
| SG&A, % of revenue | | 18.7% | 19.0% | 17.5% | 31.1% | 13.6% |
| CAPEX, % of revenue | 0.2% | 2.1% | 0.3% | 0.2% | 0.4% | 0.2% |
| ROIC | -8.8% | 2.5% | 3.3% | 2.5% | -11.3% | -13.8% |
| ROE | -14.7% | 25.6% | 2.0% | 0.8% | -48.7% | -49.5% |
| Net Debt/EBITDA | | 11.5x | 11.7x | 15.7x | | -15.7x |
Revenue and profitability
Takson Holdings Ltd's Revenue dropped on 37.9%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 11.5 pp from 2.1% to -9.4% in FY2016.
Gross Margin increased on 7.2 pp from 17.8% to 25.1% in FY2016. SG&A as a % of Revenue jumped on 13.6 pp from 17.5% to 31.1% in FY2016.
Net Income marign dropped on 16.4 pp from 0.20% to -16.2% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Takson Holdings Ltd had CAPEX/Revenue of 0.42%. The company showed small CAPEX/Revenue decline of 1.6 pp from 2.1% in FY2013 to 0.42% in FY2016. Average CAPEX/Revenue for the last three years was 0.30%.
Return on investment
The company operates at negative ROIC (-11.32%) and ROE (-48.69%). ROIC dropped on 13.8 pp from 2.5% to -11.3% in FY2016. ROE dropped on 49.5 pp from 0.80% to -48.7% in FY2016.
Leverage (Debt)
Debt level is -6.2x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 15.7x from 15.7x to in FY2016. Debt decreased slightly on 0.75% while cash decreased on 4.8%.
Appendix 1: Peers in Distribution/Wholesale
Below we provide Takson Holdings Ltd benchmarking against other companies in Distribution/Wholesale 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 |
|---|
| C Y Foundation Group Ltd ($1182) | | -65.6% | 5.9% | 214.6% | -14.6% |
| China Fortune Holdings Ltd ($110) | -64.7% | -68.2% | -71.0% | 174.2% | |
| Hailiang International Holdings Ltd ($2336) | 9.7% | -30.8% | -69.1% | 99.7% | |
| Forefront Group Ltd ($885) | | 504.6% | 3,871.0% | 72.0% | |
| Yestar International Holdings Co Ltd ($2393) | -2.2% | 22.8% | 30.5% | 60.3% | |
| |
|---|
| Median (35 companies) | 2.5% | 0.0% | 0.8% | -2.0% | -14.6% |
|---|
| Takson Holdings Ltd ($918) | | 100.6% | 19.7% | 38.9% | -37.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Yunnan Tin Minerals Group Co Ltd ($263) | 79.6% | 66.3% | | 98.7% | |
| Goldin Financial Holdings Ltd ($530) | 75.3% | 71.7% | 74.8% | 73.8% | |
| YGM Trading Ltd ($375) | 66.5% | 67.4% | 64.0% | 62.5% | 58.7% |
| Goldlion Holdings Ltd ($533) | 56.4% | 54.1% | 55.7% | 60.0% | |
| E.Bon Holdings Ltd ($599) | 40.3% | 37.4% | 35.8% | 39.6% | 42.4% |
| |
|---|
| Median (33 companies) | 17.3% | 17.1% | 18.0% | 21.1% | 23.4% |
|---|
| Takson Holdings Ltd ($918) | 24.2% | 20.4% | 21.3% | 17.8% | 25.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China LNG Group Ltd ($931) | 95.1% | 76.4% | 97.9% | 1,277.8% | |
| Goldin Financial Holdings Ltd ($530) | 163.7% | 613.4% | 285.7% | 364.1% | |
| China Infrastructure Investment Ltd ($600) | -274.9% | 120.0% | 52.0% | 134.5% | |
| China Yunnan Tin Minerals Group Co Ltd ($263) | -1,064.4% | -252.1% | | 62.8% | |
| Goldlion Holdings Ltd ($533) | 25.8% | 23.4% | 22.5% | 22.8% | |
| |
|---|
| Median (36 companies) | 2.6% | 1.9% | 4.6% | 4.9% | -5.0% |
|---|
| Takson Holdings Ltd ($918) | -10.6% | 2.9% | 3.4% | 2.1% | -9.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SIS International Holdings ($529) | 13.4% | 31.8% | 14.8% | 49.8% | |
| Inspur International Ltd ($596) | 8.4% | 12.2% | 33.6% | 25.6% | |
| China LNG Group Ltd ($931) | 11.1% | 0.3% | 0.6% | 15.6% | |
| YGM Trading Ltd ($375) | 1.8% | 2.1% | 3.5% | 14.5% | 4.0% |
| Victory Group Ltd ($1139) | 0.7% | 0.1% | 6.1% | 12.6% | |
| |
|---|
| Median (35 companies) | 1.4% | 1.7% | 1.7% | 1.2% | 3.5% |
|---|
| Takson Holdings Ltd ($918) | 0.2% | 2.1% | 0.3% | 0.2% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China LNG Group Ltd ($931) | 8.4% | 7.4% | 87.0% | 56.2% | |
| Powerwell Pacific Holdings Ltd ($8265) | 6.4% | 6.4% | 23.6% | 27.1% | |
| Yestar International Holdings Co Ltd ($2393) | 28.8% | 24.1% | 26.2% | 25.4% | |
| E.Bon Holdings Ltd ($599) | 7.0% | 7.2% | 3.3% | 16.9% | 17.4% |
| Goldin Financial Holdings Ltd ($530) | 5.9% | 20.6% | 10.4% | 16.0% | |
| |
|---|
| Median (37 companies) | 2.7% | 0.9% | 3.1% | 2.8% | -6.2% |
|---|
| Takson Holdings Ltd ($918) | -8.8% | 2.5% | 3.3% | 2.5% | -11.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SIS International Holdings ($529) | -1.8x | 7.0x | 7.2x | 16.8x | |
| Leeport Holdings Ltd ($387) | | | | 16.1x | |
| Sheng Yuan Holdings Ltd ($851) | | | 19.3x | 15.4x | |
| Forefront Group Ltd ($885) | | | -0.0x | 15.3x | |
| Lee Kee Holdings Ltd ($637) | | | 6.1x | 6.1x | |
| |
|---|
| Median (26 companies) | -0.2x | -0.8x | -0.1x | -0.3x | -2.7x |
|---|
| Takson Holdings Ltd ($918) | | 11.5x | 11.7x | 15.7x | |
