Wai Chun Group Holdings Ltd revenue jumped on 16.8% while EBITDA Margin decreased on 7.7 pp from -19.9% to -27.6%
29/06/2016 • About Wai Chun Group Holdings Ltd (
$1013) • By InTwits
Wai Chun Group Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Wai Chun Group Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -141.1%
- The company operates at negative EBITDA Margin: -27.6%
- Wai Chun 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 -21.1% for the sames years0
- Wai Chun Group Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has unprofitable business model: ROIC is at -141.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Wai Chun Group Holdings Ltd ($1013) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 140.6 | 143.3 | 139.4 | 152.5 | 178.1 | 16.8% |
| Gross Profit | 18.6 | 21.6 | 21.1 | 29.7 | 31.3 | 5.2% |
| SG&A | | 43.6 | 69.0 | 62.4 | 87.0 | 39.5% |
| EBITDA | -19.4 | -13.3 | -46.9 | -30.3 | -49.1 | |
| Net Income | -27.0 | -10.9 | -39.1 | -29.1 | -56.7 | |
Balance Sheet
|
|---|
| Cash | 24.0 | 4.9 | 14.5 | 3.6 | 36.0 | 892.8% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 1.6 | |
| Long Term Debt | 15.3 | 28.4 | 0.0 | 0.8 | 49.8 | 6,172.2% |
Cash flow
|
|---|
| Capex | 1.2 | 1.3 | 1.9 | 0.4 | 0.1 | -84.2% |
Ratios
|
|---|
| Revenue growth | 58.2% | 1.9% | -2.7% | 9.3% | 16.8% | |
| EBITDA growth | 6.6% | -31.6% | 254.2% | -35.4% | 61.9% | |
| Gross Margin | 13.2% | 15.1% | 15.1% | 19.5% | 17.6% | -1.9% |
| EBITDA Margin | -13.8% | -9.2% | -33.7% | -19.9% | -27.6% | -7.7% |
| Net Income Margin | -19.2% | -7.6% | -28.1% | -19.1% | -31.9% | -12.8% |
| SG&A, % of revenue | | 30.4% | 49.5% | 40.9% | 48.9% | 7.9% |
| CAPEX, % of revenue | 0.8% | 0.9% | 1.4% | 0.3% | 0.0% | -0.2% |
| ROIC | -31.9% | -18.6% | -59.1% | -68.9% | -141.1% | -72.2% |
Revenue and profitability
The company's Revenue surged on 16.8%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 16.7 pp from 5.7% to -11.0% in FY2016.
Gross Margin decreased slightly on 1.9 pp from 19.5% to 17.6% in FY2016. SG&A as a % of Revenue increased on 7.9 pp from 40.9% to 48.9% in FY2016.
Net Income marign dropped on 12.8 pp from -19.1% to -31.9% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.036% in FY2016. The company's CAPEX/Revenue decreased slightly on 0.90 pp from 0.94% in FY2013 to 0.036% in FY2016. For the last three years the average CAPEX/Revenue was 0.55%.
Leverage (Debt)
Company's Net Debt / EBITDA is -4.4x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt jumped on 6,369% while cash jumped on 893%.
Appendix 1: Peers in Computers
Below you can find Wai Chun Group Holdings Ltd benchmarking vs. other companies in Computers 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 |
|---|
| Shinhint Acoustic Link Holdings Ltd ($2728) | -65.4% | 8.8% | 27.1% | 759.3% | |
| Beautiful China Holdings Co Ltd ($706) | -7.8% | -23.3% | -37.1% | 267.1% | |
| Powerleader Science & Technology Group Ltd ($8236) | 2.5% | -10.3% | 18.8% | 45.0% | |
| Alibaba Health Information Technology Ltd ($241) | | -96.7% | 73.0% | 35.3% | 85.8% |
| Thiz Technology Group Ltd ($8119) | | -95.1% | 72.2% | 31.9% | 8.1% |
| |
|---|
| Median (25 companies) | 3.1% | -0.0% | 11.1% | -3.9% | 19.6% |
|---|
| Wai Chun Group Holdings Ltd ($1013) | | 1.9% | -2.7% | 9.3% | 16.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Universal Technologies Holdings Ltd ($1026) | 87.3% | 79.7% | 90.3% | 98.4% | |
| Thiz Technology Group Ltd ($8119) | 8.8% | 63.8% | 86.2% | 96.0% | 96.4% |
| Computer & Technologies Holdings Ltd ($46) | 45.3% | 54.0% | 52.1% | 54.2% | |
| Alibaba Health Information Technology Ltd ($241) | 11.4% | -12.6% | 49.3% | 53.7% | 67.1% |
| CCID Consulting Co Ltd ($8235) | 43.7% | 49.1% | 51.8% | 48.7% | |
| |
|---|
| Median (25 companies) | 12.1% | 16.6% | 15.6% | 18.4% | 40.9% |
|---|
| Wai Chun Group Holdings Ltd ($1013) | 13.2% | 15.1% | 15.1% | 19.5% | 17.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Thiz Technology Group Ltd ($8119) | -47.4% | -847.3% | -506.6% | 74.0% | -225.0% |
| World Wide Touch Technology Holdings Ltd ($1282) | 3.4% | -6.4% | -6.4% | 35.7% | |
| Ju Teng International Holdings Ltd ($3336) | 15.1% | 19.9% | 19.3% | 23.8% | |
| Computer & Technologies Holdings Ltd ($46) | 12.9% | 19.9% | 20.1% | 23.2% | |
| PAX Global Technology Ltd ($327) | 16.5% | 17.4% | 18.8% | 22.7% | |
| |
|---|
| Median (26 companies) | 3.2% | 3.1% | 2.0% | 4.3% | -111.6% |
|---|
| Wai Chun Group Holdings Ltd ($1013) | -13.8% | -9.2% | -33.7% | -19.9% | -27.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Beautiful China Holdings Co Ltd ($706) | 8.4% | 2.2% | 26.2% | 743.7% | |
| North Asia Resources Holdings Ltd ($61) | 4.6% | 94.2% | 177.8% | 110.2% | |
| China Uptown Group Co Ltd ($2330) | 0.0% | 0.2% | 1.0% | 20.5% | |
| Universal Technologies Holdings Ltd ($1026) | 20.0% | 5.7% | 14.2% | 20.3% | |
| Ju Teng International Holdings Ltd ($3336) | 14.1% | 18.7% | 20.0% | 17.3% | |
| |
|---|
| Median (26 companies) | 1.0% | 1.4% | 1.7% | 1.9% | 1.1% |
|---|
| Wai Chun Group Holdings Ltd ($1013) | 0.8% | 0.9% | 1.4% | 0.3% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lenovo Group Ltd ($992) | 26.2% | 30.5% | 34.7% | 24.5% | 1.0% |
| PAX Global Technology Ltd ($327) | 12.3% | 12.8% | 18.7% | 22.4% | |
| CCID Consulting Co Ltd ($8235) | 11.3% | 10.7% | 10.2% | 15.0% | |
| TPV Technology Ltd ($903) | 7.7% | 1.8% | 10.1% | 12.0% | |
| Goldenmars Technology Holdings Ltd ($8036) | | 10.5% | 11.4% | 11.6% | 9.5% |
| |
|---|
| Median (26 companies) | 2.1% | 1.8% | 0.5% | 2.5% | -3.2% |
|---|
| Wai Chun Group Holdings Ltd ($1013) | -31.9% | -18.6% | -59.1% | -68.9% | -141.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shinhint Acoustic Link Holdings Ltd ($2728) | -2.8x | -2.5x | -20.8x | 8.8x | |
| Thiz Technology Group Ltd ($8119) | | | | 8.2x | |
| Powerleader Science & Technology Group Ltd ($8236) | 2.7x | 3.6x | 4.6x | 6.7x | |
| EVOC Intelligent Technology Co Ltd ($2308) | 0.5x | 5.8x | 5.7x | 5.4x | |
| Perception Digital Holdings Ltd ($1822) | | | | 1.8x | |
| |
|---|
| Median (17 companies) | -2.1x | -1.3x | -3.2x | 0.4x | 0.3x |
|---|
