Haier Healthwise Holdings Ltd reports 37.4% CAPEX growth in 2016 while 9.4% Revenue decline
30/06/2016 • About Haier Healthwise Holdings Ltd (
$348) • By InTwits
Haier Healthwise Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Haier Healthwise Holdings Ltd is a company in decline: FY2016 revenue growth was -9.4%, 5 years revenue CAGR was -8.1%
- The company operates at negative EBITDA Margin: -19.4%
- Haier Healthwise Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -0.1%0
- Haier Healthwise Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.9%. At the same time it's in pair with industry average of 7.6%.
- CAPEX is quite volatile: 44.5 in FY2016, 32.4 in FY2015, 11.0 in FY2014, 4.7 in FY2013, 2.1 in FY2012
- The company has unprofitable business model: ROIC is at -12.4%
- It operates with high leverage: Net Debt/EBITDA is 3.0x 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.
Haier Healthwise Holdings Ltd ($348) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 419.8 | 209.3 | 193.7 | 389.4 | 352.8 | -9.4% |
| Gross Profit | 65.4 | 53.4 | 59.6 | 111.9 | 62.8 | -43.9% |
| SG&A | 62.8 | 49.7 | 72.7 | 130.9 | 134.1 | 2.5% |
| EBITDA | 83.4 | 5.9 | -9.4 | -12.6 | -68.6 | |
| Net Income | 77.6 | 2.2 | 5.3 | 17.0 | -81.3 | -577.3% |
Balance Sheet
|
|---|
| Cash | 7.2 | 418.2 | 116.1 | 107.0 | 125.6 | 17.4% |
| Short Term Debt | 15.5 | 45.6 | 12.1 | 24.1 | 36.6 | 51.7% |
| Long Term Debt | 50.0 | 0.0 | 7.8 | 15.1 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 2.1 | 4.7 | 11.0 | 32.4 | 44.5 | 37.4% |
Ratios
|
|---|
| Revenue growth | -22.0% | -50.1% | -7.5% | 101.1% | -9.4% | |
| EBITDA growth | -152.1% | -92.9% | -258.8% | 33.4% | 445.7% | |
| Gross Margin | 15.6% | 25.5% | 30.8% | 28.7% | 17.8% | -10.9% |
| EBITDA Margin | 19.9% | 2.8% | -4.9% | -3.2% | -19.4% | -16.2% |
| Net Income Margin | 18.5% | 1.1% | 2.7% | 4.4% | -23.1% | -27.4% |
| SG&A, % of revenue | 15.0% | 23.7% | 37.6% | 33.6% | 38.0% | 4.4% |
| CAPEX, % of revenue | 0.5% | 2.2% | 5.7% | 8.3% | 12.6% | 4.3% |
| ROIC | 93.8% | 0.7% | -2.5% | -3.4% | -12.4% | -9.0% |
| ROE | | 0.9% | 1.0% | 2.8% | -13.4% | -16.2% |
| Net Debt/EBITDA | 0.7x | -62.8x | | | | 0.0x |
Revenue and profitability
The company's Revenue decreased on 9.4%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 16.2 pp from -3.2% to -19.4% in FY2016.
Gross Margin dropped on 10.9 pp from 28.7% to 17.8% in FY2016. SG&A as a % of Revenue increased on 4.4 pp from 33.6% to 38.0% in FY2016.
Net Income marign dropped on 27.4 pp from 4.4% to -23.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Haier Healthwise Holdings Ltd had CAPEX/Revenue of 12.6%. Haier Healthwise Holdings Ltd showed fast CAPEX/Revenue growth of 10.4 pp from 2.2% in FY2013 to 12.6% in FY2016. For the last three years the average CAPEX/Revenue was 8.9%.
Return on investment
The company operates at negative ROIC (-12.39%) and ROE (-13.41%). ROIC decreased on 9.0 pp from -3.4% to -12.4% in FY2016. ROE dropped on 16.2 pp from 2.8% to -13.4% in FY2016.
Leverage (Debt)
Debt level is 3.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt decreased on 6.6% while cash surged on 17.4%.
Appendix 1: Peers in Commercial Services
Below we provide Haier Healthwise 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% | |
| CAR Inc ($699) | 96.4% | 68.0% | 30.3% | 42.1% | |
| |
|---|
| Median (65 companies) | 6.5% | 8.6% | 9.9% | 4.0% | 14.6% |
|---|
| Haier Healthwise Holdings Ltd ($348) | | -50.1% | -7.5% | 101.1% | -9.4% |
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) | 32.2% | 31.1% | 31.8% | 31.9% | 35.3% |
|---|
| Haier Healthwise Holdings Ltd ($348) | 15.6% | 25.5% | 30.8% | 28.7% | 17.8% |
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) | 17.5% | 16.0% | 12.9% | 10.1% | 4.8% |
|---|
| Haier Healthwise Holdings Ltd ($348) | 19.9% | 2.8% | -4.9% | -3.2% | -19.4% |
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) | 3.1% | 4.0% | 2.6% | 2.8% | 1.7% |
|---|
| Haier Healthwise Holdings Ltd ($348) | 0.5% | 2.2% | 5.7% | 8.3% | 12.6% |
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) | 6.3% | 6.4% | 5.8% | 3.3% | 2.9% |
|---|
| Haier Healthwise Holdings Ltd ($348) | 93.8% | 0.7% | -2.5% | -3.4% | -12.4% |
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 (43 companies) | -0.0x | -0.7x | -0.5x | -0.6x | -1.8x |
|---|
