Hanny Holdings Ltd CAPEX surged on 77,594% while Revenue dropped on 78.5%
30/06/2016 • About Hanny Holdings Ltd (
$275) • By InTwits
Hanny Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hanny Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -1.8%
- The company operates at negative EBITDA Margin: -309.7%
- Hanny 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 -99.6%0
- Hanny Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 140.6%. At the same time it's a lot of higher than industry average of 22.1%.
- CAPEX is quite volatile: 166 in FY2016, 0.21 in FY2015, 7.6 in FY2014, 20.9 in FY2013, 15.5 in FY2012
- The company has unprofitable business model: ROIC is at -1.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hanny Holdings Ltd ($275) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 78.1 | 180.6 | 26.7 | 120.1 | 25.9 | -78.5% |
| Gross Profit | 13.7 | 10.5 | 13.0 | 14.8 | 10.6 | -28.6% |
| SG&A | | | | 102.1 | 107.2 | 5.0% |
| EBITDA | -92.0 | -103.0 | -61.2 | -93.6 | -80.1 | |
| Net Income | -190.0 | -126.7 | -102.0 | -75.3 | -135.8 | |
Balance Sheet
|
|---|
| Cash | 818.4 | 496.7 | 403.2 | 149.3 | 78.9 | -47.1% |
| Short Term Debt | 314.6 | 217.5 | 837.8 | 1,040.0 | 665.1 | -36.0% |
| Long Term Debt | 0.0 | 749.1 | 573.5 | 535.6 | 1,255.9 | 134.5% |
Cash flow
|
|---|
| Capex | 15.5 | 20.9 | 7.6 | 0.2 | 166.3 | 77,594.4% |
Ratios
|
|---|
| Revenue growth | 236.4% | 131.2% | -85.2% | 349.3% | -78.5% | |
| EBITDA growth | -187.8% | 11.9% | -40.5% | 52.9% | -14.5% | |
| Gross Margin | 17.6% | 5.8% | 48.8% | 12.3% | 40.9% | 28.5% |
| EBITDA Margin | -117.7% | -57.0% | -229.1% | -78.0% | -309.7% | -231.7% |
| Net Income Margin | -243.2% | -70.2% | -381.8% | -62.7% | -525.2% | -462.5% |
| SG&A, % of revenue | | | | 85.1% | 414.8% | 329.8% |
| CAPEX, % of revenue | 19.8% | 11.6% | 28.3% | 0.2% | 643.1% | 643.0% |
| ROIC | -2.9% | -2.9% | -1.7% | -2.3% | -1.8% | 0.4% |
| ROE | -7.1% | -4.8% | -4.2% | -3.1% | -5.1% | -1.9% |
Revenue and profitability
The company's Revenue dropped on 78.5%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 232 pp from -78.0% to -310% in FY2016.
Gross Margin jumped on 28.5 pp from 12.3% to 40.9% in FY2016. SG&A as a % of Revenue surged on 330 pp from 85.1% to 415% in FY2016.
Net Income marign dropped on 462 pp from -62.7% to -525% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Hanny Holdings Ltd's CAPEX/Revenue was 643% in FY2016. Hanny Holdings Ltd showed fast CAPEX/Revenue growth of 632 pp from 11.6% in FY2013 to 643% in FY2016. It's average CAPEX/Revenue for the last three years was 224%.
Return on investment
The company operates at negative ROIC (-1.81%) and ROE (-5.07%). ROIC showed almost no change in FY2016. ROE decreased slightly on 1.9 pp from -3.1% to -5.1% in FY2016.
Leverage (Debt)
Debt level is -1.8x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt jumped on 21.9% while cash dropped on 47.1%.
Appendix 1: Peers in Telecommunications
Below we provide Hanny Holdings Ltd benchmarking against other companies in Telecommunications 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 |
|---|
| Hong Kong Television Network Ltd ($1137) | | 107.4% | -82.2% | 8,010.0% | |
| CCT Fortis Holdings Ltd ($138) | -24.1% | -55.3% | -71.3% | 207.1% | |
| Xi'an Haitian Antenna Technologies Co Ltd ($8227) | -8.5% | -45.9% | -56.2% | 111.6% | |
| China Trends Holdings Ltd ($8171) | 167.0% | -70.2% | -16.7% | 106.0% | |
| Synertone Communication Corp ($1613) | -0.3% | -47.0% | 50.8% | 89.0% | |
| |
|---|
| Median (52 companies) | 6.6% | 8.1% | 9.8% | 6.1% | -2.2% |
|---|
| Hanny Holdings Ltd ($275) | | 131.2% | -85.2% | 349.3% | -78.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HKBN Ltd ($1310) | | 84.3% | 86.5% | 86.9% | |
| Netel Technology Holdings Ltd ($8256) | 27.9% | 42.1% | 54.9% | 72.3% | |
| Great World Co Holdings Ltd ($8003) | -11.0% | 43.0% | 45.5% | 67.9% | 42.0% |
| APT Satellite Holdings Ltd ($1045) | 58.7% | 64.1% | 62.5% | 61.0% | |
| Cisco Systems Inc ($4333) | 61.2% | 60.6% | 58.9% | 60.4% | |
| |
|---|
| Median (49 companies) | 26.1% | 24.5% | 25.0% | 23.6% | 30.6% |
|---|
| Hanny Holdings Ltd ($275) | 17.6% | 5.8% | 48.8% | 12.3% | 40.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 86.5% | 85.8% | 81.6% | 82.4% | |
| APT Satellite Holdings Ltd ($1045) | 81.0% | 78.9% | 77.5% | 78.8% | |
| Synertone Communication Corp ($1613) | 44.9% | 48.5% | 49.4% | 51.5% | |
| HKBN Ltd ($1310) | | 39.2% | 40.1% | 39.0% | |
| HKT Trust & HKT Ltd ($6823) | 36.3% | 35.0% | 35.9% | 34.9% | |
| |
|---|
| Median (52 companies) | 8.3% | 5.5% | 6.4% | 9.2% | 0.4% |
|---|
| Hanny Holdings Ltd ($275) | -117.7% | -57.0% | -229.1% | -78.0% | -309.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| APT Satellite Holdings Ltd ($1045) | 74.3% | 2.5% | 27.2% | 115.8% | |
| Hong Kong Television Network Ltd ($1137) | 12,435.9% | 504.9% | 1,283.5% | 79.4% | |
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 93.8% | 71.7% | 75.0% | 52.8% | |
| China Fiber Optic Network System Group Ltd ($3777) | 4.8% | 16.3% | 13.1% | 31.9% | |
| Directel Holdings Ltd ($8337) | 2.1% | 0.1% | 0.6% | 30.2% | |
| |
|---|
| Median (52 companies) | 2.1% | 2.9% | 2.9% | 2.6% | 2.6% |
|---|
| Hanny Holdings Ltd ($275) | 19.8% | 11.6% | 28.3% | 0.2% | 643.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Telecom Service One Holdings Ltd ($8145) | 95.0% | 5.4% | 26.7% | 39.8% | 37.4% |
| VTech Holdings Ltd ($303) | 37.6% | 39.5% | 40.0% | 39.8% | 37.9% |
| Coolpad Group Ltd ($2369) | 8.1% | 6.0% | 9.6% | 29.1% | |
| Telecom Digital Holdings Ltd ($8336) | | 13.3% | 20.2% | 18.9% | 16.7% |
| SmarTone Telecommunications Holdings Ltd ($315) | 37.2% | 23.1% | 12.8% | 17.7% | |
| |
|---|
| Median (53 companies) | 7.7% | 6.0% | 6.6% | 6.3% | 5.3% |
|---|
| Hanny Holdings Ltd ($275) | -2.9% | -2.9% | -1.7% | -2.3% | -1.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CCT Land Holdings Ltd ($261) | 10.1x | 23.8x | 48.4x | 44.8x | |
| China Energine International Holdings Ltd ($1185) | | | 13.3x | 31.7x | |
| China Ground Source Energy Industry Group Ltd ($8128) | -1.6x | 3.5x | 14.3x | 11.3x | |
| China Electronics Corp Holdings Co Ltd ($85) | -2.0x | -1.3x | 12.5x | 7.6x | |
| China All Access Holdings Ltd ($633) | 0.9x | 1.8x | 5.2x | 5.6x | |
| |
|---|
| Median (39 companies) | -0.3x | 0.6x | 0.7x | 0.6x | 0.1x |
|---|
