Lippo Ltd Net Income dropped on 125% while EBITDA Margin jumped on 14.0 pp from -4.9% to 9.2%
30/06/2016 • About Lippo Ltd (
$226) • By InTwits
Lippo Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Lippo Ltd doesn't have a profitable business model yet: FY2016 ROIC is 1.5%
- EBITDA Margin is quite volatile: 9.2% in FY2016, -4.9% in FY2015, 22.6% in FY2014, -0.7% in FY2013, -16.6% in FY2012
- The company has potentially unprofitable business model: ROIC is at 1.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Lippo Ltd ($226) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 429 | 3,536 | 6,732 | 2,974 | 3,857 | 29.7% |
| Gross Profit | 334 | 1,710 | 3,175 | 1,377 | 1,653 | 20.0% |
| SG&A | | 1,155 | 983 | 1,042 | 901 | -13.5% |
| EBITDA | -71 | -25 | 1,521 | -145 | 354 | |
| Net Income | 74 | -10 | 112 | 744 | -187 | -125.1% |
Balance Sheet
|
|---|
| Cash | 2,816 | 2,894 | 4,378 | 4,731 | 3,237 | -31.6% |
| Short Term Debt | 999 | 653 | 1,207 | 1,310 | 402 | -69.3% |
| Long Term Debt | 2,314 | 2,329 | 133 | 487 | 887 | 82.0% |
Cash flow
|
|---|
| Capex | | 165 | 156 | 155 | 50 | -67.9% |
Ratios
|
|---|
| Revenue growth | 26.8% | 724.4% | 90.4% | -55.8% | 29.7% | |
| EBITDA growth | -24.6% | -64.5% | -6,128.9% | -109.5% | -344.8% | |
| Gross Margin | 78.0% | 48.4% | 47.2% | 46.3% | 42.9% | -3.5% |
| EBITDA Margin | -16.6% | -0.7% | 22.6% | -4.9% | 9.2% | 14.0% |
| Net Income Margin | 17.2% | -0.3% | 1.7% | 25.0% | -4.8% | -29.8% |
| SG&A, % of revenue | | 32.7% | 14.6% | 35.0% | 23.4% | -11.7% |
| CAPEX, % of revenue | | 4.7% | 2.3% | 5.2% | 1.3% | -3.9% |
| ROIC | -0.5% | -0.8% | 7.5% | -1.4% | 1.5% | 2.9% |
| ROE | 0.8% | -0.1% | 1.3% | 8.2% | -2.0% | -10.2% |
| Net Debt/EBITDA | | | -2.0x | | -5.5x | -5.5x |
Revenue and profitability
Lippo Ltd's Revenue jumped on 29.7%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 14.0 pp from -4.9% to 9.2% in FY2016.
Gross Margin decreased on 3.5 pp from 46.3% to 42.9% in FY2016. SG&A as a % of Revenue dropped on 11.7 pp from 35.0% to 23.4% in FY2016.
Net Income marign dropped on 29.8 pp from 25.0% to -4.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Lippo Ltd had CAPEX/Revenue of 1.3%. The company's CAPEX/Revenue decreased on 3.4 pp from 4.7% in FY2013 to 1.3% in FY2016. It's average level of CAPEX/Revenue for the last three years was 2.9%.
Return on investment
The company operates at low but positive ROIC (1.50%) and negative ROE (-2.00%). ROIC increased on 2.9 pp from -1.4% to 1.5% in FY2016. ROE dropped on 10.2 pp from 8.2% to -2.0% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -5.5x and Debt / EBITDA is 3.6x. Net Debt / EBITDA dropped5.5x from to -5.5x in FY2016. Debt dropped on 28.3% while cash dropped on 31.6%.
Appendix 1: Peers in Holding Companies-Divers
Below you can find Lippo Ltd benchmarking vs. other companies in Holding Companies-Divers 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 |
|---|
| Beijing Development HK Ltd ($154) | 12.5% | | | 1,048.9% | |
| CIAM Group Ltd ($378) | -62.2% | 47.9% | -40.0% | 211.5% | |
| Melco International Development Ltd ($200) | 16.5% | 21.7% | 3.0% | 134.9% | |
| New Century Group Hong Kong Ltd ($234) | | 326.7% | -70.3% | 118.2% | -78.2% |
| Greater China Holdings Ltd ($431) | -35.8% | -72.1% | 67.3% | 110.3% | |
| |
|---|
| Median (44 companies) | 8.2% | 4.9% | 12.6% | 6.6% | -5.1% |
|---|
| Lippo Ltd ($226) | | 724.4% | 90.4% | -55.8% | 29.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Century Group Hong Kong Ltd ($234) | 27.3% | 85.2% | 82.8% | 91.5% | 43.4% |
| Melco International Development Ltd ($200) | 63.1% | 52.9% | 54.5% | 79.4% | |
| CIAM Group Ltd ($378) | | | | 75.8% | |
| Emperor International Holdings Ltd ($163) | 71.3% | 64.9% | 79.2% | 75.3% | 55.3% |
| Heng Fai Enterprises Ltd ($185) | 89.0% | 89.5% | 58.3% | 74.7% | |
| |
|---|
| Median (38 companies) | 32.9% | 34.6% | 30.8% | 34.2% | 42.0% |
|---|
| Lippo Ltd ($226) | 78.0% | 48.4% | 47.2% | 46.3% | 42.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Century Group Hong Kong Ltd ($234) | -5.5% | 78.8% | 58.3% | 85.0% | 33.8% |
| Emperor International Holdings Ltd ($163) | 180.7% | 131.8% | 100.6% | 73.9% | -20.1% |
| Pioneer Global Group Ltd ($224) | -0.5% | -9.9% | -11.6% | 64.3% | 66.8% |
| C C Land Holdings Ltd ($1224) | 27.0% | 23.6% | 24.6% | 55.7% | |
| China Merchants Holdings International Co Ltd ($144) | 56.4% | 50.8% | 45.2% | 55.7% | |
| |
|---|
| Median (44 companies) | 3.3% | 3.8% | 7.4% | 7.3% | 8.3% |
|---|
| Lippo Ltd ($226) | -16.6% | -0.7% | 22.6% | -4.9% | 9.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Heng Fai Enterprises Ltd ($185) | 4.8% | 77.1% | 310.0% | 458.1% | |
| Chinney Investments Ltd ($216) | 17.5% | 103.4% | 111.3% | 230.9% | 26.6% |
| China Investments Holdings Ltd ($132) | 4.8% | 81.9% | 382.2% | 222.5% | |
| Goldin Properties Holdings Ltd ($283) | 2,178.4% | 1,190.0% | 50.1% | 202.4% | 128.8% |
| Carnival Group International Holdings Ltd ($996) | | 137.9% | 61.0% | 133.3% | |
| |
|---|
| Median (44 companies) | 2.6% | 3.6% | 6.1% | 7.6% | 9.0% |
|---|
| Lippo Ltd ($226) | | 4.7% | 2.3% | 5.2% | 1.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Fulum Group Holdings Ltd ($1443) | | 116.3% | 55.5% | 29.8% | 12.9% |
| C C Land Holdings Ltd ($1224) | 7.4% | 5.3% | 7.9% | 15.0% | |
| Chinney Alliance Group Ltd ($385) | 6.4% | 8.1% | 13.6% | 15.0% | |
| Niraku GC Holdings Inc ($1245) | | 19.0% | 18.8% | 13.1% | 2.7% |
| Top Spring International Holdings Ltd ($3688) | 15.6% | 6.9% | 7.3% | 8.0% | |
| |
|---|
| Median (44 companies) | 0.1% | 0.6% | 0.8% | 0.4% | 2.1% |
|---|
| Lippo Ltd ($226) | -0.5% | -0.8% | 7.5% | -1.4% | 1.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chinney Investments Ltd ($216) | 10.3x | 63.7x | 48.6x | 93.7x | 13.5x |
| Carnival Group International Holdings Ltd ($996) | | | 23.7x | 92.3x | |
| Multifield International Holdings Ltd ($898) | 3.2x | 7.3x | 3.0x | 55.9x | |
| CIAM Group Ltd ($378) | | | | 32.6x | |
| Chuang's Consortium International Ltd ($367) | 0.7x | 5.0x | | 23.9x | 8.7x |
| |
|---|
| Median (26 companies) | 2.4x | 2.7x | 2.9x | 2.4x | 4.4x |
|---|
