Prosperity International Holdings HK Ltd revenue dropped on 43.9% in 2016 and EBITDA Margin dropped on 18.0 pp from -4.6% to -22.6%
30/06/2016 • About Prosperity International Holdings HK Ltd (
$803) • By InTwits
Prosperity International Holdings HK Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Prosperity International Holdings HK Ltd is a company in decline: FY2016 revenue growth was -43.9%, 5 years revenue CAGR was -24.4%
- The company operates at negative EBITDA Margin: -22.6%
- Prosperity International Holdings HK Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -3.3% for the sames years0
- Prosperity International Holdings HK Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has unprofitable business model: ROIC is at -6.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Prosperity International Holdings HK Ltd ($803) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6,190 | 3,512 | 5,452 | 3,579 | 2,009 | -43.9% |
| Gross Profit | 122 | 73 | 665 | 190 | 38 | -79.9% |
| SG&A | 348 | 363 | 320 | 442 | 383 | -13.3% |
| EBITDA | -161 | -263 | 364 | -163 | -454 | |
| Net Income | -49 | -206 | 131 | -839 | -263 | |
Balance Sheet
|
|---|
| Cash | 1,395 | 1,005 | 804 | 269 | 180 | -33.0% |
| Short Term Debt | 1,410 | 1,007 | 1,198 | 2,294 | 1,536 | -33.0% |
| Long Term Debt | 438 | 666 | 825 | 1,680 | 727 | -56.7% |
Cash flow
|
|---|
| Capex | 21 | 7 | 53 | 15 | 44 | 187.2% |
Ratios
|
|---|
| Revenue growth | -23.9% | -43.3% | 55.2% | -34.4% | -43.9% | |
| EBITDA growth | -15.5% | 63.5% | -238.4% | -144.9% | 177.8% | |
| Gross Margin | 2.0% | 2.1% | 12.2% | 5.3% | 1.9% | -3.4% |
| EBITDA Margin | -2.6% | -7.5% | 6.7% | -4.6% | -22.6% | -18.0% |
| Net Income Margin | -0.8% | -5.9% | 2.4% | -23.5% | -13.1% | 10.4% |
| SG&A, % of revenue | 5.6% | 10.3% | 5.9% | 12.4% | 19.1% | 6.7% |
| CAPEX, % of revenue | 0.3% | 0.2% | 1.0% | 0.4% | 2.2% | 1.8% |
| ROIC | -2.5% | -4.2% | 5.6% | -2.7% | -6.5% | -3.8% |
| ROE | -2.0% | -8.9% | 5.1% | -31.8% | -10.6% | 21.2% |
| Net Debt/EBITDA | | | 3.3x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 43.9%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 18.0 pp from -4.6% to -22.6% in FY2016.
Gross Margin decreased on 3.4 pp from 5.3% to 1.9% in FY2016. SG&A as a % of Revenue increased on 6.7 pp from 12.4% to 19.1% in FY2016.
Net Income marign jumped on 10.4 pp from -23.5% to -13.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Prosperity International Holdings HK Ltd's CAPEX/Revenue was 2.2% in FY2016. The company's CAPEX/Revenue increased slightly on 2.0 pp from 0.20% in FY2013 to 2.2% in FY2016. It's average CAPEX/Revenue for the last three years was 1.2%.
Return on investment
The company operates at negative ROIC (-6.48%) and ROE (-10.57%). ROIC decreased on 3.8 pp from -2.7% to -6.5% in FY2016. ROE surged on 21.2 pp from -31.8% to -10.6% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.2x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt dropped on 43.1% while cash dropped on 33.0%.
Appendix 1: Peers in Building Materials
Below we provide Prosperity International Holdings HK Ltd benchmarking against other companies in Building Materials 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 |
|---|
| Pacific Plywood Hldg Ltd ($767) | -34.9% | -14.5% | 119.5% | 57.3% | |
| Far East Global Group Ltd ($830) | 52.9% | 9.5% | 18.6% | 30.5% | |
| WLS Holdings Ltd/Hong Kong ($8021) | 8.9% | 9.4% | -11.1% | 22.0% | |
| China Wood Optimization Holding Ltd ($8099) | 68.7% | 77.9% | 6.5% | 18.9% | |
| Steed Oriental Holdings Co Ltd ($8277) | | -4.2% | 11.0% | 9.4% | -21.5% |
| |
|---|
| Median (25 companies) | 0.3% | 9.7% | 6.5% | -14.1% | 25.0% |
|---|
| Prosperity International Holdings HK Ltd ($803) | | -43.3% | 55.2% | -34.4% | -43.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 91.4% | 82.0% | 97.2% | 98.6% | |
| Sustainable Forest Holdings Ltd ($723) | -2.4% | 12.1% | 19.7% | 55.2% | 83.9% |
| Dongpeng Holdings Co Ltd ($3386) | 35.6% | 37.1% | 38.5% | 39.1% | |
| Luks Group Vietnam Holdings Co Ltd ($366) | 37.2% | 36.9% | 37.0% | 36.4% | |
| Anhui Conch Cement Co Ltd ($914) | 27.3% | 32.5% | 33.2% | 26.9% | |
| |
|---|
| Median (25 companies) | 20.6% | 22.1% | 20.9% | 15.4% | 48.2% |
|---|
| Prosperity International Holdings HK Ltd ($803) | 2.0% | 2.1% | 12.2% | 5.3% | 1.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 12.6% | -19.8% | 50.5% | 34.7% | |
| China Tianrui Group Cement Co Ltd ($1252) | 28.5% | 23.7% | 26.7% | 32.8% | |
| Anhui Conch Cement Co Ltd ($914) | 27.1% | 31.1% | 32.1% | 29.7% | |
| Luks Group Vietnam Holdings Co Ltd ($366) | 30.4% | 29.9% | 23.8% | 26.2% | |
| Dongpeng Holdings Co Ltd ($3386) | 14.3% | 21.5% | 22.6% | 24.4% | |
| |
|---|
| Median (25 companies) | 15.8% | 16.6% | 18.2% | 14.0% | -2.9% |
|---|
| Prosperity International Holdings HK Ltd ($803) | -2.6% | -7.5% | 6.7% | -4.6% | -22.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Wood Optimization Holding Ltd ($8099) | 10.9% | 9.6% | 1.8% | 19.3% | |
| China Shanshui Cement Group Ltd ($691) | 18.9% | 21.1% | 12.1% | 14.3% | |
| Luks Group Vietnam Holdings Co Ltd ($366) | 0.6% | 0.5% | 4.1% | 14.2% | |
| China Glass Holdings Ltd ($3300) | 19.6% | 12.5% | 12.4% | 13.5% | |
| WLS Holdings Ltd/Hong Kong ($8021) | 6.0% | 6.6% | 7.9% | 11.5% | |
| |
|---|
| Median (25 companies) | 9.8% | 9.1% | 7.5% | 6.6% | 0.8% |
|---|
| Prosperity International Holdings HK Ltd ($803) | 0.3% | 0.2% | 1.0% | 0.4% | 2.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dongpeng Holdings Co Ltd ($3386) | 37.1% | 35.8% | 27.2% | 26.6% | |
| China Wood Optimization Holding Ltd ($8099) | 33.5% | 27.3% | 17.7% | 17.7% | |
| China Lesso Group Holdings Ltd ($2128) | 20.5% | 19.4% | 18.2% | 17.2% | |
| Anhui Conch Cement Co Ltd ($914) | 12.7% | 17.5% | 18.4% | 11.7% | |
| Hong Wei Asia Holdings Co Ltd ($8191) | 17.0% | 5.2% | 9.3% | 8.6% | |
| |
|---|
| Median (25 companies) | 6.6% | 6.9% | 4.9% | 1.3% | -2.0% |
|---|
| Prosperity International Holdings HK Ltd ($803) | -2.5% | -4.2% | 5.6% | -2.7% | -6.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Tianrui Group Cement Co Ltd ($1252) | 4.2x | 5.1x | 5.2x | 7.9x | |
| BBMG Corp ($2009) | 4.6x | 5.0x | 6.1x | 6.6x | |
| Asia Cement China Holdings Corp ($743) | 3.2x | 2.7x | 2.8x | 5.1x | |
| West China Cement Ltd ($2233) | 3.3x | 2.9x | 3.6x | 4.2x | |
| China Singyes Solar Technologies Holdings Ltd ($750) | 0.9x | 0.8x | 1.8x | 4.0x | |
| |
|---|
| Median (16 companies) | 2.3x | 1.1x | 1.8x | 3.5x | |
|---|
