AcrossAsia Ltd reports 71.3% EBITDA decline while 32.6% Revenue growth
12/07/2016 • About AcrossAsia Ltd (
$8061) • By InTwits
AcrossAsia Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- AcrossAsia Ltd doesn't have a profitable business model yet: 2015 ROIC is -12.5%
- EBITDA Margin is quite volatile: 9.7% in 2015, 44.7% in 2014, 24.2% in 2013, 20.8% in 2012, 15.4% in 2011
- AcrossAsia Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 53.2%. At the same time it's a lot of higher than industry average of 4.8%.
- CAPEX is quite volatile: 13.5 in FY2015, 6.9 in FY2014, 341 in FY2013, 2.9 in FY2012, 12.5 in FY2011
- The company has unprofitable business model: ROIC is at -12.5%
- It operates with high leverage: Net Debt/EBITDA is 7.7x while industry average is -1.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
AcrossAsia Ltd ($8061) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 921 | 1,091 | 1,299 | 1,557 | 2,064 | 32.6% |
| Gross Profit | 725 | 773 | 948 | 1,129 | 943 | -16.5% |
| SG&A | | 696 | 791 | 719 | 1,300 | 80.8% |
| EBITDA | 142 | 227 | 314 | 695 | 200 | -71.3% |
| Net Income | -80 | -90 | -159 | -67 | -279 | 318.5% |
Balance Sheet
|
|---|
| Cash | 692 | 685 | 251 | 421 | 226 | -46.3% |
| Short Term Debt | 255 | 363 | 435 | 361 | 793 | 119.8% |
| Long Term Debt | 676 | 846 | 716 | 1,110 | 968 | -12.8% |
Cash flow
|
|---|
| Capex | 563 | 618 | 857 | 565 | 944 | 67.1% |
Ratios
|
|---|
| Revenue growth | 29.9% | 18.5% | 19.1% | 19.8% | 32.6% | |
| EBITDA growth | -22.2% | 60.5% | 38.0% | 121.5% | -71.3% | |
| Gross Margin | 78.7% | 70.9% | 73.0% | 72.5% | 45.7% | -26.9% |
| EBITDA Margin | 15.4% | 20.8% | 24.2% | 44.7% | 9.7% | -35.0% |
| Net Income Margin | -8.7% | -8.2% | -12.2% | -4.3% | -13.5% | -9.2% |
| SG&A, % of revenue | | 63.8% | 60.8% | 46.2% | 63.0% | 16.8% |
| CAPEX, % of revenue | 61.2% | 56.6% | 65.9% | 36.3% | 45.8% | 9.5% |
| ROIC | -2.5% | 0.3% | 2.1% | 11.5% | -12.5% | -24.0% |
| ROE | | -39.2% | | | -104.3% | -104.3% |
| Net Debt/EBITDA | 1.7x | 2.3x | 2.9x | 1.5x | 7.7x | 6.2x |
Revenue and profitability
The company's Revenue jumped on 32.6% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.8 pp from 21.6% to 23.4% in 2015.
Gross Margin dropped on 26.9 pp from 72.5% to 45.7% in 2015. SG&A as a % of Revenue surged on 16.8 pp from 46.2% to 63.0% in 2015.
Net Income marign decreased on 9.2 pp from -4.3% to -13.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
AcrossAsia Ltd's CAPEX/Revenue was 45.8% in 2015. AcrossAsia Ltd's CAPEX/Revenue dropped on 10.9 pp from 56.6% in 2012 to 45.8% in 2015. It's average level of CAPEX/Revenue for the last three years was 49.3%.The company has spent a lot to CAPEX (473% of EBITDA) to secure its growth.
Return on investment
The company operates at negative ROIC (-12.48%) and ROE (-104.25%). ROIC dropped on 24.0 pp from 11.5% to -12.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 7.7x and Debt / EBITDA is 8.8x. Net Debt / EBITDA surged on 6.2x from 1.5x to 7.7x in 2015. Debt jumped on 19.8% in 2015 while cash dropped on 46.3% in 2015.
Appendix 1: Peers in Internet
Below we provide AcrossAsia Ltd benchmarking against other companies in Internet 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asian Capital Resources Holdings Ltd ($8025) | | -5.6% | | | 1,114.6% |
| China Public Procurement Ltd ($1094) | | 5,077.0% | -67.5% | 1,258.9% | 105.7% |
| Ourgame International Holdings Ltd ($6899) | | 33.7% | 14.8% | 101.3% | 61.8% |
| Media Asia Group Holdings Ltd ($8075) | | 1,124.6% | 275.6% | 3.6% | 55.9% |
| Tai Shing International Holdings Ltd ($8103) | | | -35.9% | -4.9% | 48.5% |
| |
|---|
| Median (21 companies) | | 12.3% | 8.3% | 11.3% | 8.5% |
|---|
| AcrossAsia Ltd ($8061) | | 18.5% | 19.1% | 19.8% | 32.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino-I Technology Ltd ($250) | 74.2% | 75.3% | 82.7% | 78.8% | 82.8% |
| ABC Multiactive Ltd ($8131) | 73.0% | 86.7% | 83.5% | 86.2% | 82.1% |
| China Digital Culture Group Ltd ($8175) | 62.1% | 64.3% | 78.6% | 65.2% | 72.7% |
| Prosten Technology Holdings Ltd ($8026) | | 52.4% | 47.8% | 50.8% | 67.1% |
| SUNeVision Holdings Ltd ($8008) | 51.4% | 53.5% | 60.5% | 64.7% | 65.6% |
| |
|---|
| Median (18 companies) | 62.1% | 65.0% | 63.4% | 61.3% | 55.2% |
|---|
| AcrossAsia Ltd ($8061) | 78.7% | 70.9% | 73.0% | 72.5% | 45.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SUNeVision Holdings Ltd ($8008) | 61.1% | 64.2% | 71.6% | 71.6% | 72.4% |
| China Digital Culture Group Ltd ($8175) | -12.1% | -66.7% | 22.5% | 40.8% | 46.6% |
| Tencent Holdings Ltd ($700) | 48.2% | 38.4% | 34.7% | 42.5% | 43.5% |
| Tradelink Electronic Commerce Ltd ($536) | 42.1% | 38.6% | 33.8% | 33.1% | 31.1% |
| GET Holdings Ltd ($8380) | -182.0% | -237.7% | 56.8% | 66.4% | 28.5% |
| |
|---|
| Median (21 companies) | 14.3% | 5.1% | 18.6% | 13.8% | 9.6% |
|---|
| AcrossAsia Ltd ($8061) | 15.4% | 20.8% | 24.2% | 44.7% | 9.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asian Capital Resources Holdings Ltd ($8025) | 0.0% | 0.0% | | 12.2% | 14.0% |
| SUNeVision Holdings Ltd ($8008) | 14.2% | 7.6% | 10.2% | 62.8% | 12.4% |
| Tencent Holdings Ltd ($700) | 14.2% | 9.0% | 8.1% | 5.5% | 8.2% |
| Ourgame International Holdings Ltd ($6899) | 4.5% | 1.8% | 3.1% | 1.7% | 6.4% |
| Sino-I Technology Ltd ($250) | 20.6% | 9.3% | 12.7% | 4.0% | 6.0% |
| |
|---|
| Median (21 companies) | 10.8% | 3.2% | 2.7% | 2.0% | 1.2% |
|---|
| AcrossAsia Ltd ($8061) | 61.2% | 56.6% | 65.9% | 36.3% | 45.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tencent Holdings Ltd ($700) | 33.4% | 29.5% | 26.7% | 29.1% | 24.3% |
| Pacific Online Ltd ($543) | 41.7% | 37.9% | 36.4% | 28.6% | 21.6% |
| Tradelink Electronic Commerce Ltd ($536) | 19.5% | 22.4% | 18.2% | 17.4% | 16.7% |
| SUNeVision Holdings Ltd ($8008) | 9.9% | 10.8% | 13.3% | 14.4% | 15.3% |
| Ourgame International Holdings Ltd ($6899) | | 42.8% | 33.3% | 17.5% | 12.7% |
| |
|---|
| Median (22 companies) | -0.8% | -4.4% | 4.0% | -2.6% | 1.7% |
|---|
| AcrossAsia Ltd ($8061) | -2.5% | 0.3% | 2.1% | 11.5% | -12.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tai Shing International Holdings Ltd ($8103) | | | | | 82.7x |
| Sino-I Technology Ltd ($250) | | | 9.4x | | 4.1x |
| GET Holdings Ltd ($8380) | | | -1.1x | -1.0x | 0.7x |
| Tencent Holdings Ltd ($700) | -0.1x | -0.2x | -0.2x | -0.2x | 0.5x |
| SUNeVision Holdings Ltd ($8008) | -2.7x | -2.2x | -2.0x | -1.5x | -1.2x |
| |
|---|
| Median (14 companies) | -1.7x | -1.6x | -1.2x | -1.5x | -1.9x |
|---|
| AcrossAsia Ltd ($8061) | 1.7x | 2.3x | 2.9x | 1.5x | 7.7x |
