Synertone Communication Corp Net Income dropped on 1,492% and Revenue dropped on 67.7%
16/08/2016 • About Synertone Communication Corp (
$1613) • By InTwits
Synertone Communication Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Synertone Communication Corp is a company in decline: FY2016 revenue growth was -67.7%, 5 years revenue CAGR was -13.4%
- EBITDA Margin is quite volatile: -77.6% in FY2016, 51.5% in FY2015, 49.4% in FY2014, 48.5% in FY2013, 44.9% in FY2012
- Synertone Communication Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 14.3%. At the same time it's a lot of higher than industry average of 57.3%.
- CAPEX is quite volatile: 15.2 in FY2016, 6.9 in FY2015, 27.6 in FY2014, 44.4 in FY2013, 2.1 in FY2012
- The company has unprofitable business model: ROIC is at -16.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Synertone Communication Corp ($1613) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 218.3 | 115.7 | 174.4 | 329.7 | 106.4 | -67.7% |
| Gross Profit | 148.7 | 74.1 | 123.0 | 165.9 | -11.1 | -106.7% |
| SG&A | | 43.5 | 84.6 | 75.9 | 93.8 | 23.6% |
| EBITDA | 97.9 | 56.1 | 86.2 | 169.9 | -82.6 | -148.6% |
| Net Income | 63.6 | 36.0 | 30.0 | 33.7 | -469.7 | -1,492.2% |
Balance Sheet
|
|---|
| Cash | 37.2 | 124.5 | 87.8 | 54.1 | 12.4 | -77.0% |
| Short Term Debt | 0.0 | 0.0 | 75.5 | 94.2 | 208.5 | 121.2% |
| Long Term Debt | 0.0 | 0.0 | 423.7 | 388.4 | 359.1 | -7.5% |
Cash flow
|
|---|
| Capex | 2.1 | 44.4 | 27.6 | 6.9 | 15.2 | 121.8% |
Ratios
|
|---|
| Revenue growth | -0.3% | -47.0% | 50.8% | 89.0% | -67.7% | |
| EBITDA growth | -9.6% | -42.7% | 53.8% | 97.0% | -148.6% | |
| Gross Margin | 68.1% | 64.1% | 70.5% | 50.3% | -10.5% | -60.8% |
| EBITDA Margin | 44.9% | 48.5% | 49.4% | 51.5% | -77.6% | -129.1% |
| Net Income Margin | 29.1% | 31.1% | 17.2% | 10.2% | -441.5% | -451.8% |
| SG&A, % of revenue | | 37.6% | 48.5% | 23.0% | 88.1% | 65.1% |
| CAPEX, % of revenue | 0.9% | 38.4% | 15.8% | 2.1% | 14.3% | 12.2% |
| ROIC | 38.8% | 17.6% | 7.4% | 8.7% | -16.2% | -24.9% |
| ROE | 34.7% | 14.9% | 8.4% | 7.1% | -106.0% | -113.1% |
| Net Debt/EBITDA | -0.4x | -2.2x | 4.8x | 2.5x | | -2.5x |
Revenue and profitability
Synertone Communication Corp's Revenue dropped on 67.7%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 129 pp from 51.5% to -77.6% in FY2016.
Gross Margin dropped on 60.8 pp from 50.3% to -10.5% in FY2016. SG&A as a % of Revenue jumped on 65.1 pp from 23.0% to 88.1% in FY2016.
Net Income marign dropped on 452 pp from 10.2% to -442% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Synertone Communication Corp had CAPEX/Revenue of 14.3%. The company's CAPEX/Revenue dropped on 24.1 pp from 38.4% in FY2013 to 14.3% in FY2016. Average CAPEX/Revenue for the last three years was 10.7%.
Return on investment
The company operates at negative ROIC (-16.23%) and ROE (-106.00%). ROIC dropped on 24.9 pp from 8.7% to -16.2% in FY2016. ROE dropped on 113 pp from 7.1% to -106% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -7.4x and Debt / EBITDA is . Net Debt / EBITDA dropped on 2.5x from 2.5x to in FY2016. Debt jumped on 17.6% while cash dropped on 77.0%.
Appendix 1: Peers in Telecommunications
Below you can find Synertone Communication Corp benchmarking vs. other companies in Telecommunications 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 |
|---|
| Hong Kong Television Network Ltd ($1137) | | 107.4% | -82.2% | 8,010.0% | |
| Hanny Holdings Ltd ($275) | | 131.2% | -85.2% | 349.3% | -78.5% |
| 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% | |
| |
|---|
| Median (52 companies) | 8.7% | 9.8% | 9.6% | 6.1% | -3.1% |
|---|
| Synertone Communication Corp ($1613) | | -47.0% | 50.8% | 89.0% | -67.7% |
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) | 23.6% | 24.3% | 25.0% | 22.7% | 30.6% |
|---|
| Synertone Communication Corp ($1613) | 68.1% | 64.1% | 70.5% | 50.3% | -10.5% |
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% | |
| HKBN Ltd ($1310) | | 39.2% | 40.1% | 39.0% | |
| HKT Trust & HKT Ltd ($6823) | 36.3% | 35.0% | 35.9% | 34.9% | |
| PCCW Ltd ($8) | 32.0% | 31.9% | 39.2% | 30.6% | |
| |
|---|
| Median (52 companies) | 6.7% | 5.5% | 5.4% | 8.3% | 0.4% |
|---|
| Synertone Communication Corp ($1613) | 44.9% | 48.5% | 49.4% | 51.5% | -77.6% |
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) | 2.3% | 2.9% | 2.9% | 2.6% | 3.1% |
|---|
| Synertone Communication Corp ($1613) | 0.9% | 38.4% | 15.8% | 2.1% | 14.3% |
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) | 7.1% | 5.8% | 5.8% | 5.4% | -0.4% |
|---|
| Synertone Communication Corp ($1613) | 38.8% | 17.6% | 7.4% | 8.7% | -16.2% |
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 (38 companies) | -0.2x | 0.7x | 0.6x | 0.5x | 1.0x |
|---|
| Synertone Communication Corp ($1613) | -0.4x | -2.2x | 4.8x | 2.5x | |
