Heng Fai Enterprises Ltd reports 30.2% revenue decline in FY2016
26/08/2016 • About Heng Fai Enterprises Ltd (
$185) • By InTwits
Heng Fai Enterprises Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Heng Fai Enterprises Ltd is a company in decline: FY2016 revenue growth was -30.2%, 5 years revenue CAGR was -10.9%
- EBITDA Margin is relatively stable: in FY2016 vs. -85.5% in FY2015 vs. -116.3% in FY2012
- Heng Fai Enterprises Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -95.8% for the sames years0
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Heng Fai Enterprises Ltd ($185) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 81.529 | 56.634 | 32.483 | 60.661 | 42.363 | -30.2% |
| Gross Profit | 72.583 | 50.677 | 18.951 | 45.318 | | -100.0% |
| SG&A | | | 69.513 | 99.417 | | -100.0% |
| EBITDA | -94.789 | -66.922 | -48.678 | -51.876 | | |
| Net Income | -188.271 | 33.375 | -43.503 | -54.920 | -8.300 | |
Balance Sheet
|
|---|
| Cash | 116.333 | 353.385 | 102.732 | 47.087 | | -100.0% |
| Short Term Debt | 156.166 | 195.503 | 165.784 | 210.769 | | -100.0% |
| Long Term Debt | 970.557 | 61.986 | 35.970 | 189.498 | | -100.0% |
Cash flow
|
|---|
| Capex | 3.874 | 43.683 | 100.702 | 277.873 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 8.2% | -30.5% | -42.6% | 86.7% | -30.2% | |
| EBITDA growth | 54.8% | -29.4% | -27.3% | 6.6% | | |
| Gross Margin | 89.0% | 89.5% | 58.3% | 74.7% | | -74.7% |
| EBITDA Margin | -116.3% | -118.2% | -149.9% | -85.5% | 0.0% | 85.5% |
| Net Income Margin | -230.9% | 58.9% | -133.9% | -90.5% | -19.6% | 70.9% |
| SG&A, % of revenue | | | 214.0% | 163.9% | | -163.9% |
| CAPEX, % of revenue | 4.8% | 77.1% | 310.0% | 458.1% | | -458.1% |
| ROIC | -5.2% | -4.3% | -4.6% | -5.0% | | 5.0% |
| ROE | -22.3% | 3.9% | -5.0% | -7.0% | | 7.0% |
Revenue and profitability
Heng Fai Enterprises Ltd's Revenue dropped on 30.2%.
Net Income marign surged on 70.9 pp from -90.5% to -19.6% in FY2016.
Appendix 1: Peers in Holding Companies-Divers
Below we provide Heng Fai Enterprises Ltd benchmarking against other companies in Holding Companies-Divers 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 |
|---|
| 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) | 9.4% | 5.1% | 15.7% | 3.3% | -4.5% |
|---|
| Heng Fai Enterprises Ltd ($185) | | -30.5% | -42.6% | 86.7% | -30.2% |
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% |
| Century Legend Holdings Ltd ($79) | 70.1% | 72.3% | 71.0% | 70.3% | |
| |
|---|
| Median (38 companies) | 32.9% | 34.6% | 30.8% | 34.2% | 42.9% |
|---|
| Heng Fai Enterprises Ltd ($185) | 89.0% | 89.5% | 58.3% | 74.7% | |
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% | 9.3% | 7.3% | 9.1% |
|---|
| Heng Fai Enterprises Ltd ($185) | -116.3% | -118.2% | -149.9% | -85.5% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | |
| Emperor International Holdings Ltd ($163) | 100.9% | 48.5% | 105.9% | 110.6% | 60.9% |
| |
|---|
| Median (44 companies) | 2.5% | 3.6% | 5.4% | 5.8% | 8.5% |
|---|
| Heng Fai Enterprises Ltd ($185) | 4.8% | 77.1% | 310.0% | 458.1% | |
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% | 1.2% | 0.4% | 1.8% |
|---|
| Heng Fai Enterprises Ltd ($185) | -5.2% | -4.3% | -4.6% | -5.0% | |
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 | 2.8x | 2.4x | 4.4x |
|---|
