Celebrate International Holdings Ltd reports 1,058% EBITDA decline in 2016 and 78.1% Revenue decline
19/09/2016 • About Celebrate International Holdings Ltd (
$8212) • By InTwits
Celebrate International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Celebrate International Holdings Ltd is a company in decline: FY2016 revenue growth was -78.1%, 5 years revenue CAGR was -7.6%
- The company operates at negative EBITDA Margin: -577.0%
- Celebrate International Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -116.9%0
- Celebrate International Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 56.6%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 1.7 in FY2016, 14.5 in FY2015, 1.2 in FY2014, 2.5 in FY2013, 2.9 in FY2012
- The company has unprofitable business model: ROIC is at -15.2%
- It operates with high leverage: Net Debt/EBITDA is 1.0x while industry average is -1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Celebrate International Holdings Ltd ($8212) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1.360 | 20.912 | 19.592 | 42.509 | 9.290 | -78.1% |
| Gross Profit | 0.096 | 0.754 | 0.009 | 0.031 | -0.769 | -2,580.6% |
| SG&A | | | 20.897 | 25.433 | 40.691 | 60.0% |
| EBITDA | -14.023 | -17.342 | -30.088 | 5.594 | -53.602 | -1,058.2% |
| Net Income | -1,050.110 | -40.570 | -50.318 | -6.595 | -59.237 | |
Balance Sheet
|
|---|
| Cash | 3.784 | 0.908 | 24.604 | 16.862 | 27.220 | 61.4% |
| Short Term Debt | 0.000 | 0.000 | 0.181 | 0.190 | 0.199 | 4.7% |
| Long Term Debt | 119.587 | 123.830 | 141.314 | 141.040 | 0.191 | -99.9% |
Cash flow
|
|---|
| Capex | 2.879 | 2.519 | 1.205 | 14.549 | 1.732 | -88.1% |
Ratios
|
|---|
| Revenue growth | -90.1% | 1,437.6% | -6.3% | 117.0% | -78.1% | |
| EBITDA growth | -72.1% | 23.7% | 73.5% | -118.6% | -1,058.2% | |
| Gross Margin | 7.1% | 3.6% | 0.0% | 0.1% | -8.3% | -8.4% |
| EBITDA Margin | -1,031.1% | -82.9% | -153.6% | 13.2% | -577.0% | -590.1% |
| Net Income Margin | -77,214.0% | -194.0% | -256.8% | -15.5% | -637.6% | -622.1% |
| SG&A, % of revenue | | | 106.7% | 59.8% | 438.0% | 378.2% |
| CAPEX, % of revenue | 211.7% | 12.0% | 6.2% | 34.2% | 18.6% | -15.6% |
| ROIC | -2.8% | -37.0% | -41.0% | 0.9% | -15.2% | -16.1% |
| ROE | | | | | -29.5% | -29.5% |
| Net Debt/EBITDA | | | | 22.2x | | -22.2x |
Revenue and profitability
The company's Revenue dropped on 78.1%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 590 pp from 13.2% to -577% in FY2016.
Gross Margin decreased on 8.4 pp from 0.073% to -8.3% in FY2016. SG&A as a % of Revenue surged on 378 pp from 59.8% to 438% in FY2016.
Net Income marign dropped on 622 pp from -15.5% to -638% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Celebrate International Holdings Ltd's CAPEX/Revenue was 18.6% in FY2016. Celebrate International Holdings Ltd showed CAPEX/Revenue growth of 6.6 pp from 12.0% in FY2013 to 18.6% in FY2016. For the last three years the average CAPEX/Revenue was 19.7%.
Return on investment
The company operates at negative ROIC (-15.24%) and ROE (-29.46%). ROIC dropped on 16.1 pp from 0.86% to -15.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.0x and Debt / EBITDA is . Net Debt / EBITDA dropped on 22.2x from 22.2x to in FY2016. Debt dropped on 99.7% while cash surged on 61.4%.
Appendix 1: Peers in Commercial Services
Below we provide Celebrate International Holdings Ltd benchmarking against other companies in Commercial Services 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 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 99.1% | 14.9% | -88.3% | 271.8% | |
| China Seven Star Holdings Ltd ($245) | 6.7% | -81.8% | -39.3% | 195.3% | |
| China Smartpay Group Holdings Ltd ($8325) | | 274.7% | 75.6% | 124.5% | 79.5% |
| Haier Healthwise Holdings Ltd ($348) | | -50.1% | -7.5% | 101.1% | -9.4% |
| CAR Inc ($699) | 96.4% | 68.0% | 30.3% | 42.1% | |
| |
|---|
| Median (67 companies) | 6.7% | 8.6% | 9.9% | 4.0% | 9.5% |
|---|
| Celebrate International Holdings Ltd ($8212) | | 1,437.6% | -6.3% | 117.0% | -78.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HC International Inc ($2280) | 87.5% | 91.9% | 92.5% | 89.6% | |
| Winto Group Holdings Ltd ($8238) | 90.2% | 93.4% | 92.0% | 88.4% | |
| Dingyi Group Investment Ltd ($508) | 75.8% | | 64.5% | 86.0% | 89.6% |
| Fu Shou Yuan International Group Ltd ($1448) | 80.5% | 80.4% | 80.0% | 77.6% | |
| Nirvana Asia Ltd ($1438) | 68.3% | 69.6% | 70.5% | 75.7% | |
| |
|---|
| Median (61 companies) | 31.9% | 31.0% | 31.1% | 31.5% | 31.7% |
|---|
| Celebrate International Holdings Ltd ($8212) | 7.1% | 3.6% | 0.0% | 0.1% | -8.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | 61.6% | 84.9% | 75.9% | 80.9% | |
| Shenzhen International Holdings Ltd ($152) | 60.2% | 65.8% | 97.1% | 73.6% | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 78.3% | 74.5% | 74.0% | 71.6% | |
| CAR Inc ($699) | 43.6% | 30.1% | 43.1% | 67.4% | |
| Jiangsu Expressway Co Ltd ($177) | 57.0% | 60.7% | 59.3% | 61.5% | |
| |
|---|
| Median (67 companies) | 17.6% | 16.0% | 12.9% | 9.8% | 3.0% |
|---|
| Celebrate International Holdings Ltd ($8212) | -1,031.1% | -82.9% | -153.6% | 13.2% | -577.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Blue Sky Power Holdings Ltd ($6828) | 21.3% | 9.0% | 13.9% | 47.4% | |
| COSCO Pacific Ltd ($1199) | 96.6% | 66.6% | 43.3% | 45.8% | |
| Shenzhen International Holdings Ltd ($152) | 23.0% | 22.1% | 20.9% | 35.0% | |
| China Maple Leaf Educational Systems Ltd ($1317) | 25.7% | 50.9% | 21.1% | 32.8% | |
| Qingdao Port International Co Ltd ($6198) | 31.9% | 28.7% | 8.5% | 28.2% | |
| |
|---|
| Median (67 companies) | 2.7% | 3.4% | 2.4% | 2.8% | 1.4% |
|---|
| Celebrate International Holdings Ltd ($8212) | 211.7% | 12.0% | 6.2% | 34.2% | 18.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bamboos Health Care Holdings Ltd ($8216) | | 71.1% | 50.1% | 58.3% | 40.0% |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 51.5% | 26.6% | 30.0% | 29.5% | 19.8% |
| 1010 Printing Group Ltd ($1127) | 13.5% | 20.8% | 17.8% | 19.9% | |
| China Packaging Holdings Development Ltd ($1439) | 52.0% | 46.6% | 34.1% | 19.8% | |
| iOne Holdings Ltd ($982) | 12.5% | 11.1% | 9.4% | 19.2% | |
| |
|---|
| Median (67 companies) | 7.5% | 7.0% | 6.7% | 3.6% | 2.9% |
|---|
| Celebrate International Holdings Ltd ($8212) | -2.8% | -37.0% | -41.0% | 0.9% | -15.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kai Yuan Holdings Ltd ($1215) | -143.8x | -0.7x | | 18.8x | |
| Eagle Legend Asia Ltd ($936) | 4.0x | 4.0x | 3.3x | 6.2x | |
| Sichuan Expressway Co Ltd ($107) | 2.7x | 3.8x | 4.3x | 5.5x | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 4.5x | 3.1x | 2.7x | 5.3x | |
| Dalian Port PDA Co Ltd ($2880) | 5.7x | 4.8x | 4.7x | 4.1x | |
| |
|---|
| Median (44 companies) | -0.0x | -0.7x | -0.8x | -0.8x | -2.4x |
|---|
| Celebrate International Holdings Ltd ($8212) | | | | 22.2x | |
