Vision Values Holdings Ltd reports 2,778% CAPEX growth in 2016 and 19.6% Revenue growth
19/09/2016 • About Vision Values Holdings Ltd (
$862) • By InTwits
Vision Values Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vision Values Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -9.1%
- The company operates at negative EBITDA Margin: -112.0%
- Vision Values Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -56.5% for the sames years0
- Vision Values Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 17.3%. At the same time it's in pair with industry average of 24.0%.
- CAPEX is quite volatile: 19.1 in FY2016, 0.66 in FY2015, 1.9 in FY2014, 0.44 in FY2013, 0.52 in FY2012
- The company has unprofitable business model: ROIC is at -9.1%
- It operates with high leverage: Net Debt/EBITDA is 33.6x while industry average is 4.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Vision Values Holdings Ltd ($862) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 35.557 | 37.284 | 22.289 | 22.032 | 26.351 | 19.6% |
| EBITDA | 0.355 | 5.326 | -15.043 | -42.189 | -29.504 | |
| Net Income | -2.044 | 7.557 | -14.080 | -45.189 | -26.803 | |
Balance Sheet
|
|---|
| Cash | 133.090 | 128.982 | 277.481 | 260.293 | 157.565 | -39.5% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.524 | 0.435 | 1.883 | 0.664 | 19.110 | 2,778.0% |
Ratios
|
|---|
| Revenue growth | 33.0% | 4.9% | -40.2% | -1.2% | 19.6% | |
| EBITDA growth | -93.1% | 1,400.3% | -382.4% | 180.5% | -30.1% | |
| EBITDA Margin | 1.0% | 14.3% | -67.5% | -191.5% | -112.0% | 79.5% |
| Net Income Margin | -5.7% | 20.3% | -63.2% | -205.1% | -101.7% | 103.4% |
| CAPEX, % of revenue | 1.5% | 1.2% | 8.4% | 3.0% | 72.5% | 69.5% |
| ROIC | -0.9% | 3.1% | -6.2% | -12.7% | -9.1% | 3.6% |
| ROE | -1.3% | 4.8% | -5.7% | -13.8% | -8.6% | 5.2% |
| Net Debt/EBITDA | -374.9x | -24.2x | | | | 0.0x |
Revenue and profitability
Vision Values Holdings Ltd's Revenue surged on 19.6%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 79.5 pp from -191% to -112% in FY2016.
Net Income marign surged on 103 pp from -205% to -102% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Vision Values Holdings Ltd had CAPEX/Revenue of 72.5%. The company's CAPEX/Revenue surged on 71.4 pp from 1.2% in FY2013 to 72.5% in FY2016. It's average CAPEX/Revenue for the last three years was 28.0%.
Return on investment
The company operates at negative ROIC (-9.07%) and ROE (-8.59%). ROIC increased on 3.6 pp from -12.7% to -9.1% in FY2016. ROE increased on 5.2 pp from -13.8% to -8.6% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 39.5%.
Appendix 1: Peers in Telecommunications
Below you can find Vision Values Holdings Ltd 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% | 9.8% | 8.5% | -1.6% |
|---|
| Vision Values Holdings Ltd ($862) | | 4.9% | -40.2% | -1.2% | 19.6% |
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% | 73.1% |
| 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% | 62.9% |
| |
|---|
| Median (50 companies) | 25.5% | 24.4% | 26.1% | 23.1% | 31.4% |
|---|
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% | |
| Synertone Communication Corp ($1613) | 44.9% | 48.5% | 49.4% | 51.5% | -77.6% |
| HKBN Ltd ($1310) | | 39.2% | 40.1% | 39.0% | |
| HKT Trust & HKT Ltd ($6823) | 36.3% | 35.0% | 35.9% | 34.9% | |
| |
|---|
| Median (52 companies) | 8.3% | 5.5% | 6.4% | 9.2% | 0.4% |
|---|
| Vision Values Holdings Ltd ($862) | 1.0% | 14.3% | -67.5% | -191.5% | -112.0% |
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% | 3.0% | 2.9% | 2.6% | 3.3% |
|---|
| Vision Values Holdings Ltd ($862) | 1.5% | 1.2% | 8.4% | 3.0% | 72.5% |
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% | 14.5% |
| |
|---|
| Median (53 companies) | 7.7% | 6.0% | 6.6% | 6.3% | -0.4% |
|---|
| Vision Values Holdings Ltd ($862) | -0.9% | 3.1% | -6.2% | -12.7% | -9.1% |
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 (39 companies) | -0.2x | 0.7x | 0.7x | 0.6x | 0.7x |
|---|
