DX.com Holdings Ltd revenue decline accelerated to 46.7% in FY2016 vs. 43.4% a year earliner
21/09/2016 • About DX.com Holdings Ltd (
$8086) • By InTwits
DX.com Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- DX.com Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -44.6%
- The company operates at negative EBITDA Margin: -19.1%
- DX.com Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has unprofitable business model: ROIC is at -44.6%
- It operates with high leverage: Net Debt/EBITDA is 1.8x while industry average is -1.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
DX.com Holdings Ltd ($8086) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,416 | 1,404 | 1,324 | 750 | 400 | -46.7% |
| Gross Profit | 606 | 558 | 526 | 314 | 147 | -53.3% |
| SG&A | 447 | 476 | 563 | 374 | 259 | -30.8% |
| EBITDA | 167 | 86 | -34 | -7 | -76 | |
| Net Income | 131 | 37 | -71 | -87 | -113 | |
Balance Sheet
|
|---|
| Cash | 123 | 80 | 88 | 64 | 50 | -21.2% |
| Short Term Debt | 0 | 0 | 10 | 92 | 10 | -89.1% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 2 | 5 | 4 | 2 | 0 | -75.0% |
Ratios
|
|---|
| Revenue growth | 634.3% | -0.8% | -5.7% | -43.4% | -46.7% | |
| EBITDA growth | 106.7% | -48.4% | -139.0% | -80.0% | 1,036.9% | |
| Gross Margin | 42.8% | 39.7% | 39.7% | 41.9% | 36.7% | -5.2% |
| EBITDA Margin | 11.8% | 6.1% | -2.5% | -0.9% | -19.1% | -18.2% |
| Net Income Margin | 9.3% | 2.6% | -5.4% | -11.6% | -28.2% | -16.6% |
| SG&A, % of revenue | 31.5% | 33.9% | 42.5% | 49.9% | 64.7% | 14.8% |
| CAPEX, % of revenue | 0.2% | 0.3% | 0.3% | 0.2% | 0.1% | -0.1% |
| ROIC | 45.5% | 27.1% | -16.2% | -5.1% | -44.6% | -39.4% |
| ROE | 40.1% | 14.4% | -38.3% | -65.1% | -91.2% | -26.1% |
| Net Debt/EBITDA | -0.7x | -0.9x | | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 46.7%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 18.2 pp from -0.90% to -19.1% in FY2016.
Gross Margin decreased on 5.2 pp from 41.9% to 36.7% in FY2016. SG&A as a % of Revenue jumped on 14.8 pp from 49.9% to 64.7% in FY2016.
Net Income marign dropped on 16.6 pp from -11.6% to -28.2% in FY2016.
Capital expenditures (CAPEX) and working capital investments
DX.com Holdings Ltd's CAPEX/Revenue was 0.099% in FY2016. DX.com Holdings Ltd showed almost no change in CAPEX/Revenue from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 0.20%.
Return on investment
The company operates at negative ROIC (-44.58%) and ROE (-91.19%). ROIC dropped on 39.4 pp from -5.1% to -44.6% in FY2016. ROE dropped on 26.1 pp from -65.1% to -91.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.8x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt dropped on 89.1% while cash dropped on 21.2%.
Appendix 1: Peers in Internet
Below we provide DX.com Holdings 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | -13.6% |
| |
|---|
| Median (20 companies) | 12.3% | 10.5% | 13.0% | 9.8% | 2.9% |
|---|
| DX.com Holdings Ltd ($8086) | | -0.8% | -5.7% | -43.4% | -46.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sino-I Technology Ltd ($250) | 75.3% | 82.7% | 78.8% | 82.8% | |
| ABC Multiactive Ltd ($8131) | 86.7% | 83.5% | 86.2% | 82.1% | |
| China Digital Culture Group Ltd ($8175) | 64.3% | 78.6% | 65.2% | 72.7% | |
| Prosten Technology Holdings Ltd ($8026) | 52.4% | 47.8% | 50.8% | 67.1% | 53.8% |
| SUNeVision Holdings Ltd ($8008) | 53.5% | 60.5% | 64.7% | 65.6% | 63.9% |
| |
|---|
| Median (17 companies) | 68.0% | 70.5% | 61.9% | 50.9% | 53.8% |
|---|
| DX.com Holdings Ltd ($8086) | 42.8% | 39.7% | 39.7% | 41.9% | 36.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SUNeVision Holdings Ltd ($8008) | 64.2% | 71.6% | 71.6% | 72.4% | 68.9% |
| China Digital Culture Group Ltd ($8175) | -66.7% | 22.5% | 40.8% | 46.6% | |
| Tradelink Electronic Commerce Ltd ($536) | 38.6% | 33.8% | 33.1% | 31.1% | |
| GET Holdings Ltd ($8380) | -237.7% | 56.8% | 66.4% | 28.5% | |
| Media Asia Group Holdings Ltd ($8075) | -30.8% | 18.6% | 13.4% | 25.1% | |
| |
|---|
| Median (20 companies) | 4.3% | 20.6% | 14.2% | 9.6% | -22.9% |
|---|
| DX.com Holdings Ltd ($8086) | 11.8% | 6.1% | -2.5% | -0.9% | -19.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| AcrossAsia Ltd ($8061) | 56.6% | 65.9% | 36.3% | 45.8% | |
| Asian Capital Resources Holdings Ltd ($8025) | 0.0% | | 12.2% | 14.0% | |
| SUNeVision Holdings Ltd ($8008) | 7.6% | 10.2% | 62.8% | 12.4% | 41.1% |
| Ourgame International Holdings Ltd ($6899) | 1.8% | 3.1% | 1.7% | 6.4% | |
| Sino-I Technology Ltd ($250) | 9.3% | 12.7% | 4.0% | 6.0% | |
| |
|---|
| Median (20 companies) | 3.4% | 2.8% | 2.3% | 1.3% | 3.9% |
|---|
| DX.com Holdings Ltd ($8086) | 0.2% | 0.3% | 0.3% | 0.2% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pacific Online Ltd ($543) | 37.9% | 36.4% | 28.6% | 21.6% | |
| Tradelink Electronic Commerce Ltd ($536) | 22.4% | 18.2% | 17.4% | 16.7% | |
| SUNeVision Holdings Ltd ($8008) | 10.8% | 13.3% | 14.4% | 15.3% | 15.3% |
| Ourgame International Holdings Ltd ($6899) | 42.8% | 33.3% | 17.5% | 12.7% | |
| China Digital Culture Group Ltd ($8175) | -11.2% | 4.0% | 11.7% | 8.2% | |
| |
|---|
| Median (21 companies) | -6.3% | 3.0% | -1.3% | 1.0% | -19.5% |
|---|
| DX.com Holdings Ltd ($8086) | 45.5% | 27.1% | -16.2% | -5.1% | -44.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tai Shing International Holdings Ltd ($8103) | | | | 82.7x | |
| AcrossAsia Ltd ($8061) | 2.3x | 2.9x | 1.5x | 7.7x | |
| Sino-I Technology Ltd ($250) | | 9.4x | | 4.1x | |
| GET Holdings Ltd ($8380) | | -1.1x | -1.0x | 0.7x | |
| SUNeVision Holdings Ltd ($8008) | -2.2x | -2.0x | -1.5x | -1.2x | -0.7x |
| |
|---|
| Median (14 companies) | -1.9x | -1.3x | -1.5x | -1.9x | -0.7x |
|---|
