Continental Holdings Ltd EBITDA dropped on 11,548% and Revenue dropped on 24.4%
28/09/2016 • About Continental Holdings Ltd (
$513) • By InTwits
Continental Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Continental Holdings Ltd is a company in decline: FY2016 revenue growth was -24.4%, 5 years revenue CAGR was -10.7%
- The company operates at negative EBITDA Margin: -2.8%
- Continental Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's in pair with industry average of 15.6%.
- CAPEX is quite volatile: 20.8 in FY2016, 40.6 in FY2015, 25.7 in FY2014, 6.3 in FY2013, 11.5 in FY2012
- The company has unprofitable business model: ROIC is at -0.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Continental Holdings Ltd ($513) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 955.7 | 949.2 | 868.1 | 730.9 | 552.6 | -24.4% |
| Gross Profit | 134.6 | 120.3 | 114.3 | 105.3 | 87.0 | -17.4% |
| SG&A | | 112.4 | 114.3 | 128.3 | 126.4 | -1.5% |
| EBITDA | -8.4 | 20.1 | 4.6 | 0.1 | -15.5 | -11,548.1% |
| Net Income | 214.9 | 85.8 | 50.6 | 141.6 | -175.7 | -224.1% |
Balance Sheet
|
|---|
| Cash | 85.2 | 37.9 | 78.1 | 55.6 | 45.6 | -18.0% |
| Short Term Debt | 379.1 | 336.3 | 416.3 | 469.0 | 571.9 | 21.9% |
| Long Term Debt | 118.7 | 105.0 | 90.3 | 154.1 | 132.4 | -14.1% |
Cash flow
|
|---|
| Capex | 11.5 | 6.3 | 25.7 | 40.6 | 20.8 | -48.7% |
Ratios
|
|---|
| Revenue growth | -1.8% | -0.7% | -8.5% | -15.8% | -24.4% | |
| EBITDA growth | -129.5% | -340.1% | -77.1% | -97.1% | -11,548.1% | |
| Gross Margin | 14.1% | 12.7% | 13.2% | 14.4% | 15.7% | 1.3% |
| EBITDA Margin | -0.9% | 2.1% | 0.5% | 0.0% | -2.8% | -2.8% |
| Net Income Margin | 22.5% | 9.0% | 5.8% | 19.4% | -31.8% | -51.2% |
| SG&A, % of revenue | | 11.8% | 13.2% | 17.6% | 22.9% | 5.3% |
| CAPEX, % of revenue | 1.2% | 0.7% | 3.0% | 5.6% | 3.8% | -1.8% |
| ROIC | -0.9% | 0.4% | -0.2% | -0.4% | -0.9% | -0.5% |
| ROE | 16.0% | 5.0% | 2.8% | 7.3% | -9.4% | -16.8% |
| Net Debt/EBITDA | | 20.1x | 92.9x | 4,203.6x | | -4,203.6x |
Revenue and profitability
The company's Revenue dropped on 24.4%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.8 pp from 0.018% to -2.8% in FY2016.
Gross Margin increased slightly on 1.3 pp from 14.4% to 15.7% in FY2016. SG&A as a % of Revenue increased on 5.3 pp from 17.6% to 22.9% in FY2016.
Net Income marign dropped on 51.2 pp from 19.4% to -31.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Continental Holdings Ltd's CAPEX/Revenue was 3.8% in FY2016. The company's CAPEX/Revenue increased on 3.1 pp from 0.67% in FY2013 to 3.8% in FY2016. It's average CAPEX/Revenue for the last three years was 4.1%.
Return on investment
The company operates at negative ROIC (-0.93%) and ROE (-9.41%). ROIC decreased slightly on 0.53 pp from -0.41% to -0.93% in FY2016. ROE dropped on 16.8 pp from 7.3% to -9.4% in FY2016.
Leverage (Debt)
Debt level is -6.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 4,203.6x from 4,203.6x to in FY2016. Debt surged on 13.0% while cash dropped on 18.0%.
Appendix 1: Peers in Miscellaneous Manufactur
Below we provide Continental Holdings Ltd benchmarking against other companies in Miscellaneous Manufactur 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 |
|---|
| Karrie International Hldgs ($1050) | | 0.1% | -11.3% | 27.4% | 11.8% |
| Sunny Optical Technology Group Co Ltd ($2382) | 59.5% | 45.9% | 45.0% | 26.9% | |
| TK Group Holdings Ltd ($2283) | 40.2% | 9.3% | 11.8% | 20.0% | |
| AMCO United Holding Ltd ($2970) | | 10.8% | 53.9% | 16.8% | 31.1% |
| Yusei Holdings Ltd ($96) | 18.4% | -9.3% | 6.7% | 15.6% | |
| |
|---|
| Median (25 companies) | -7.3% | 0.1% | 8.2% | -4.8% | 20.9% |
|---|
| Continental Holdings Ltd ($513) | | -0.7% | -8.5% | -15.8% | -24.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Man Sang International Ltd ($938) | 42.4% | 32.8% | 60.3% | 78.6% | 56.4% |
| Time Watch Investments Ltd ($2033) | 60.2% | 60.6% | 65.0% | 68.1% | 68.5% |
| China Environmental Energy Investment Ltd ($986) | 14.0% | 1.2% | 9.0% | 49.2% | 40.4% |
| Lee & Man Chemical Co Ltd ($746) | 34.3% | 35.7% | 41.9% | 39.6% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 33.2% | 35.1% | 37.4% | 38.7% | |
| |
|---|
| Median (24 companies) | 19.8% | 20.8% | 24.9% | 23.9% | 23.9% |
|---|
| Continental Holdings Ltd ($513) | 14.1% | 12.7% | 13.2% | 14.4% | 15.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 30.4% | 31.3% | 38.4% | 37.6% | |
| Man Sang International Ltd ($938) | 24.9% | 15.4% | 37.0% | 33.8% | 40.4% |
| IPE Group Ltd ($929) | 25.6% | 22.5% | 29.5% | 29.1% | |
| DeTeam Co Ltd ($65) | 8.0% | 3.9% | -1.3% | 24.3% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 18.4% | 19.8% | 20.6% | 24.2% | |
| |
|---|
| Median (25 companies) | 8.0% | 9.8% | 9.8% | 7.9% | 6.7% |
|---|
| Continental Holdings Ltd ($513) | -0.9% | 2.1% | 0.5% | 0.0% | -2.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Environmental Energy Investment Ltd ($986) | 6.1% | 0.4% | 17.9% | 47.6% | 6.2% |
| DeTeam Co Ltd ($65) | 6.7% | 47.0% | 5.6% | 33.1% | |
| Lee & Man Chemical Co Ltd ($746) | 5.8% | 51.1% | 33.7% | 22.8% | |
| China International Marine Containers Group Co Ltd ($2039) | 3.9% | 12.1% | 18.5% | 21.2% | |
| IPE Group Ltd ($929) | 6.3% | 13.3% | 12.3% | 13.3% | |
| |
|---|
| Median (25 companies) | 4.7% | 4.2% | 4.2% | 4.3% | 3.7% |
|---|
| Continental Holdings Ltd ($513) | 1.2% | 0.7% | 3.0% | 5.6% | 3.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Time Watch Investments Ltd ($2033) | 34.5% | 27.1% | 27.8% | 27.9% | 18.6% |
| TK Group Holdings Ltd ($2283) | 36.8% | 31.1% | 29.4% | 27.6% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 16.9% | 17.7% | 20.0% | 21.1% | |
| Sunny Optical Technology Group Co Ltd ($2382) | 19.7% | 17.8% | 16.5% | 19.4% | |
| Yusei Holdings Ltd ($96) | 4.2% | 7.0% | 13.6% | 14.1% | |
| |
|---|
| Median (25 companies) | 4.3% | 4.4% | 4.4% | 1.6% | 9.0% |
|---|
| Continental Holdings Ltd ($513) | -0.9% | 0.4% | -0.2% | -0.4% | -0.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| South China China Ltd ($413) | | 37.5x | 2,842.3x | 27.3x | |
| Launch Tech Co Ltd ($2488) | 7.6x | 2.4x | 3.9x | 14.5x | |
| China International Marine Containers Group Co Ltd ($2039) | 4.0x | 4.7x | 5.8x | 9.8x | |
| VS International Group Ltd ($1002) | 5.1x | 6.5x | 4.4x | 3.3x | 4.6x |
| Lee & Man Chemical Co Ltd ($746) | -0.2x | 1.5x | 2.2x | 2.5x | |
| |
|---|
| Median (22 companies) | -0.2x | -0.2x | -0.2x | 0.1x | -0.9x |
|---|
| Continental Holdings Ltd ($513) | | 20.1x | 92.9x | 4,203.6x | |
