Champion Technology Holdings Ltd EBITDA jumped on 101% in 2016 and EBITDA Margin jumped on 32.5 pp from 25.6% to 58.1%
29/09/2016 • About Champion Technology Holdings Ltd (
$92) • By InTwits
Champion Technology Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Champion Technology Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has highly profitable business model: ROIC is at 17.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Champion Technology Holdings Ltd ($92) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,411 | 4,453 | 6,159 | 5,610 | 4,980 | -11.2% |
| Gross Profit | 440 | 548 | 811 | 394 | 1,773 | 350.0% |
| SG&A | | 233 | 289 | 268 | 153 | -42.8% |
| EBITDA | 1,464 | 1,832 | 2,040 | 1,436 | 2,894 | 101.5% |
| Net Income | 62 | 60 | 2 | 7 | -29 | -487.3% |
Balance Sheet
|
|---|
| Cash | 280 | 331 | 78 | 235 | 131 | -44.2% |
| Short Term Debt | 256 | 232 | 170 | 192 | 195 | 1.5% |
| Long Term Debt | 0 | 17 | 14 | 9 | 4 | -57.8% |
Cash flow
|
|---|
| Capex | 11 | 10 | 10 | 13 | 11 | -19.2% |
Ratios
|
|---|
| Revenue growth | 9.1% | 30.5% | 38.3% | -8.9% | -11.2% | |
| EBITDA growth | 1.8% | 25.1% | 11.4% | -29.6% | 101.5% | |
| Gross Margin | 12.9% | 12.3% | 13.2% | 7.0% | 35.6% | 28.6% |
| EBITDA Margin | 42.9% | 41.1% | 33.1% | 25.6% | 58.1% | 32.5% |
| Net Income Margin | 1.8% | 1.3% | 0.0% | 0.1% | -0.6% | -0.7% |
| SG&A, % of revenue | | 5.2% | 4.7% | 4.8% | 3.1% | -1.7% |
| CAPEX, % of revenue | 0.3% | 0.2% | 0.2% | 0.2% | 0.2% | -0.0% |
| ROIC | 2.2% | 3.0% | 5.2% | 0.9% | 17.4% | 16.5% |
| ROE | 0.8% | 0.8% | 0.0% | 0.1% | -0.4% | -0.5% |
| Net Debt/EBITDA | -0.0x | -0.0x | 0.1x | -0.0x | 0.0x | 0.0x |
Revenue and profitability
Champion Technology Holdings Ltd's Revenue dropped on 11.2%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 32.5 pp from 25.6% to 58.1% in FY2016.
Gross Margin surged on 28.6 pp from 7.0% to 35.6% in FY2016. SG&A as a % of Revenue decreased slightly on 1.7 pp from 4.8% to 3.1% in FY2016.
Net Income marign decreased slightly on 0.71 pp from 0.13% to -0.57% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Champion Technology Holdings Ltd had CAPEX/Revenue of 0.21%. The company's CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 0.20%.
Return on investment
The company operates at low but positive ROIC (17.40%) and negative ROE (-0.37%). ROIC jumped on 16.5 pp from 0.94% to 17.4% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.0x and Debt / EBITDA is 0.1x. Net Debt / EBITDA increased on 0.048x from -0.024x to 0.023x in FY2016. Debt decreased slightly on 1.0% while cash dropped on 44.2%.
Appendix 1: Peers in Telecommunications
Below we provide Champion Technology Holdings Ltd benchmarking against other companies in Telecommunications 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 |
|---|
| 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) | 7.5% | 8.1% | 9.6% | 8.5% | -1.4% |
|---|
| Champion Technology Holdings Ltd ($92) | | 30.5% | 38.3% | -8.9% | -11.2% |
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 (49 companies) | 26.1% | 24.5% | 26.6% | 23.6% | 31.4% |
|---|
| Champion Technology Holdings Ltd ($92) | 12.9% | 12.3% | 13.2% | 7.0% | 35.6% |
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) | 6.7% | 5.5% | 5.4% | 8.3% | -6.3% |
|---|
| Champion Technology Holdings Ltd ($92) | 42.9% | 41.1% | 33.1% | 25.6% | 58.1% |
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% | 3.1% | 2.6% | 3.6% |
|---|
| Champion Technology Holdings Ltd ($92) | 0.3% | 0.2% | 0.2% | 0.2% | 0.2% |
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% | -1.8% |
|---|
| Champion Technology Holdings Ltd ($92) | 2.2% | 3.0% | 5.2% | 0.9% | 17.4% |
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 (38 companies) | -0.4x | 0.7x | 1.0x | 0.8x | 0.7x |
|---|
| Champion Technology Holdings Ltd ($92) | -0.0x | -0.0x | 0.1x | -0.0x | 0.0x |
