Good Fellow Resources Holdings Ltd CAPEX surged on 44,965% and Revenue surged on 184%
29/09/2016 • About Good Fellow Resources Holdings Ltd (
$109) • By InTwits
Good Fellow Resources Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Good Fellow Resources Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is 0.7%
- Good Fellow Resources 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 -9.0% for the sames years0
- Good Fellow Resources Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.8%. At the same time it's in pair with industry average of 7.0%.
- CAPEX is quite volatile: 35.2 in FY2016, 0.078 in FY2015, 0.017 in FY2014, 0.78 in FY2013, 0.098 in FY2012
- The company has potentially unprofitable business model: ROIC is at 0.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Good Fellow Resources Holdings Ltd ($109) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 34.3 | 19.1 | 40.7 | 51.2 | 145.1 | 183.5% |
| Gross Profit | 10.4 | 19.0 | | | | |
| SG&A | | | | 24.5 | 124.7 | 408.9% |
| EBITDA | -105.3 | 4.5 | 17.8 | 30.9 | 26.0 | -15.9% |
| Net Income | -619.3 | 104.2 | 19.9 | 13.2 | -16.2 | -222.7% |
Balance Sheet
|
|---|
| Cash | 34.9 | 271.1 | 97.9 | 687.9 | 980.0 | 42.5% |
| Short Term Debt | 29.5 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 448.5 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 0.1 | 0.8 | 0.0 | 0.1 | 35.2 | 44,965.4% |
Ratios
|
|---|
| Revenue growth | 4.5% | -44.4% | 113.3% | 25.7% | 183.5% | |
| EBITDA growth | 1,758.1% | -104.3% | 294.8% | 74.0% | -15.9% | |
| Gross Margin | 30.3% | 99.6% | | | | 0.0% |
| EBITDA Margin | -306.7% | 23.6% | 43.6% | 60.4% | 17.9% | -42.5% |
| Net Income Margin | -1,804.5% | 546.0% | 48.9% | 25.7% | -11.1% | -36.9% |
| SG&A, % of revenue | | | | 47.9% | 85.9% | 38.0% |
| CAPEX, % of revenue | 0.3% | 4.1% | 0.0% | 0.2% | 24.2% | 24.1% |
| ROIC | -16.7% | 1.1% | 4.2% | 1.8% | 0.7% | -1.1% |
| ROE | -105.8% | 32.4% | 5.1% | 0.9% | -0.6% | -1.5% |
| Net Debt/EBITDA | | -60.2x | -5.5x | -7.7x | -37.7x | -29.9x |
Revenue and profitability
The company's Revenue surged on 184%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 42.5 pp from 60.4% to 17.9% in FY2016.
SG&A as a % of Revenue surged on 38.0 pp from 47.9% to 85.9% in FY2016.
Net Income marign dropped on 36.9 pp from 25.7% to -11.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 24.2% in FY2016. Good Fellow Resources Holdings Ltd showed fast CAPEX/Revenue growth of 20.1 pp from 4.1% in FY2013 to 24.2% in FY2016. It's average CAPEX/Revenue for the last three years was 8.1%.To fuel this fast growth the company made large investments to CAPEX (135% of EBITDA).
Return on investment
The company operates at low but positive ROIC (0.68%) and negative ROE (-0.61%). ROIC decreased slightly on 1.1 pp from 1.8% to 0.68% in FY2016. ROE decreased slightly on 1.5 pp from 0.90% to -0.61% in FY2016.
Leverage (Debt)
The company paid down all the debt in FY2016. Cash surged on 42.5%.
Appendix 1: Peers in Diversified Finan Serv
Below we provide Good Fellow Resources Holdings Ltd benchmarking against other companies in Diversified Finan Serv 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 |
|---|
| China Smarter Energy Group Holdings Ltd ($1004) | | -23.1% | -87.3% | 1,860.5% | 25.3% |
| Crown International Corp Ltd ($727) | | -75.0% | 117.4% | 802.5% | -25.1% |
| Global Strategic Group Ltd ($8007) | -3.9% | 2.1% | 806.3% | 681.2% | |
| Upbest Group Ltd ($335) | | -61.8% | 24.1% | 208.1% | -63.4% |
| GF Securities Co Ltd ($1776) | 16.3% | 31.8% | 75.0% | 163.9% | |
| |
|---|
| Median (64 companies) | 8.3% | 19.3% | 26.5% | 24.0% | 18.4% |
|---|
| Good Fellow Resources Holdings Ltd ($109) | | -44.4% | 113.3% | 25.7% | 183.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Roma Group Ltd ($8072) | | | 99.4% | 98.7% | |
| First China Financial Network Holdings Ltd ($8123) | 93.4% | | 94.5% | 97.4% | |
| China Smarter Energy Group Holdings Ltd ($1004) | 6.2% | 4.0% | 46.9% | 96.9% | 98.4% |
| Chinese Strategic Holdings Ltd ($8089) | 99.1% | 97.9% | 97.0% | 96.6% | |
| Allied Group Ltd ($373) | 95.1% | 94.4% | 93.6% | 92.2% | |
| |
|---|
| Median (12 companies) | 70.7% | 72.7% | 88.2% | 90.3% | 69.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Smarter Energy Group Holdings Ltd ($1004) | -282.7% | -373.2% | -1,524.9% | 212.2% | 55.6% |
| China Aircraft Leasing Group Holdings Ltd ($1848) | 91.3% | 86.4% | 92.9% | 107.0% | |
| Get Nice Holdings Ltd ($64) | 2.6% | 153.4% | 92.7% | 83.9% | 84.5% |
| Hong Kong Exchanges and Clearing Ltd ($388) | 81.6% | 73.4% | 75.7% | 82.1% | |
| Hong Kong Finance Group Co Ltd ($1273) | 76.9% | 67.5% | 65.2% | 74.8% | 70.3% |
| |
|---|
| Median (66 companies) | 23.0% | 37.2% | 47.9% | 31.4% | 50.8% |
|---|
| Good Fellow Resources Holdings Ltd ($109) | -306.7% | 23.6% | 43.6% | 60.4% | 17.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Aircraft Leasing Group Holdings Ltd ($1848) | 351.0% | 0.1% | 33.3% | 64.6% | |
| Willie International Holdings Ltd ($273) | | 0.3% | 0.8% | 58.0% | |
| China Assurance Finance Group Ltd ($8090) | 94.7% | 68.9% | 53.3% | 51.0% | |
| AID Partners Capital Holdings Ltd ($8088) | 4.1% | 2.9% | 28.4% | 26.6% | |
| Hongkong Chinese Ltd ($655) | | | 0.1% | 25.6% | 0.1% |
| |
|---|
| Median (65 companies) | 2.1% | 1.8% | 1.1% | 1.5% | 1.5% |
|---|
| Good Fellow Resources Holdings Ltd ($109) | 0.3% | 4.1% | 0.0% | 0.2% | 24.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hong Kong Exchanges and Clearing Ltd ($388) | 29.1% | 20.1% | 21.5% | 29.1% | |
| China Smarter Energy Group Holdings Ltd ($1004) | -19.4% | -23.0% | -14.0% | 22.5% | 2.1% |
| Oi Wah Pawnshop Credit Holdings Ltd ($1319) | 32.7% | 20.7% | 14.0% | 15.3% | 12.5% |
| Emperor Capital Group Ltd ($717) | 5.1% | 12.8% | 13.1% | 14.6% | |
| Roma Group Ltd ($8072) | 19.6% | 43.7% | 107.8% | 13.3% | 9.8% |
| |
|---|
| Median (69 companies) | 4.4% | 4.2% | 4.9% | 3.6% | 3.4% |
|---|
| Good Fellow Resources Holdings Ltd ($109) | -16.7% | 1.1% | 4.2% | 1.8% | 0.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hoifu Energy Group Ltd ($7) | | | | 62.5x | |
| South China Financial Holdings Ltd ($619) | | | | 56.9x | |
| Bright Smart Securities & Commodities Group Ltd ($1428) | 2.1x | 10.3x | 9.3x | 39.3x | 4.3x |
| Far East Horizon Ltd ($3360) | 16.9x | 21.7x | 20.0x | 20.8x | |
| Quam Ltd ($952) | 58.9x | 15.9x | 4.1x | 14.8x | -18.0x |
| |
|---|
| Median (49 companies) | -0.6x | 0.3x | 0.1x | 0.0x | 0.5x |
|---|
| Good Fellow Resources Holdings Ltd ($109) | | -60.2x | -5.5x | -7.7x | -37.7x |
