Birmingham International Holdings Ltd revenue returned to growth in FY2016: increased 116% vs. 29.2% decline a year earliner
30/09/2016 • About Birmingham International Holdings Ltd (
$2309) • By InTwits
Birmingham International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Birmingham International Holdings Ltd is a company in decline: FY2016 revenue growth was -33.2%, 5 years revenue CAGR was -26.3%
- The company operates at negative EBITDA Margin: -66.2%
- Birmingham International Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -31.5%0
- Birmingham International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.3%. At the same time it's a lot of higher than industry average of 6.0%.
- CAPEX is quite volatile: 3.0 in FY2016, 4.5 in FY2015, 13.2 in FY2014, 7.5 in FY2013, 0.97 in FY2012
- The company has unprofitable business model: ROIC is at -47.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Birmingham International Holdings Ltd ($2309) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 489.9 | 294.5 | 253.2 | 253.6 | 169.3 | -33.2% |
| SG&A | | | 98.8 | 71.3 | 32.9 | -53.9% |
| EBITDA | 9.2 | -133.2 | -181.9 | -42.2 | -112.2 | |
| Net Income | 136.9 | -118.8 | -157.4 | -4.2 | -58.6 | |
Balance Sheet
|
|---|
| Cash | 72.6 | 50.0 | 143.0 | 58.8 | 27.0 | -54.1% |
| Short Term Debt | 105.1 | 178.4 | 298.3 | 140.0 | 120.3 | -14.1% |
| Long Term Debt | 7.2 | 2.0 | 0.8 | 43.9 | 150.5 | 243.1% |
Cash flow
|
|---|
| Capex | 1.0 | 7.5 | 13.2 | 4.5 | 3.0 | -32.4% |
Ratios
|
|---|
| Revenue growth | -37.3% | -39.9% | -14.0% | 0.1% | -33.2% | |
| EBITDA growth | -33.7% | -1,553.6% | 36.6% | -76.8% | 165.8% | |
| EBITDA Margin | 1.9% | -45.2% | -71.8% | -16.6% | -66.2% | -49.6% |
| Net Income Margin | 27.9% | -40.3% | -62.2% | -1.6% | -34.6% | -33.0% |
| SG&A, % of revenue | | | 39.0% | 28.1% | 19.4% | -8.7% |
| CAPEX, % of revenue | 0.2% | 2.6% | 5.2% | 1.8% | 1.8% | 0.0% |
| ROIC | -50.9% | -115.7% | -78.6% | -18.9% | -47.6% | -28.7% |
| ROE | | | | -13.5% | | 13.5% |
| Net Debt/EBITDA | 4.3x | | | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 33.2%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 49.6 pp from -16.6% to -66.2% in FY2016.
SG&A as a % of Revenue decreased on 8.7 pp from 28.1% to 19.4% in FY2016.
Net Income marign dropped on 33.0 pp from -1.6% to -34.6% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Birmingham International Holdings Ltd had CAPEX/Revenue of 1.8%. Birmingham International Holdings Ltd showed small CAPEX/Revenue decline of 0.75 pp from 2.6% in FY2013 to 1.8% in FY2016. It's average CAPEX/Revenue for the last three years was 2.9%.
Leverage (Debt)
Debt level is -6.2x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt jumped on 47.3% while cash dropped on 54.1%.
Appendix 1: Peers in Commercial Services
Below we provide Birmingham International Holdings Ltd benchmarking against other companies in Commercial Services 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 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 99.1% | 14.9% | -88.3% | 271.8% | |
| China Seven Star Holdings Ltd ($245) | 6.7% | -81.8% | -39.3% | 195.3% | |
| China Smartpay Group Holdings Ltd ($8325) | | 274.7% | 75.6% | 124.5% | 79.5% |
| Celebrate International Holdings Ltd ($8212) | | 1,437.6% | -6.3% | 117.0% | -78.1% |
| Haier Healthwise Holdings Ltd ($348) | | -50.1% | -7.5% | 101.1% | -9.4% |
| |
|---|
| Median (67 companies) | 6.7% | 8.6% | 9.9% | 4.7% | 9.4% |
|---|
| Birmingham International Holdings Ltd ($2309) | | -39.9% | -14.0% | 0.1% | -33.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HC International Inc ($2280) | 87.5% | 91.9% | 92.5% | 89.6% | |
| Winto Group Holdings Ltd ($8238) | 90.2% | 93.4% | 92.0% | 88.4% | |
| Dingyi Group Investment Ltd ($508) | 75.8% | | 64.5% | 86.0% | 89.6% |
| Fu Shou Yuan International Group Ltd ($1448) | 80.5% | 80.4% | 80.0% | 77.6% | |
| Nirvana Asia Ltd ($1438) | 68.3% | 69.6% | 70.5% | 75.7% | |
| |
|---|
| Median (62 companies) | 31.6% | 30.7% | 31.0% | 31.2% | 29.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | 61.6% | 84.9% | 75.9% | 80.9% | |
| Shenzhen International Holdings Ltd ($152) | 60.2% | 65.8% | 97.1% | 73.6% | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 78.3% | 74.5% | 74.0% | 71.6% | |
| CAR Inc ($699) | 43.6% | 30.1% | 43.1% | 67.4% | |
| Jiangsu Expressway Co Ltd ($177) | 57.0% | 60.7% | 59.3% | 61.5% | |
| |
|---|
| Median (67 companies) | 17.6% | 16.0% | 12.9% | 10.1% | -0.1% |
|---|
| Birmingham International Holdings Ltd ($2309) | 1.9% | -45.2% | -71.8% | -16.6% | -66.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Blue Sky Power Holdings Ltd ($6828) | 21.3% | 9.0% | 13.9% | 47.4% | |
| COSCO Pacific Ltd ($1199) | 96.6% | 66.6% | 43.3% | 45.8% | |
| Shenzhen International Holdings Ltd ($152) | 23.0% | 22.1% | 20.9% | 35.0% | |
| Celebrate International Holdings Ltd ($8212) | 211.7% | 12.0% | 6.2% | 34.2% | 18.6% |
| China Maple Leaf Educational Systems Ltd ($1317) | 25.7% | 50.9% | 21.1% | 32.8% | |
| |
|---|
| Median (67 companies) | 3.0% | 3.8% | 2.4% | 3.9% | 1.7% |
|---|
| Birmingham International Holdings Ltd ($2309) | 0.2% | 2.6% | 5.2% | 1.8% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bamboos Health Care Holdings Ltd ($8216) | | 71.1% | 50.1% | 58.3% | 40.0% |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 51.5% | 26.6% | 30.0% | 29.5% | 19.8% |
| 1010 Printing Group Ltd ($1127) | 13.5% | 20.8% | 17.8% | 19.9% | |
| China Packaging Holdings Development Ltd ($1439) | 52.0% | 46.6% | 34.1% | 19.8% | |
| iOne Holdings Ltd ($982) | 12.5% | 11.1% | 9.4% | 19.2% | |
| |
|---|
| Median (67 companies) | 7.5% | 7.0% | 6.7% | 3.6% | -0.8% |
|---|
| Birmingham International Holdings Ltd ($2309) | -50.9% | -115.7% | -78.6% | -18.9% | -47.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Celebrate International Holdings Ltd ($8212) | | | | 22.2x | |
| Kai Yuan Holdings Ltd ($1215) | -143.8x | -0.7x | | 18.8x | |
| Eagle Legend Asia Ltd ($936) | 4.0x | 4.0x | 3.3x | 6.2x | |
| Sichuan Expressway Co Ltd ($107) | 2.7x | 3.8x | 4.3x | 5.5x | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 4.5x | 3.1x | 2.7x | 5.3x | |
| |
|---|
| Median (45 companies) | -0.0x | -0.7x | -0.8x | -0.6x | -2.4x |
|---|
