CIL Holdings Ltd Net Income surged on 129% while Revenue dropped on 63.8%
30/09/2016 • About CIL Holdings Ltd (
$479) • By InTwits
CIL Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CIL Holdings Ltd is a company in decline: FY2016 revenue growth was -63.8%, 5 years revenue CAGR was -3.8%
- The company operates at negative EBITDA Margin: -17.1%
- CIL 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 -6.6%0
- CIL Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's in pair with industry average of 20.9%.
- CAPEX is quite volatile: 10.8 in FY2016, 5.2 in FY2015, 6.4 in FY2014, 3.9 in FY2013, 0.060 in FY2012
- The company has unprofitable business model: ROIC is at -21.2%
- It operates with high leverage: Net Debt/EBITDA is 1.2x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CIL Holdings Ltd ($479) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 284.6 | 382.8 | 464.1 | 617.7 | 223.5 | -63.8% |
| Gross Profit | 11.6 | 17.7 | 16.4 | 20.5 | 9.4 | -54.1% |
| SG&A | | | | 62.6 | 65.0 | 3.8% |
| EBITDA | -14.3 | -20.3 | -45.5 | -12.0 | -38.3 | |
| Net Income | -12.7 | -23.2 | -57.1 | -61.5 | 18.1 | |
Balance Sheet
|
|---|
| Cash | 55.3 | 49.3 | 42.0 | 11.9 | 98.1 | 726.2% |
| Short Term Debt | 40.8 | 45.0 | 65.2 | 38.1 | 96.6 | 153.3% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 42.0 | 20.8 | -50.4% |
Cash flow
|
|---|
| Capex | 0.1 | 3.9 | 6.4 | 5.2 | 10.8 | 109.4% |
Ratios
|
|---|
| Revenue growth | 5.1% | 34.5% | 21.2% | 33.1% | -63.8% | |
| EBITDA growth | 188.9% | 41.8% | 124.4% | -73.7% | 219.9% | |
| Gross Margin | 4.1% | 4.6% | 3.5% | 3.3% | 4.2% | 0.9% |
| EBITDA Margin | -5.0% | -5.3% | -9.8% | -1.9% | -17.1% | -15.2% |
| Net Income Margin | -4.5% | -6.1% | -12.3% | -10.0% | 8.1% | 18.1% |
| SG&A, % of revenue | | | | 10.1% | 29.1% | 18.9% |
| CAPEX, % of revenue | 0.0% | 1.0% | 1.4% | 0.8% | 4.8% | 4.0% |
| ROIC | -27.6% | -37.3% | -38.7% | -10.3% | -21.2% | -10.9% |
| ROE | -111.4% | -222.3% | -92.5% | -76.8% | 16.2% | 93.0% |
Revenue and profitability
The company's Revenue dropped on 63.8%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 15.2 pp from -1.9% to -17.1% in FY2016.
Gross Margin increased slightly on 0.89 pp from 3.3% to 4.2% in FY2016. SG&A as a % of Revenue surged on 18.9 pp from 10.1% to 29.1% in FY2016.
Net Income marign jumped on 18.1 pp from -10.0% to 8.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.8% in FY2016. CAPEX/Revenue increased on 3.8 pp from 1.0% in FY2013 to 4.8% in FY2016. For the last three years the average CAPEX/Revenue was 2.4%.
Return on investment
The company operates at negative ROIC (-21.23%) and low but positive ROE (16.21%). ROIC dropped on 10.9 pp from -10.3% to -21.2% in FY2016. ROE surged on 93.0 pp from -76.8% to 16.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.2x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt surged on 46.6% while cash surged on 726%.
Appendix 1: Peers in Distribution/Wholesale
Below you can find CIL Holdings Ltd benchmarking vs. other companies in Distribution/Wholesale industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| C Y Foundation Group Ltd ($1182) | | -65.6% | 5.9% | 214.6% | -14.6% |
| China Fortune Holdings Ltd ($110) | -64.7% | -68.2% | -71.0% | 174.2% | |
| Hailiang International Holdings Ltd ($2336) | 9.7% | -30.8% | -69.1% | 99.7% | |
| Forefront Group Ltd ($885) | | 504.6% | 3,871.0% | 72.0% | |
| Yestar International Holdings Co Ltd ($2393) | -2.2% | 22.8% | 30.5% | 60.3% | |
| |
|---|
| Median (36 companies) | 2.5% | 0.7% | -0.5% | -2.1% | -14.9% |
|---|
| CIL Holdings Ltd ($479) | | 34.5% | 21.2% | 33.1% | -63.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Yunnan Tin Minerals Group Co Ltd ($263) | 79.6% | 66.3% | | 98.7% | |
| Goldin Financial Holdings Ltd ($530) | 75.3% | 71.7% | 74.8% | 73.8% | 55.8% |
| YGM Trading Ltd ($375) | 66.5% | 67.4% | 64.0% | 62.5% | 58.7% |
| Goldlion Holdings Ltd ($533) | 56.4% | 54.1% | 55.7% | 60.0% | |
| E.Bon Holdings Ltd ($599) | 40.3% | 37.4% | 35.8% | 39.6% | 42.4% |
| |
|---|
| Median (34 companies) | 17.4% | 17.8% | 18.7% | 21.0% | 23.4% |
|---|
| CIL Holdings Ltd ($479) | 4.1% | 4.6% | 3.5% | 3.3% | 4.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China LNG Group Ltd ($931) | 95.1% | 76.4% | 97.9% | 1,277.8% | |
| Goldin Financial Holdings Ltd ($530) | 163.7% | 613.4% | 285.7% | 364.1% | 272.7% |
| China Infrastructure Investment Ltd ($600) | -274.9% | 120.0% | 52.0% | 134.5% | |
| China Yunnan Tin Minerals Group Co Ltd ($263) | -1,064.4% | -252.1% | | 62.8% | |
| Goldlion Holdings Ltd ($533) | 25.8% | 23.4% | 22.5% | 22.8% | |
| |
|---|
| Median (37 companies) | 2.4% | 2.1% | 4.5% | 4.9% | -6.3% |
|---|
| CIL Holdings Ltd ($479) | -5.0% | -5.3% | -9.8% | -1.9% | -17.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SIS International Holdings ($529) | 13.4% | 31.8% | 14.8% | 49.8% | |
| Inspur International Ltd ($596) | 8.4% | 12.2% | 33.6% | 25.6% | |
| China LNG Group Ltd ($931) | 11.1% | 0.3% | 0.6% | 15.6% | |
| YGM Trading Ltd ($375) | 1.8% | 2.1% | 3.5% | 14.5% | 4.0% |
| Victory Group Ltd ($1139) | 0.7% | 0.1% | 6.1% | 12.6% | |
| |
|---|
| Median (36 companies) | 1.4% | 1.7% | 1.7% | 1.2% | 1.8% |
|---|
| CIL Holdings Ltd ($479) | 0.0% | 1.0% | 1.4% | 0.8% | 4.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China LNG Group Ltd ($931) | 8.4% | 7.4% | 87.0% | 56.2% | |
| Powerwell Pacific Holdings Ltd ($8265) | 6.4% | 6.4% | 23.6% | 27.1% | |
| Yestar International Holdings Co Ltd ($2393) | 28.8% | 24.1% | 26.2% | 25.4% | |
| E.Bon Holdings Ltd ($599) | 7.0% | 7.2% | 3.3% | 16.9% | 17.4% |
| Goldin Financial Holdings Ltd ($530) | 5.9% | 20.6% | 10.4% | 16.0% | 8.7% |
| |
|---|
| Median (38 companies) | 2.7% | 1.6% | 3.2% | 2.7% | -6.5% |
|---|
| CIL Holdings Ltd ($479) | -27.6% | -37.3% | -38.7% | -10.3% | -21.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SIS International Holdings ($529) | -1.8x | 7.0x | 7.2x | 16.8x | |
| Leeport Holdings Ltd ($387) | | | | 16.1x | |
| Takson Holdings Ltd ($918) | | 11.5x | 11.7x | 15.7x | |
| Sheng Yuan Holdings Ltd ($851) | | | 19.3x | 15.4x | |
| Forefront Group Ltd ($885) | | | -0.0x | 15.3x | |
| |
|---|
| Median (27 companies) | -0.2x | -0.6x | 0.3x | -0.2x | -0.7x |
|---|
