Yueshou Environmental Holdings Ltd CAPEX surged on 1,282% and Revenue surged on 135%
20/10/2016 • About Yueshou Environmental Holdings Ltd (
$1191) • By InTwits
Yueshou Environmental Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Yueshou Environmental Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -4.4%
- The company operates at negative EBITDA Margin: -153.1%
- Yueshou Environmental 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 -398.4%0
- Yueshou Environmental Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 48.1%. At the same time it's in pair with industry average of 56.9%.
- CAPEX is quite volatile: 0.84 in FY2016, 0.061 in FY2015, 0.19 in FY2014, 0.77 in FY2013, 8.9 in FY2012
- The company has unprofitable business model: ROIC is at -4.4%
- It operates with high leverage: Net Debt/EBITDA is 7.0x while industry average is 3.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Yueshou Environmental Holdings Ltd ($1191) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4.285 | 4.141 | 3.995 | 4.161 | 9.765 | 134.7% |
| Gross Profit | 1.630 | 1.370 | 1.128 | 1.467 | 6.856 | 367.3% |
| SG&A | | | | 31.862 | 23.758 | -25.4% |
| EBITDA | -17.153 | -27.292 | -17.097 | -28.462 | -14.951 | |
| Net Income | -562.500 | -1,027.480 | -779.689 | -26.231 | -22.542 | |
Balance Sheet
|
|---|
| Cash | 7.090 | 8.526 | 50.157 | 191.608 | 101.822 | -46.9% |
| Short Term Debt | 278.140 | 3.000 | 52.680 | 52.598 | 49.598 | -5.7% |
| Long Term Debt | 369.281 | 49.891 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 8.874 | 0.768 | 0.189 | 0.061 | 0.843 | 1,282.0% |
Ratios
|
|---|
| Revenue growth | -96.6% | -3.4% | -3.5% | 4.2% | 134.7% | |
| EBITDA growth | 163.4% | 59.1% | -37.4% | 66.5% | -47.5% | |
| Gross Margin | 38.0% | 33.1% | 28.2% | 35.3% | 70.2% | 35.0% |
| EBITDA Margin | -400.3% | -659.1% | -428.0% | -684.0% | -153.1% | 530.9% |
| Net Income Margin | -13,127.2% | -24,812.4% | -19,516.6% | -630.4% | -230.8% | 399.6% |
| SG&A, % of revenue | | | | 765.7% | 243.3% | -522.4% |
| CAPEX, % of revenue | 207.1% | 18.5% | 4.7% | 1.5% | 8.6% | 7.2% |
| ROIC | -1.0% | -2.0% | -3.1% | -9.6% | -4.4% | 5.1% |
| ROE | -40.1% | -89.5% | -147.9% | -10.9% | -7.4% | 3.5% |
Revenue and profitability
The company's Revenue jumped on 135%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 91.4 pp from -514% to -423% in FY2016.
Gross Margin surged on 35.0 pp from 35.3% to 70.2% in FY2016. SG&A as a % of Revenue dropped on 522 pp from 766% to 243% in FY2016.
Net Income marign surged on 400 pp from -630% to -231% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Yueshou Environmental Holdings Ltd's CAPEX/Revenue was 8.6% in FY2016. The company showed decline in CAPEX/Revenue of 9.9 pp from 18.5% in FY2013 to 8.6% in FY2016. It's average CAPEX/Revenue for the last three years was 4.9%.
Return on investment
The company operates at negative ROIC (-4.42%) and ROE (-7.44%). ROIC increased on 5.1 pp from -9.6% to -4.4% in FY2016. ROE increased on 3.5 pp from -10.9% to -7.4% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 7.0x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt decreased on 5.7% while cash dropped on 46.9%.
Appendix 1: Peers in Real Estate
Below we provide Yueshou Environmental Holdings Ltd benchmarking against other companies in Real Estate 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 |
|---|
| Guangdong Land Holdings Ltd ($124) | | | | 24,971.2% | |
| GR Properties Ltd ($108) | 21.6% | -82.9% | 14.6% | 1,203.6% | |
| Wanda Hotel Development Co Ltd ($169) | | -51.4% | -86.2% | 1,071.2% | |
| Henderson Investment Ltd ($97) | -78.9% | | | 737.1% | |
| ITC Properties Group Ltd ($199) | | -95.2% | 75.7% | 678.6% | 206.4% |
| |
|---|
| Median (179 companies) | 17.1% | 13.5% | 5.3% | 4.5% | 5.4% |
|---|
| Yueshou Environmental Holdings Ltd ($1191) | | -3.4% | -3.5% | 4.2% | 134.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Renhe Commercial Holdings Co Ltd ($1387) | 79.0% | 95.2% | 97.9% | 99.9% | |
| Tern Properties Co Ltd ($277) | 96.7% | 98.4% | 98.4% | 98.7% | 98.8% |
| YT Realty Group Ltd ($75) | 94.4% | 96.6% | 96.7% | 97.6% | |
| Wah Ha Realty Co Ltd ($278) | 96.3% | 96.0% | 93.2% | 95.9% | 92.9% |
| Soundwill Holdings Ltd ($878) | 53.1% | 74.5% | 46.9% | 95.7% | |
| |
|---|
| Median (160 companies) | 42.1% | 41.9% | 39.3% | 38.4% | 46.0% |
|---|
| Yueshou Environmental Holdings Ltd ($1191) | 38.0% | 33.1% | 28.2% | 35.3% | 70.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chinese Estates Holdings Ltd ($127) | 356.2% | 91.6% | 195.5% | 397.4% | |
| Zall Development Group Ltd ($2098) | 105.3% | 133.1% | 143.2% | 213.9% | |
| SOHO China Ltd ($410) | 113.6% | 80.8% | 104.0% | 201.9% | |
| Beijing Properties Holdings Ltd ($925) | -606.3% | 2,162.6% | 224.3% | 186.5% | |
| Swire Properties Ltd ($1972) | 154.5% | 114.6% | 73.2% | 100.3% | |
| |
|---|
| Median (179 companies) | 29.3% | 28.5% | 27.8% | 23.5% | 31.7% |
|---|
| Yueshou Environmental Holdings Ltd ($1191) | -400.3% | -659.1% | -428.0% | -684.0% | -153.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| LT Commercial Real Estate Ltd ($112) | 0.0% | 18.0% | 27,965.5% | 4,834.8% | |
| China Oceanwide Holdings Ltd ($715) | 0.8% | 0.3% | 2.0% | 880.6% | |
| Madex International Holdings Ltd ($231) | 174.5% | 519.7% | 205.3% | 350.6% | |
| Pacific Century Premium Developments Ltd ($432) | 2.9% | 323.1% | 351.2% | 340.6% | |
| Hon Kwok Land Investment Co Ltd ($160) | 20.6% | 157.3% | 144.5% | 296.3% | 28.1% |
| |
|---|
| Median (179 companies) | 5.6% | 6.1% | 4.7% | 3.3% | 1.7% |
|---|
| Yueshou Environmental Holdings Ltd ($1191) | 207.1% | 18.5% | 4.7% | 1.5% | 8.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hydoo International Holding Ltd ($1396) | 44.3% | 62.0% | 12.9% | 16.6% | |
| Gemdale Properties & Investment Corp Ltd ($535) | 15.3% | 19.6% | 10.8% | 15.9% | |
| China Overseas Land & Investment Ltd ($688) | | 15.1% | 18.5% | 15.4% | 13.0% |
| Colour Life Services Group Co Ltd ($1778) | 44.2% | 47.9% | 29.3% | 14.5% | |
| Dalian Wanda Commercial Properties Co Ltd ($3699) | 26.8% | 19.6% | 12.3% | 14.4% | |
| |
|---|
| Median (181 companies) | 4.2% | 4.1% | 4.2% | 2.5% | 1.7% |
|---|
| Yueshou Environmental Holdings Ltd ($1191) | -1.0% | -2.0% | -3.1% | -9.6% | -4.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shui On Land Ltd ($272) | 22.1x | 13.2x | 17.1x | 54.2x | |
| Beijing Capital Land Ltd ($2868) | 7.1x | 4.6x | 11.7x | 49.1x | |
| Talent Property Group Ltd ($760) | | | | 43.0x | |
| Mingfa Group International Co Ltd ($846) | 2.5x | 3.0x | 6.3x | 42.9x | |
| Sunshine 100 China Holdings Ltd ($2608) | 9.9x | 12.4x | 12.9x | 42.3x | |
| |
|---|
| Median (137 companies) | 2.4x | 2.7x | 3.0x | 3.2x | 3.1x |
|---|
