Global Tech Holdings Ltd reports 19.3% revenue growth in FY2016 and 4.4 pp EBITDA Margin decline from -18.6% to -23.0%
19/12/2016 • About Global Tech Holdings Ltd (
$143) • By InTwits
Global Tech Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Global Tech Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -14.0%
- The company operates at negative EBITDA Margin: -23.0%
- Global Tech 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 -22.5%0
- Global Tech Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's a lot of higher than industry average of 31.6%.
- CAPEX is quite volatile: 1.8 in FY2016, 1.4 in FY2015, 0.18 in FY2014, 2.8 in FY2013, 1.3 in FY2012
- The company has unprofitable business model: ROIC is at -14.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Global Tech Holdings Ltd ($143) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 100.6 | 110.5 | 89.8 | 86.7 | 103.4 | 19.3% |
| Gross Profit | 25.6 | 33.0 | 24.7 | 26.0 | 27.7 | 6.6% |
| SG&A | | 51.4 | 39.5 | 43.4 | 53.4 | 23.2% |
| EBITDA | -21.3 | -36.5 | -12.7 | -16.2 | -23.8 | |
| Net Income | -20.6 | 12.9 | -16.0 | -23.3 | -25.3 | |
Balance Sheet
|
|---|
| Cash | 48.4 | 37.9 | 24.6 | 14.3 | 52.9 | 270.1% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 4.5 | 54.5 | 1,111.1% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 1.3 | 2.8 | 0.2 | 1.4 | 1.8 | 29.3% |
Ratios
|
|---|
| Revenue growth | 158.6% | 9.9% | -18.8% | -3.4% | 19.3% | |
| EBITDA growth | -60.0% | 71.1% | -65.1% | 27.0% | 47.2% | |
| Gross Margin | 25.4% | 29.9% | 27.5% | 30.0% | 26.8% | -3.2% |
| EBITDA Margin | -21.2% | -33.0% | -14.2% | -18.6% | -23.0% | -4.4% |
| Net Income Margin | -20.5% | 11.7% | -17.8% | -26.9% | -24.5% | 2.5% |
| SG&A, % of revenue | | 46.5% | 44.0% | 50.0% | 51.7% | 1.6% |
| CAPEX, % of revenue | 1.3% | 2.5% | 0.2% | 1.6% | 1.8% | 0.1% |
| ROIC | -10.3% | -18.7% | -7.4% | -10.0% | -14.0% | -4.1% |
| ROE | -39.1% | 26.7% | -33.5% | -73.3% | | 73.3% |
Revenue and profitability
Global Tech Holdings Ltd's Revenue surged on 19.3%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 324 pp from 2.8% to -321% in FY2016.
Gross Margin decreased on 3.2 pp from 30.0% to 26.8% in FY2016. SG&A as a % of Revenue increased slightly on 1.6 pp from 50.0% to 51.7% in FY2016.
Net Income marign increased on 2.5 pp from -26.9% to -24.5% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Global Tech Holdings Ltd had CAPEX/Revenue of 1.8%. The company showed small CAPEX/Revenue decline of 0.74 pp from 2.5% in FY2013 to 1.8% in FY2016. For the last three years the average CAPEX/Revenue was 1.2%.
Leverage (Debt)
Company's Net Debt / EBITDA is -12.3x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt jumped on 1,111% while cash jumped on 270%.
Appendix 1: Peers in Distribution/Wholesale
Below we provide Global Tech Holdings Ltd benchmarking against other companies in Distribution/Wholesale 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 |
|---|
| 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) | 1.7% | 0.7% | 1.1% | -1.3% | -16.8% |
|---|
| Global Tech Holdings Ltd ($143) | | 9.9% | -18.8% | -3.4% | 19.3% |
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) | 17.0% | 16.3% | 17.6% | 19.9% | 23.1% |
|---|
| Global Tech Holdings Ltd ($143) | 25.4% | 29.9% | 27.5% | 30.0% | 26.8% |
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% | -7.4% |
|---|
| Global Tech Holdings Ltd ($143) | -21.2% | -33.0% | -14.2% | -18.6% | -23.0% |
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) | 1.3% | 1.7% | 1.7% | 1.2% | 2.4% |
|---|
| Global Tech Holdings Ltd ($143) | 1.3% | 2.5% | 0.2% | 1.6% | 1.8% |
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% | -6.8% |
|---|
| Global Tech Holdings Ltd ($143) | -10.3% | -18.7% | -7.4% | -10.0% | -14.0% |
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 |
|---|
