Gemini Investments Holdings Ltd CAPEX surged on 6,787% and Revenue jumped on 267%
28/02/2017 • About Gemini Investments Holdings Ltd (
$174) • By InTwits
Gemini Investments Holdings Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gemini Investments Holdings Ltd doesn't have a profitable business model yet: 2016 ROIC is 0.4%
- Gemini Investments Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2012-2016 was 0.0%. On average EBITDA Margin was -12.4% for the sames years0
- Gemini Investments Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 186.1%. At the same time it's a lot of higher than industry average of 9.8%.
- CAPEX is quite volatile: 156 in 2016, 2.3 in 2015, 198 in 2014, 69.7 in 2013, 242 in 2012
- The company has potentially unprofitable business model: ROIC is at 0.4%
- It operates with high leverage: Net Debt/EBITDA is 33.6x while industry average is 2.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Gemini Investments Holdings Ltd ($174) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 50.5 | 186.7 | 91.9 | 22.6 | 83.1 | 267.1% |
| EBITDA | 18.5 | -2.9 | -67.9 | -29.3 | 27.6 | |
| Net Income | 6.6 | 39.2 | -144.8 | -1,135.3 | -253.4 | |
Balance Sheet
|
|---|
| Cash | 401.2 | 715.3 | 2,157.9 | 851.5 | 1,121.4 | 31.7% |
| Short Term Debt | 61.7 | 549.8 | 0.0 | 863.3 | 272.5 | -68.4% |
| Long Term Debt | 496.8 | 1,000.2 | 1,522.6 | 1,601.6 | 1,776.5 | 10.9% |
Cash flow
|
|---|
| Capex | 242.2 | 69.7 | 198.5 | 2.3 | 156.3 | 6,787.0% |
Ratios
|
|---|
| Revenue growth | -25.0% | 269.3% | -50.8% | -75.4% | 267.1% | |
| EBITDA growth | 1,220.2% | -115.5% | 2,270.5% | -56.8% | -194.2% | |
| EBITDA Margin | 36.6% | -1.5% | -73.8% | -129.5% | 33.2% | 162.8% |
| Net Income Margin | 13.1% | 21.0% | -157.6% | -5,015.9% | -304.9% | 4,711.0% |
| CAPEX, % of revenue | 479.1% | 37.3% | 216.0% | 10.0% | 188.1% | 178.0% |
| ROIC | 1.8% | -0.2% | -1.8% | -0.5% | 0.4% | 0.9% |
| ROE | 1.4% | 7.6% | -30.4% | -487.2% | | 487.2% |
| Net Debt/EBITDA | 8.5x | | | | 33.6x | 33.6x |
Revenue and profitability
Gemini Investments Holdings Ltd's Revenue jumped on 267%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 44.8 pp from 44.2% to 89.0% in FY2016.
Net Income marign jumped on 4,711 pp from -5,016% to -305% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 188% in 2016. CAPEX/Revenue surged on 151 pp from 37.3% in 2013 to 188% in 2016. Average CAPEX/Revenue for the last three years was 138%.Gemini Investments Holdings Ltd has spent a lot to CAPEX (566% of EBITDA) to secure its growth.
Leverage (Debt)
Debt level is 33.6x Net Debt / EBITDA and 74.2x Debt / EBITDA. Net Debt / EBITDA jumped33.6x from to 33.6x in 2016. Debt dropped on 16.9% while cash jumped on 31.7%.
Appendix 1: Peers in Diversified Finan Serv
Below we provide Gemini Investments 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) | 9.3% | 14.9% | 27.6% | 25.3% | 15.1% |
|---|
| Gemini Investments Holdings Ltd ($174) | | 269.3% | -50.8% | -75.4% | 267.1% |
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) | 64.2% | 75.1% | 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% | 73.7% |
| Hong Kong Finance Group Co Ltd ($1273) | 76.9% | 67.5% | 65.2% | 74.8% | 70.3% |
| |
|---|
| Median (66 companies) | 18.8% | 37.2% | 47.9% | 32.4% | 52.0% |
|---|
| Gemini Investments Holdings Ltd ($174) | 36.6% | -1.5% | -73.8% | -129.5% | 33.2% |
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) | 1.9% | 1.8% | 1.1% | 1.5% | 1.6% |
|---|
| Gemini Investments Holdings Ltd ($174) | 479.1% | 37.3% | 216.0% | 10.0% | 188.1% |
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% | 19.3% |
| 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% | 12.4% |
| 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% | 4.7% |
|---|
| Gemini Investments Holdings Ltd ($174) | 1.8% | -0.2% | -1.8% | -0.5% | 0.4% |
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 (50 companies) | -0.7x | 0.1x | -0.0x | -0.0x | 0.5x |
|---|
