Zheda Lande Scitech Ltd revenue jumped on 117% and EBITDA Margin surged on 12.8 pp from -15.2% to -2.4%
06/03/2017 • About Zheda Lande Scitech Ltd (
$8106) • By InTwits
Zheda Lande Scitech Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Zheda Lande Scitech Ltd doesn't have a profitable business model yet: FY2016 ROIC is -3.7%
- The company operates at negative EBITDA Margin: -2.4%
- Zheda Lande Scitech Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -3.2% for the sames years0
- The company has unprofitable business model: ROIC is at -3.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Zheda Lande Scitech Ltd ($8106) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 57.4 | 61.4 | 48.1 | 64.7 | 140.5 | 117.3% |
| Gross Profit | 30.0 | 31.3 | 18.2 | 14.2 | 15.2 | 6.7% |
| SG&A | 26.5 | 22.9 | 19.9 | 25.6 | 23.1 | -9.9% |
| EBITDA | 9.9 | 0.7 | -9.4 | -9.9 | -3.4 | |
| Net Income | 8.3 | -0.8 | -11.2 | -9.4 | -3.5 | |
Balance Sheet
|
|---|
| Cash | 14.8 | 16.1 | 27.9 | 104.6 | 49.4 | -52.8% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 1.4 | 0.5 | 0.5 | 0.1 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -8.7% | 6.9% | -21.6% | 34.3% | 117.3% | |
| EBITDA growth | -952.2% | -92.7% | -1,404.5% | 5.3% | -65.8% | |
| Gross Margin | 52.3% | 50.9% | 37.8% | 22.0% | 10.8% | -11.2% |
| EBITDA Margin | 17.2% | 1.2% | -19.4% | -15.2% | -2.4% | 12.8% |
| Net Income Margin | 14.5% | -1.2% | -23.3% | -14.5% | -2.5% | 12.0% |
| SG&A, % of revenue | 46.2% | 37.3% | 41.3% | 39.6% | 16.4% | -23.2% |
| CAPEX, % of revenue | 2.5% | 0.8% | 1.1% | 0.2% | | -0.2% |
| ROIC | 9.2% | -0.7% | -11.8% | -10.8% | -3.7% | 7.1% |
| ROE | 10.4% | -0.9% | -14.5% | -10.8% | -3.5% | 7.2% |
| Net Debt/EBITDA | -1.5x | -22.4x | | | | 0.0x |
Revenue and profitability
Zheda Lande Scitech Ltd's Revenue jumped on 117%. 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.
Gross Margin dropped on 11.2 pp from 22.0% to 10.8% in FY2016. SG&A as a % of Revenue dropped on 23.2 pp from 39.6% to 16.4% in FY2016.
Net Income marign surged on 12.0 pp from -14.5% to -2.5% in FY2016.
Return on investment
The company operates at negative ROIC (-3.69%) and ROE (-3.51%). ROIC increased on 7.1 pp from -10.8% to -3.7% in FY2016. ROE increased on 7.2 pp from -10.8% to -3.5% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 52.8%.
Appendix 1: Peers in Telecommunications
Below you can find Zheda Lande Scitech Ltd benchmarking vs. other companies in Telecommunications 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 |
|---|
| Hong Kong Television Network Ltd ($1137) | | 107.4% | -82.2% | 8,010.0% | |
| Hanny Holdings Ltd ($275) | | 131.2% | -85.2% | 349.3% | -78.5% |
| CCT Fortis Holdings Ltd ($138) | -24.1% | -55.3% | -71.3% | 207.1% | |
| Xi'an Haitian Antenna Technologies Co Ltd ($8227) | -8.5% | -45.9% | -56.2% | 111.6% | |
| China Trends Holdings Ltd ($8171) | 167.0% | -70.2% | -16.7% | 106.0% | |
| |
|---|
| Median (52 companies) | 10.0% | 9.8% | 9.8% | 6.1% | -2.4% |
|---|
| Zheda Lande Scitech Ltd ($8106) | | 6.9% | -21.6% | 34.3% | 117.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HKBN Ltd ($1310) | | 84.3% | 86.5% | 86.9% | 83.8% |
| Netel Technology Holdings Ltd ($8256) | 27.9% | 42.1% | 54.9% | 72.3% | 73.1% |
| Great World Co Holdings Ltd ($8003) | -11.0% | 43.0% | 45.5% | 67.9% | 42.0% |
| APT Satellite Holdings Ltd ($1045) | 58.7% | 64.1% | 62.5% | 61.0% | |
| Cisco Systems Inc ($4333) | 61.2% | 60.6% | 58.9% | 60.4% | 62.9% |
| |
|---|
| Median (49 companies) | 23.6% | 24.3% | 25.0% | 23.6% | 41.4% |
|---|
| Zheda Lande Scitech Ltd ($8106) | 52.3% | 50.9% | 37.8% | 22.0% | 10.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 86.5% | 85.8% | 81.6% | 82.4% | |
| APT Satellite Holdings Ltd ($1045) | 81.0% | 78.9% | 77.5% | 78.8% | |
| Synertone Communication Corp ($1613) | 44.9% | 48.5% | 49.4% | 51.5% | -77.6% |
| HKBN Ltd ($1310) | | 39.2% | 40.1% | 39.0% | 35.2% |
| HKT Trust & HKT Ltd ($6823) | 36.3% | 35.0% | 35.9% | 34.9% | 37.2% |
| |
|---|
| Median (52 companies) | 6.7% | 5.5% | 6.4% | 9.2% | 10.9% |
|---|
| Zheda Lande Scitech Ltd ($8106) | 17.2% | 1.2% | -19.4% | -15.2% | -2.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| APT Satellite Holdings Ltd ($1045) | 74.3% | 2.5% | 27.2% | 115.8% | |
| Hong Kong Television Network Ltd ($1137) | 12,435.9% | 504.9% | 1,283.5% | 79.4% | |
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 93.8% | 71.7% | 75.0% | 52.8% | |
| China Fiber Optic Network System Group Ltd ($3777) | 4.8% | 16.3% | 13.1% | 31.9% | |
| Directel Holdings Ltd ($8337) | 2.1% | 0.1% | 0.6% | 30.2% | |
| |
|---|
| Median (52 companies) | 2.1% | 3.0% | 3.1% | 2.6% | 8.4% |
|---|
| Zheda Lande Scitech Ltd ($8106) | 2.5% | 0.8% | 1.1% | 0.2% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Telecom Service One Holdings Ltd ($8145) | 95.0% | 5.4% | 26.7% | 39.8% | 37.4% |
| VTech Holdings Ltd ($303) | 37.6% | 39.5% | 40.0% | 39.8% | 37.9% |
| Coolpad Group Ltd ($2369) | 8.1% | 6.0% | 9.6% | 29.1% | |
| Telecom Digital Holdings Ltd ($8336) | | 13.3% | 20.2% | 18.9% | 16.7% |
| SmarTone Telecommunications Holdings Ltd ($315) | 37.2% | 23.1% | 12.8% | 17.7% | 14.5% |
| |
|---|
| Median (53 companies) | 7.1% | 6.0% | 6.6% | 6.3% | 7.4% |
|---|
| Zheda Lande Scitech Ltd ($8106) | 9.2% | -0.7% | -11.8% | -10.8% | -3.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CCT Land Holdings Ltd ($261) | 10.1x | 23.8x | 48.4x | 44.8x | |
| China Energine International Holdings Ltd ($1185) | | | 13.3x | 31.7x | |
| China Ground Source Energy Industry Group Ltd ($8128) | -1.6x | 3.5x | 14.3x | 11.3x | |
| China Electronics Corp Holdings Co Ltd ($85) | -2.0x | -1.3x | 12.5x | 7.6x | |
| China All Access Holdings Ltd ($633) | 0.9x | 1.8x | 5.2x | 5.6x | |
| |
|---|
| Median (39 companies) | -0.2x | 0.7x | 0.7x | 0.6x | 1.7x |
|---|
