FIH Mobile Ltd EBITDA dropped on 19.2% in 2016 and Revenue dropped on 16.3%
09/03/2017 • About FIH Mobile Ltd (
$2038) • By InTwits
FIH Mobile Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 4.5% in FY2016, 4.7% in FY2015, 5.4% in FY2014, 4.3% in FY2013, -3.0% in FY2012
- The company has potentially unprofitable business model: ROIC is at 3.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
FIH Mobile Ltd ($2038) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,240 | 4,997 | 6,830 | 7,451 | 6,233 | -16.3% |
| Gross Profit | -1 | 224 | 423 | 386 | 342 | -11.5% |
| SG&A | 236 | 210 | 213 | 206 | 222 | 7.4% |
| EBITDA | -159 | 213 | 369 | 349 | 282 | -19.2% |
| Net Income | -316 | 78 | 169 | 229 | 138 | -39.6% |
Balance Sheet
|
|---|
| Cash | 2,357 | 2,517 | 2,368 | 2,223 | 1,532 | -31.1% |
| Short Term Debt | 215 | 138 | 179 | 13 | 419 | 3,031.6% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 42 | 181 | 139 | 172 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -17.5% | -4.6% | 36.7% | 9.1% | -16.3% | |
| EBITDA growth | -147.2% | -234.2% | 73.5% | -5.4% | -19.2% | |
| Gross Margin | -0.0% | 4.5% | 6.2% | 5.2% | 5.5% | 0.3% |
| EBITDA Margin | -3.0% | 4.3% | 5.4% | 4.7% | 4.5% | -0.2% |
| Net Income Margin | -6.0% | 1.6% | 2.5% | 3.1% | 2.2% | -0.9% |
| SG&A, % of revenue | 4.5% | 4.2% | 3.1% | 2.8% | 3.6% | 0.8% |
| CAPEX, % of revenue | 0.8% | 3.6% | 2.0% | 2.3% | | -2.3% |
| ROIC | -9.4% | 1.5% | 5.8% | 5.4% | 3.6% | -1.8% |
| ROE | -8.7% | 2.2% | 4.4% | 6.0% | 3.8% | -2.2% |
| Net Debt/EBITDA | | -11.2x | -5.9x | -6.3x | -3.9x | 2.4x |
Revenue and profitability
The company's Revenue dropped on 16.3%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.7 pp from 19.2% to 23.9% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue increased slightly on 0.79 pp from 2.8% to 3.6% in FY2016.
Net Income marign decreased slightly on 0.86 pp from 3.1% to 2.2% in FY2016.
Return on investment
The company operates at low ROIC (3.61%) and ROE (3.78%). ROIC decreased slightly on 1.8 pp from 5.4% to 3.6% in FY2016. ROE decreased on 2.2 pp from 6.0% to 3.8% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.9x and Debt / EBITDA is 1.5x. Net Debt / EBITDA surged on 2.4x from -6.3x to -3.9x in FY2016. Debt jumped on 3,032% while cash dropped on 31.1%.
Management team
Chih Yu Yang is a FIH Mobile Ltd's CEO. Chih Yu Yang has spent 6 years at the company.
Appendix 1: Peers in Telecommunications
Below we provide FIH Mobile Ltd benchmarking against other companies in Telecommunications 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 |
|---|
| 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) | 11.4% | 9.8% | 9.6% | 6.1% | -2.0% |
|---|
| FIH Mobile Ltd ($2038) | | -4.6% | 36.7% | 9.1% | -16.3% |
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) | 26.1% | 24.5% | 26.6% | 23.6% | 40.9% |
|---|
| FIH Mobile Ltd ($2038) | -0.0% | 4.5% | 6.2% | 5.2% | 5.5% |
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) | 8.3% | 5.5% | 6.4% | 9.2% | 8.9% |
|---|
| FIH Mobile Ltd ($2038) | -3.0% | 4.3% | 5.4% | 4.7% | 4.5% |
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) | 2.3% | 2.9% | 3.1% | 2.6% | 8.4% |
|---|
| FIH Mobile Ltd ($2038) | 0.8% | 3.6% | 2.0% | 2.3% | |
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) | 7.7% | 6.0% | 6.6% | 6.3% | 6.2% |
|---|
| FIH Mobile Ltd ($2038) | -9.4% | 1.5% | 5.8% | 5.4% | 3.6% |
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 (38 companies) | -0.3x | 0.7x | 1.0x | 0.8x | 1.7x |
|---|
| FIH Mobile Ltd ($2038) | | -11.2x | -5.9x | -6.3x | -3.9x |
