China Trends Holdings Ltd revenue dropped on 22.7% and EBITDA Margin decreased on 6.5 pp from -3.9% to -10.5%
14/03/2017 • About China Trends Holdings Ltd (
$8171) • By InTwits
China Trends Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Trends Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -7.9%
- The company operates at negative EBITDA Margin: -10.5%
- China Trends 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 -7.8%0
- The company has unprofitable business model: ROIC is at -7.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Trends Holdings Ltd ($8171) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 227.9 | 67.8 | 56.5 | 116.5 | 90.0 | -22.7% |
| Gross Profit | 7.2 | 2.4 | 2.4 | 3.5 | 3.5 | -1.3% |
| SG&A | | | 21.0 | 8.6 | 13.7 | 58.6% |
| EBITDA | -3.2 | -8.2 | -18.1 | -4.6 | -9.4 | |
| Net Income | -3.8 | -7.9 | -18.4 | -4.9 | -14.1 | |
Balance Sheet
|
|---|
| Cash | 77.5 | 10.9 | 7.5 | 5.5 | 32.6 | 495.7% |
| 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 | 0.0 | 0.1 | 0.0 | 0.0 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 167.0% | -70.2% | -16.7% | 106.0% | -22.7% | |
| EBITDA growth | 174.8% | 156.7% | 120.3% | -74.7% | 105.5% | |
| Gross Margin | 3.2% | 3.6% | 4.3% | 3.0% | 3.9% | 0.8% |
| EBITDA Margin | -1.4% | -12.1% | -32.1% | -3.9% | -10.5% | -6.5% |
| Net Income Margin | -1.7% | -11.6% | -32.5% | -4.2% | -15.7% | -11.5% |
| SG&A, % of revenue | | | 37.1% | 7.4% | 15.2% | 7.8% |
| CAPEX, % of revenue | 0.0% | 0.1% | 0.0% | 0.0% | | -0.0% |
| ROIC | -3.0% | -6.7% | -14.4% | -4.0% | -7.9% | -4.0% |
| ROE | -2.7% | -5.9% | -14.5% | -4.0% | -11.4% | -7.4% |
Revenue and profitability
The company's Revenue dropped on 22.7%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.4 pp from -22.6% to -15.2% in FY2016.
Gross Margin increased slightly on 0.84 pp from 3.0% to 3.9% in FY2016. SG&A as a % of Revenue increased on 7.8 pp from 7.4% to 15.2% in FY2016.
Net Income marign dropped on 11.5 pp from -4.2% to -15.7% in FY2016.
Return on investment
The company operates at negative ROIC (-7.91%) and ROE (-11.45%). ROIC decreased on 4.0 pp from -4.0% to -7.9% in FY2016. ROE decreased on 7.4 pp from -4.0% to -11.4% in FY2016.
Leverage (Debt)
The company has no debt. Cash surged on 496%.
Appendix 1: Peers in Telecommunications
Below we provide China Trends Holdings 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% | |
| Synertone Communication Corp ($1613) | | -47.0% | 50.8% | 89.0% | -67.7% |
| |
|---|
| Median (52 companies) | 11.4% | 9.8% | 9.8% | 6.1% | -2.0% |
|---|
| China Trends Holdings Ltd ($8171) | | -70.2% | -16.7% | 106.0% | -22.7% |
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% | 35.6% |
|---|
| China Trends Holdings Ltd ($8171) | 3.2% | 3.6% | 4.3% | 3.0% | 3.9% |
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% |
|---|
| China Trends Holdings Ltd ($8171) | -1.4% | -12.1% | -32.1% | -3.9% | -10.5% |
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% | 3.0% | 3.1% | 2.6% | 8.4% |
|---|
| China Trends Holdings Ltd ($8171) | 0.0% | 0.1% | 0.0% | 0.0% | |
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% |
|---|
| China Trends Holdings Ltd ($8171) | -3.0% | -6.7% | -14.4% | -4.0% | -7.9% |
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) | -0.3x | 0.6x | 0.7x | 0.6x | 1.7x |
|---|
