Asia Satellite Telecommunications Holdings Ltd Debt dropped on 12.9% and EBITDA decreased on 4.0%
15/03/2017 • About Asia Satellite Telecommunications Holdings Ltd (
$1135) • By InTwits
Asia Satellite Telecommunications Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Asia Satellite Telecommunications Holdings Ltd is a company in decline: FY2016 revenue growth was -2.9%, 5 years revenue CAGR was -4.2%
- The company has business model with low profitability: ROIC is at 7.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Asia Satellite Telecommunications Holdings Ltd ($1135) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,780 | 1,499 | 1,365 | 1,311 | 1,272 | -2.9% |
| Gross Profit | 1,320 | 958 | 788 | 733 | 645 | -12.0% |
| SG&A | | | 150 | 143 | 138 | -3.5% |
| EBITDA | 1,540 | 1,286 | 1,114 | 1,080 | 1,037 | -4.0% |
| Net Income | 914 | 748 | 559 | 440 | 430 | -2.2% |
Balance Sheet
|
|---|
| Cash | 2,105 | 1,501 | 3,346 | 238 | 241 | 1.3% |
| Short Term Debt | 0 | 0 | 254 | 496 | 350 | -29.4% |
| Long Term Debt | 0 | 0 | 1,929 | 3,252 | 2,913 | -10.4% |
Cash flow
|
|---|
| Capex | 1,669 | 1,074 | 1,024 | 692 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 12.7% | -15.8% | -8.9% | -4.0% | -2.9% | |
| EBITDA growth | 16.8% | -16.5% | -13.4% | -3.0% | -4.0% | |
| Gross Margin | 74.2% | 63.9% | 57.7% | 55.9% | 50.7% | -5.2% |
| EBITDA Margin | 86.5% | 85.8% | 81.6% | 82.4% | 81.5% | -0.9% |
| Net Income Margin | 51.4% | 49.9% | 41.0% | 33.5% | 33.8% | 0.2% |
| SG&A, % of revenue | | | 11.0% | 10.9% | 10.9% | -0.1% |
| CAPEX, % of revenue | 93.8% | 71.7% | 75.0% | 52.8% | | -52.8% |
| ROIC | 15.4% | 10.3% | 7.1% | 7.1% | 7.3% | 0.2% |
| ROE | 12.9% | 9.9% | 7.6% | 9.0% | 14.9% | 5.9% |
| Net Debt/EBITDA | -1.4x | -1.2x | -1.0x | 3.2x | 2.9x | -0.3x |
Revenue and profitability
Asia Satellite Telecommunications Holdings Ltd's Revenue decreased on 2.9%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 0.88 pp from 82.4% to 81.5% in FY2016.
Gross Margin decreased on 5.2 pp from 55.9% to 50.7% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign showed almost no change in FY2016.
Return on investment
The company operates at good ROE (14.88%) while ROIC is low (7.25%). ROIC showed almost no change in FY2016. ROE increased on 5.9 pp from 9.0% to 14.9% in FY2016.
Leverage (Debt)
Debt level is 2.9x Net Debt / EBITDA and 3.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from 3.2x to 2.9x in FY2016. Debt dropped on 12.9% while cash increased slightly on 1.3%.
Appendix 1: Peers in Telecommunications
Below we provide Asia Satellite Telecommunications 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% | |
| China Trends Holdings Ltd ($8171) | | -70.2% | -16.7% | 106.0% | -22.7% |
| |
|---|
| Median (52 companies) | -0.3% | 9.8% | 9.8% | 8.5% | -2.5% |
|---|
| Asia Satellite Telecommunications Holdings Ltd ($1135) | | -15.8% | -8.9% | -4.0% | -2.9% |
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% | 22.7% | 35.6% |
|---|
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 74.2% | 63.9% | 57.7% | 55.9% | 50.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% |
| PCCW Ltd ($8) | 32.0% | 31.9% | 39.2% | 30.6% | 31.9% |
| |
|---|
| Median (52 companies) | 6.7% | 5.5% | 5.4% | 8.3% | 7.2% |
|---|
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 86.5% | 85.8% | 81.6% | 82.4% | 81.5% |
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% | |
| 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% | |
| China Ground Source Energy Industry Group Ltd ($8128) | 5.2% | 2.7% | 1.9% | 20.3% | |
| |
|---|
| Median (52 companies) | 2.1% | 2.9% | 2.9% | 2.6% | 8.4% |
|---|
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 93.8% | 71.7% | 75.0% | 52.8% | |
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% | 5.8% | 5.8% | 5.4% | 3.6% |
|---|
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 15.4% | 10.3% | 7.1% | 7.1% | 7.3% |
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) | -0.2x | 0.7x | 1.0x | 0.5x | 1.7x |
|---|
| Asia Satellite Telecommunications Holdings Ltd ($1135) | -1.4x | -1.2x | -1.0x | 3.2x | 2.9x |
