Sino-I Technology Ltd Debt dropped on 36.4% and EBITDA dropped on 20.1%
15/03/2017 • About Sino-I Technology Ltd (
$250) • By InTwits
Sino-I Technology Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sino-I Technology Ltd doesn't have a profitable business model yet: FY2016 ROIC is -1.7%
- Sino-I Technology Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -1.1% for the sames years0
- The company has unprofitable business model: ROIC is at -1.7%
- It operates with high leverage: Net Debt/EBITDA is 3.1x while industry average is -1.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sino-I Technology Ltd ($250) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 659.1 | 683.4 | 784.8 | 808.3 | 818.1 | 1.2% |
| Gross Profit | 496.2 | 565.0 | 618.3 | 669.0 | 678.4 | 1.4% |
| SG&A | 489.6 | 489.4 | 608.2 | 602.8 | 615.0 | 2.0% |
| EBITDA | -63.7 | 17.6 | -49.1 | 29.0 | 23.1 | -20.1% |
| Net Income | -59.9 | -28.8 | -115.4 | 47.9 | 49.1 | 2.7% |
Balance Sheet
|
|---|
| Cash | 16.6 | 65.8 | 58.1 | 128.4 | 85.2 | -33.6% |
| Short Term Debt | 247.6 | 231.1 | 314.0 | 246.2 | 156.7 | -36.3% |
| Long Term Debt | 0.2 | 0.1 | 0.8 | 0.4 | 0.1 | -83.4% |
Cash flow
|
|---|
| Capex | 61.6 | 86.6 | 31.8 | 48.6 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -16.8% | 3.7% | 14.8% | 3.0% | 1.2% | |
| EBITDA growth | -49.0% | -127.6% | -379.4% | -159.0% | -20.1% | |
| Gross Margin | 75.3% | 82.7% | 78.8% | 82.8% | 82.9% | 0.1% |
| EBITDA Margin | -9.7% | 2.6% | -6.3% | 3.6% | 2.8% | -0.8% |
| Net Income Margin | -9.1% | -4.2% | -14.7% | 5.9% | 6.0% | 0.1% |
| SG&A, % of revenue | 74.3% | 71.6% | 77.5% | 74.6% | 75.2% | 0.6% |
| CAPEX, % of revenue | 9.3% | 12.7% | 4.0% | 6.0% | | -6.0% |
| ROIC | -6.3% | -3.5% | -8.2% | -1.3% | -1.7% | -0.4% |
| ROE | -3.2% | -1.6% | -6.5% | 2.8% | 2.8% | 0.0% |
| Net Debt/EBITDA | | 9.4x | | 4.1x | 3.1x | -1.0x |
Revenue and profitability
The company's Revenue increased slightly on 1.2%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 0.76 pp from 3.6% to 2.8% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue increased slightly on 0.59 pp from 74.6% to 75.2% in FY2016.
Net Income marign showed almost no change in FY2016.
Return on investment
The company operates at negative ROIC (-1.67%) and low but positive ROE (2.79%). ROIC showed almost no change in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt level is 3.1x Net Debt / EBITDA and 6.8x Debt / EBITDA. Net Debt / EBITDA dropped on 1.0x from 4.1x to 3.1x in FY2016. Debt dropped on 36.4% while cash dropped on 33.6%.
Appendix 1: Peers in Internet
Below we provide Sino-I Technology Ltd benchmarking against other companies in Internet 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 |
|---|
| Asian Capital Resources Holdings Ltd ($8025) | -5.6% | | | 1,114.6% | |
| China Public Procurement Ltd ($1094) | 5,077.0% | -67.5% | 1,258.9% | 105.7% | |
| Ourgame International Holdings Ltd ($6899) | 33.7% | 14.8% | 101.3% | 61.8% | |
| Media Asia Group Holdings Ltd ($8075) | | 275.6% | 3.6% | 55.9% | -26.9% |
| Tai Shing International Holdings Ltd ($8103) | | -35.9% | -4.9% | 48.5% | -13.6% |
| |
|---|
| Median (20 companies) | 12.7% | 10.5% | 11.0% | 9.8% | -5.3% |
|---|
| Sino-I Technology Ltd ($250) | | 3.7% | 14.8% | 3.0% | 1.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| ABC Multiactive Ltd ($8131) | 86.7% | 83.5% | 86.2% | 82.1% | 74.8% |
| China Digital Culture Group Ltd ($8175) | 64.3% | 78.6% | 65.2% | 72.7% | |
| Prosten Technology Holdings Ltd ($8026) | 52.4% | 47.8% | 50.8% | 67.1% | 53.8% |
| SUNeVision Holdings Ltd ($8008) | 53.5% | 60.5% | 64.7% | 65.6% | 63.9% |
| Pacific Online Ltd ($543) | 71.0% | 70.5% | 67.3% | 64.8% | |
| |
|---|
| Median (17 companies) | 65.8% | 66.2% | 61.7% | 45.7% | 45.3% |
|---|
| Sino-I Technology Ltd ($250) | 75.3% | 82.7% | 78.8% | 82.8% | 82.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SUNeVision Holdings Ltd ($8008) | 64.2% | 71.6% | 71.6% | 72.4% | 68.9% |
| China Digital Culture Group Ltd ($8175) | -66.7% | 22.5% | 40.8% | 46.6% | |
| Tradelink Electronic Commerce Ltd ($536) | 38.6% | 33.8% | 33.1% | 31.1% | |
| GET Holdings Ltd ($8380) | -237.7% | 56.8% | 66.4% | 28.5% | |
| Media Asia Group Holdings Ltd ($8075) | -30.8% | 18.6% | 13.4% | 25.1% | 14.2% |
| |
|---|
| Median (20 companies) | 6.0% | 20.6% | 14.2% | 9.6% | -13.9% |
|---|
| Sino-I Technology Ltd ($250) | -9.7% | 2.6% | -6.3% | 3.6% | 2.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| AcrossAsia Ltd ($8061) | 56.6% | 65.9% | 36.3% | 45.8% | |
| Asian Capital Resources Holdings Ltd ($8025) | 0.0% | | 12.2% | 14.0% | |
| SUNeVision Holdings Ltd ($8008) | 7.6% | 10.2% | 62.8% | 12.4% | 41.1% |
| Ourgame International Holdings Ltd ($6899) | 1.8% | 3.1% | 1.7% | 6.4% | |
| Capinfo Co Ltd ($1075) | 17.3% | 13.1% | 9.7% | 4.3% | |
| |
|---|
| Median (20 companies) | 3.1% | 2.5% | 1.7% | 0.8% | 2.4% |
|---|
| Sino-I Technology Ltd ($250) | 9.3% | 12.7% | 4.0% | 6.0% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pacific Online Ltd ($543) | 37.9% | 36.4% | 28.6% | 21.6% | |
| Tradelink Electronic Commerce Ltd ($536) | 22.4% | 18.2% | 17.4% | 16.7% | |
| SUNeVision Holdings Ltd ($8008) | 10.8% | 13.3% | 14.4% | 15.3% | 15.3% |
| Ourgame International Holdings Ltd ($6899) | 42.8% | 33.3% | 17.5% | 12.7% | |
| China Digital Culture Group Ltd ($8175) | -11.2% | 4.0% | 11.7% | 8.2% | |
| |
|---|
| Median (21 companies) | -2.5% | 4.0% | -1.3% | 1.0% | -19.5% |
|---|
| Sino-I Technology Ltd ($250) | -6.3% | -3.5% | -8.2% | -1.3% | -1.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tai Shing International Holdings Ltd ($8103) | | | | 82.7x | |
| AcrossAsia Ltd ($8061) | 2.3x | 2.9x | 1.5x | 7.7x | |
| GET Holdings Ltd ($8380) | | -1.1x | -1.0x | 0.7x | |
| SUNeVision Holdings Ltd ($8008) | -2.2x | -2.0x | -1.5x | -1.2x | -0.7x |
| China Digital Culture Group Ltd ($8175) | | -2.2x | -0.4x | -1.5x | |
| |
|---|
| Median (13 companies) | -1.6x | -1.3x | -1.5x | -2.0x | -1.7x |
|---|
| Sino-I Technology Ltd ($250) | | 9.4x | | 4.1x | 3.1x |
