SIS International Holdings Net Debt / EBITDA surged on 10.5x from 16.8x to 27.3x in 2016 while Revenue decreased slightly on 1.5%
16/03/2017 • About SIS International Holdings (
$529) • By InTwits
SIS International Holdings reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- SIS International Holdings doesn't have a profitable business model yet: FY2016 ROIC is 1.2%
- The company has potentially unprofitable business model: ROIC is at 1.2%
- It operates with high leverage: Net Debt/EBITDA is 27.3x while industry average is 1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
SIS International Holdings ($529) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,098 | 1,644 | 1,717 | 1,146 | 1,128 | -1.5% |
| Gross Profit | 130 | 137 | 152 | 170 | 178 | 4.5% |
| SG&A | 71 | 96 | 116 | 95 | 116 | 21.8% |
| EBITDA | 61 | 60 | 79 | 63 | 62 | -1.6% |
| Net Income | 159 | 254 | 176 | 241 | 236 | -1.9% |
Balance Sheet
|
|---|
| Cash | 410 | 342 | 328 | 390 | 645 | 65.4% |
| Short Term Debt | 302 | 480 | 477 | 949 | 1,106 | 16.5% |
| Long Term Debt | 0 | 283 | 419 | 509 | 1,245 | 144.5% |
Cash flow
|
|---|
| Capex | 282 | 522 | 253 | 571 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 58.0% | -21.7% | 4.4% | -33.3% | -1.5% | |
| EBITDA growth | 546.5% | -1.3% | 30.9% | -19.5% | -1.6% | |
| Gross Margin | 6.2% | 8.3% | 8.9% | 14.9% | 15.8% | 0.9% |
| EBITDA Margin | 2.9% | 3.7% | 4.6% | 5.5% | 5.5% | -0.0% |
| Net Income Margin | 7.6% | 15.5% | 10.3% | 21.0% | 20.9% | -0.1% |
| SG&A, % of revenue | 3.4% | 5.9% | 6.7% | 8.3% | 10.3% | 2.0% |
| CAPEX, % of revenue | 13.4% | 31.8% | 14.8% | 49.8% | | -49.8% |
| ROIC | 2.7% | 1.8% | 2.0% | 1.3% | 1.2% | -0.1% |
| ROE | 8.0% | 11.9% | 7.6% | 9.8% | 8.8% | -1.0% |
| Net Debt/EBITDA | -1.8x | 7.0x | 7.2x | 16.8x | 27.3x | 10.5x |
Revenue and profitability
The company's Revenue decreased slightly on 1.5%. EBITDA Margin showed almost no change in FY2016.
Gross Margin increased slightly on 0.90 pp from 14.9% to 15.8% in FY2016. SG&A as a % of Revenue increased slightly on 2.0 pp from 8.3% to 10.3% in FY2016.
Net Income marign showed almost no change in FY2016.
Return on investment
The company operates at low ROIC (1.20%) and ROE (8.79%). ROIC showed almost no change in FY2016. ROE decreased slightly on 0.99 pp from 9.8% to 8.8% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 27.3x and Debt / EBITDA is 37.7x. Net Debt / EBITDA surged on 10.5x from 16.8x to 27.3x in FY2016. Debt jumped on 61.2% while cash surged on 65.4%.
Appendix 1: Peers in Distribution/Wholesale
Below we provide SIS International Holdings benchmarking against other companies in Distribution/Wholesale 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 |
|---|
| C Y Foundation Group Ltd ($1182) | | -65.6% | 5.9% | 214.6% | -14.6% |
| China Fortune Holdings Ltd ($110) | -64.7% | -68.2% | -71.0% | 174.2% | |
| Hailiang International Holdings Ltd ($2336) | 9.7% | -30.8% | -69.1% | 99.7% | |
| Forefront Group Ltd ($885) | | 504.6% | 3,871.0% | 72.0% | |
| Yestar International Holdings Co Ltd ($2393) | | 22.8% | 30.5% | 60.3% | 23.1% |
| |
|---|
| Median (36 companies) | 1.7% | 3.6% | -0.5% | -1.3% | -14.8% |
|---|
| SIS International Holdings ($529) | | -21.7% | 4.4% | -33.3% | -1.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Yunnan Tin Minerals Group Co Ltd ($263) | 79.6% | 66.3% | | 98.7% | |
| Goldin Financial Holdings Ltd ($530) | 75.3% | 71.7% | 74.8% | 73.8% | 55.8% |
| YGM Trading Ltd ($375) | 66.5% | 67.4% | 64.0% | 62.5% | 58.7% |
| Goldlion Holdings Ltd ($533) | 56.4% | 54.1% | 55.7% | 60.0% | |
| E.Bon Holdings Ltd ($599) | 40.3% | 37.4% | 35.8% | 39.6% | 42.4% |
| |
|---|
| Median (34 companies) | 17.4% | 17.8% | 18.7% | 21.0% | 23.9% |
|---|
| SIS International Holdings ($529) | 6.2% | 8.3% | 8.9% | 14.9% | 15.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China LNG Group Ltd ($931) | 95.1% | 76.4% | 97.9% | 1,277.8% | |
| Goldin Financial Holdings Ltd ($530) | 163.7% | 613.4% | 285.7% | 364.1% | 272.7% |
| China Infrastructure Investment Ltd ($600) | -274.9% | 120.0% | 52.0% | 134.5% | |
| China Yunnan Tin Minerals Group Co Ltd ($263) | -1,064.4% | -252.1% | | 62.8% | |
| Goldlion Holdings Ltd ($533) | 25.8% | 23.4% | 22.5% | 22.8% | |
| |
|---|
| Median (37 companies) | 1.7% | 1.7% | 4.4% | 3.8% | -7.4% |
|---|
| SIS International Holdings ($529) | 2.9% | 3.7% | 4.6% | 5.5% | 5.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Inspur International Ltd ($596) | 8.4% | 12.2% | 33.6% | 25.6% | |
| China LNG Group Ltd ($931) | 11.1% | 0.3% | 0.6% | 15.6% | |
| YGM Trading Ltd ($375) | 1.8% | 2.1% | 3.5% | 14.5% | 4.0% |
| Victory Group Ltd ($1139) | 0.7% | 0.1% | 6.1% | 12.6% | |
| C Y Foundation Group Ltd ($1182) | 2.5% | 5.2% | 82.2% | 9.3% | 70.8% |
| |
|---|
| Median (36 companies) | 1.2% | 1.7% | 1.6% | 1.2% | 1.8% |
|---|
| SIS International Holdings ($529) | 13.4% | 31.8% | 14.8% | 49.8% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China LNG Group Ltd ($931) | 8.4% | 7.4% | 87.0% | 56.2% | |
| Powerwell Pacific Holdings Ltd ($8265) | 6.4% | 6.4% | 23.6% | 27.1% | |
| Yestar International Holdings Co Ltd ($2393) | 28.8% | 24.1% | 26.2% | 25.4% | 18.8% |
| E.Bon Holdings Ltd ($599) | 7.0% | 7.2% | 3.3% | 16.9% | 17.4% |
| Goldin Financial Holdings Ltd ($530) | 5.9% | 20.6% | 10.4% | 16.0% | 8.7% |
| |
|---|
| Median (38 companies) | 2.1% | 0.2% | 3.2% | 2.7% | -6.8% |
|---|
| SIS International Holdings ($529) | 2.7% | 1.8% | 2.0% | 1.3% | 1.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Leeport Holdings Ltd ($387) | | | | 16.1x | |
| Takson Holdings Ltd ($918) | | 11.5x | 11.7x | 15.7x | |
| Sheng Yuan Holdings Ltd ($851) | | | 19.3x | 15.4x | |
| Forefront Group Ltd ($885) | | | -0.0x | 15.3x | |
| Lee Kee Holdings Ltd ($637) | | | 6.1x | 6.1x | |
| |
|---|
| Median (26 companies) | -0.1x | -0.8x | -0.0x | -0.3x | -0.0x |
|---|
| SIS International Holdings ($529) | -1.8x | 7.0x | 7.2x | 16.8x | 27.3x |
