Sheng Yuan Holdings Ltd Net Debt / EBITDA dropped on 12.5x from 15.4x to 3.0x in 2016 while EBITDA increased on 9.5%
17/03/2017 • About Sheng Yuan Holdings Ltd (
$851) • By InTwits
Sheng Yuan Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 31.7% in FY2016 vs. 5.0% in FY2015 vs. -621.7% in FY2012
- Sheng Yuan 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 -3.2%0
- The company has potentially unprofitable business model: ROIC is at 4.7%
- It operates with high leverage: Net Debt/EBITDA is 3.0x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sheng Yuan Holdings Ltd ($851) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 7.3 | 62.1 | 414.6 | 405.7 | 69.5 | -82.9% |
| EBITDA | -45.1 | -38.1 | 10.1 | 20.1 | 22.0 | 9.5% |
| Net Income | -49.1 | -40.2 | -5.0 | -34.4 | -16.9 | |
Balance Sheet
|
|---|
| Cash | 65.5 | 58.5 | 94.5 | 60.5 | 126.5 | 108.9% |
| Short Term Debt | 0.0 | 30.0 | 155.0 | 222.3 | 192.2 | -13.5% |
| Long Term Debt | 0.1 | 0.0 | 133.9 | 148.5 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 2.1 | 1.3 | 0.3 | 0.1 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -86.1% | 756.9% | 567.2% | -2.1% | -82.9% | |
| EBITDA growth | 496.7% | -15.6% | -126.5% | 98.9% | 9.5% | |
| EBITDA Margin | -621.7% | -61.2% | 2.4% | 5.0% | 31.7% | 26.7% |
| Net Income Margin | -676.9% | -64.8% | -1.2% | -8.5% | -24.3% | -15.9% |
| CAPEX, % of revenue | 28.6% | 2.1% | 0.1% | 0.0% | | -0.0% |
| ROIC | -34.9% | -38.3% | 3.0% | 3.6% | 4.7% | 1.1% |
| ROE | -44.2% | -45.9% | -3.8% | -19.3% | -10.9% | 8.3% |
| Net Debt/EBITDA | | | 19.3x | 15.4x | 3.0x | -12.5x |
Revenue and profitability
Sheng Yuan Holdings Ltd's Revenue dropped on 82.9%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 26.7 pp from 5.0% to 31.7% in FY2016.
Net Income marign dropped on 15.9 pp from -8.5% to -24.3% in FY2016.
Return on investment
The company operates at low but positive ROIC (4.70%) and negative ROE (-10.94%). ROIC increased slightly on 1.1 pp from 3.6% to 4.7% in FY2016. ROE increased on 8.3 pp from -19.3% to -10.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.0x and Debt / EBITDA is 8.7x. Net Debt / EBITDA dropped on 12.5x from 15.4x to 3.0x in FY2016. Debt dropped on 48.2% while cash surged on 109%.
Appendix 1: Peers in Distribution/Wholesale
Below you can find Sheng Yuan Holdings Ltd benchmarking vs. other companies in Distribution/Wholesale industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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) | | -30.8% | -69.1% | 99.7% | 40.3% |
| 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% | 0.7% | -0.5% | -1.3% | -11.5% |
|---|
| Sheng Yuan Holdings Ltd ($851) | | 756.9% | 567.2% | -2.1% | -82.9% |
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 (35 companies) | 17.3% | 17.1% | 18.0% | 20.8% | 23.4% |
|---|
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) | 2.4% | 2.1% | 4.5% | 3.8% | -6.3% |
|---|
| Sheng Yuan Holdings Ltd ($851) | -621.7% | -61.2% | 2.4% | 5.0% | 31.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SIS International Holdings ($529) | 13.4% | 31.8% | 14.8% | 49.8% | |
| 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% | |
| |
|---|
| Median (36 companies) | 1.2% | 1.7% | 1.7% | 1.2% | 1.8% |
|---|
| Sheng Yuan Holdings Ltd ($851) | 28.6% | 2.1% | 0.1% | 0.0% | |
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) | 2.7% | 1.6% | 3.2% | 2.6% | -6.5% |
|---|
| Sheng Yuan Holdings Ltd ($851) | -34.9% | -38.3% | 3.0% | 3.6% | 4.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SIS International Holdings ($529) | -1.8x | 7.0x | 7.2x | 16.8x | 27.3x |
| Leeport Holdings Ltd ($387) | | | | 16.1x | |
| Takson Holdings Ltd ($918) | | 11.5x | 11.7x | 15.7x | |
| Forefront Group Ltd ($885) | | | -0.0x | 15.3x | |
| Lee Kee Holdings Ltd ($637) | | | 6.1x | 6.1x | |
| |
|---|
| Median (26 companies) | -0.2x | -0.6x | -0.0x | -0.3x | 0.6x |
|---|
| Sheng Yuan Holdings Ltd ($851) | | | 19.3x | 15.4x | 3.0x |
