Greater China Holdings Ltd Net Income dropped on 936% and Revenue dropped on 35.2%
19/03/2017 • About Greater China Holdings Ltd (
$431) • By InTwits
Greater China Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Greater China Holdings Ltd is a company in decline: FY2016 revenue growth was -35.2%, 5 years revenue CAGR was -16.4%
- The company operates at negative EBITDA Margin: -312.6%
- Greater China 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 -58.6%0
- The company has unprofitable business model: ROIC is at -24.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Greater China Holdings Ltd ($431) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 118.3 | 33.0 | 55.1 | 116.0 | 75.2 | -35.2% |
| Gross Profit | 9.4 | 11.4 | 13.0 | | 39.5 | |
| SG&A | 33.1 | 30.1 | 31.4 | 83.3 | 82.2 | -1.3% |
| EBITDA | -16.7 | -7.6 | -9.6 | 36.1 | -235.0 | -750.5% |
| Net Income | -43.8 | -30.0 | -19.6 | 116.1 | -970.6 | -935.7% |
Balance Sheet
|
|---|
| Cash | 8.0 | 9.1 | 12.8 | 524.7 | 256.7 | -51.1% |
| Short Term Debt | 192.7 | 173.1 | 30.3 | 199.9 | 57.2 | -71.4% |
| Long Term Debt | 0.0 | 57.1 | 41.7 | 132.5 | 60.9 | -54.0% |
Cash flow
|
|---|
| Capex | 0.4 | 0.0 | 24.0 | 15.3 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -35.8% | -72.1% | 67.3% | 110.3% | -35.2% | |
| EBITDA growth | 8.6% | -54.5% | 25.6% | -477.8% | -750.5% | |
| Gross Margin | 8.0% | 34.6% | 23.7% | | 52.6% | 52.6% |
| EBITDA Margin | -14.2% | -23.1% | -17.3% | 31.2% | -312.6% | -343.7% |
| Net Income Margin | -37.0% | -91.1% | -35.5% | 100.2% | -1,291.1% | -1,391.2% |
| SG&A, % of revenue | 28.0% | 91.2% | 56.9% | 71.8% | 109.3% | 37.5% |
| CAPEX, % of revenue | 0.4% | 0.0% | 43.5% | 13.2% | | -13.2% |
| ROIC | -7.9% | -5.1% | -7.5% | 3.1% | -24.1% | -27.2% |
| ROE | -24.6% | -20.8% | -16.3% | 18.3% | -122.6% | -140.9% |
| Net Debt/EBITDA | | | | -5.3x | | 5.3x |
Revenue and profitability
Greater China Holdings Ltd's Revenue dropped on 35.2%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 344 pp from 31.2% to -313% in FY2016.
SG&A as a % of Revenue jumped on 37.5 pp from 71.8% to 109% in FY2016.
Net Income marign dropped on 1,391 pp from 100% to -1,291% in FY2016.
Return on investment
The company operates at negative ROIC (-24.14%) and ROE (-122.62%). ROIC dropped on 27.2 pp from 3.1% to -24.1% in FY2016. ROE dropped on 141 pp from 18.3% to -123% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.8x and Debt / EBITDA is . Net Debt / EBITDA jumped on 5.3x from -5.3x to in FY2016. Debt dropped on 64.5% while cash dropped on 51.1%.
Appendix 1: Peers in Holding Companies-Divers
Below we provide Greater China Holdings Ltd benchmarking against other companies in Holding Companies-Divers 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 |
|---|
| Beijing Development HK Ltd ($154) | 12.5% | | | 1,048.9% | |
| Kong Sun Holdings Ltd ($295) | -88.3% | 5.1% | 7,067.0% | 231.2% | |
| CIAM Group Ltd ($378) | -62.2% | 47.9% | -40.0% | 211.5% | |
| Melco International Development Ltd ($200) | 16.5% | 21.7% | 3.0% | 134.9% | |
| New Century Group Hong Kong Ltd ($234) | | 326.7% | -70.3% | 118.2% | -78.2% |
| |
|---|
| Median (45 companies) | 4.2% | 5.1% | 12.6% | 6.1% | -3.3% |
|---|
| Greater China Holdings Ltd ($431) | | -72.1% | 67.3% | 110.3% | -35.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Century Group Hong Kong Ltd ($234) | 27.3% | 85.2% | 82.8% | 91.5% | 43.4% |
| Melco International Development Ltd ($200) | 63.1% | 52.9% | 54.5% | 79.4% | |
| CIAM Group Ltd ($378) | | | | 75.8% | |
| Emperor International Holdings Ltd ($163) | 71.3% | 64.9% | 79.2% | 75.3% | 55.3% |
| Heng Fai Enterprises Ltd ($185) | 89.0% | 89.5% | 58.3% | 74.7% | |
| |
|---|
| Median (40 companies) | 33.4% | 36.0% | 34.4% | 34.2% | 35.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Century Group Hong Kong Ltd ($234) | -5.5% | 78.8% | 58.3% | 85.0% | 33.8% |
| Emperor International Holdings Ltd ($163) | 180.7% | 131.8% | 100.6% | 73.9% | -20.1% |
| Pioneer Global Group Ltd ($224) | -0.5% | -9.9% | -11.6% | 64.3% | 66.8% |
| C C Land Holdings Ltd ($1224) | 27.0% | 23.6% | 24.6% | 55.7% | |
| China Merchants Holdings International Co Ltd ($144) | 56.4% | 50.8% | 45.2% | 55.7% | |
| |
|---|
| Median (45 companies) | 3.3% | 3.8% | 9.3% | 6.2% | 10.5% |
|---|
| Greater China Holdings Ltd ($431) | -14.2% | -23.1% | -17.3% | 31.2% | -312.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Heng Fai Enterprises Ltd ($185) | 4.8% | 77.1% | 310.0% | 458.1% | |
| Chinney Investments Ltd ($216) | 17.5% | 103.4% | 111.3% | 230.9% | 26.6% |
| China Investments Holdings Ltd ($132) | 4.8% | 81.9% | 382.2% | 222.5% | |
| Goldin Properties Holdings Ltd ($283) | 2,178.4% | 1,190.0% | 50.1% | 202.4% | 128.8% |
| Carnival Group International Holdings Ltd ($996) | | 137.9% | 61.0% | 133.3% | |
| |
|---|
| Median (45 companies) | 2.7% | 3.8% | 5.4% | 6.0% | 9.0% |
|---|
| Greater China Holdings Ltd ($431) | 0.4% | 0.0% | 43.5% | 13.2% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Fulum Group Holdings Ltd ($1443) | | 116.3% | 55.5% | 29.8% | 12.9% |
| C C Land Holdings Ltd ($1224) | 7.4% | 5.3% | 7.9% | 15.0% | |
| Chinney Alliance Group Ltd ($385) | 6.4% | 8.1% | 13.6% | 15.0% | |
| Niraku GC Holdings Inc ($1245) | | 19.0% | 18.8% | 13.1% | 2.7% |
| Top Spring International Holdings Ltd ($3688) | 15.6% | 6.9% | 7.3% | 8.0% | |
| |
|---|
| Median (45 companies) | 0.1% | 0.6% | 1.2% | 0.2% | 2.2% |
|---|
| Greater China Holdings Ltd ($431) | -7.9% | -5.1% | -7.5% | 3.1% | -24.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chinney Investments Ltd ($216) | 10.3x | 63.7x | 48.6x | 93.7x | 13.5x |
| Carnival Group International Holdings Ltd ($996) | | | 23.7x | 92.3x | |
| Multifield International Holdings Ltd ($898) | 3.2x | 7.3x | 3.0x | 55.9x | |
| Kong Sun Holdings Ltd ($295) | | | -23.0x | 34.0x | |
| CIAM Group Ltd ($378) | | | | 32.6x | |
| |
|---|
| Median (26 companies) | 2.4x | 2.7x | 2.8x | 2.9x | 2.8x |
|---|
| Greater China Holdings Ltd ($431) | | | | -5.3x | |
