China Netcom Technology Holdings Ltd revenue dropped on 65.1%
21/03/2017 • About China Netcom Technology Holdings Ltd (
$8071) • By InTwits
China Netcom Technology Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Netcom Technology Holdings Ltd is a company in decline: FY2016 revenue growth was -65.1%, 5 years revenue CAGR was -30.1%
- EBITDA Margin is relatively stable: in FY2016 vs. -3,597.7% in FY2015 vs. -1,605.9% in FY2012
- China Netcom Technology Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -1,426.4% for the sames years0
- It operates with high leverage: Net Debt/EBITDA is 7.0x while industry average is 2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Netcom Technology Holdings Ltd ($8071) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2.248 | 1.731 | 3.533 | 0.964 | 0.336 | -65.1% |
| Gross Profit | -1.326 | -1.562 | -0.363 | -0.171 | | |
| SG&A | | | 29.731 | 35.524 | | -100.0% |
| EBITDA | -36.101 | -27.461 | -27.446 | -34.682 | | |
| Net Income | -290.861 | -75.325 | -186.051 | -54.679 | -37.043 | |
Balance Sheet
|
|---|
| Cash | 36.072 | 33.985 | 61.790 | 77.862 | | -100.0% |
| Short Term Debt | 0.000 | 0.000 | 93.820 | 0.000 | | |
| Long Term Debt | 91.118 | 102.323 | 0.000 | 59.633 | | -100.0% |
Cash flow
|
|---|
| Capex | 4.640 | 0.230 | 0.187 | 0.009 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 11.6% | -23.0% | 104.1% | -72.7% | -65.1% | |
| EBITDA growth | -8.3% | -23.9% | -0.1% | 26.4% | | |
| Gross Margin | -59.0% | -90.2% | -10.3% | -17.7% | | 17.7% |
| EBITDA Margin | -1,605.9% | -1,586.4% | -776.8% | -3,597.7% | 0.0% | 3,597.7% |
| Net Income Margin | -12,938.7% | -4,351.5% | -5,266.1% | -5,672.1% | -11,024.7% | -5,352.6% |
| SG&A, % of revenue | | | 841.5% | 3,685.1% | | -3,685.1% |
| CAPEX, % of revenue | 206.4% | 13.3% | 5.3% | 0.9% | | -0.9% |
| ROIC | -7.0% | -7.5% | -12.4% | -27.0% | | 27.0% |
| ROE | | -58.0% | | | | 0.0% |
Revenue and profitability
China Netcom Technology Holdings Ltd's Revenue dropped on 65.1%.
Net Income marign dropped on 5,353 pp from -5,672% to -11,025% in FY2016.
Appendix 1: Peers in Electronics
Below we provide China Netcom Technology Holdings Ltd benchmarking against other companies in Electronics 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 |
|---|
| GCL New Energy Holdings Ltd ($451) | 14.7% | -6.8% | 10.9% | 53.9% | |
| Tech Pro Technology Development Ltd ($3823) | 7.4% | -44.9% | -13.7% | 52.4% | |
| Nanjing Sample Technology Co Ltd ($1708) | 36.1% | 8.0% | 15.4% | 34.8% | |
| AAC Technologies Holdings Inc ($2018) | 54.8% | 28.9% | 9.7% | 32.2% | |
| Ningbo Wanhao Holdings Co Ltd ($8249) | 5.7% | 412.4% | -6.9% | 28.9% | |
| |
|---|
| Median (50 companies) | 2.0% | 4.1% | 5.0% | 0.4% | 0.6% |
|---|
| China Netcom Technology Holdings Ltd ($8071) | | -23.0% | 104.1% | -72.7% | -65.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | 54.0% | 58.1% | 49.5% | 49.6% | |
| AAC Technologies Holdings Inc ($2018) | 44.2% | 42.7% | 41.4% | 41.5% | |
| TeleEye Holdings Ltd ($8051) | 44.0% | 42.1% | 38.5% | 37.0% | 40.9% |
| Hi Sun Technology China Ltd ($818) | 28.1% | 37.4% | 33.3% | 34.7% | 30.8% |
| Datronix Holdings Ltd ($889) | 32.9% | 32.0% | 34.1% | 34.6% | |
| |
|---|
| Median (48 companies) | 14.1% | 13.8% | 14.1% | 15.3% | 14.7% |
|---|
| China Netcom Technology Holdings Ltd ($8071) | -59.0% | -90.2% | -10.3% | -17.7% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| AAC Technologies Holdings Inc ($2018) | 35.8% | 35.8% | 34.9% | 34.8% | |
| GCL New Energy Holdings Ltd ($451) | 10.8% | 11.1% | 12.6% | 33.0% | |
| Daiwa Associate Holdings ($1037) | 2.4% | 3.8% | 2.8% | 25.6% | -53.6% |
| Wasion Group Holdings Ltd ($3393) | 18.8% | 21.2% | 22.0% | 19.3% | |
| Tongda Group Holdings Ltd ($698) | 17.1% | 16.8% | 18.4% | 18.9% | 20.2% |
| |
|---|
| Median (50 companies) | 7.4% | 7.6% | 5.4% | 5.1% | 5.2% |
|---|
| China Netcom Technology Holdings Ltd ($8071) | -1,605.9% | -1,586.4% | -776.8% | -3,597.7% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| GCL New Energy Holdings Ltd ($451) | 5.5% | 5.1% | 5.4% | 401.2% | |
| National Electronic Hldgs ($213) | 3.4% | 18.1% | 7.1% | 49.7% | 4.7% |
| Irico Group Electronics Co Ltd ($438) | 39.9% | 30.4% | 17.4% | 25.8% | |
| Kingwell Group Ltd ($1195) | 8.6% | 5.4% | 5.3% | 21.4% | 0.0% |
| AAC Technologies Holdings Inc ($2018) | 18.7% | 8.7% | 19.6% | 18.4% | |
| |
|---|
| Median (50 companies) | 3.7% | 3.0% | 3.7% | 3.0% | 3.2% |
|---|
| China Netcom Technology Holdings Ltd ($8071) | 206.4% | 13.3% | 5.3% | 0.9% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| AAC Technologies Holdings Inc ($2018) | 29.1% | 30.0% | 26.0% | 27.8% | |
| Cowell e Holdings Inc ($1415) | 12.5% | 27.1% | 24.4% | 25.8% | |
| Changhong Jiahua Holdings Ltd ($8016) | 29.6% | 17.7% | 15.1% | 16.7% | |
| Tongda Group Holdings Ltd ($698) | 15.2% | 13.5% | 16.5% | 16.3% | 17.8% |
| Alltronics Holdings Ltd ($833) | 13.1% | 15.2% | 19.8% | 15.6% | |
| |
|---|
| Median (50 companies) | 4.6% | 4.1% | 3.7% | 2.4% | 2.8% |
|---|
| China Netcom Technology Holdings Ltd ($8071) | -7.0% | -7.5% | -12.4% | -27.0% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| National Electronic Hldgs ($213) | 16.3x | 30.2x | 84.8x | 19.9x | 42.7x |
| GCL New Energy Holdings Ltd ($451) | 2.9x | 2.6x | 1.7x | 17.4x | |
| Man Yue Technology Holdings Ltd ($894) | 2.1x | 2.7x | 3.3x | 6.5x | |
| Willas-Array Electronics Holdings Ltd ($854) | 2.2x | 2.6x | 5.7x | 5.4x | 14.1x |
| SAS Dragon Hldg Ltd ($1184) | 7.1x | 2.0x | 6.4x | 4.8x | |
| |
|---|
| Median (33 companies) | 1.0x | 1.1x | 0.8x | 0.2x | 0.8x |
|---|
