Far East Holdings International Ltd reports 178% Net Income decline in 2016
21/03/2017 • About Far East Holdings International Ltd (
$36) • By InTwits
Far East Holdings International Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: in FY2016 vs. -230.4% in FY2015 vs. -94.8% in FY2012
- Far East Holdings International Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -112.0% for the sames years0
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Far East Holdings International Ltd ($36) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 17.052 | 15.931 | 16.747 | 10.970 | 11.683 | 6.5% |
| Gross Profit | -0.574 | 1.361 | 0.410 | -0.864 | | |
| SG&A | 17.956 | 22.749 | 25.299 | 32.821 | | -100.0% |
| EBITDA | -16.165 | -17.310 | -22.324 | -25.273 | | |
| Net Income | -18.981 | -11.012 | 25.846 | 69.100 | -53.887 | -178.0% |
Balance Sheet
|
|---|
| Cash | 95.999 | 105.442 | 272.864 | 177.672 | | -100.0% |
| Short Term Debt | 0.291 | 0.000 | 87.192 | 0.000 | | |
| Long Term Debt | 0.383 | 0.000 | 0.000 | 0.000 | | |
Cash flow
|
|---|
| Capex | 0.021 | 2.103 | 70.694 | 0.086 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -21.2% | -6.6% | 5.1% | -34.5% | 6.5% | |
| EBITDA growth | 19.0% | 7.1% | 29.0% | 13.2% | | |
| Gross Margin | -3.4% | 8.5% | 2.4% | -7.9% | | 7.9% |
| EBITDA Margin | -94.8% | -108.7% | -133.3% | -230.4% | 0.0% | 230.4% |
| Net Income Margin | -111.3% | -69.1% | 154.3% | 629.9% | -461.2% | -1,091.1% |
| SG&A, % of revenue | 105.3% | 142.8% | 151.1% | 299.2% | | -299.2% |
| CAPEX, % of revenue | 0.1% | 13.2% | 422.1% | 0.8% | | -0.8% |
| ROIC | -4.2% | -4.4% | -4.8% | -3.8% | | 3.8% |
| ROE | -4.8% | -2.7% | 5.9% | 10.7% | | -10.7% |
Revenue and profitability
The company's Revenue increased on 6.5%.
Net Income marign dropped on 1,091 pp from 630% to -461% in FY2016.
Appendix 1: Peers in Holding Companies-Divers
Below we provide Far East Holdings International 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) | 6.1% | 5.1% | 15.7% | 7.2% | -3.3% |
|---|
| Far East Holdings International Ltd ($36) | | -6.6% | 5.1% | -34.5% | 6.5% |
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 (39 companies) | 33.4% | 36.0% | 34.4% | 37.5% | 38.0% |
|---|
| Far East Holdings International Ltd ($36) | -3.4% | 8.5% | 2.4% | -7.9% | |
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% | 6.8% | 9.2% |
|---|
| Far East Holdings International Ltd ($36) | -94.8% | -108.7% | -133.3% | -230.4% | |
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% | 3.6% | 5.4% | 9.2% | 9.0% |
|---|
| Far East Holdings International Ltd ($36) | 0.1% | 13.2% | 422.1% | 0.8% | |
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% | 0.3% | 2.2% |
|---|
| Far East Holdings International Ltd ($36) | -4.2% | -4.4% | -4.8% | -3.8% | |
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 (27 companies) | 2.4x | 2.7x | 2.8x | 2.8x | 2.8x |
|---|
