China Seven Star Holdings Ltd reports 229% Net Income growth in 2016
22/03/2017 • About China Seven Star Holdings Ltd (
$245) • By InTwits
China Seven Star Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: It operates with high leverage: Net Debt/EBITDA is 0.9x while industry average is -1.9x.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Seven Star Holdings Ltd ($245) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 616.9 | 112.2 | 68.1 | 201.1 | 230.2 | 14.5% |
| Gross Profit | 68.0 | 3.8 | 0.8 | 1.8 | | -100.0% |
| SG&A | 91.8 | 39.9 | 36.4 | 32.2 | | -100.0% |
| EBITDA | 559.1 | -20.2 | -41.7 | -36.7 | | |
| Net Income | 3.3 | -1.8 | -30.1 | -28.6 | 36.9 | |
Balance Sheet
|
|---|
| Cash | 62.0 | 40.9 | 29.6 | 5,062.5 | | -100.0% |
| Short Term Debt | 30.3 | 4.5 | 0.0 | 0.0 | | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | | |
Cash flow
|
|---|
| Capex | 0.6 | 0.1 | 0.0 | 0.2 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 6.7% | -81.8% | -39.3% | 195.3% | 14.5% | |
| EBITDA growth | 22.1% | -103.6% | 106.0% | -12.0% | | |
| Gross Margin | 11.0% | 3.3% | 1.2% | 0.9% | | -0.9% |
| EBITDA Margin | 90.6% | -18.0% | -61.3% | -18.3% | 0.0% | 18.3% |
| Net Income Margin | 0.5% | -1.6% | -44.3% | -14.2% | 16.0% | 30.3% |
| SG&A, % of revenue | 14.9% | 35.6% | 53.4% | 16.0% | | -16.0% |
| CAPEX, % of revenue | 0.1% | 0.0% | 0.0% | 0.1% | | -0.1% |
| ROIC | 8.7% | -49.8% | -343.1% | -1.5% | | 1.5% |
| ROE | 1.2% | -0.7% | -11.8% | -1.0% | | 1.0% |
| Net Debt/EBITDA | -0.1x | | | | | 0.0x |
Revenue and profitability
China Seven Star Holdings Ltd's Revenue jumped on 14.5%.
Net Income marign surged on 30.3 pp from -14.2% to 16.0% in FY2016.
Appendix 1: Peers in Commercial Services
Below we provide China Seven Star Holdings Ltd benchmarking against other companies in Commercial Services 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 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 99.1% | 14.9% | -88.3% | 271.8% | |
| China Smartpay Group Holdings Ltd ($8325) | | 274.7% | 75.6% | 124.5% | 79.5% |
| Celebrate International Holdings Ltd ($8212) | | 1,437.6% | -6.3% | 117.0% | -78.1% |
| Haier Healthwise Holdings Ltd ($348) | | -50.1% | -7.5% | 101.1% | -9.4% |
| CAR Inc ($699) | | 68.0% | 30.3% | 42.1% | 29.0% |
| |
|---|
| Median (67 companies) | -3.8% | 8.6% | 9.9% | 4.0% | 8.0% |
|---|
| China Seven Star Holdings Ltd ($245) | | -81.8% | -39.3% | 195.3% | 14.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HC International Inc ($2280) | 87.5% | 91.9% | 92.5% | 89.6% | |
| Winto Group Holdings Ltd ($8238) | 90.2% | 93.4% | 92.0% | 88.4% | |
| Dingyi Group Investment Ltd ($508) | 75.8% | | 64.5% | 86.0% | 89.6% |
| Fu Shou Yuan International Group Ltd ($1448) | 80.5% | 80.4% | 80.0% | 77.6% | 79.1% |
| Nirvana Asia Ltd ($1438) | 68.3% | 69.6% | 70.5% | 75.7% | |
| |
|---|
| Median (61 companies) | 31.9% | 31.0% | 31.1% | 31.5% | 31.4% |
|---|
| China Seven Star Holdings Ltd ($245) | 11.0% | 3.3% | 1.2% | 0.9% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | 61.6% | 84.9% | 75.9% | 80.9% | |
| Shenzhen International Holdings Ltd ($152) | 60.2% | 65.8% | 97.1% | 73.6% | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 78.3% | 74.5% | 74.0% | 71.6% | 84.1% |
| CAR Inc ($699) | 43.6% | 30.1% | 43.1% | 67.4% | 62.5% |
| Jiangsu Expressway Co Ltd ($177) | 57.0% | 60.7% | 59.3% | 61.5% | |
| |
|---|
| Median (67 companies) | 17.5% | 16.0% | 12.9% | 10.1% | 2.0% |
|---|
| China Seven Star Holdings Ltd ($245) | 90.6% | -18.0% | -61.3% | -18.3% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Blue Sky Power Holdings Ltd ($6828) | 21.3% | 9.0% | 13.9% | 47.4% | |
| COSCO Pacific Ltd ($1199) | 96.6% | 66.6% | 43.3% | 45.8% | |
| Shenzhen International Holdings Ltd ($152) | 23.0% | 22.1% | 20.9% | 35.0% | |
| Celebrate International Holdings Ltd ($8212) | 211.7% | 12.0% | 6.2% | 34.2% | 18.6% |
| China Maple Leaf Educational Systems Ltd ($1317) | 25.7% | 50.9% | 21.1% | 32.8% | 18.0% |
| |
|---|
| Median (67 companies) | 3.0% | 3.8% | 2.6% | 3.9% | 2.3% |
|---|
| China Seven Star Holdings Ltd ($245) | 0.1% | 0.0% | 0.0% | 0.1% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bamboos Health Care Holdings Ltd ($8216) | | 71.1% | 50.1% | 58.3% | 40.0% |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 51.5% | 26.6% | 30.0% | 29.5% | 19.8% |
| 1010 Printing Group Ltd ($1127) | 13.5% | 20.8% | 17.8% | 19.9% | 18.8% |
| China Packaging Holdings Development Ltd ($1439) | 52.0% | 46.6% | 34.1% | 19.8% | |
| iOne Holdings Ltd ($982) | 12.5% | 11.1% | 9.4% | 19.2% | |
| |
|---|
| Median (67 companies) | 6.3% | 7.0% | 6.7% | 3.6% | 2.9% |
|---|
| China Seven Star Holdings Ltd ($245) | 8.7% | -49.8% | -343.1% | -1.5% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Celebrate International Holdings Ltd ($8212) | | | | 22.2x | |
| Kai Yuan Holdings Ltd ($1215) | -143.8x | -0.7x | | 18.8x | |
| Eagle Legend Asia Ltd ($936) | 4.0x | 4.0x | 3.3x | 6.2x | |
| Sichuan Expressway Co Ltd ($107) | 2.7x | 3.8x | 4.3x | 5.5x | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 4.5x | 3.1x | 2.7x | 5.3x | 3.5x |
| |
|---|
| Median (45 companies) | 0.0x | -0.7x | -0.8x | -0.6x | -2.3x |
|---|
