Directel Holdings Ltd reports 109% Net Income growth in 2016
22/03/2017 • About Directel Holdings Ltd (
$8337) • By InTwits
Directel Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Directel Holdings Ltd is a company in decline: FY2016 revenue growth was -59.7%, 5 years revenue CAGR was -38.4%
- EBITDA Margin is declining: in FY2016 vs. -191.9% in FY2015 vs. 37.7% in FY2012
- Directel 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 -9.2% for the sames years0
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Directel Holdings Ltd ($8337) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 71.780 | 50.882 | 22.680 | 15.934 | 6.415 | -59.7% |
| Gross Profit | 42.176 | 25.776 | 2.356 | -2.794 | | |
| SG&A | | | 13.112 | 17.212 | | -100.0% |
| EBITDA | 27.033 | 12.250 | -24.177 | -30.581 | | |
| Net Income | 22.130 | 10.081 | -24.940 | -36.040 | 3.243 | |
Balance Sheet
|
|---|
| Cash | 108.858 | 126.229 | 112.440 | 89.782 | | -100.0% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | | |
Cash flow
|
|---|
| Capex | 1.515 | 0.059 | 0.137 | 4.812 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -0.7% | -29.1% | -55.4% | -29.7% | -59.7% | |
| EBITDA growth | 11.9% | -54.7% | -297.4% | 26.5% | | |
| Gross Margin | 58.8% | 50.7% | 10.4% | -17.5% | | 17.5% |
| EBITDA Margin | 37.7% | 24.1% | -106.6% | -191.9% | 0.0% | 191.9% |
| Net Income Margin | 30.8% | 19.8% | -110.0% | -226.2% | 50.6% | 276.7% |
| SG&A, % of revenue | | | 57.8% | 108.0% | | -108.0% |
| CAPEX, % of revenue | 2.1% | 0.1% | 0.6% | 30.2% | | -30.2% |
| ROIC | 18.7% | 7.2% | -15.8% | -22.2% | | 22.2% |
| ROE | 15.6% | 6.4% | -16.5% | -29.7% | | 29.7% |
| Net Debt/EBITDA | -4.0x | -10.3x | | | | 0.0x |
Revenue and profitability
Directel Holdings Ltd's Revenue dropped on 59.7%.
Net Income marign surged on 277 pp from -226% to 50.6% in FY2016.
Appendix 1: Peers in Telecommunications
Below we provide Directel Holdings Ltd benchmarking against other companies in Telecommunications 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 |
|---|
| Hong Kong Television Network Ltd ($1137) | | 107.4% | -82.2% | 8,010.0% | 65.8% |
| Hanny Holdings Ltd ($275) | | 131.2% | -85.2% | 349.3% | -78.5% |
| CCT Fortis Holdings Ltd ($138) | -24.1% | -55.3% | -71.3% | 207.1% | |
| Xi'an Haitian Antenna Technologies Co Ltd ($8227) | -8.5% | -45.9% | -56.2% | 111.6% | |
| China Trends Holdings Ltd ($8171) | | -70.2% | -16.7% | 106.0% | -22.7% |
| |
|---|
| Median (53 companies) | 12.9% | 11.3% | 9.7% | 7.9% | -2.7% |
|---|
| Directel Holdings Ltd ($8337) | | -29.1% | -55.4% | -29.7% | -59.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HKBN Ltd ($1310) | | 84.3% | 86.5% | 86.9% | 83.8% |
| Netel Technology Holdings Ltd ($8256) | 27.9% | 42.1% | 54.9% | 72.3% | 73.1% |
| Great World Co Holdings Ltd ($8003) | -11.0% | 43.0% | 45.5% | 67.9% | 42.0% |
| APT Satellite Holdings Ltd ($1045) | 58.7% | 64.1% | 62.5% | 61.0% | |
| Cisco Systems Inc ($4333) | 61.2% | 60.6% | 58.9% | 60.4% | 62.9% |
| |
|---|
| Median (50 companies) | 21.6% | 24.1% | 26.1% | 23.1% | 35.6% |
|---|
| Directel Holdings Ltd ($8337) | 58.8% | 50.7% | 10.4% | -17.5% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 86.5% | 85.8% | 81.6% | 82.4% | 81.5% |
| APT Satellite Holdings Ltd ($1045) | 81.0% | 78.9% | 77.5% | 78.8% | |
| Synertone Communication Corp ($1613) | 44.9% | 48.5% | 49.4% | 51.5% | -77.6% |
| HKBN Ltd ($1310) | | 39.2% | 40.1% | 39.0% | 35.2% |
| HKT Trust & HKT Ltd ($6823) | 36.3% | 35.0% | 35.9% | 34.9% | 37.2% |
| |
|---|
| Median (53 companies) | 6.9% | 5.5% | 5.9% | 9.1% | 8.9% |
|---|
| Directel Holdings Ltd ($8337) | 37.7% | 24.1% | -106.6% | -191.9% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| APT Satellite Holdings Ltd ($1045) | 74.3% | 2.5% | 27.2% | 115.8% | |
| Hong Kong Television Network Ltd ($1137) | 12,435.9% | 504.9% | 1,283.5% | 79.4% | |
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 93.8% | 71.7% | 75.0% | 52.8% | |
| China Fiber Optic Network System Group Ltd ($3777) | 4.8% | 16.3% | 13.1% | 31.9% | |
| China Ground Source Energy Industry Group Ltd ($8128) | 5.2% | 2.7% | 1.9% | 20.3% | |
| |
|---|
| Median (53 companies) | 2.2% | 2.9% | 3.1% | 2.6% | 8.4% |
|---|
| Directel Holdings Ltd ($8337) | 2.1% | 0.1% | 0.6% | 30.2% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Telecom Service One Holdings Ltd ($8145) | 95.0% | 5.4% | 26.7% | 39.8% | 37.4% |
| VTech Holdings Ltd ($303) | 37.6% | 39.5% | 40.0% | 39.8% | 37.9% |
| Coolpad Group Ltd ($2369) | 8.1% | 6.0% | 9.6% | 29.1% | |
| Telecom Digital Holdings Ltd ($8336) | | 13.3% | 20.2% | 18.9% | 16.7% |
| SmarTone Telecommunications Holdings Ltd ($315) | 37.2% | 23.1% | 12.8% | 17.7% | 14.5% |
| |
|---|
| Median (54 companies) | 7.1% | 5.9% | 6.2% | 5.9% | 5.2% |
|---|
| Directel Holdings Ltd ($8337) | 18.7% | 7.2% | -15.8% | -22.2% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CCT Land Holdings Ltd ($261) | 10.1x | 23.8x | 48.4x | 44.8x | |
| China Energine International Holdings Ltd ($1185) | | | 13.3x | 31.7x | |
| China Ground Source Energy Industry Group Ltd ($8128) | -1.6x | 3.5x | 14.3x | 11.3x | |
| China Electronics Corp Holdings Co Ltd ($85) | -2.0x | -1.3x | 12.5x | 7.6x | |
| China All Access Holdings Ltd ($633) | 0.9x | 1.8x | 5.2x | 5.6x | |
| |
|---|
| Median (39 companies) | -0.1x | 0.6x | 0.6x | 0.6x | 1.7x |
|---|
