EGL Holdings Co Ltd reports 88.9% EBITDA decline in 2016 and 9.6% Revenue decline
23/03/2017 • About EGL Holdings Co Ltd (
$6882) • By InTwits
EGL Holdings Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 1.2% in FY2016, 9.8% in FY2015, 5.8% in FY2014, 8.1% in FY2013, 3.7% in FY2012
- The company has potentially unprofitable business model: ROIC is at 3.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
EGL Holdings Co Ltd ($6882) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,365 | 1,647 | 1,685 | 1,858 | 1,680 | -9.6% |
| Gross Profit | 228 | 353 | 341 | 435 | 264 | -39.3% |
| SG&A | 186 | 230 | 257 | 262 | 254 | -2.7% |
| EBITDA | 51 | 133 | 98 | 183 | 20 | -88.9% |
| Net Income | 41 | 103 | 75 | 150 | 19 | -87.6% |
Balance Sheet
|
|---|
| Cash | 228 | 330 | 324 | 431 | 261 | -39.5% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 53 | |
Cash flow
|
|---|
| Capex | 2 | 5 | 5 | 7 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 9.5% | 20.7% | 2.3% | 10.3% | -9.6% | |
| EBITDA growth | 145.3% | 160.7% | -26.2% | 86.0% | -88.9% | |
| Gross Margin | 16.7% | 21.4% | 20.2% | 23.4% | 15.7% | -7.7% |
| EBITDA Margin | 3.7% | 8.1% | 5.8% | 9.8% | 1.2% | -8.6% |
| Net Income Margin | 3.0% | 6.2% | 4.4% | 8.1% | 1.1% | -7.0% |
| SG&A, % of revenue | 13.6% | 14.0% | 15.2% | 14.1% | 15.1% | 1.1% |
| CAPEX, % of revenue | 0.1% | 0.3% | 0.3% | 0.4% | | -0.4% |
| ROIC | 30.4% | 63.2% | 39.4% | 58.3% | 3.3% | -55.0% |
| ROE | 28.5% | 53.1% | 32.6% | 50.7% | 5.5% | -45.2% |
| Net Debt/EBITDA | -4.5x | -2.5x | -3.3x | -2.4x | -10.2x | -7.9x |
Revenue and profitability
The company's Revenue decreased on 9.6%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.52 pp from 6.3% to 6.8% in FY2016.
Gross Margin decreased on 7.7 pp from 23.4% to 15.7% in FY2016. SG&A as a % of Revenue increased slightly on 1.1 pp from 14.1% to 15.1% in FY2016.
Net Income marign decreased on 7.0 pp from 8.1% to 1.1% in FY2016.
Return on investment
The company operates at low ROIC (3.29%) and ROE (5.49%). ROIC dropped on 55.0 pp from 58.3% to 3.3% in FY2016. ROE dropped on 45.2 pp from 50.7% to 5.5% in FY2016.
Leverage (Debt)
Debt level is -10.2x Net Debt / EBITDA and 2.6x Debt / EBITDA. Net Debt / EBITDA dropped on 7.9x from -2.4x to -10.2x in FY2016. Debt surged while cash dropped on 39.5%.
Appendix 1: Peers in Leisure Time
Below you can find EGL Holdings Co Ltd benchmarking vs. other companies in Leisure Time industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | | 16.2% | 6.1% | 55.0% | 20.6% |
| Genting Hong Kong Ltd ($678) | | 6.6% | 2.9% | 20.9% | 47.4% |
| Travel Expert Asia Enterprises Ltd ($1235) | | 15.3% | 19.5% | 18.9% | 3.2% |
| China Jiuhao Health Industry Corp Ltd ($419) | 61.8% | -23.6% | -12.7% | 11.5% | |
| Water Oasis Group Ltd ($1161) | | -23.7% | 8.0% | 1.9% | -9.4% |
| |
|---|
| Median (11 companies) | 7.2% | -6.6% | 2.8% | -1.8% | 11.9% |
|---|
| EGL Holdings Co Ltd ($6882) | | 20.7% | 2.3% | 10.3% | -9.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | | | | 90.7% | 85.1% |
| Feiyu Technology International Co Ltd ($1022) | 96.9% | 95.4% | 87.5% | 83.1% | |
| Sino Splendid Holdings Ltd ($8006) | 51.7% | 51.4% | 51.9% | 53.9% | |
| China Travel International Investment Hong Kong Ltd ($308) | 46.1% | 47.8% | 46.0% | 45.6% | |
| China Jiuhao Health Industry Corp Ltd ($419) | 57.0% | 13.5% | 23.4% | 44.9% | |
| |
|---|
| Median (8 companies) | 48.9% | 32.6% | 23.4% | 45.3% | 85.1% |
|---|
| EGL Holdings Co Ltd ($6882) | 16.7% | 21.4% | 20.2% | 23.4% | 15.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Travel International Investment Hong Kong Ltd ($308) | 28.2% | 29.1% | 48.5% | 31.7% | |
| Feiyu Technology International Co Ltd ($1022) | 77.0% | 44.0% | 51.0% | 30.0% | |
| Perfect Shape PRC Holdings Ltd ($1830) | 27.5% | 29.1% | 26.5% | 29.8% | 27.4% |
| Travel Expert Asia Enterprises Ltd ($1235) | 17.4% | 16.2% | 18.3% | 15.0% | 11.8% |
| Water Oasis Group Ltd ($1161) | 6.5% | 4.7% | 11.4% | 13.1% | 9.7% |
| |
|---|
| Median (11 companies) | 17.4% | 8.5% | 8.6% | 0.9% | 10.8% |
|---|
| EGL Holdings Co Ltd ($6882) | 3.7% | 8.1% | 5.8% | 9.8% | 1.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Genting Hong Kong Ltd ($678) | 16.6% | 25.4% | 33.0% | 58.1% | |
| China Jiuhao Health Industry Corp Ltd ($419) | 2.1% | 31.8% | 67.3% | 43.3% | |
| Perfect Shape PRC Holdings Ltd ($1830) | 6.1% | 8.9% | 7.7% | 24.8% | 12.5% |
| China Travel International Investment Hong Kong Ltd ($308) | 13.4% | 28.3% | 29.9% | 10.9% | |
| Water Oasis Group Ltd ($1161) | 3.7% | 4.0% | 2.8% | 3.5% | 2.5% |
| |
|---|
| Median (11 companies) | 3.7% | 4.0% | 3.2% | 3.1% | 9.9% |
|---|
| EGL Holdings Co Ltd ($6882) | 0.1% | 0.3% | 0.3% | 0.4% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | 62.8% | 44.1% | 37.7% | 44.1% | 32.0% |
| Travel Expert Asia Enterprises Ltd ($1235) | 50.9% | 26.7% | 29.8% | 23.0% | 15.9% |
| Water Oasis Group Ltd ($1161) | 5.3% | 1.7% | 15.7% | 19.2% | 12.2% |
| Feiyu Technology International Co Ltd ($1022) | 329.5% | 19.2% | 17.1% | 6.1% | |
| China Travel International Investment Hong Kong Ltd ($308) | 5.6% | 5.0% | 9.6% | 5.0% | |
| |
|---|
| Median (11 companies) | 2.0% | 1.7% | 3.8% | -1.7% | 14.0% |
|---|
| EGL Holdings Co Ltd ($6882) | 30.4% | 63.2% | 39.4% | 58.3% | 3.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | -1.3x | -1.2x | -1.7x | -0.3x | -0.0x |
| Perfect Shape PRC Holdings Ltd ($1830) | -2.0x | -0.8x | -1.4x | -1.8x | -1.0x |
| China Travel International Investment Hong Kong Ltd ($308) | -1.7x | -1.1x | -1.1x | -2.0x | |
| Water Oasis Group Ltd ($1161) | -3.2x | -5.1x | -2.8x | -2.6x | -4.6x |
| Feiyu Technology International Co Ltd ($1022) | -0.3x | -1.9x | -3.2x | -4.3x | |
| |
|---|
| Median (6 companies) | -0.8x | -1.2x | -1.7x | -2.3x | -1.0x |
|---|
| EGL Holdings Co Ltd ($6882) | -4.5x | -2.5x | -3.3x | -2.4x | -10.2x |
