China Environmental Technology Holdings Ltd revenue dropped on 44.0%
27/03/2017 • About China Environmental Technology Holdings Ltd (
$646) • By InTwits
China Environmental Technology Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Environmental Technology Holdings Ltd is a company in decline: FY2016 revenue growth was -44.0%, 5 years revenue CAGR was -10.6%
- EBITDA Margin is relatively stable: in FY2016 vs. -86.6% in FY2015 vs. -9.1% in FY2012
- China Environmental 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 -38.8% for the sames years0
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Environmental Technology Holdings Ltd ($646) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 144.9 | 14.7 | 89.3 | 62.0 | 34.7 | -44.0% |
| Gross Profit | 26.6 | 2.5 | 22.8 | 20.3 | | -100.0% |
| SG&A | | 58.6 | 66.7 | 61.9 | | -100.0% |
| EBITDA | -13.2 | -38.5 | -28.5 | -53.7 | | |
| Net Income | -55.2 | -64.6 | -75.3 | -74.1 | -55.2 | |
Balance Sheet
|
|---|
| Cash | 38.6 | 42.5 | 7.9 | 25.2 | | -100.0% |
| Short Term Debt | 12.8 | 39.4 | 16.2 | 73.7 | | -100.0% |
| Long Term Debt | 48.7 | 118.1 | 68.7 | 19.3 | | -100.0% |
Cash flow
|
|---|
| Capex | 6.4 | 6.3 | 1.2 | 1.9 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 138.4% | -89.9% | 509.7% | -30.6% | -44.0% | |
| EBITDA growth | -25.3% | 190.9% | -26.0% | 88.4% | | |
| Gross Margin | 18.4% | 17.3% | 25.5% | 32.7% | | -32.7% |
| EBITDA Margin | -9.1% | -262.8% | -31.9% | -86.6% | 0.0% | 86.6% |
| Net Income Margin | -38.1% | -440.7% | -84.3% | -119.5% | -159.2% | -39.7% |
| SG&A, % of revenue | | 399.9% | 74.7% | 99.9% | | -99.9% |
| CAPEX, % of revenue | 4.4% | 43.3% | 1.4% | 3.0% | | -3.0% |
| ROIC | -7.0% | -16.2% | -20.1% | -54.2% | | 54.2% |
| ROE | -20.6% | -34.6% | -87.8% | | | 0.0% |
Revenue and profitability
China Environmental Technology Holdings Ltd's Revenue dropped on 44.0%.
Net Income marign dropped on 39.7 pp from -120% to -159% in FY2016.
Appendix 1: Peers in Environmental Control
Below we provide China Environmental Technology Holdings Ltd benchmarking against other companies in Environmental Control 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 |
|---|
| Sky Forever Supply Chain Management Group Ltd ($8047) | | 446.4% | -62.3% | 12,494.5% | 1.5% |
| Pan Asia Environmental Protection Group Ltd ($556) | -13.7% | 43.1% | -1.8% | 85.0% | |
| CT Environmental Group Ltd ($1363) | -18.7% | 23.1% | 112.9% | 75.4% | |
| ELL Environmental Holdings Ltd ($1395) | | 38.8% | 30.9% | 70.8% | -31.0% |
| Ozner Water International Holding Ltd ($2014) | 183.9% | 38.5% | 27.2% | 45.7% | |
| |
|---|
| Median (24 companies) | 4.3% | 18.9% | 20.7% | 4.0% | 41.1% |
|---|
| China Environmental Technology Holdings Ltd ($646) | | -89.9% | 509.7% | -30.6% | -44.0% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| EverChina International Holdings Co Ltd ($202) | 51.8% | 53.4% | 95.3% | 95.4% | 93.5% |
| Ozner Water International Holding Ltd ($2014) | 64.5% | 67.8% | 65.4% | 58.9% | |
| CT Environmental Group Ltd ($1363) | 65.8% | 63.1% | 56.4% | 49.9% | |
| Kangda International Environmental Co Ltd ($6136) | 44.2% | 38.3% | 40.0% | 47.6% | |
| China Water Affairs Group Ltd ($855) | 44.0% | 43.1% | 41.8% | 47.3% | 47.1% |
| |
|---|
| Median (23 companies) | 39.0% | 30.6% | 32.2% | 34.1% | 25.8% |
|---|
| China Environmental Technology Holdings Ltd ($646) | 18.4% | 17.3% | 25.5% | 32.7% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CT Environmental Group Ltd ($1363) | 63.6% | 62.8% | 58.7% | 64.6% | |
| Tianjin Capital Environmental Protection Group Co Ltd ($1065) | 57.5% | 56.6% | 57.8% | 57.9% | |
| China Everbright International Ltd ($257) | 44.6% | 40.7% | 43.6% | 44.1% | 35.9% |
| China Water Affairs Group Ltd ($855) | 38.2% | 38.1% | 37.1% | 40.3% | 40.2% |
| Kangda International Environmental Co Ltd ($6136) | 37.1% | 33.6% | 32.4% | 36.6% | |
| |
|---|
| Median (24 companies) | 17.9% | 11.7% | 5.1% | 16.2% | -10.1% |
|---|
| China Environmental Technology Holdings Ltd ($646) | -9.1% | -262.8% | -31.9% | -86.6% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chaoyue Group Ltd ($147) | | 18.1% | 9.2% | 100.9% | 1.4% |
| Ozner Water International Holding Ltd ($2014) | 94.9% | 102.2% | 148.5% | 90.9% | |
| Integrated Waste Solutions Group Holdings Ltd ($923) | 13.2% | 10.6% | 41.7% | 88.1% | 36.5% |
| Green Energy Group Ltd ($979) | 169.0% | 270.8% | 41.9% | 59.0% | |
| CT Environmental Group Ltd ($1363) | 65.0% | 27.1% | 51.4% | 40.5% | |
| |
|---|
| Median (23 companies) | 12.9% | 6.6% | 8.8% | 7.7% | 2.6% |
|---|
| China Environmental Technology Holdings Ltd ($646) | 4.4% | 43.3% | 1.4% | 3.0% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CT Environmental Group Ltd ($1363) | 25.9% | 20.5% | 20.8% | 20.1% | |
| China Everbright International Ltd ($257) | 10.4% | 11.2% | 10.5% | 10.8% | 11.4% |
| Sound Global Ltd ($967) | 12.8% | 11.5% | 10.8% | 9.3% | |
| Baguio Green Group Ltd ($1397) | 20.1% | 29.2% | 9.6% | 9.0% | |
| Tianjin Capital Environmental Protection Group Co Ltd ($1065) | 7.1% | 6.8% | 7.8% | 8.8% | |
| |
|---|
| Median (24 companies) | 3.9% | 6.8% | 4.9% | 5.2% | -2.1% |
|---|
| China Environmental Technology Holdings Ltd ($646) | -7.0% | -16.2% | -20.1% | -54.2% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kangda International Environmental Co Ltd ($6136) | 4.4x | 5.1x | 4.8x | 5.2x | |
| China Water Affairs Group Ltd ($855) | 2.6x | 2.7x | 3.2x | 3.4x | 3.0x |
| Dynagreen Environmental Protection Group Co Ltd ($1330) | 3.2x | | | 3.2x | |
| Sound Global Ltd ($967) | -0.1x | 0.3x | 1.9x | 2.8x | |
| China Everbright International Ltd ($257) | 2.1x | 0.5x | 1.5x | 2.6x | 3.0x |
| |
|---|
| Median (16 companies) | 2.3x | 0.3x | 1.2x | 1.5x | 3.0x |
|---|
