Chinasoft International Ltd reports 57.9% Net Income growth and 32.3% Revenue growth
27/03/2017 • About Chinasoft International Ltd (
$354) • By InTwits
Chinasoft 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. 10.8% in FY2015 vs. 11.8% in FY2012
- It operates with high leverage: Net Debt/EBITDA is 2.2x while industry average is -2.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Chinasoft International Ltd ($354) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,768 | 3,206 | 4,429 | 5,129 | 6,783 | 32.3% |
| Gross Profit | 915 | 1,005 | 1,349 | 1,523 | | -100.0% |
| SG&A | 615 | 688 | 885 | 923 | | -100.0% |
| EBITDA | 326 | 356 | 491 | 552 | | -100.0% |
| Net Income | 133 | 148 | 200 | 280 | 442 | 57.9% |
Balance Sheet
|
|---|
| Cash | 775 | 941 | 811 | 1,266 | | -100.0% |
| Short Term Debt | 525 | 484 | 1,293 | 1,387 | | -100.0% |
| Long Term Debt | 19 | 707 | 256 | 263 | | -100.0% |
Cash flow
|
|---|
| Capex | 93 | 81 | 215 | 272 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 23.4% | 15.8% | 38.2% | 15.8% | 32.3% | |
| EBITDA growth | 17.2% | 9.4% | 37.9% | 12.3% | | |
| Gross Margin | 33.1% | 31.4% | 30.5% | 29.7% | | -29.7% |
| EBITDA Margin | 11.8% | 11.1% | 11.1% | 10.8% | 0.0% | -10.8% |
| Net Income Margin | 4.8% | 4.6% | 4.5% | 5.5% | 6.5% | 1.1% |
| SG&A, % of revenue | 22.2% | 21.4% | 20.0% | 18.0% | | -18.0% |
| CAPEX, % of revenue | 3.4% | 2.5% | 4.9% | 5.3% | | -5.3% |
| ROIC | 9.3% | 7.8% | 8.5% | 8.3% | | -8.3% |
| ROE | 7.3% | 7.1% | 8.4% | 9.8% | | -9.8% |
| Net Debt/EBITDA | -0.7x | 0.7x | 1.5x | 0.7x | | -0.7x |
Revenue and profitability
Chinasoft International Ltd's Revenue surged on 32.3%.
Net Income marign increased slightly on 1.1 pp from 5.5% to 6.5% in FY2016.
Appendix 1: Peers in Software
Below you can find Chinasoft International Ltd benchmarking vs. other companies in Software 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 |
|---|
| Pizu Group Holdings Ltd ($8053) | | -42.9% | 1,742.9% | 157.9% | 235.2% |
| NetDragon Websoft Inc ($777) | | 7.1% | 8.9% | 32.1% | 119.5% |
| Yunbo Digital Synergy Group Ltd ($8050) | | 241.6% | -31.9% | 348.0% | 99.6% |
| China Mobile Games and Cultural Investment Ltd ($8081) | | -6.6% | 92.2% | 34.8% | 97.8% |
| China Technology Solar Power Holdings Ltd ($8111) | | 63.9% | 42.3% | 52.1% | 69.8% |
| |
|---|
| Median (31 companies) | 21.1% | 11.2% | 21.2% | 5.5% | 17.4% |
|---|
| Chinasoft International Ltd ($354) | | 15.8% | 38.2% | 15.8% | 32.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Bio Cassava Holdings Ltd ($8129) | 90.4% | 97.4% | 98.4% | 98.3% | |
| Chanjet Information Technology Co Ltd ($1588) | 89.2% | 91.3% | 92.4% | 91.4% | |
| China Binary Sale Technology Ltd ($8255) | 63.5% | 68.5% | 67.7% | 85.9% | |
| Kingdee International Software Group Co Ltd ($268) | 65.0% | 75.3% | 82.5% | 81.5% | 81.3% |
| Tian Ge Interactive Holdings Ltd ($1980) | 88.5% | 87.6% | 84.8% | 77.7% | |
| |
|---|
| Median (37 companies) | 46.5% | 43.1% | 43.4% | 43.3% | 38.6% |
|---|
| Chinasoft International Ltd ($354) | 33.1% | 31.4% | 30.5% | 29.7% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| International Entertainment Corp ($1009) | 50.8% | 64.0% | 54.9% | 62.0% | 45.5% |
| Sinosoft Technology Group Ltd ($1297) | 62.6% | 54.9% | 57.2% | 59.0% | |
| China Binary Sale Technology Ltd ($8255) | 35.1% | 35.4% | 44.4% | 50.5% | |
| Boyaa Interactive International Ltd ($434) | 38.5% | 25.8% | 30.7% | 47.6% | |
| TravelSky Technology Ltd ($696) | 38.1% | 35.8% | 31.9% | 41.1% | |
| |
|---|
| Median (38 companies) | 8.5% | 13.7% | 8.9% | 8.5% | 5.4% |
|---|
| Chinasoft International Ltd ($354) | 11.8% | 11.1% | 11.1% | 10.8% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| NetDragon Websoft Inc ($777) | 21.1% | 34.6% | 54.6% | 42.9% | |
| China Information Technology Development Ltd ($8178) | 4.1% | 1.1% | 0.5% | 40.7% | |
| Aurum Pacific China Group Ltd ($8148) | | 2.9% | 7.5% | 20.6% | |
| TravelSky Technology Ltd ($696) | 8.9% | 21.7% | 18.1% | 18.1% | |
| Kingsoft Corp Ltd ($3888) | 4.3% | 3.8% | 14.3% | 11.1% | |
| |
|---|
| Median (38 companies) | 1.4% | 1.5% | 2.6% | 2.0% | 0.5% |
|---|
| Chinasoft International Ltd ($354) | 3.4% | 2.5% | 4.9% | 5.3% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pizu Group Holdings Ltd ($8053) | -21.8% | -13.4% | -6.8% | 120.0% | 51.7% |
| ICO Group Ltd ($8140) | | 43.5% | 6.8% | 37.7% | 27.1% |
| Microsoft Corp ($4338) | | | 26.2% | 15.6% | 20.0% |
| Kantone Holdings Ltd ($1059) | 5.6% | 7.2% | 8.3% | 1.8% | 17.4% |
| China Technology Solar Power Holdings Ltd ($8111) | -12.6% | 0.3% | 3.9% | 9.7% | 9.9% |
| |
|---|
| Median (31 companies) | 4.7% | 6.1% | 3.3% | 2.0% | 4.4% |
|---|
| Chinasoft International Ltd ($354) | 9.3% | 7.8% | 8.5% | 8.3% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Epicurean and Co Ltd ($8213) | 2.3x | 4.7x | 12.3x | 12.0x | 13.9x |
| Sing Lee Software Group Ltd ($8076) | | | 6.2x | 4.4x | |
| Century Sage Scientific Holdings Ltd ($1450) | 0.2x | 0.0x | -0.2x | 1.8x | |
| Microsoft Corp ($4338) | | | 0.4x | 1.2x | 1.4x |
| China Technology Solar Power Holdings Ltd ($8111) | | 7.4x | 3.3x | 0.2x | 0.9x |
| |
|---|
| Median (21 companies) | -1.0x | -1.5x | -2.1x | -1.2x | -0.5x |
|---|
| Chinasoft International Ltd ($354) | -0.7x | 0.7x | 1.5x | 0.7x | |
