Pacific Online Ltd reports 22.0 pp EBITDA Margin decline from 22.0% to in 2016 in 2016
27/03/2017 • About Pacific Online Ltd (
$543) • By InTwits
Pacific Online 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. 22.0% in FY2015 vs. 42.8% in FY2012
- It operates with high leverage: Net Debt/EBITDA is -0.7x while industry average is -0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pacific Online Ltd ($543) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 716 | 848 | 988 | 1,096 | 974 | -11.1% |
| Gross Profit | 508 | 598 | 665 | 711 | | -100.0% |
| SG&A | 174 | 236 | 325 | 408 | | -100.0% |
| EBITDA | 306 | 333 | 295 | 241 | | -100.0% |
| Net Income | 236 | 254 | 221 | 180 | 151 | -15.9% |
Balance Sheet
|
|---|
| Cash | 437 | 438 | 392 | 411 | | -100.0% |
| Short Term Debt | 0 | 0 | 0 | 0 | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | |
Cash flow
|
|---|
| Capex | 22 | 51 | 36 | 13 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 11.8% | 18.5% | 16.5% | 11.0% | -11.1% | |
| EBITDA growth | 5.2% | 8.6% | -11.2% | -18.4% | | |
| Gross Margin | 71.0% | 70.5% | 67.3% | 64.8% | | -64.8% |
| EBITDA Margin | 42.8% | 39.2% | 29.9% | 22.0% | 0.0% | -22.0% |
| Net Income Margin | 33.0% | 29.9% | 22.4% | 16.4% | 15.5% | -0.9% |
| SG&A, % of revenue | 24.4% | 27.9% | 32.9% | 37.2% | | -37.2% |
| CAPEX, % of revenue | 3.1% | 6.1% | 3.6% | 1.2% | | -1.2% |
| ROIC | 37.9% | 36.4% | 28.6% | 21.6% | | -21.6% |
| ROE | 31.7% | 30.4% | 24.0% | 18.2% | | -18.2% |
| Net Debt/EBITDA | -1.4x | -1.3x | -1.3x | -1.7x | | 1.7x |
Revenue and profitability
Pacific Online Ltd's Revenue dropped on 11.1%.
Net Income marign decreased slightly on 0.88 pp from 16.4% to 15.5% in FY2016.
Appendix 1: Peers in Internet
Below you can find Pacific Online Ltd benchmarking vs. other companies in Internet 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 |
|---|
| Asian Capital Resources Holdings Ltd ($8025) | -5.6% | | | 1,114.6% | |
| China Public Procurement Ltd ($1094) | 5,077.0% | -67.5% | 1,258.9% | 105.7% | |
| Ourgame International Holdings Ltd ($6899) | | 14.8% | 101.3% | 61.8% | 13.2% |
| Media Asia Group Holdings Ltd ($8075) | | 275.6% | 3.6% | 55.9% | -26.9% |
| Tai Shing International Holdings Ltd ($8103) | | -35.9% | -4.9% | 48.5% | -13.6% |
| |
|---|
| Median (21 companies) | 8.4% | 6.0% | 11.3% | 8.5% | 4.3% |
|---|
| Pacific Online Ltd ($543) | | 18.5% | 16.5% | 11.0% | -11.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sino-I Technology Ltd ($250) | 75.3% | 82.7% | 78.8% | 82.8% | 82.9% |
| ABC Multiactive Ltd ($8131) | 86.7% | 83.5% | 86.2% | 82.1% | 74.8% |
| China Digital Culture Group Ltd ($8175) | 64.3% | 78.6% | 65.2% | 72.7% | |
| Prosten Technology Holdings Ltd ($8026) | 52.4% | 47.8% | 50.8% | 67.1% | 53.8% |
| SUNeVision Holdings Ltd ($8008) | 53.5% | 60.5% | 64.7% | 65.6% | 63.9% |
| |
|---|
| Median (18 companies) | 65.8% | 63.4% | 56.3% | 43.8% | 45.3% |
|---|
| Pacific Online Ltd ($543) | 71.0% | 70.5% | 67.3% | 64.8% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SUNeVision Holdings Ltd ($8008) | 64.2% | 71.6% | 71.6% | 72.4% | 68.9% |
| China Digital Culture Group Ltd ($8175) | -66.7% | 22.5% | 40.8% | 46.6% | |
| Tradelink Electronic Commerce Ltd ($536) | 38.6% | 33.8% | 33.1% | 31.1% | |
| GET Holdings Ltd ($8380) | -237.7% | 56.8% | 66.4% | 28.5% | |
| Media Asia Group Holdings Ltd ($8075) | -30.8% | 18.6% | 13.4% | 25.1% | 14.2% |
| |
|---|
| Median (21 companies) | 4.3% | 15.2% | 8.7% | 4.7% | -2.9% |
|---|
| Pacific Online Ltd ($543) | 42.8% | 39.2% | 29.9% | 22.0% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| AcrossAsia Ltd ($8061) | 56.6% | 65.9% | 36.3% | 45.8% | |
| Asian Capital Resources Holdings Ltd ($8025) | 0.0% | | 12.2% | 14.0% | |
| SUNeVision Holdings Ltd ($8008) | 7.6% | 10.2% | 62.8% | 12.4% | 41.1% |
| Ourgame International Holdings Ltd ($6899) | 1.8% | 3.1% | 1.7% | 6.4% | |
| Sino-I Technology Ltd ($250) | 9.3% | 12.7% | 4.0% | 6.0% | |
| |
|---|
| Median (21 companies) | 3.4% | 2.3% | 1.5% | 0.4% | 2.4% |
|---|
| Pacific Online Ltd ($543) | 3.1% | 6.1% | 3.6% | 1.2% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tradelink Electronic Commerce Ltd ($536) | 22.4% | 18.2% | 17.4% | 16.7% | |
| SUNeVision Holdings Ltd ($8008) | 10.8% | 13.3% | 14.4% | 15.3% | 15.3% |
| Ourgame International Holdings Ltd ($6899) | 42.8% | 33.3% | 17.5% | 12.7% | |
| Cogobuy Group ($400) | | 13.5% | 12.1% | 11.8% | 10.5% |
| China Digital Culture Group Ltd ($8175) | -11.2% | 4.0% | 11.7% | 8.2% | |
| |
|---|
| Median (22 companies) | -6.3% | 4.0% | -2.6% | 0.3% | -5.6% |
|---|
| Pacific Online Ltd ($543) | 37.9% | 36.4% | 28.6% | 21.6% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tai Shing International Holdings Ltd ($8103) | | | | 82.7x | |
| AcrossAsia Ltd ($8061) | 2.3x | 2.9x | 1.5x | 7.7x | |
| Sino-I Technology Ltd ($250) | | 9.4x | | 4.1x | 3.1x |
| Cogobuy Group ($400) | | 5.0x | 0.7x | 2.4x | 3.1x |
| GET Holdings Ltd ($8380) | | -1.1x | -1.0x | 0.7x | |
| |
|---|
| Median (14 companies) | -1.9x | -1.0x | -1.5x | -1.8x | 1.2x |
|---|
| Pacific Online Ltd ($543) | -1.4x | -1.3x | -1.3x | -1.7x | |
