Yat Sing Holdings Ltd revenue decreased on 8.4% and EBITDA Margin decreased on 2.2 pp from -1.7% to -3.9%
30/09/2020 • About Yat Sing Holdings Ltd (
$3708) • By InTwits
Yat Sing Holdings Ltd reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Yat Sing Holdings Ltd is a company in decline: FY2020 revenue growth was -8.4%, 5 years revenue CAGR was -5.4%
- The company operates at negative EBITDA Margin: -3.9%
- EBITDA Margin is quite volatile: -3.9% in FY2020, -1.7% in FY2019, 1.8% in FY2018, 1.6% in FY2017, 4.0% in FY2016
- In the last 5 years the company invested considerably less than D&A: 3 HKDm vs. 7 HKDm. In FY2020 this situation was still the same: CAPEX was while D&A was 1
- The company has unprofitable business model: ROIC is -9.7%
- It operates with high leverage: Net Debt/EBITDA is 16.2x while industry average is -1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Yat Sing Holdings Ltd's Revenue decreased on 8.4%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 2.2 pp from -1.7% to -3.9% in FY2020. EBITDA Margin declined at -1.9 pp per annum in FY2016-FY2020.
Gross Margin decreased on 2.7 pp from 7.5% to 4.8% in FY2020. SG&A as a % of Revenue showed almost no change in FY2020. SG&A as a % of Revenue stuck to a growing trend at 1.0 pp per annum in FY2016-FY2020.
Net Income margin decreased slightly on 0.58 pp from -3.2% to -3.8% in FY2020. Net Income margin stuck to a declining trend at -1.6 pp per annum in FY2016-FY2020.
Return on investment
The company operates at negative ROIC (-9.7%) and ROE (-9.3%). ROIC decreased on 5.4 pp from -4.3% to -9.7% in FY2020. ROE decreased slightly on 1.3 pp from -8.0% to -9.3% in FY2020. ROIC followed a declining trend at -4.8 pp per annum in FY2016-FY2020. ROE stuck to a declining trend at -4.1 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is 16.2x Net Debt / EBITDA and Debt / EBITDA. Debt dropped on 90.3% while cash surged on 17.9%.
Yat Sing Holdings Ltd has no short term refinancing risk: cash is higher than short term debt (24,846.4%).
Average interest expence charged on company's debt was 9.1% in FY2020.
Management team
Insider ownership is 58.7%. Insider ownership didn't change in 2020.
The company has 93 employees. The number of employees decreased on 2.1%. Average revenue per employee in FY2020 was 4,091,452 HKD and it decreased on 6.5%.
Financial and operational results
Yat Sing Holdings Ltd ($3708) key annual financial indicators| mln. HKD | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 488.1 | 513.5 | 443.6 | 415.5 | 380.5 | -8.4% |
| Gross Profit | 44.9 | 45.2 | 41.7 | 31.0 | 18.1 | -41.5% |
| SG&A | 26.6 | 39.8 | 37.5 | 41.1 | 36.0 | -12.4% |
| EBITDA | 19.8 | 8.3 | 7.9 | -6.9 | -14.8 | |
| EBIT | | 6.9 | 6.2 | -9.9 | -15.4 | |
| Interest expence | | | 0.2 | 0.2 | 0.0 | -87.3% |
| Tax | | 5.5 | 2.8 | 0.7 | -0.0 | -105.1% |
| Net Income | 11.6 | 1.3 | 3.7 | -13.4 | -14.5 | |
Balance Sheet
|
|---|
| Cash | 52.4 | 40.0 | 66.1 | 58.2 | 68.6 | 17.9% |
| Inventory | | | 1.5 | | | |
| Short Term Debt | 1.4 | 1.1 | 89.4 | 2.8 | 0.3 | -90.3% |
| Long Term Debt | 0.5 | 0.7 | 2.3 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 1.5 | 0.8 | 0.4 | 0.2 | | |
Ratios
|
|---|
| Revenue growth | -3.0% | 5.2% | -13.6% | -6.3% | -8.4% | |
| EBITDA growth | 13.3% | -58.0% | -4.9% | -187.1% | 115.2% | |
|
|---|
| Gross Margin | 9.2% | 8.8% | 9.4% | 7.5% | 4.8% | -2.7% |
| EBITDA Margin | 4.0% | 1.6% | 1.8% | -1.7% | -3.9% | -2.2% |
| EBIT Margin | | 1.3% | 1.4% | -2.4% | -4.1% | -1.7% |
| SG&A, % of revenue | 5.4% | 7.7% | 8.4% | 9.9% | 9.5% | -0.4% |
| Net Income Margin | 2.4% | 0.3% | 0.8% | -3.2% | -3.8% | -0.6% |
| CAPEX, % of revenue | 0.3% | 0.2% | 0.1% | 0.0% | | |
|
|---|
| ROIC | 10.5% | 3.9% | 2.6% | -4.3% | -9.7% | -5.4% |
| ROE | 7.0% | 0.8% | 2.1% | -8.0% | -9.3% | -1.3% |
| Net Debt/EBITDA | -2.6x | -4.6x | 3.2x | | |
| Interest expence / Average debt | | | 0.4% | 0.4% | 9.1% | 8.6% |
People
|
|---|
| Insider ownership | | 58.7% | 58.7% | 58.7% | 58.7% | 0.0% |
| Employees | | 118 | 138 | 95 | 93 | -2.1% |
| Revenue/Employee, th. HKD | | 4,351 | 3,214 | 4,374 | 4,091 | -6.5% |
Peers in Commercial Services
Below we provide Yat Sing Holdings Ltd benchmarking against other companies in Commercial Services 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Mega Expo Holdings Ltd ($1360) | - | -35.8% | 146.8% | 126.8% | -4.3% |
| |
|---|
| Median (1 company) | 7.3% | -35.8% | 146.8% | 126.8% | -4.3% |
|---|
| Yat Sing Holdings Ltd ($3708) | - | 5.2% | -13.6% | -6.3% | -8.4% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Mega Expo Holdings Ltd ($1360) | - | 52.7% | 45.8% | 66.5% | 51.7% |
| |
|---|
| Median (1 company) | 34.1% | 52.7% | 45.8% | 66.5% | 51.7% |
|---|
| Yat Sing Holdings Ltd ($3708) | 9.2% | 8.8% | 9.4% | 7.5% | 4.8% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Mega Expo Holdings Ltd ($1360) | -11.3% | -6.0% | 47.6% | 39.5% | 48.8% |
| |
|---|
| Median (1 company) | 4.8% | -6.0% | 47.6% | 39.5% | 48.8% |
|---|
| Yat Sing Holdings Ltd ($3708) | 4.0% | 1.6% | 1.8% | -1.7% | -3.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Mega Expo Holdings Ltd ($1360) | 5.1% | 5.8% | 0.0% | 0.3% | 0.2% |
| |
|---|
| Median (1 company) | 3.9% | 5.8% | 0.0% | 0.3% | 0.2% |
|---|
| Yat Sing Holdings Ltd ($3708) | 0.3% | 0.2% | 0.1% | 0.0% | - |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Mega Expo Holdings Ltd ($1360) | -19.1% | -18.3% | 40.6% | 32.9% | 25.6% |
| |
|---|
| Median (1 company) | 3.2% | -18.3% | 40.6% | 32.9% | 25.6% |
|---|
| Yat Sing Holdings Ltd ($3708) | 10.5% | 3.9% | 2.6% | -4.3% | -9.7% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Mega Expo Holdings Ltd ($1360) | - | - | -1.4x | 0.6x | 0.7x |
| |
|---|
| Median (1 company) | -1.5x | - | -1.4x | 0.6x | 0.7x |
|---|
