Vision Fame International Holding Ltd revenue growth accelerated from 2.3% in FY2019 to 405% in FY2020
09/10/2020 • About Vision Fame International Holding Ltd (
$1315) • By InTwits
Vision Fame International Holding Ltd reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vision Fame International Holding Ltd is a fast growth stock: FY2020 revenue growth was 405%, 5 year revenue CAGR was 28.6% at FY2020 ROIC 1.9%
- Vision Fame International Holding Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 was 0.0% while average EBITDA Margin was -0.7% for the sames years
- The company has potentially unprofitable business model: ROIC is 1.9%
- It operates with high leverage: Net Debt/EBITDA is 7.5x while industry average is 12.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Vision Fame International Holding Ltd's Revenue jumped on 405%. During the last 5 years Revenue growth bottomed in FY2017 at -39.8% and was accelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 6.4 pp from 12.0% to 18.4% in FY2020. During FY2016-FY2020 EBITDA Margin bottomed in FY2019 at -10.7%.
Gross Margin decreased on 2.3 pp from 4.7% to 2.3% in FY2020. During the last 5 years Gross Margin topped in FY2018 at 5.7% and was declining since that time. SG&A as a % of Revenue decreased on 4.3 pp from 6.5% to 2.2% in FY2020. During FY2016-FY2020 SG&A as a % of Revenue topped in FY2019 at 6.5%.
Net Income margin surged on 11.5 pp from -11.8% to -0.30% in FY2020. During FY2016-FY2020 Net Income margin bottomed in FY2019 at -11.8%.
Return on investment
The company operates at low but positive ROIC (1.9%) and negative ROE (-13.4%). ROIC jumped on 27.5 pp from -25.6% to 1.9% in FY2020. ROE surged on 49.1 pp from -62.5% to -13.4% in FY2020. During FY2016-FY2020 ROIC bottomed in FY2019 at -25.6%. During the last 5 years ROE bottomed in FY2019 at -62.5%.
Leverage (Debt)
Company's Net Debt / EBITDA is 7.5x and Debt / EBITDA is 8.4x. Net Debt / EBITDA surged7.5x from to 7.5x in FY2020. Debt increased slightly on 1.00% while cash dropped on 65.7%.
Vision Fame International Holding Ltd has no short term refinancing risk: cash is higher than short term debt (116.6%).
Financial and operational results
Vision Fame International Holding Ltd ($1315) key annual financial indicators| mln. | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 2,503 | 1,508 | 1,209 | 1,237 | 6,247 | 404.8% |
| Gross Profit | 75 | 63 | 69 | 58 | 145 | 152.0% |
| SG&A | 77 | 74 | 65 | 80 | 136 | 70.5% |
| EBITDA | 18 | -1 | -7 | -133 | 32 | |
| Net Income | 20 | -0 | -22 | -145 | -19 | |
Balance Sheet
|
|---|
| Cash | 398 | 406 | 246 | 84 | 29 | -65.7% |
| Short Term Debt | 2 | 1 | 30 | 5 | 25 | 387.9% |
| Long Term Debt | 185 | 258 | 259 | 262 | 245 | -6.4% |
Cash flow
|
|---|
| Capex | 3 | 40 | 62 | 51 | | |
Ratios
|
|---|
| Revenue growth | 40.9% | -39.8% | -19.8% | 2.3% | 404.8% | |
| EBITDA growth | -117.9% | -105.9% | 607.3% | 1,714.2% | -124.2% | |
|
|---|
| Gross Margin | 3.0% | 4.2% | 5.7% | 4.7% | 2.3% | -2.3% |
| EBITDA Margin | 0.7% | -0.1% | -0.6% | -10.7% | 0.5% | 11.2% |
| SG&A, % of revenue | 3.1% | 4.9% | 5.3% | 6.5% | 2.2% | -4.3% |
| Net Income Margin | 0.8% | -0.0% | -1.9% | -11.8% | -0.3% | 11.5% |
| CAPEX, % of revenue | 0.1% | 2.7% | 5.1% | 4.1% | | |
|
|---|
| ROIC | 2.5% | -1.4% | -3.1% | -25.6% | 1.9% | 27.5% |
| ROE | 11.4% | -0.0% | -7.2% | -62.5% | -13.4% | 49.1% |
| Net Debt/EBITDA | -12.0x | | | | 7.5x |
Peers in Engineering&Construction
Below you can find Vision Fame International Holding Ltd benchmarking vs. other companies in Engineering&Construction 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Kingbo Strike Ltd ($1421) | - | 168.1% | 18.5% | 19.6% | 270.3% |
| KSL Holdings Ltd ($8170) | - | -62.0% | -21.4% | 177.0% | 82.6% |
| |
|---|
| Median (2 companies) | 6.1% | 53.1% | -1.5% | 98.3% | 176.5% |
|---|
| Vision Fame International Holding Ltd ($1315) | - | -39.8% | -19.8% | 2.3% | 404.8% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| KSL Holdings Ltd ($8170) | 25.9% | 28.4% | 9.7% | 17.1% | 31.0% |
| Kingbo Strike Ltd ($1421) | 14.1% | 33.4% | 8.0% | 10.4% | 8.3% |
| |
|---|
| Median (2 companies) | 13.7% | 30.9% | 8.8% | 13.8% | 19.7% |
|---|
| Vision Fame International Holding Ltd ($1315) | 3.0% | 4.2% | 5.7% | 4.7% | 2.3% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| KSL Holdings Ltd ($8170) | 15.7% | -27.3% | -50.2% | 0.3% | 43.3% |
| Kingbo Strike Ltd ($1421) | 1.4% | -50.1% | -0.8% | -8.3% | -22.4% |
| |
|---|
| Median (2 companies) | 5.4% | -38.7% | -25.5% | -4.0% | 10.5% |
|---|
| Vision Fame International Holding Ltd ($1315) | 0.7% | -0.1% | -0.6% | -10.7% | 0.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| KSL Holdings Ltd ($8170) | 0.4% | 3.8% | 0.1% | 1.1% | 0.1% |
| Kingbo Strike Ltd ($1421) | 1.0% | 0.8% | 0.1% | 0.4% | 0.0% |
| |
|---|
| Median (2 companies) | 2.4% | 2.3% | 0.1% | 0.8% | 0.0% |
|---|
| Vision Fame International Holding Ltd ($1315) | 0.1% | 2.7% | 5.1% | 4.1% | - |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| KSL Holdings Ltd ($8170) | 16.9% | -13.9% | -22.8% | -1.7% | 22.1% |
| Kingbo Strike Ltd ($1421) | 0.3% | -34.4% | -1.0% | -8.5% | -29.4% |
| |
|---|
| Median (2 companies) | 2.8% | -24.1% | -11.9% | -5.1% | -3.6% |
|---|
| Vision Fame International Holding Ltd ($1315) | 2.5% | -1.4% | -3.1% | -25.6% | 1.9% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| KSL Holdings Ltd ($8170) | -5.3x | - | - | -193.3x | 1.4x |
| |
|---|
| Median (1 company) | 0.9x | - | - | -193.3x | 1.4x |
|---|
| Vision Fame International Holding Ltd ($1315) | -12.0x | - | - | - | 7.5x |
