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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. 201620172018201920202020/2019
P&L
Revenue2,5031,5081,2091,2376,247404.8%
Gross Profit75636958145152.0%
SG&A7774658013670.5%
EBITDA18-1-7-13332
Net Income20-0-22-145-19
Balance Sheet
Cash3984062468429-65.7%
Short Term Debt2130525387.9%
Long Term Debt185258259262245-6.4%
Cash flow
Capex3406251
Ratios
Revenue growth40.9%-39.8%-19.8%2.3%404.8%
EBITDA growth-117.9%-105.9%607.3%1,714.2%-124.2%

Gross Margin3.0%4.2%5.7%4.7%2.3%-2.3%
EBITDA Margin0.7%-0.1%-0.6%-10.7%0.5%11.2%
SG&A, % of revenue3.1%4.9%5.3%6.5%2.2%-4.3%
Net Income Margin0.8%-0.0%-1.9%-11.8%-0.3%11.5%
CAPEX, % of revenue0.1%2.7%5.1%4.1%

ROIC2.5%-1.4%-3.1%-25.6%1.9%27.5%
ROE11.4%-0.0%-7.2%-62.5%-13.4%49.1%
Net Debt/EBITDA-12.0x7.5x

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---193.3x1.4x
 
Median (1 company)0.9x---193.3x1.4x
Vision Fame International Holding Ltd ($1315)-12.0x---7.5x