Orient Securities International Holdings Ltd's revenue growth was 14.3% and EBITDA growth 20.5% annually over the last three years
25/03/2015 • About Orient Securities International Holdings Ltd (
$8001) • By InTwits
Orient Securities International Holdings Ltd is an attractive growth stock in Diversified Finan Serv industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Orient Securities International Holdings Ltd showed fast growth in the last financial year. Orient Securities International Holdings Ltd's revenue surged on 20.4% in FY2014. Together with revenue growth Orient Securities International Holdings Ltd also managed to keep EBITDA growth. EBITDA grew 37.0% for the same period.
In the longer period Orient Securities International Holdings Ltd showed fast revenue growth of 14.3% from 2011 to 2014 annualy. EBITDA surged on 20.5% from 2011 to 2014 annualy.
Orient Securities International Holdings Ltd ($8001) financials for the last 5 years
| mln. HKD | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 49 | 29 | 29 | 36 | 44 |
|---|
| Revenue growth, % | | -40.4% | -1.8% | 26.3% | 20.4% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 32 | 13 | 13 | 17 | 23 |
|---|
| EBITDA growth, % | | -58.3% | -0.3% | 28.0% | 37.0% |
|---|
| EBITDA margin, % | 64.9% | 45.4% | 46.1% | 46.7% | 53.2% |
|---|
| Net Income | 25 | 10 | 10 | 13 | 18 |
|---|
| Net Income margin, % | 51.7% | 35.0% | 35.3% | 35.3% | 41.1% |
|---|
| |
| CAPEX | 1 | 0 | 0 | 0 | 0 |
|---|
| CAPEX/Revenue, % | 1.16% | 0.569% | 0.0733% | 0.337% | 0.193% |
|---|
| Debt | 0 | 0 | 0 | 0 | 0 |
|---|
| Cash | 106 | 78 | 71 | 102 | 184 |
|---|
| Net Debt/EBITDA | -3.3x | -5.9x | -5.4x | -6.1x | -7.9x |
|---|
| |
| ROIC, % | | 9.9% | 10.6% | 13.3% | 12.1% |
|---|
| ROE, % | | 8.1% | 8.4% | 10.1% | 9.4% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. Orient Securities International Holdings Ltd's EBITDA margin surged on 6.50 pp from 46.7% to 53.2% in 2014. If we look for the longer period the company showed fast EBITDA margin growth of 7.80 pp from 45.4% in 2011 to 53.2% in 2014.
We call Orient Securities International Holdings Ltd an attractive growth stock as together with the growth it delivers high ROIC at 12.1%. Three years ago it was a bit lower at 9.88%. It's average level of ROIC for the last three years was 12.0%.
Orient Securities International Holdings Ltd's Net Income margin surged on 5.80 pp from 35.3% to 41.1% in 2014. In the last 3 years Net Income margin surged on 6.10 pp from 35% in 2011 to 41.1% in 2014.
Orient Securities International Holdings Ltd operates at ROE of 9.43%. For the last three years the average ROE was 9.31%.
Capital expenditures (CAPEX)
In FY2014 the company had CAPEX/Revenue of 0.193%. Orient Securities International Holdings Ltd showed big decline in CAPEX/Revenue of 0.376 pp from 0.569% in 2011 to 0.193% in 2014. For the last three years the average CAPEX/Revenue was 0.201%.
Leverage (Debt)
Having such a fast growth profile the company keeps negative net debt at -7.9x Net Debt/EBITDA. In the last 3 years leverage surged on 2.00x from -5.92x in 2011 to -7.92x in 2014.
Valuation vs. comparable companies
The market closed today at 16.6x EV/EBITDA for Orient Securities International Holdings Ltd which is 27.2% lower than 22.8x Diversified Finan Serv peer group avearge calculated on the basis of 72 companies. The market closed today at 31.7x P/E for Orient Securities International Holdings Ltd which is 85.7% higher than 17.1x Diversified Finan Serv peer group avearge calculated on the basis of 30 companies.
Peers in Diversified Finan Serv
Below you can find Orient Securities International Holdings Ltd benchmarking vs. other companies in Diversified Finan Serv 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| China New Energy Power Group Ltd ($1041) | | | 100.0% | 0.0% | 64,246.0% |
| ReOrient Group Ltd ($376) | | 63.3% | 112.8% | 75.1% | 1,106.9% |
| Global Strategic Group Ltd ($8007) | | 2.2% | -3.9% | 2.1% | 806.3% |
| Freeman Financial Corp Ltd ($279) | | -51.5% | -89.3% | 764.3% | 200.8% |
| First China Financial Network Holdings Ltd ($8123) | | -74.1% | -27.6% | 61.2% | 174.3% |
| |
|---|
| Median (36 companies) | | 4.7% | -3.1% | 2.1% | 26.5% |
|---|
| Orient Securities International Holdings Ltd ($8001) | | -40.4% | -1.8% | 26.3% | 20.4% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Freeman Financial Corp Ltd ($279) | 98.3% | 97.1% | 52.3% | 99.3% | 98.5% |
| Chinese Strategic Holdings Ltd ($8089) | 88.8% | 97.9% | 99.1% | 97.9% | 97.0% |
| First China Financial Network Holdings Ltd ($8123) | | 98.6% | 93.4% | | 94.5% |
| China Fortune Financial Group Ltd ($290) | 71.1% | 86.7% | 91.4% | 93.7% | 91.6% |
| Styland Holdings Ltd ($211) | 69.1% | 48.0% | 57.7% | 75.1% | 88.2% |
| |
|---|
| Median (9 companies) | 71.1% | 86.7% | 57.7% | 84.4% | 88.2% |
|---|
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Styland Holdings Ltd ($211) | 74.2% | 68.6% | 198.6% | 91.5% | 161.0% |
| First China Financial Network Holdings Ltd ($8123) | -114.3% | -231.6% | -329.2% | -211.2% | 124.3% |
| Get Nice Holdings Ltd ($64) | 74.3% | 28.4% | 2.6% | 153.4% | 92.7% |
| Freeman Financial Corp Ltd ($279) | 109.0% | -52.0% | -6,089.9% | 83.0% | 83.4% |
| China New Energy Power Group Ltd ($1041) | | -47,848.0% | -13,367.2% | -8,894.4% | 83.2% |
| |
|---|
| Median (37 companies) | 37.8% | 24.1% | 5.6% | 36.8% | 42.5% |
|---|
| Orient Securities International Holdings Ltd ($8001) | 64.9% | 45.4% | 46.1% | 46.7% | 53.2% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Gemini Investments Holdings Ltd ($174) | 2.1% | 14.9% | 479.1% | 37.3% | 216.0% |
| Chinese Strategic Holdings Ltd ($8089) | 69.7% | 93.2% | 376.0% | 5.7% | 32.6% |
| Asian Capital Holdings Ltd ($8295) | 0.7% | 2.3% | 0.1% | 0.2% | 15.6% |
| Crown International Corp Ltd ($727) | 102.2% | 168.4% | 71.6% | 147.6% | 12.1% |
| Simsen International Corp Ltd ($993) | 4.0% | 1.7% | 3.1% | 1.9% | 10.1% |
| |
|---|
| Median (37 companies) | 1.5% | 2.2% | 1.8% | 1.7% | 1.1% |
|---|
| Orient Securities International Holdings Ltd ($8001) | 1.2% | 0.6% | 0.1% | 0.3% | 0.2% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| ReOrient Group Ltd ($376) | 5.8% | -24.9% | -45.6% | -53.5% | 128.6% |
| Value Partners Group Ltd ($806) | | 8.7% | 16.8% | 16.5% | 26.8% |
| China New Energy Power Group Ltd ($1041) | -10.1% | -8.5% | -5.6% | -4.2% | 24.9% |
| Hong Kong Exchanges and Clearing Ltd ($388) | 68.6% | 65.6% | 29.1% | 20.1% | 21.5% |
| GreaterChina Professional Services Ltd ($8193) | 179.7% | 84.1% | 18.1% | 29.2% | 19.1% |
| |
|---|
| Median (37 companies) | 4.2% | 3.4% | 1.3% | 2.3% | 4.8% |
|---|
| Orient Securities International Holdings Ltd ($8001) | | 9.9% | 10.6% | 13.3% | 12.1% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Bright Smart Securities & Commodities Group Ltd ($1428) | 3.4x | 7.3x | 2.1x | 10.3x | 9.3x |
| Aeon Credit Service Asia Co Ltd ($900) | 6.2x | 6.3x | 5.2x | 6.0x | 6.9x |
| Shenyin Wanguo HK Ltd ($218) | -0.3x | -4.5x | 9.6x | 7.1x | 6.1x |
| Guoco Group Ltd ($53) | 3.6x | 9.8x | | 4.1x | 4.6x |
| Quam Ltd ($952) | -0.3x | 4.9x | 58.9x | 15.9x | 4.1x |
| |
|---|
| Median (26 companies) | -0.3x | -0.4x | -0.2x | 0.4x | -0.1x |
|---|
| Orient Securities International Holdings Ltd ($8001) | -3.3x | -5.9x | -5.4x | -6.1x | -7.9x |
