Wisdom Holdings Group demonstrates profitable growth
31/03/2015 • About Wisdom Holdings Group (
$1661) • By InTwits
Have you thought about Wisdom Holdings Group as a growth stock? It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Wisdom Holdings Group showed fast growth in the last financial year. Wisdom Holdings Group's revenue surged on 15.8% in FY2014. EBITDA also increased: 14.0% for the same period.
In the last 3 years the company showed fast revenue growth of 19.5% from 2011 to 2014 annualy. EBITDA surged on 44.6% from 2011 to 2014 annualy.
Wisdom Holdings Group ($1661) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 298 | 471 | 557 | 694 | 804 |
|---|
| Revenue growth, % | | 58.1% | 18.2% | 24.6% | 15.8% |
|---|
| Gross margin, % | 32.4% | 30.8% | 38.9% | 49.4% | 46.5% |
|---|
| SG&A, % | 6.61% | 6.56% | 7.33% | 8.90% | 9.04% |
|---|
| EBITDA | 80 | 118 | 181 | 313 | 357 |
|---|
| EBITDA growth, % | | 47.7% | 53.0% | 73.4% | 14.0% |
|---|
| EBITDA margin, % | 26.8% | 25.0% | 32.4% | 45.1% | 44.4% |
|---|
| Net Income | 57 | 86 | 132 | 232 | 278 |
|---|
| Net Income margin, % | 19.3% | 18.2% | 23.7% | 33.3% | 34.6% |
|---|
| |
| CAPEX | 4 | 4 | 3 | 5 | 4 |
|---|
| CAPEX/Revenue, % | 1.19% | 0.919% | 0.514% | 0.698% | 0.521% |
|---|
| Debt | 0 | 0 | 0 | 0 | 0 |
|---|
| Cash | 44 | 136 | 99 | 820 | 598 |
|---|
| Net Debt/EBITDA | -0.6x | -1.2x | -0.6x | -2.6x | -1.7x |
|---|
| |
| ROIC, % | | 62.7% | 68.6% | 42.1% | 28.8% |
|---|
| ROE, % | | 48.9% | 54.9% | 34.2% | 24.5% |
|---|
Profitability and return on investment
Despite revenue growth EBITDA margin declined slightly from 45.1% in FY2013 to 44.4% in FY2014. In the longer period Wisdom Holdings Group showed fast EBITDA margin growth of 19.4 pp from 25% in 2011 to 44.4% in 2014.
Wisdom Holdings Group shows attractive ROIC at 28.8% for the last 12 months which assumes stable development model. Three years ago it was considerably higher at 62.7%. Average ROIC for the last three years was 46.5%.
Net Income margin increased slightly on 1.30 pp from 33.3% to 34.6% in 2014. In the last 3 years Net Income margin surged on 16.4 pp from 18.2% in 2011 to 34.6% in 2014.
Wisdom Holdings Group operates at ROE of 24.5%. It's average ROE for the last three years was 37.9%.
Capital expenditures (CAPEX)
Wisdom Holdings Group's CAPEX/Revenue was 0.521% in FY2014. Wisdom Holdings Group showed big decline in CAPEX/Revenue of 0.398 pp from 0.919% in 2011 to 0.521% in 2014. Average CAPEX/Revenue for the last three years was 0.578%.
Leverage (Debt)
The company has negative net debt at -1.7x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period leverage surged on 0.52x from -1.16x in 2011 to -1.68x in 2014.
Peers in Holding Companies-Divers
Below we provide Wisdom Holdings Group benchmarking against other companies in Holding Companies-Divers 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Kong Sun Holdings Ltd ($295) | | -18.7% | -88.3% | 5.1% | 7,067.0% |
| Goldin Properties Holdings Ltd ($283) | | | | 126.0% | 2,065.8% |
| Carnival Group International Holdings Ltd ($996) | | | | | 159.1% |
| Lippo Ltd ($226) | | -14.9% | 26.8% | 724.4% | 90.4% |
| Digital Domain Holdings Ltd ($547) | | 453.0% | 32.3% | 153.3% | 81.9% |
| |
|---|
| Median (31 companies) | | 14.2% | 13.1% | 5.2% | 15.5% |
|---|
| Wisdom Holdings Group ($1661) | | 58.1% | 18.2% | 24.6% | 15.8% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| New Century Group Hong Kong Ltd ($234) | 87.1% | 76.7% | 27.3% | 85.2% | 82.8% |
| Emperor International Holdings Ltd ($163) | 66.5% | 74.5% | 71.3% | 64.9% | 79.2% |
| China Renji Medical Group Ltd/Hong Kong ($648) | 51.5% | 54.9% | 70.0% | 67.3% | 78.6% |
| Orient Victory China Holdings Ltd ($265) | 80.0% | 68.5% | 69.4% | 61.6% | 67.4% |
| Heng Fai Enterprises Ltd ($185) | 88.3% | 89.3% | 89.0% | 89.5% | 58.3% |
| |
|---|
| Median (28 companies) | 23.6% | 20.7% | 27.3% | 31.9% | 26.9% |
|---|
| Wisdom Holdings Group ($1661) | 32.4% | 30.8% | 38.9% | 49.4% | 46.5% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Emperor International Holdings Ltd ($163) | 221.6% | 224.8% | 180.7% | 131.8% | 100.6% |
| New Century Group Hong Kong Ltd ($234) | 75.9% | 82.5% | -5.5% | 78.8% | 58.3% |
| Magnificent Estates ($201) | 62.8% | 42.1% | 45.5% | 47.8% | 53.0% |
| Wharf Holdings Ltd/The ($4) | 53.8% | 51.6% | 48.6% | 43.5% | 39.4% |
| Goldin Properties Holdings Ltd ($283) | | | -631.9% | -324.0% | 28.8% |
| |
|---|
| Median (32 companies) | 13.6% | 5.2% | 2.8% | 3.5% | 7.4% |
|---|
| Wisdom Holdings Group ($1661) | 26.8% | 25.0% | 32.4% | 45.1% | 44.4% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Heng Fai Enterprises Ltd ($185) | 189.1% | 217.5% | 4.8% | 77.1% | 310.0% |
| New Century Group Hong Kong Ltd ($234) | 12.3% | 1.0% | 97.2% | 1.0% | 142.7% |
| Chinney Investments Ltd ($216) | 10.7% | 37.6% | 17.5% | 103.4% | 111.3% |
| Emperor International Holdings Ltd ($163) | 172.4% | 93.5% | 100.9% | 48.5% | 105.9% |
| Carnival Group International Holdings Ltd ($996) | 0.9% | | | 137.9% | 61.0% |
| |
|---|
| Median (32 companies) | 5.7% | 5.6% | 3.3% | 3.7% | 6.1% |
|---|
| Wisdom Holdings Group ($1661) | 1.2% | 0.9% | 0.5% | 0.7% | 0.5% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Chinney Alliance Group Ltd ($385) | 4.6% | 3.4% | 6.4% | 8.1% | 13.6% |
| Hutchison Whampoa Ltd ($13) | 3.5% | 3.3% | 3.7% | 4.2% | 8.1% |
| Code Agriculture Holdings Ltd ($8153) | -0.0% | -0.1% | 2.4% | -3.3% | 7.9% |
| Lippo Ltd ($226) | -0.4% | -0.7% | -0.5% | -0.8% | 7.5% |
| Emperor International Holdings Ltd ($163) | 23.8% | 18.8% | 19.9% | 22.5% | 7.3% |
| |
|---|
| Median (32 companies) | 3.0% | 1.0% | 0.7% | 0.6% | 1.2% |
|---|
| Wisdom Holdings Group ($1661) | | 62.7% | 68.6% | 42.1% | 28.8% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Chinney Investments Ltd ($216) | 10.9x | 111.3x | 10.3x | 63.7x | 48.6x |
| Carnival Group International Holdings Ltd ($996) | -6.9x | | | | 23.7x |
| Van Shung Chong Holdings Ltd ($1001) | 1.5x | 3.4x | | 0.9x | 12.3x |
| Southeast Asia Properties & Finance Ltd ($252) | 5.4x | 6.8x | 6.7x | 5.7x | 9.2x |
| Code Agriculture Holdings Ltd ($8153) | 79.0x | 24.3x | 11.9x | 42.8x | 8.7x |
| |
|---|
| Median (21 companies) | 3.3x | 3.4x | 2.9x | 2.6x | 3.5x |
|---|
| Wisdom Holdings Group ($1661) | -0.6x | -1.2x | -0.6x | -2.6x | -1.7x |
