Aeon Credit Service Asia Co Ltd reports 27.2% Net Income growth and 11.4% Revenue growth
24/04/2015 • About Aeon Credit Service Asia Co Ltd (
$900) • By InTwits
Aeon Credit Service Asia Co Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Aeon Credit Service Asia Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's a lot of higher than industry average of 31.4%.
- CAPEX is quite volatile: 22.7 in FY2015, 45.8 in FY2014, 24.4 in FY2013, 31.1 in FY2012, 19.7 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.1%
- It operates with high leverage: Net Debt/EBITDA is 5.5x while industry average is 1.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Aeon Credit Service Asia Co Ltd ($900) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,117 | 1,157 | 1,141 | 1,170 | 1,304 | 11.4% |
| EBITDA | 477 | 514 | 500 | 414 | 496 | 19.7% |
| Net Income | 252 | 301 | 295 | 222 | 282 | 27.2% |
Balance Sheet
|
|---|
| Cash | 263 | 357 | 156 | 516 | 346 | -33.0% |
| Short Term Debt | 1,101 | 280 | 714 | 803 | 1,047 | 30.5% |
| Long Term Debt | 2,159 | 2,728 | 2,426 | 2,587 | 2,032 | -21.4% |
Cash flow
|
|---|
| Capex | 20 | 31 | 24 | 46 | 23 | -50.5% |
Ratios
|
|---|
| Revenue growth | -4.4% | 3.6% | -1.5% | 2.6% | 11.4% | |
| EBITDA growth | -3.1% | 7.7% | -2.8% | -17.1% | 19.7% | |
| EBITDA Margin | 42.7% | 44.4% | 43.8% | 35.4% | 38.0% | 2.6% |
| Net Income Margin | 22.6% | 26.0% | 25.9% | 19.0% | 21.7% | 2.7% |
| CAPEX, % of revenue | 1.8% | 2.7% | 2.1% | 3.9% | 1.7% | -2.2% |
| ROIC | 5.7% | 6.8% | 6.8% | 4.9% | 6.1% | 1.3% |
| ROE | 12.9% | 14.8% | 13.8% | 9.7% | 11.8% | 2.1% |
| Net Debt/EBITDA | 6.3x | 5.2x | 6.0x | 6.9x | 5.5x | -1.4x |
Revenue and profitability
Aeon Credit Service Asia Co Ltd's Revenue surged on 11.4% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.82 pp from 81.6% to 82.4% in 2015.
Net Income marign increased on 2.7 pp from 19.0% to 21.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 1.7%. The company's CAPEX/Revenue decreased slightly on 0.95 pp from 2.7% in FY2012 to 1.7% in FY2015. It's average CAPEX/Revenue for the last three years was 2.6%.
Return on investment
The company operates at low ROIC (6.14%) and ROE (11.78%). ROIC increased slightly on 1.3 pp from 4.9% to 6.1% in FY2015. ROE increased on 2.1 pp from 9.7% to 11.8% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.5x and Debt / EBITDA is 6.2x. Net Debt / EBITDA dropped on 1.4x from 6.9x to 5.5x in FY2015. Debt decreased on 9.1% in FY2015 while cash dropped on 33.0% in FY2015.
Appendix 1: Peers in Diversified Finan Serv
Below we provide Aeon Credit Service Asia Co Ltd benchmarking against other companies in Diversified Finan Serv 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 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | |
| AID Partners Capital Holdings Ltd ($8088) | -38.7% | 0.9% | -79.5% | 655.2% | |
| Willie International Holdings Ltd ($273) | | | | 543.9% | |
| |
|---|
| Median (60 companies) | 6.3% | 0.9% | 12.9% | 26.5% | |
|---|
| Aeon Credit Service Asia Co Ltd ($900) | | 3.6% | -1.5% | 2.6% | 11.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Freeman Financial Corp Ltd ($279) | 97.1% | 52.3% | 99.3% | 98.5% | |
| Chinese Strategic Holdings Ltd ($8089) | 97.9% | 99.1% | 97.9% | 97.0% | |
| First China Financial Network Holdings Ltd ($8123) | 98.6% | 93.4% | | 94.5% | |
| Allied Group Ltd ($373) | 94.5% | 95.1% | 94.4% | 93.6% | |
| China Fortune Financial Group Ltd ($290) | 86.7% | 91.4% | 93.7% | 91.6% | |
| |
|---|
| Median (12 companies) | 80.8% | 64.2% | 75.1% | 81.8% | |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Styland Holdings Ltd ($211) | 68.6% | 198.6% | 91.5% | 161.0% | |
| First China Financial Network Holdings Ltd ($8123) | -231.6% | -329.2% | -211.2% | 124.3% | |
| Willie International Holdings Ltd ($273) | | | 75.3% | 95.2% | |
| Get Nice Holdings Ltd ($64) | 28.4% | 2.6% | 153.4% | 92.7% | |
| Freeman Financial Corp Ltd ($279) | -52.0% | -6,089.9% | 83.0% | 83.4% | |
| |
|---|
| Median (61 companies) | 28.4% | 11.8% | 35.4% | 43.6% | |
|---|
| Aeon Credit Service Asia Co Ltd ($900) | 42.7% | 44.4% | 43.8% | 35.4% | 38.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gemini Investments Holdings Ltd ($174) | 14.9% | 479.1% | 37.3% | 216.0% | |
| China Assurance Finance Group Ltd ($8090) | | 94.7% | 68.9% | 53.3% | |
| Chinese Strategic Holdings Ltd ($8089) | 93.2% | 376.0% | 5.7% | 32.6% | |
| AID Partners Capital Holdings Ltd ($8088) | 196.3% | 4.1% | 2.9% | 28.4% | |
| Asian Capital Holdings Ltd ($8295) | 2.3% | 0.1% | 0.2% | 15.6% | |
| |
|---|
| Median (61 companies) | 2.3% | 1.8% | 1.8% | 1.1% | |
|---|
| Aeon Credit Service Asia Co Ltd ($900) | 1.8% | 2.7% | 2.1% | 3.9% | 1.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ReOrient Group Ltd ($376) | -24.9% | -45.6% | -53.5% | 128.6% | |
| Convoy Financial Holdings Ltd ($1019) | 31.1% | 3.4% | 39.3% | 47.3% | |
| Willie International Holdings Ltd ($273) | -28.1% | -9.5% | 4.7% | 30.9% | |
| Value Partners Group Ltd ($806) | 8.7% | 16.8% | 16.5% | 26.8% | |
| China New Energy Power Group Ltd ($1041) | -8.5% | -5.6% | -4.2% | 24.9% | |
| |
|---|
| Median (63 companies) | 4.6% | 3.4% | 3.5% | 4.6% | |
|---|
| Aeon Credit Service Asia Co Ltd ($900) | 5.7% | 6.8% | 6.8% | 4.9% | 6.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cash Financial Services Group Ltd ($510) | -1.1x | 7.8x | | 67.5x | |
| Far East Horizon Ltd ($3360) | 17.8x | 16.9x | 21.7x | 20.0x | |
| Bright Smart Securities & Commodities Group Ltd ($1428) | 7.3x | 2.1x | 10.3x | 9.3x | |
| China Cinda Asset Management Co Ltd ($1359) | 2.1x | 5.0x | 7.7x | 8.4x | |
| Shenyin Wanguo HK Ltd ($218) | -4.5x | 9.6x | 7.1x | 6.1x | |
| |
|---|
| Median (43 companies) | -1.1x | -1.7x | -0.0x | -0.1x | |
|---|
| Aeon Credit Service Asia Co Ltd ($900) | 6.3x | 5.2x | 6.0x | 6.9x | 5.5x |
