Oi Wah Pawnshop Credit Holdings Ltd Net Income jumped on 95.0% in 2015 and Revenue surged on 56.6%
29/05/2015 • About Oi Wah Pawnshop Credit Holdings Ltd (
$1319) • By InTwits
Oi Wah Pawnshop Credit Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Oi Wah Pawnshop Credit Holdings Ltd is a fast growth stock: FY2015 revenue growth was 56.6%, 5 year revenue CAGR was 26.8% at FY2015 ROIC 15.3%
- Oi Wah Pawnshop Credit Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has highly profitable business model: ROIC is at 15.3%
- It operates with high leverage: Net Debt/EBITDA is 2.2x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Oi Wah Pawnshop Credit Holdings Ltd ($1319) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 56.0 | 67.3 | 73.4 | 100.1 | 156.8 | 56.6% |
| EBITDA | 28.7 | 40.4 | 42.8 | 60.6 | 108.3 | 78.6% |
| Net Income | 23.6 | 33.4 | 22.7 | 41.1 | 80.1 | 95.0% |
Balance Sheet
|
|---|
| Cash | 4.7 | 10.4 | 19.8 | 11.7 | 46.9 | 300.3% |
| Short Term Debt | 2.4 | 3.5 | 68.7 | 193.7 | 212.6 | 9.8% |
| Long Term Debt | 0.3 | 0.4 | 0.2 | 0.0 | 75.4 | 507,889.3% |
Cash flow
|
|---|
| Capex | 0.8 | 0.4 | 0.7 | 0.2 | 0.2 | 44.2% |
Ratios
|
|---|
| Revenue growth | 16.9% | 20.2% | 9.0% | 36.5% | 56.6% | |
| EBITDA growth | 16.0% | 40.7% | 5.9% | 41.8% | 78.6% | |
| EBITDA Margin | 51.3% | 60.0% | 58.3% | 60.6% | 69.0% | 8.5% |
| Net Income Margin | 42.1% | 49.6% | 31.0% | 41.0% | 51.1% | 10.0% |
| CAPEX, % of revenue | 1.4% | 0.6% | 0.9% | 0.2% | 0.2% | -0.0% |
| ROIC | 30.4% | 32.7% | 20.7% | 14.0% | 15.3% | 1.2% |
| ROE | 25.8% | 28.1% | 13.8% | 15.9% | 20.6% | 4.8% |
| Net Debt/EBITDA | -0.1x | -0.2x | 1.1x | 3.0x | 2.2x | -0.8x |
Revenue and profitability
Oi Wah Pawnshop Credit Holdings Ltd's Revenue jumped on 56.6% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.77 pp from 12.9% to 13.7% in 2015.
Net Income marign surged on 10.0 pp from 41.0% to 51.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Oi Wah Pawnshop Credit Holdings Ltd's CAPEX/Revenue was 0.15% in FY2015. Oi Wah Pawnshop Credit Holdings Ltd showed almost no change in CAPEX/Revenue from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 0.42%.
Return on investment
The company operates at high and attractive ROE (20.63%) while ROIC is a bit lower (15.28%). ROIC increased slightly on 1.2 pp from 14.0% to 15.3% in FY2015. ROE increased on 4.8 pp from 15.9% to 20.6% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.2x and Debt / EBITDA is 2.7x. Net Debt / EBITDA dropped on 0.8x from 3.0x to 2.2x in FY2015. Debt surged on 48.7% in FY2015 while cash jumped on 300% in FY2015.
Appendix 1: Peers in Diversified Finan Serv
Below we provide Oi Wah Pawnshop Credit Holdings 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 (61 companies) | 5.7% | -0.2% | 13.8% | 25.7% | 26.3% |
|---|
| Oi Wah Pawnshop Credit Holdings Ltd ($1319) | | 20.2% | 9.0% | 36.5% | 56.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Roma Group Ltd ($8072) | | | | 99.4% | 98.7% |
| 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% | |
| |
|---|
| Median (13 companies) | 80.8% | 64.2% | 75.1% | 88.2% | 98.7% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Styland Holdings Ltd ($211) | 68.6% | 198.6% | 91.5% | 161.0% | |
| Roma Group Ltd ($8072) | 81.4% | 18.1% | 36.8% | 143.0% | 44.7% |
| 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% | |
| |
|---|
| Median (62 companies) | 28.9% | 13.3% | 35.5% | 43.0% | 41.4% |
|---|
| Oi Wah Pawnshop Credit Holdings Ltd ($1319) | 51.3% | 60.0% | 58.3% | 60.6% | 69.0% |
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 (62 companies) | 2.3% | 1.9% | 1.9% | 1.1% | 1.0% |
|---|
| Oi Wah Pawnshop Credit Holdings Ltd ($1319) | 1.4% | 0.6% | 0.9% | 0.2% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ReOrient Group Ltd ($376) | -24.9% | -45.6% | -53.5% | 128.6% | |
| Roma Group Ltd ($8072) | | 19.6% | 43.7% | 107.8% | 13.3% |
| 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% | |
| |
|---|
| Median (64 companies) | 4.6% | 3.4% | 4.0% | 4.7% | 9.7% |
|---|
| Oi Wah Pawnshop Credit Holdings Ltd ($1319) | 30.4% | 32.7% | 20.7% | 14.0% | 15.3% |
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 | |
| Aeon Credit Service Asia Co Ltd ($900) | 6.3x | 5.2x | 6.0x | 6.9x | 5.5x |
| |
|---|
| Median (44 companies) | -1.1x | -1.5x | -0.1x | -0.1x | 0.4x |
|---|
| Oi Wah Pawnshop Credit Holdings Ltd ($1319) | -0.1x | -0.2x | 1.1x | 3.0x | 2.2x |
