Oi Wah Pawnshop Credit Holdings Ltd demonstrated healthy growth in recent years
05/06/2015 • About Oi Wah Pawnshop Credit Holdings Ltd (
$1319) • By InTwits
Pay attention to Oi Wah Pawnshop Credit Holdings Ltd as a growth stock. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Oi Wah Pawnshop Credit Holdings Ltd showed growth in the last financial year. Oi Wah Pawnshop Credit Holdings Ltd's revenue surged on 56.6% in FY2015. The growth also happened in EBITDA of 78.6% for the same period.
In the longer period Oi Wah Pawnshop Credit Holdings Ltd showed fast revenue growth of 32.5% from FY2012 to FY2015 annualy. EBITDA surged on 38.9% from FY2012 to FY2015 annualy.
Oi Wah Pawnshop Credit Holdings Ltd ($1319) financials for the last 5 years
| mln. HKD | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Revenue | 56 | 67 | 73 | 100 | 157 |
|---|
| Revenue growth, % | | 20.2% | 9.0% | 36.5% | 56.6% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 29 | 40 | 43 | 61 | 108 |
|---|
| EBITDA growth, % | | 40.7% | 5.9% | 41.8% | 78.6% |
|---|
| EBITDA margin, % | 51.3% | 60.0% | 58.3% | 60.6% | 69.0% |
|---|
| Net Income | 24 | 33 | 23 | 41 | 80 |
|---|
| Net Income margin, % | 42.1% | 49.6% | 31.0% | 41.0% | 51.1% |
|---|
| |
| CAPEX | 1 | 0 | 1 | 0 | 0 |
|---|
| CAPEX/Revenue, % | 1.35% | 0.645% | 0.934% | 0.165% | 0.151% |
|---|
| Debt | 3 | 4 | 69 | 194 | 288 |
|---|
| Cash | 5 | 10 | 20 | 12 | 47 |
|---|
| Net Debt/EBITDA | -0.1x | -0.2x | 1.1x | 3.0x | 2.2x |
|---|
| |
| ROIC, % | 30.4% | 32.7% | 20.7% | 14.0% | 15.3% |
|---|
| ROE, % | 25.8% | 28.1% | 13.8% | 15.9% | 20.6% |
|---|
Profitability and return on investment
Margin expansion supported EBITDA growth. EBITDA margin surged on 8.40 pp from 60.6% to 69% in FY2015. In the last 3 years EBITDA margin surged on 9 pp from 60% in FY2012 to 69% in FY2015.
Oi Wah Pawnshop Credit Holdings Ltd shows attractive ROIC at 15.3% for the last 12 months which assumes stable development model. Three years ago it was considerably higher at 32.7%. For the last three years the average ROIC was 16.7%.
Oi Wah Pawnshop Credit Holdings Ltd's Net Income margin surged on 10.1 pp from 41% to 51.1% in FY2015. In the last 3 years Oi Wah Pawnshop Credit Holdings Ltd showed small growth in Net Income margin of 1.50 pp from 49.6% in FY2012 to 51.1% in FY2015.
Oi Wah Pawnshop Credit Holdings Ltd operates at ROE of 20.6%. It's average level of ROE for the last three years was 16.8%.
Capital expenditures (CAPEX)
In FY2015 the company had CAPEX/Revenue of 0.151%. The company showed big decline in CAPEX/Revenue of 0.494 pp from 0.645% in FY2012 to 0.151% in FY2015. It's average level of CAPEX/Revenue for the last three years was 0.417%.
Leverage (Debt)
Having such a fast growth profile the company keeps medium debt level at 2.2x Net Debt/EBITDA. In the last 3 years leverage surged on 2.39x from -0.16x in FY2012 to 2.23x in FY2015.
Valuation vs. comparable companies
The company trades at 11.5x EV/EBITDA which is 67.3% lower than 35.2x Diversified Finan Serv industry avearge calculated based on 72 companies. The market closed today at 12.5x P/E for Oi Wah Pawnshop Credit Holdings Ltd which is 82.3% lower than 70.7x Diversified Finan Serv peer group avearge calculated on the basis of 31 companies.
Peers in Diversified Finan Serv
Below you can find Oi Wah Pawnshop Credit 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | |
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 |
