E.Bon Holdings Ltd reports 631% Net Income growth and 24.2% Revenue growth
17/06/2015 • About E.Bon Holdings Ltd (
$599) • By InTwits
E.Bon Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 15.1% in FY2015, 5.5% in FY2014, 8.7% in FY2013, 9.0% in FY2012, 6.0% in FY2011
- E.Bon Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's in pair with industry average of 4.9%.
- CAPEX is quite volatile: 4.1 in FY2015, 4.0 in FY2014, 8.3 in FY2013, 11.2 in FY2012, 10.2 in FY2011
- The company has highly profitable business model: ROIC is at 16.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
E.Bon Holdings Ltd ($599) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 371.2 | 406.7 | 477.4 | 466.0 | 578.8 | 24.2% |
| Gross Profit | 135.7 | 163.9 | 178.7 | 166.9 | 229.0 | 37.2% |
| SG&A | 122.2 | 139.6 | 150.1 | 154.2 | 154.0 | -0.1% |
| EBITDA | 22.2 | 36.6 | 41.4 | 25.8 | 87.3 | 238.5% |
| Net Income | 11.7 | 19.4 | 24.5 | 9.0 | 65.9 | 630.8% |
Balance Sheet
|
|---|
| Cash | 44.0 | 33.5 | 71.9 | 47.9 | 122.0 | 154.8% |
| Short Term Debt | 41.2 | 89.7 | 74.0 | 68.0 | 60.6 | -11.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 10.2 | 11.2 | 8.3 | 4.0 | 4.1 | 3.4% |
Ratios
|
|---|
| Revenue growth | -16.9% | 9.5% | 17.4% | -2.4% | 24.2% | |
| EBITDA growth | -61.5% | 64.9% | 13.2% | -37.7% | 238.5% | |
| Gross Margin | 36.6% | 40.3% | 37.4% | 35.8% | 39.6% | 3.8% |
| EBITDA Margin | 6.0% | 9.0% | 8.7% | 5.5% | 15.1% | 9.5% |
| Net Income Margin | 3.1% | 4.8% | 5.1% | 1.9% | 11.4% | 9.5% |
| SG&A, % of revenue | 32.9% | 34.3% | 31.4% | 33.1% | 26.6% | -6.5% |
| CAPEX, % of revenue | 2.7% | 2.8% | 1.7% | 0.9% | 0.7% | -0.1% |
| ROIC | 4.4% | 7.0% | 7.2% | 3.3% | 16.9% | 13.6% |
| ROE | 4.6% | 6.9% | 8.0% | 2.8% | 18.5% | 15.7% |
| Net Debt/EBITDA | -0.1x | 1.5x | 0.0x | 0.8x | -0.7x | -1.5x |
Revenue and profitability
E.Bon Holdings Ltd's Revenue jumped on 24.2% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 6.7 pp from -3.1% to 3.7% in FY2015.
Gross Margin increased on 3.8 pp from 35.8% to 39.6% in FY2015. SG&A as a % of Revenue decreased on 6.5 pp from 33.1% to 26.6% in FY2015.
Net Income marign increased on 9.5 pp from 1.9% to 11.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
E.Bon Holdings Ltd's CAPEX/Revenue was 0.72% in FY2015. CAPEX/Revenue decreased on 2.0 pp from 2.8% in FY2012 to 0.72% in FY2015. Average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at good ROIC (16.89%) and ROE (18.50%). ROIC surged on 13.6 pp from 3.3% to 16.9% in FY2015. ROE surged on 15.7 pp from 2.8% to 18.5% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.7x and Debt / EBITDA is 0.7x. Net Debt / EBITDA dropped on 1.5x from 0.8x to -0.7x in FY2015. Debt dropped on 11.0% in FY2015 while cash surged on 155% in FY2015.
Appendix 1: Peers in Distribution/Wholesale
Below we provide E.Bon Holdings Ltd benchmarking against other companies in Distribution/Wholesale 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 |
|---|
| Forefront Group Ltd ($885) | | | 504.6% | 3,871.0% | |
| China LNG Group Ltd ($931) | -84.5% | 694.8% | 13.6% | 1,341.3% | |
| Sheng Yuan Holdings Ltd ($851) | 571.1% | -86.1% | 756.9% | 567.2% | |
| China Infrastructure Investment Ltd ($600) | 346.9% | 412.1% | -50.9% | 557.9% | |
| China-Hongkong Photo Products Holdings Ltd ($1123) | 2.5% | 24.9% | 9.0% | 81.2% | |
| |
|---|
| Median (37 companies) | 16.5% | 2.6% | 0.0% | 1.4% | 0.0% |
|---|
| E.Bon Holdings Ltd ($599) | | 9.5% | 17.4% | -2.4% | 24.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goldin Financial Holdings Ltd ($530) | 67.0% | 75.3% | 71.7% | 74.8% | |
| Forefront Group Ltd ($885) | | | | 69.8% | |
| YGM Trading Ltd ($375) | 67.1% | 66.5% | 67.4% | 64.0% | |
| Goldlion Holdings Ltd ($533) | 57.3% | 56.4% | 54.1% | 55.7% | |
| Sincere Watch Hong Kong Ltd ($444) | 34.2% | 35.6% | 39.7% | 38.8% | 38.3% |
| |
|---|
| Median (33 companies) | 15.5% | 17.3% | 17.1% | 18.0% | 26.9% |
|---|
| E.Bon Holdings Ltd ($599) | 36.6% | 40.3% | 37.4% | 35.8% | 39.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goldin Financial Holdings Ltd ($530) | -134.6% | 163.7% | 613.4% | 285.7% | |
| China LNG Group Ltd ($931) | 195.2% | 95.1% | 76.4% | 97.9% | |
| Forefront Group Ltd ($885) | | -2,113.8% | -803.1% | 57.7% | |
| China Infrastructure Investment Ltd ($600) | -1,171.2% | -274.9% | 120.0% | 52.0% | |
| GA Holdings Ltd ($8126) | -4.5% | 8.0% | 19.7% | 22.9% | |
| |
|---|
| Median (37 companies) | 2.2% | 2.1% | 1.9% | 4.5% | 1.8% |
|---|
| E.Bon Holdings Ltd ($599) | 6.0% | 9.0% | 8.7% | 5.5% | 15.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| C Y Foundation Group Ltd ($1182) | 9.8% | 2.5% | 5.2% | 82.2% | 9.3% |
| Inspur International Ltd ($596) | 0.9% | 8.4% | 12.2% | 33.6% | |
| SIS International Holdings ($529) | 0.2% | 13.4% | 31.8% | 14.8% | |
| HKC International Holdings Ltd ($248) | 0.9% | 5.5% | 0.8% | 11.4% | |
| Tan Chong International Ltd ($693) | 7.6% | 6.0% | 7.6% | 7.0% | |
| |
|---|
| Median (36 companies) | 1.3% | 1.3% | 1.7% | 1.7% | 5.6% |
|---|
| E.Bon Holdings Ltd ($599) | 2.7% | 2.8% | 1.7% | 0.9% | 0.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China LNG Group Ltd ($931) | 2.2% | 8.4% | 7.4% | 87.0% | |
| Yestar International Holdings Co Ltd ($2393) | 29.4% | 28.8% | 24.1% | 26.2% | |
| Powerwell Pacific Holdings Ltd ($8265) | 27.8% | 6.4% | 6.4% | 23.6% | |
| Forefront Group Ltd ($885) | -37.7% | -4.9% | -11.0% | 19.5% | |
| Sincere Watch Hong Kong Ltd ($444) | 46.4% | 51.7% | 27.7% | 14.6% | 5.5% |
| |
|---|
| Median (38 companies) | 2.2% | 2.1% | 0.9% | 3.1% | 2.4% |
|---|
| E.Bon Holdings Ltd ($599) | 4.4% | 7.0% | 7.2% | 3.3% | 16.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sheng Yuan Holdings Ltd ($851) | | | | 19.3x | |
| Takson Holdings Ltd ($918) | | | 11.5x | 11.7x | |
| Huiyin Household Appliances Holdings Co Ltd ($1280) | 10.1x | | | 10.9x | |
| Pacific Andes International Holdings Ltd ($1174) | 4.9x | 5.1x | 9.1x | 7.8x | |
| SIS International Holdings ($529) | -62.1x | -1.8x | 7.0x | 7.2x | |
| |
|---|
| Median (26 companies) | -0.4x | -0.3x | -0.8x | -0.1x | -0.8x |
|---|
| E.Bon Holdings Ltd ($599) | -0.1x | 1.5x | 0.0x | 0.8x | -0.7x |
