Wonderful Sky Financial Group Holdings Ltd reports 29.3% Net Income growth and 4.8 pp EBITDA Margin growth from 38.5% to 43.2%
19/06/2015 • About Wonderful Sky Financial Group Holdings Ltd (
$1260) • By InTwits
Wonderful Sky Financial Group Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Wonderful Sky Financial Group Holdings Ltd is a fast growth stock: FY2015 revenue growth was 14.2%, 5 year revenue CAGR was 25.8% at FY2015 ROIC 29.5%
- Wonderful Sky Financial Group Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has highly profitable business model: ROIC is at 29.5%
- It operates with high leverage: Net Debt/EBITDA is -0.6x while industry average is -24.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Wonderful Sky Financial Group Holdings Ltd ($1260) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 271.2 | 328.8 | 343.5 | 458.5 | 523.6 | 14.2% |
| Gross Profit | 133.9 | 182.2 | 183.5 | 226.9 | 283.6 | 25.0% |
| SG&A | | | 51.0 | 53.9 | 62.5 | 15.9% |
| EBITDA | 104.9 | 151.9 | 138.2 | 176.3 | 226.4 | 28.4% |
| Net Income | 83.7 | 120.4 | 123.6 | 153.8 | 199.0 | 29.3% |
Balance Sheet
|
|---|
| Cash | 10.6 | 432.4 | 354.0 | 485.9 | 285.8 | -41.2% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 159.3 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.1 | 1.2 | 2.1 | 1.6 | 6.2 | 290.0% |
Ratios
|
|---|
| Revenue growth | 63.1% | 21.3% | 4.5% | 33.5% | 14.2% | |
| EBITDA growth | 50.8% | 44.8% | -9.0% | 27.6% | 28.4% | |
| Gross Margin | 49.4% | 55.4% | 53.4% | 49.5% | 54.2% | 4.7% |
| EBITDA Margin | 38.7% | 46.2% | 40.2% | 38.5% | 43.2% | 4.8% |
| Net Income Margin | 30.9% | 36.6% | 36.0% | 33.5% | 38.0% | 4.5% |
| SG&A, % of revenue | | | 14.8% | 11.8% | 11.9% | 0.2% |
| CAPEX, % of revenue | 0.1% | 0.4% | 0.6% | 0.3% | 1.2% | 0.8% |
| ROIC | 136.8% | 51.5% | 26.6% | 30.0% | 29.5% | -0.6% |
| ROE | 155.6% | 43.9% | 24.4% | 26.7% | 29.7% | 2.9% |
| Net Debt/EBITDA | -0.1x | -2.8x | -2.6x | -2.8x | -0.6x | 2.2x |
Revenue and profitability
The company's Revenue jumped on 14.2% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.8 pp from 38.5% to 43.2% in FY2015.
Gross Margin increased on 4.7 pp from 49.5% to 54.2% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign increased on 4.5 pp from 33.5% to 38.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Wonderful Sky Financial Group Holdings Ltd's CAPEX/Revenue was 1.2% in FY2015. CAPEX/Revenue increased slightly on 0.81 pp from 0.37% in FY2012 to 1.2% in FY2015. It's average level of CAPEX/Revenue for the last three years was 0.71%.
Return on investment
The company operates at high and attractive ROIC (29.45%) and ROE (29.67%). ROIC decreased slightly on 0.57 pp from 30.0% to 29.5% in FY2015. ROE increased on 2.9 pp from 26.7% to 29.7% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.6x and Debt / EBITDA is 0.7x. Net Debt / EBITDA surged on 2.2x from -2.8x to -0.6x in FY2015. Debt jumped while cash dropped on 41.2% in FY2015.
Appendix 1: Peers in Commercial Services
Below we provide Wonderful Sky Financial Group Holdings Ltd benchmarking against other companies in Commercial Services 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 |
|---|
| Global Energy Resources International Group Ltd ($8192) | 429.3% | -61.9% | -27.8% | 2,912.9% | |
| Dingyi Group Investment Ltd ($508) | -72.6% | 8.8% | -95.9% | 1,361.2% | |
| China Smartpay Group Holdings Ltd ($8325) | 13.1% | 60.0% | 274.7% | 75.6% | |
| Goldpac Group Ltd ($3315) | 24.4% | 52.3% | 64.4% | 36.8% | |
| Xiamen International Port Co Ltd ($3378) | 36.9% | 22.0% | 24.9% | 30.2% | |
| |
|---|
| Median (55 companies) | 19.1% | 6.7% | 4.2% | 8.9% | 1.5% |
|---|
| Wonderful Sky Financial Group Holdings Ltd ($1260) | | 21.3% | 4.5% | 33.5% | 14.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HC International Inc ($2280) | 84.7% | 87.5% | 91.9% | 92.5% | |
| Fu Shou Yuan International Group Ltd ($1448) | 81.6% | 80.5% | 80.4% | 80.0% | |
| China Communication Telecom Services Co Ltd ($8206) | -56.6% | 61.6% | 58.6% | 69.1% | 70.2% |
| Dingyi Group Investment Ltd ($508) | 76.5% | 75.8% | | 64.5% | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 67.1% | 66.2% | 66.8% | 62.8% | |
| |
|---|
| Median (52 companies) | 33.0% | 31.5% | 29.2% | 30.8% | 41.4% |
|---|
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 49.4% | 55.4% | 53.4% | 49.5% | 54.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shenzhen International Holdings Ltd ($152) | 69.3% | 60.2% | 65.8% | 97.1% | |
| Shenzhen Expressway Co Ltd ($548) | 80.4% | 74.3% | 79.4% | 76.6% | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 74.3% | 78.3% | 74.5% | 74.0% | |
| Anhui Expressway Co Ltd ($995) | 62.7% | 56.9% | 54.1% | 60.4% | |
| Dragon Crown Group Holdings Ltd ($935) | 57.8% | 67.3% | 62.9% | 60.2% | |
| |
|---|
| Median (55 companies) | 15.2% | 15.7% | 11.1% | 5.8% | -3.9% |
|---|
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 38.7% | 46.2% | 40.2% | 38.5% | 43.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 16.8% | 3.9% | 7.0% | 59.8% | |
| COSCO Pacific Ltd ($1199) | 111.3% | 96.6% | 66.6% | 43.3% | |
| Finet Group Ltd ($8317) | 3.9% | 10.3% | 9.1% | 26.0% | 8.4% |
| HC International Inc ($2280) | 15.1% | 8.5% | 28.7% | 24.7% | |
| Dragon Crown Group Holdings Ltd ($935) | 2.5% | 37.2% | 52.0% | 23.0% | |
| |
|---|
| Median (54 companies) | 3.9% | 3.5% | 4.5% | 4.4% | 2.2% |
|---|
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 0.1% | 0.4% | 0.6% | 0.3% | 1.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Packaging Holdings Development Ltd ($1439) | 50.0% | 52.0% | 46.6% | 34.1% | |
| 1010 Printing Group Ltd ($1127) | 14.4% | 13.5% | 20.8% | 17.8% | |
| Poly Culture Group Corp Ltd ($3636) | 48.0% | 29.1% | 33.0% | 16.3% | |
| eprint Group Ltd ($1884) | | 33.0% | 34.8% | 15.4% | 18.5% |
| Goldpac Group Ltd ($3315) | 17.9% | 43.8% | 23.6% | 14.3% | |
| |
|---|
| Median (55 companies) | 5.0% | 5.3% | 3.3% | 3.0% | -5.7% |
|---|
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 136.8% | 51.5% | 26.6% | 30.0% | 29.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dalian Port PDA Co Ltd ($2880) | 5.7x | 5.7x | 4.8x | 4.7x | |
| Sichuan Expressway Co Ltd ($107) | 1.8x | 2.7x | 3.8x | 4.3x | |
| Anxian Yuan China Holdings Ltd ($922) | | | 4.6x | 3.8x | |
| Eagle Legend Asia Ltd ($936) | 4.3x | 4.0x | 4.0x | 3.3x | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 2.9x | 4.5x | 3.1x | 2.7x | |
| |
|---|
| Median (34 companies) | 0.0x | 0.2x | -0.4x | -0.5x | -2.0x |
|---|
| Wonderful Sky Financial Group Holdings Ltd ($1260) | -0.1x | -2.8x | -2.6x | -2.8x | -0.6x |
