Bright Smart Securities & Commodities Group Ltd Net Debt / EBITDA surged on 30.0x from 9.3x to 39.3x in 2015 and EBITDA jumped on 33.2%
22/06/2015 • About Bright Smart Securities & Commodities Group Ltd (
$1428) • By InTwits
Bright Smart Securities & Commodities Group Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 56.4% in FY2015 vs. 52.9% in FY2014 vs. 30.4% in FY2011
- Bright Smart Securities & Commodities Group Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.2%. At the same time it's in pair with industry average of 7.4%.
- CAPEX is quite volatile: 7.4 in FY2015, 20.5 in FY2014, 12.9 in FY2013, 14.2 in FY2012, 23.6 in FY2011
- The company has potentially unprofitable business model: ROIC is at 2.6%
- It operates with high leverage: Net Debt/EBITDA is 39.3x while industry average is 2.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bright Smart Securities & Commodities Group Ltd ($1428) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 209.0 | 266.0 | 331.3 | 487.1 | 608.3 | 24.9% |
| EBITDA | 63.6 | 97.5 | 137.4 | 257.7 | 343.2 | 33.2% |
| Net Income | 40.6 | 60.6 | 92.2 | 166.7 | 218.4 | 31.0% |
Balance Sheet
|
|---|
| Cash | 349.9 | 397.1 | 381.5 | 370.4 | 521.8 | 40.9% |
| Short Term Debt | 815.0 | 605.0 | 1,790.0 | 2,776.0 | 14,010.3 | 404.7% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 23.6 | 14.2 | 12.9 | 20.5 | 7.4 | -63.7% |
Ratios
|
|---|
| Revenue growth | 33.8% | 27.3% | 24.6% | 47.0% | 24.9% | |
| EBITDA growth | -24.1% | 53.5% | 40.8% | 87.6% | 33.2% | |
| EBITDA Margin | 30.4% | 36.7% | 41.5% | 52.9% | 56.4% | 3.5% |
| Net Income Margin | 19.4% | 22.8% | 27.8% | 34.2% | 35.9% | 1.7% |
| CAPEX, % of revenue | 11.3% | 5.3% | 3.9% | 4.2% | 1.2% | -3.0% |
| ROIC | 5.3% | 6.3% | 5.9% | 6.2% | 2.6% | -3.6% |
| ROE | 13.7% | 13.0% | 14.7% | 18.9% | 15.9% | -3.0% |
| Net Debt/EBITDA | 7.3x | 2.1x | 10.3x | 9.3x | 39.3x | 30.0x |
Revenue and profitability
Bright Smart Securities & Commodities Group Ltd's Revenue jumped on 24.9% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.4 pp from 23.8% to 26.2% in 2015.
Net Income marign increased slightly on 1.7 pp from 34.2% to 35.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Bright Smart Securities & Commodities Group Ltd's CAPEX/Revenue was 1.2% in FY2015. CAPEX/Revenue decreased on 4.1 pp from 5.3% in FY2012 to 1.2% in FY2015. For the last three years the average CAPEX/Revenue was 3.1%.
Return on investment
The company operates at good ROE (15.91%) while ROIC is low (2.63%). ROIC decreased on 3.6 pp from 6.2% to 2.6% in FY2015. ROE decreased on 3.0 pp from 18.9% to 15.9% in FY2015.
Leverage (Debt)
Debt level is 39.3x Net Debt / EBITDA and 40.8x Debt / EBITDA. Net Debt / EBITDA jumped on 30.0x from 9.3x to 39.3x in FY2015. Debt jumped on 405% in FY2015 while cash surged on 40.9% in FY2015.
Appendix 1: Peers in Diversified Finan Serv
Below we provide Bright Smart Securities & Commodities Group 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 (62 companies) | 5.7% | 0.9% | 12.9% | 24.9% | 31.0% |
|---|
| Bright Smart Securities & Commodities Group Ltd ($1428) | | 27.3% | 24.6% | 47.0% | 24.9% |
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% | 96.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Styland Holdings Ltd ($211) | 68.6% | 198.6% | 91.5% | 161.0% | 17.9% |
| 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% | 83.9% |
| |
|---|
| Median (63 companies) | 29.5% | 14.0% | 35.5% | 43.6% | 44.7% |
|---|
| Bright Smart Securities & Commodities Group Ltd ($1428) | 30.4% | 36.7% | 41.5% | 52.9% | 56.4% |
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 (63 companies) | 2.2% | 1.8% | 1.7% | 1.1% | 0.2% |
|---|
| Bright Smart Securities & Commodities Group Ltd ($1428) | 11.3% | 5.3% | 3.9% | 4.2% | 1.2% |
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 (65 companies) | 4.6% | 3.4% | 4.0% | 4.7% | 6.1% |
|---|
| Bright Smart Securities & Commodities Group Ltd ($1428) | 5.3% | 6.3% | 5.9% | 6.2% | 2.6% |
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 | |
| 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 |
| Shenyin Wanguo HK Ltd ($218) | -4.5x | 9.6x | 7.1x | 6.1x | |
| |
|---|
| Median (45 companies) | -1.1x | -1.3x | -0.0x | -0.1x | 2.2x |
|---|
| Bright Smart Securities & Commodities Group Ltd ($1428) | 7.3x | 2.1x | 10.3x | 9.3x | 39.3x |
