Pioneer Global Group Ltd reports 76.0 pp EBITDA Margin growth from -11.6% to 64.3% in 2015 and 19.4% Revenue growth
22/06/2015 • About Pioneer Global Group Ltd (
$224) • By InTwits
Pioneer Global Group Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pioneer Global Group Ltd doesn't have a profitable business model yet: FY2015 ROIC is 2.0%
- EBITDA Margin is quite volatile: 64.3% in FY2015, -11.6% in FY2014, -9.9% in FY2013, -0.5% in FY2012, 111.2% in FY2011
- Pioneer Global Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 30.6%. At the same time it's a lot of higher than industry average of 9.7%.
- CAPEX is quite volatile: 147 in FY2015, 102 in FY2014, 15.9 in FY2013, 30.8 in FY2012, 1.5 in FY2011
- The company has potentially unprofitable business model: ROIC is at 2.0%
- It operates with high leverage: Net Debt/EBITDA is 10.9x while industry average is 2.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pioneer Global Group Ltd ($224) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 160.8 | 179.8 | 199.4 | 177.6 | 212.1 | 19.4% |
| EBITDA | 178.8 | -0.8 | -19.7 | -20.6 | 136.5 | -761.3% |
| Net Income | 469.6 | 405.5 | 671.1 | 477.4 | 804.2 | 68.4% |
Balance Sheet
|
|---|
| Cash | 15.1 | 103.6 | 142.0 | 76.6 | 244.9 | 219.6% |
| Short Term Debt | 102.0 | 1,046.1 | 33.7 | 242.1 | 1,100.4 | 354.6% |
| Long Term Debt | 1,324.5 | 433.4 | 1,424.2 | 1,259.8 | 635.2 | -49.6% |
Cash flow
|
|---|
| Capex | 1.5 | 30.8 | 15.9 | 102.3 | 146.8 | 43.5% |
Ratios
|
|---|
| Revenue growth | 134.6% | 11.8% | 10.9% | -11.0% | 19.4% | |
| EBITDA growth | 210.2% | -100.5% | 2,239.5% | 5.0% | -761.3% | |
| EBITDA Margin | 111.2% | -0.5% | -9.9% | -11.6% | 64.3% | 76.0% |
| Net Income Margin | 292.1% | 225.6% | 336.6% | 268.9% | 379.2% | 110.3% |
| CAPEX, % of revenue | 0.9% | 17.1% | 8.0% | 57.6% | 69.2% | 11.6% |
| ROIC | 5.5% | -0.0% | -0.4% | -0.3% | 2.0% | 2.3% |
| ROE | 24.0% | 15.6% | 20.1% | 12.3% | 18.1% | 5.8% |
| Net Debt/EBITDA | 7.9x | | | | 10.9x | 10.9x |
Revenue and profitability
Pioneer Global Group Ltd's Revenue jumped on 19.4% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 76.0 pp from -11.6% to 64.3% in FY2015.
Net Income marign surged on 110 pp from 269% to 379% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 69.2%. The company showed fast CAPEX/Revenue growth of 52.1 pp from 17.1% in FY2012 to 69.2% in FY2015. Average CAPEX/Revenue for the last three years was 44.9%.Pioneer Global Group Ltd has spent a lot to CAPEX (108% of EBITDA) to secure its growth.
Return on investment
The company operates at good ROE (18.11%) while ROIC is low (1.98%). ROIC increased on 2.3 pp from -0.35% to 2.0% in FY2015. ROE increased on 5.8 pp from 12.3% to 18.1% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 10.9x and Debt / EBITDA is 12.7x. Net Debt / EBITDA surged10.9x from to 10.9x in FY2015. Debt jumped on 15.6% in FY2015 while cash jumped on 220% in FY2015.
Appendix 1: Peers in Holding Companies-Divers
Below you can find Pioneer Global Group Ltd benchmarking vs. other companies in Holding Companies-Divers 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kong Sun Holdings Ltd ($295) | -18.7% | -88.3% | 5.1% | 7,067.0% | |
| Goldin Properties Holdings Ltd ($283) | | | 126.0% | 2,065.8% | |
| China Primary Energy Holdings Ltd ($8117) | -43.1% | -56.3% | -23.6% | 195.4% | |
| Carnival Group International Holdings Ltd ($996) | | | | 159.1% | |
| 21 Holdings Ltd ($1003) | 20.3% | -57.4% | -12.4% | 106.4% | |
| |
|---|
| Median (42 companies) | 11.7% | 11.8% | 3.3% | 15.7% | 21.3% |
|---|
| Pioneer Global Group Ltd ($224) | | 11.8% | 10.9% | -11.0% | 19.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Multifield International Holdings Ltd ($898) | 66.4% | 87.5% | 84.7% | 89.1% | |
| New Century Group Hong Kong Ltd ($234) | 76.7% | 27.3% | 85.2% | 82.8% | |
| Emperor International Holdings Ltd ($163) | 74.5% | 71.3% | 64.9% | 79.2% | |
| China Renji Medical Group Ltd/Hong Kong ($648) | 54.9% | 70.0% | 67.3% | 78.6% | |
| Century Legend Holdings Ltd ($79) | 68.5% | 70.1% | 72.3% | 71.0% | |
| |
|---|
| Median (40 companies) | 28.1% | 33.2% | 35.3% | 32.6% | 19.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Emperor International Holdings Ltd ($163) | 224.8% | 180.7% | 131.8% | 100.6% | |
| Multifield International Holdings Ltd ($898) | 49.8% | 80.1% | 68.3% | 97.5% | |
| New Century Group Hong Kong Ltd ($234) | 82.5% | -5.5% | 78.8% | 58.3% | |
| Magnificent Estates ($201) | 42.1% | 45.5% | 47.8% | 53.0% | |
| China Merchants Holdings International Co Ltd ($144) | 63.7% | 56.4% | 50.8% | 45.2% | |
| |
|---|
| Median (44 companies) | 5.2% | 2.8% | 2.8% | 7.4% | 8.3% |
|---|
| Pioneer Global Group Ltd ($224) | 111.2% | -0.5% | -9.9% | -11.6% | 64.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Far East Holdings International Ltd ($36) | 2.7% | 0.1% | 13.2% | 422.1% | |
| China Investments Holdings Ltd ($132) | 20.7% | 4.8% | 81.9% | 382.2% | |
| Heng Fai Enterprises Ltd ($185) | 217.5% | 4.8% | 77.1% | 310.0% | |
| New Century Group Hong Kong Ltd ($234) | 1.0% | 97.2% | 1.0% | 142.7% | |
| Chinney Investments Ltd ($216) | 37.6% | 17.5% | 103.4% | 111.3% | |
| |
|---|
| Median (44 companies) | 4.9% | 2.2% | 3.6% | 6.1% | 15.6% |
|---|
| Pioneer Global Group Ltd ($224) | 0.9% | 17.1% | 8.0% | 57.6% | 69.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wisdom Holdings Group ($1661) | 62.7% | 68.6% | 42.1% | 28.8% | |
| Chinney Alliance Group Ltd ($385) | 3.4% | 6.4% | 8.1% | 13.6% | |
| Hutchison Whampoa Ltd ($13) | 3.3% | 3.7% | 4.2% | 8.1% | |
| Code Agriculture Holdings Ltd ($8153) | -0.1% | 2.4% | -3.3% | 7.9% | |
| C C Land Holdings Ltd ($1224) | 4.5% | 7.4% | 5.3% | 7.9% | |
| |
|---|
| Median (44 companies) | 0.3% | -0.2% | 0.2% | 0.8% | 2.1% |
|---|
| Pioneer Global Group Ltd ($224) | 5.5% | -0.0% | -0.4% | -0.3% | 2.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chinney Investments Ltd ($216) | 111.3x | 10.3x | 63.7x | 48.6x | |
| Carnival Group International Holdings Ltd ($996) | | | | 23.7x | |
| Van Shung Chong Holdings Ltd ($1001) | 3.4x | | 0.9x | 12.3x | |
| Southeast Asia Properties & Finance Ltd ($252) | 6.8x | 6.7x | 5.7x | 9.2x | 4.3x |
| Code Agriculture Holdings Ltd ($8153) | 24.3x | 11.9x | 42.8x | 8.7x | |
| |
|---|
| Median (27 companies) | 2.7x | 2.5x | 3.1x | 3.0x | 4.3x |
|---|
