China Smartpay Group Holdings Ltd reports 125% revenue growth in FY2015 and 16.3 pp EBITDA Margin decline from -0.20% to -16.5%
23/06/2015 • About China Smartpay Group Holdings Ltd (
$8325) • By InTwits
China Smartpay Group Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Smartpay Group Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is -14.0%
- The company operates at negative EBITDA Margin: -16.5%
- China Smartpay Group Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -7.8%0
- China Smartpay Group Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.3%. At the same time it's in pair with industry average of 18.2%.
- CAPEX is quite volatile: 4.6 in FY2015, 1.1 in FY2014, 3.3 in FY2013, 0.73 in FY2012, 0.31 in FY2011
- The company has unprofitable business model: ROIC is at -14.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Smartpay Group Holdings Ltd ($8325) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 14.1 | 22.6 | 84.6 | 148.5 | 333.4 | 124.5% |
| Gross Profit | 5.4 | 7.3 | 27.2 | 35.9 | 63.1 | 75.6% |
| SG&A | | | 14.1 | 37.3 | 121.5 | 225.5% |
| EBITDA | -2.1 | -0.7 | 11.2 | -0.3 | -55.1 | 18,751.9% |
| Net Income | -3.3 | -3.2 | -0.5 | -17.8 | -78.2 | 340.4% |
Balance Sheet
|
|---|
| Cash | 19.9 | 16.9 | 23.0 | 47.1 | 37.6 | -20.3% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 88.5 | |
| Long Term Debt | 0.4 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.3 | 0.7 | 3.3 | 1.1 | 4.6 | 320.9% |
Ratios
|
|---|
| Revenue growth | 13.1% | 60.0% | 274.7% | 75.6% | 124.5% | |
| EBITDA growth | 204.4% | -66.1% | -1,645.2% | -102.6% | 18,751.9% | |
| Gross Margin | 38.3% | 32.4% | 32.2% | 24.2% | 18.9% | -5.3% |
| EBITDA Margin | -15.2% | -3.2% | 13.3% | -0.2% | -16.5% | -16.3% |
| Net Income Margin | -23.6% | -14.3% | -0.6% | -12.0% | -23.5% | -11.5% |
| SG&A, % of revenue | | | 16.7% | 25.1% | 36.4% | 11.3% |
| CAPEX, % of revenue | 2.2% | 3.2% | 4.0% | 0.7% | 1.4% | 0.6% |
| ROIC | -10.7% | -5.5% | 53.7% | -1.7% | -14.0% | -12.3% |
| ROE | -16.6% | -19.3% | -3.2% | -23.6% | -22.5% | 1.1% |
| Net Debt/EBITDA | | | -2.1x | | | 0.0x |
Revenue and profitability
The company's Revenue jumped on 125% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 13.9 pp from 31.9% to 45.8% in 2015.
Gross Margin decreased on 5.3 pp from 24.2% to 18.9% in FY2015. SG&A as a % of Revenue surged on 11.3 pp from 25.1% to 36.4% in FY2015.
Net Income marign dropped on 11.5 pp from -12.0% to -23.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
China Smartpay Group Holdings Ltd's CAPEX/Revenue was 1.4% in FY2015. CAPEX/Revenue decreased slightly on 1.8 pp from 3.2% in FY2012 to 1.4% in FY2015. It's average CAPEX/Revenue for the last three years was 2.0%.
Return on investment
The company operates at negative ROIC (-14.01%) and ROE (-22.45%). ROIC dropped on 12.3 pp from -1.7% to -14.0% in FY2015. ROE increased slightly on 1.1 pp from -23.6% to -22.5% in FY2015.
Leverage (Debt)
Debt level is -49.4x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt surged while cash dropped on 20.3% in FY2015.
Appendix 1: Peers in Commercial Services
Below you can find China Smartpay Group Holdings Ltd benchmarking vs. other companies in Commercial Services 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 |
|---|
| 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% | |
| Goldpac Group Ltd ($3315) | 24.4% | 52.3% | 64.4% | 36.8% | |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | | 21.3% | 4.5% | 33.5% | 14.2% |
| Xiamen International Port Co Ltd ($3378) | 36.9% | 22.0% | 24.9% | 30.2% | |
| |
|---|
| Median (55 companies) | 19.5% | 6.7% | 4.2% | 8.9% | 3.9% |
|---|
| China Smartpay Group Holdings Ltd ($8325) | | 60.0% | 274.7% | 75.6% | 124.5% |
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% | 30.9% | 44.8% |
|---|
| China Smartpay Group Holdings Ltd ($8325) | 38.3% | 32.4% | 32.2% | 24.2% | 18.9% |
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) | 16.0% | 15.9% | 11.1% | 7.9% | -0.0% |
|---|
| China Smartpay Group Holdings Ltd ($8325) | -15.2% | -3.2% | 13.3% | -0.2% | -16.5% |
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% | 2.1% |
|---|
| China Smartpay Group Holdings Ltd ($8325) | 2.2% | 3.2% | 4.0% | 0.7% | 1.4% |
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% | |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 136.8% | 51.5% | 26.6% | 30.0% | 29.5% |
| 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% |
| |
|---|
| Median (55 companies) | 5.2% | 6.0% | 3.3% | 3.1% | -1.1% |
|---|
| China Smartpay Group Holdings Ltd ($8325) | -10.7% | -5.5% | 53.7% | -1.7% | -14.0% |
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 (35 companies) | -0.0x | 0.0x | -0.4x | -0.5x | -1.3x |
|---|
