Travel Expert Asia Enterprises Ltd revenue surged on 18.9% in 2015 while EBITDA Margin decreased on 3.3 pp from 18.3% to 15.0%
24/06/2015 • About Travel Expert Asia Enterprises Ltd (
$1235) • By InTwits
Travel Expert Asia Enterprises Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Travel Expert Asia Enterprises Ltd is a fast growth stock: FY2015 revenue growth was 18.9%, 5 year revenue CAGR was 17.4% at FY2015 ROIC 23.0%
- Travel Expert Asia Enterprises Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.5%. At the same time it's a lot of higher than industry average of 13.8%.
- CAPEX is quite volatile: 10.4 in FY2015, 7.5 in FY2014, 58.8 in FY2013, 51.6 in FY2012, 5.0 in FY2011
- The company has highly profitable business model: ROIC is at 23.0%
- It operates with high leverage: Net Debt/EBITDA is -0.3x while industry average is -1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Travel Expert Asia Enterprises Ltd ($1235) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 204.8 | 229.2 | 264.3 | 315.8 | 375.6 | 18.9% |
| Gross Profit | | | | | 340.5 | |
| SG&A | | | 232.2 | 269.9 | 301.7 | 11.8% |
| EBITDA | 41.1 | 39.8 | 42.9 | 57.8 | 56.2 | -2.8% |
| Net Income | 31.1 | 30.3 | 41.3 | 43.3 | 45.4 | 4.9% |
Balance Sheet
|
|---|
| Cash | 94.9 | 57.1 | 78.3 | 121.9 | 71.0 | -41.7% |
| Short Term Debt | 0.0 | 6.5 | 27.4 | 24.6 | 56.0 | 127.7% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 5.0 | 51.6 | 58.8 | 7.5 | 10.4 | 39.6% |
Ratios
|
|---|
| Revenue growth | 21.5% | 11.9% | 15.3% | 19.5% | 18.9% | |
| EBITDA growth | 11.1% | -3.2% | 7.8% | 34.7% | -2.8% | |
| Gross Margin | | | | | 90.7% | 90.7% |
| EBITDA Margin | 20.1% | 17.4% | 16.2% | 18.3% | 15.0% | -3.3% |
| Net Income Margin | 15.2% | 13.2% | 15.6% | 13.7% | 12.1% | -1.6% |
| SG&A, % of revenue | | | 87.9% | 85.5% | 80.3% | -5.1% |
| CAPEX, % of revenue | 2.5% | 22.5% | 22.3% | 2.4% | 2.8% | 0.4% |
| ROIC | 179.4% | 50.9% | 26.7% | 29.8% | 23.0% | -6.8% |
| ROE | 152.3% | 47.1% | 34.3% | 30.0% | 27.1% | -2.9% |
| Net Debt/EBITDA | -2.3x | -1.3x | -1.2x | -1.7x | -0.3x | 1.4x |
Revenue and profitability
Travel Expert Asia Enterprises Ltd's Revenue jumped on 18.9% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 24.4 pp from 11.7% to 36.1% in 2015.
SG&A as a % of Revenue decreased on 5.1 pp from 85.5% to 80.3% in FY2015.
Net Income marign decreased slightly on 1.6 pp from 13.7% to 12.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.8% in FY2015. The company's CAPEX/Revenue dropped on 19.7 pp from 22.5% in FY2012 to 2.8% in FY2015. It's average level of CAPEX/Revenue for the last three years was 9.1%.
Return on investment
The company operates at high and attractive ROIC (22.99%) and ROE (27.11%). ROIC decreased on 6.8 pp from 29.8% to 23.0% in FY2015. ROE decreased on 2.9 pp from 30.0% to 27.1% in FY2015.
Leverage (Debt)
Debt level is -0.3x Net Debt / EBITDA and 1.0x Debt / EBITDA. Net Debt / EBITDA surged on 1.4x from -1.7x to -0.3x in FY2015. Debt jumped on 128% in FY2015 while cash dropped on 41.7% in FY2015.
Appendix 1: Peers in Leisure Time
Below you can find Travel Expert Asia Enterprises Ltd benchmarking vs. other companies in Leisure Time 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 |
|---|
| Water Oasis Group Ltd ($1161) | 8.1% | -16.3% | -23.7% | 8.0% | |
| Perfect Shape PRC Holdings Ltd ($1830) | 31.6% | 23.4% | 16.2% | 6.1% | |
| Genting Hong Kong Ltd ($678) | 23.6% | 5.3% | 6.6% | 2.9% | |
| Vietnam Manufacturing & Export Processing Holdings Ltd ($422) | 9.5% | -24.4% | -15.5% | 2.8% | |
| China Travel International Investment Hong Kong Ltd ($308) | -2.5% | 7.2% | -6.6% | 2.6% | |
| |
|---|
| Median (9 companies) | 8.1% | 5.3% | -6.6% | 2.6% | |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | | 11.9% | 15.3% | 19.5% | 18.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino Splendid Holdings Ltd ($8006) | 55.1% | 51.7% | 51.4% | 51.9% | |
| China Travel International Investment Hong Kong Ltd ($308) | 48.2% | 46.1% | 47.8% | 46.0% | |
| China Jiuhao Health Industry Corp Ltd ($419) | 15.5% | 57.0% | 13.5% | 23.4% | |
| Sino Golf Holdings Ltd ($361) | 15.7% | 11.7% | 17.4% | 18.1% | |
| Vietnam Manufacturing & Export Processing Holdings Ltd ($422) | 17.5% | 10.9% | 7.8% | 6.7% | |
| |
|---|
| Median (6 companies) | 17.5% | 46.1% | 17.4% | 20.7% | |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Travel International Investment Hong Kong Ltd ($308) | 25.6% | 28.2% | 29.1% | 48.5% | |
| Perfect Shape PRC Holdings Ltd ($1830) | 26.3% | 27.5% | 29.1% | 26.5% | |
| Water Oasis Group Ltd ($1161) | 11.3% | 6.5% | 4.7% | 11.4% | |
| Genting Hong Kong Ltd ($678) | 24.2% | 23.1% | 8.5% | 8.6% | |
| Sino Golf Holdings Ltd ($361) | 5.7% | 4.3% | 10.4% | 7.8% | |
| |
|---|
| Median (9 companies) | 7.5% | 6.5% | 4.7% | 7.8% | |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | 20.1% | 17.4% | 16.2% | 18.3% | 15.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Jiuhao Health Industry Corp Ltd ($419) | 4.2% | 2.1% | 31.8% | 67.3% | |
| Genting Hong Kong Ltd ($678) | 7.3% | 16.6% | 25.4% | 33.0% | |
| China Travel International Investment Hong Kong Ltd ($308) | 14.6% | 13.4% | 28.3% | 29.9% | |
| Perfect Shape PRC Holdings Ltd ($1830) | 7.9% | 6.1% | 8.9% | 7.7% | |
| Sino Golf Holdings Ltd ($361) | 1.8% | 3.0% | 2.8% | 3.2% | |
| |
|---|
| Median (9 companies) | 4.1% | 3.0% | 4.0% | 3.2% | |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | 2.5% | 22.5% | 22.3% | 2.4% | 2.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | 140.4% | 62.8% | 44.1% | 37.7% | |
| Water Oasis Group Ltd ($1161) | 21.6% | 5.3% | 1.7% | 15.7% | |
| China Travel International Investment Hong Kong Ltd ($308) | 4.6% | 5.6% | 5.0% | 9.6% | |
| Sino Golf Holdings Ltd ($361) | -0.5% | -1.9% | 6.8% | 3.8% | |
| Genting Hong Kong Ltd ($678) | 2.1% | 2.0% | -1.0% | -1.1% | |
| |
|---|
| Median (9 companies) | 2.1% | 0.3% | -1.0% | -1.1% | |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | 179.4% | 50.9% | 26.7% | 29.8% | 23.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino Golf Holdings Ltd ($361) | 7.3x | 10.0x | 1.9x | 3.0x | |
| China Travel International Investment Hong Kong Ltd ($308) | -2.4x | -1.7x | -1.1x | -1.1x | |
| Perfect Shape PRC Holdings Ltd ($1830) | -0.9x | -2.0x | -0.8x | -1.4x | |
| Water Oasis Group Ltd ($1161) | -2.2x | -3.2x | -5.1x | -2.8x | |
| Genting Hong Kong Ltd ($678) | 1.6x | 3.3x | -4.0x | -5.3x | |
| |
|---|
| Median (5 companies) | -2.2x | 0.8x | -1.1x | -1.4x | |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | -2.3x | -1.3x | -1.2x | -1.7x | -0.3x |
