Chevalier International Holdings Ltd reports 257% EBITDA growth and 21.9% Revenue growth
25/06/2015 • About Chevalier International Holdings Ltd (
$25) • By InTwits
Chevalier International Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 37.5% in FY2015 vs. 12.8% in FY2014 vs. 6.7% in FY2011
- EBITDA Margin is quite volatile: 37.5% in FY2015, 12.8% in FY2014, 11.9% in FY2013, 10.4% in FY2012, 6.7% in FY2011
- Chevalier International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's a lot of higher than industry average of 7.0%.
- CAPEX is quite volatile: 102 in FY2015, 65.6 in FY2014, 111 in FY2013, 74.3 in FY2012, 27.7 in FY2011
- The company has highly profitable business model: ROIC is at 14.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Chevalier International Holdings Ltd ($25) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,491 | 3,850 | 4,189 | 4,113 | 5,013 | 21.9% |
| Gross Profit | 633 | 937 | 1,102 | 1,067 | 1,213 | 13.7% |
| SG&A | | | 704 | 718 | 740 | 3.2% |
| EBITDA | 232 | 402 | 499 | 527 | 1,879 | 256.7% |
| Net Income | 798 | 658 | 1,012 | 470 | 1,537 | 226.8% |
Balance Sheet
|
|---|
| Cash | 1,476 | 1,035 | 1,280 | 1,201 | 2,663 | 121.7% |
| Short Term Debt | 372 | 1,559 | 944 | 654 | 590 | -9.8% |
| Long Term Debt | 1,299 | 1,421 | 3,379 | 3,413 | 2,938 | -13.9% |
Cash flow
|
|---|
| Capex | 28 | 74 | 111 | 66 | 102 | 54.8% |
Ratios
|
|---|
| Revenue growth | -11.2% | 10.3% | 8.8% | -1.8% | 21.9% | |
| EBITDA growth | -30.9% | 72.9% | 24.2% | 5.5% | 256.7% | |
| Gross Margin | 18.1% | 24.3% | 26.3% | 25.9% | 24.2% | -1.7% |
| EBITDA Margin | 6.7% | 10.4% | 11.9% | 12.8% | 37.5% | 24.7% |
| Net Income Margin | 22.9% | 17.1% | 24.2% | 11.4% | 30.7% | 19.2% |
| SG&A, % of revenue | | | 16.8% | 17.4% | 14.8% | -2.7% |
| CAPEX, % of revenue | 0.8% | 1.9% | 2.6% | 1.6% | 2.0% | 0.4% |
| ROIC | 2.8% | 4.3% | 4.2% | 3.8% | 14.9% | 11.1% |
| ROE | 19.2% | 13.9% | 18.7% | 7.6% | 21.2% | 13.6% |
| Net Debt/EBITDA | 0.8x | 4.8x | 6.1x | 5.4x | 0.5x | -5.0x |
Revenue and profitability
Chevalier International Holdings Ltd's Revenue jumped on 21.9% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 9.6 pp from 2.7% to 12.3% in FY2015.
Gross Margin decreased slightly on 1.7 pp from 25.9% to 24.2% in FY2015. SG&A as a % of Revenue decreased on 2.7 pp from 17.4% to 14.8% in FY2015.
Net Income marign surged on 19.2 pp from 11.4% to 30.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Chevalier International Holdings Ltd had CAPEX/Revenue of 2.0%. The company showed almost no change in CAPEX/Revenue from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 2.1%.
Return on investment
The company operates at high and attractive ROE (21.20%) while ROIC is a bit lower (14.89%). ROIC surged on 11.1 pp from 3.8% to 14.9% in FY2015. ROE jumped on 13.6 pp from 7.6% to 21.2% in FY2015.
Leverage (Debt)
Debt level is 0.5x Net Debt / EBITDA and 1.9x Debt / EBITDA. Net Debt / EBITDA dropped on 5.0x from 5.4x to 0.5x in FY2015. Debt dropped on 13.3% in FY2015 while cash surged on 122% in FY2015.
Appendix 1: Peers in Engineering&Construction
Below you can find Chevalier International Holdings Ltd benchmarking vs. other companies in Engineering&Construction 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 |
|---|
| Richly Field China Development Ltd ($313) | | | -45.0% | 464.2% | |
| Junefield Department Store Group Ltd ($758) | 22.9% | -20.3% | -24.9% | 126.6% | |
| CNQC International Holdings Ltd ($1240) | 401.9% | 21.6% | 91.0% | 103.7% | |
| Wison Engineering Services Co Ltd ($2236) | 1.2% | -2.9% | -24.9% | 90.3% | |
| China Resources and Transportation Group Ltd ($269) | | 939.8% | 3,196.3% | 87.9% | -41.6% |
| |
|---|
| Median (39 companies) | 15.3% | 9.2% | 21.3% | 11.7% | 14.0% |
|---|
| Chevalier International Holdings Ltd ($25) | | 10.3% | 8.8% | -1.8% | 21.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huayu Expressway Group Ltd ($1823) | 2.2% | 43.6% | 65.6% | 64.0% | |
| HNA Infrastructure Company Ltd ($357) | 61.6% | 66.4% | 62.1% | 62.4% | |
| Freetech Road Recycling Technology Holdings Ltd ($6888) | 50.1% | 54.1% | 54.3% | 41.5% | |
| Grand Ming Group Holdings Ltd ($1271) | 20.4% | 11.0% | 18.1% | 35.7% | 19.7% |
| China Saite Group Co Ltd ($153) | 29.4% | 32.1% | 33.7% | 29.8% | |
| |
|---|
| Median (34 companies) | 11.0% | 11.0% | 11.6% | 11.6% | 8.2% |
|---|
| Chevalier International Holdings Ltd ($25) | 18.1% | 24.3% | 26.3% | 25.9% | 24.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huayu Expressway Group Ltd ($1823) | -0.5% | 46.2% | 73.8% | 77.1% | |
| HNA Infrastructure Company Ltd ($357) | 60.0% | 62.8% | 63.7% | 62.8% | |
| Beijing Capital International Airport Co Ltd ($694) | 55.1% | 53.4% | 52.9% | 50.3% | |
| Cheung Kong Infrastructure Holdings Ltd ($1038) | 39.8% | 31.2% | 20.6% | 36.2% | |
| Grand Ming Group Holdings Ltd ($1271) | 17.5% | 10.0% | 15.8% | 31.0% | 19.0% |
| |
|---|
| Median (40 companies) | 9.2% | 7.9% | 6.9% | 5.6% | 2.7% |
|---|
| Chevalier International Holdings Ltd ($25) | 6.7% | 10.4% | 11.9% | 12.8% | 37.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HNA Infrastructure Company Ltd ($357) | 43.3% | 36.8% | 5.7% | 85.4% | |
| PYI Corp Ltd ($498) | 6.6% | 3.7% | 4.2% | 24.5% | 13.1% |
| Shun Cheong Holdings ($650) | 7.2% | 16.4% | 8.0% | 23.9% | |
| Freetech Road Recycling Technology Holdings Ltd ($6888) | 6.1% | 4.2% | 7.7% | 20.2% | |
| KFM Kingdom Holdings Ltd ($3816) | 6.5% | 4.6% | 11.5% | 14.9% | |
| |
|---|
| Median (40 companies) | 4.5% | 2.5% | 3.1% | 2.2% | 2.0% |
|---|
| Chevalier International Holdings Ltd ($25) | 0.8% | 1.9% | 2.6% | 1.6% | 2.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chun Sing Engineering Holdings Ltd ($2277) | | | 98.3% | 54.9% | 43.7% |
| CNQC International Holdings Ltd ($1240) | 23.1% | 12.2% | 22.3% | 40.4% | |
| China Saite Group Co Ltd ($153) | 46.3% | 64.0% | 53.2% | 35.3% | |
| Excel Development Holdings Ltd ($1372) | | 33.1% | 27.2% | 16.4% | 8.6% |
| China Machinery Engineering Corp ($1829) | 35.5% | 24.9% | 20.4% | 16.0% | |
| |
|---|
| Median (41 companies) | 7.0% | 5.6% | 5.2% | 3.4% | 1.2% |
|---|
| Chevalier International Holdings Ltd ($25) | 2.8% | 4.3% | 4.2% | 3.8% | 14.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Resources and Transportation Group Ltd ($269) | | | | 66.7x | 29.7x |
| CNC Holdings Ltd ($8356) | -0.7x | | 22.0x | 21.9x | 24.3x |
| Deson Development International Holdings ($262) | 3.1x | 3.8x | 4.9x | 13.7x | 47.0x |
| Chun Wo Development Holdings Ltd ($711) | | 14.3x | 8.1x | 12.6x | |
| Hsin Chong Construction Group Ltd ($404) | 4.3x | 1.8x | 8.0x | 10.2x | |
| |
|---|
| Median (33 companies) | 0.7x | 1.7x | 1.9x | 2.6x | 6.7x |
|---|
| Chevalier International Holdings Ltd ($25) | 0.8x | 4.8x | 6.1x | 5.4x | 0.5x |
