Safety Godown Co Ltd reports 193% Net Income growth and 12.4% Revenue growth
25/06/2015 • About Safety Godown Co Ltd (
$237) • By InTwits
Safety Godown Co Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Safety Godown Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's a lot of higher than industry average of 0.7%.
- CAPEX is quite volatile: 0.36 in FY2015, 0.83 in FY2014, 5.1 in FY2013, 1.8 in FY2012, 1.3 in FY2011
- The company has potentially unprofitable business model: ROIC is at 3.2%
- It operates with high leverage: Net Debt/EBITDA is -2.4x while industry average is -2.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Safety Godown Co Ltd ($237) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 95.6 | 111.9 | 119.8 | 139.2 | 156.4 | 12.4% |
| EBITDA | 93.7 | 78.8 | 92.5 | 96.5 | 115.1 | 19.2% |
| Net Income | 359.6 | 308.9 | 824.1 | 204.7 | 599.3 | 192.8% |
Balance Sheet
|
|---|
| Cash | 186.1 | 170.1 | 208.2 | 230.4 | 273.9 | 18.9% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 1.3 | 1.8 | 5.1 | 0.8 | 0.4 | -56.0% |
Ratios
|
|---|
| Revenue growth | 0.5% | 17.1% | 7.0% | 16.2% | 12.4% | |
| EBITDA growth | 10.5% | -15.9% | 17.3% | 4.4% | 19.2% | |
| EBITDA Margin | 98.0% | 70.4% | 77.2% | 69.4% | 73.6% | 4.2% |
| Net Income Margin | 376.0% | 276.0% | 688.2% | 147.1% | 383.1% | 236.1% |
| CAPEX, % of revenue | 1.3% | 1.6% | 4.2% | 0.6% | 0.2% | -0.4% |
| ROIC | 4.9% | 3.4% | 3.4% | 3.0% | 3.2% | 0.2% |
| ROE | 20.7% | 15.3% | 33.1% | 6.9% | 18.1% | 11.2% |
| Net Debt/EBITDA | -2.0x | -2.2x | -2.3x | -2.4x | -2.4x | 0.0x |
Revenue and profitability
Safety Godown Co Ltd's Revenue jumped on 12.4% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.2 pp from 69.4% to 73.6% in FY2015.
Net Income marign surged on 236 pp from 147% to 383% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.23% in FY2015. CAPEX/Revenue decreased slightly on 1.4 pp from 1.6% in FY2012 to 0.23% in FY2015. It's average level of CAPEX/Revenue for the last three years was 1.7%.
Return on investment
The company operates at good ROE (18.09%) while ROIC is low (3.21%). ROIC showed almost no change in FY2015. ROE surged on 11.2 pp from 6.9% to 18.1% in FY2015.
Leverage (Debt)
The company has no debt. Cash jumped on 18.9% in FY2015.
Appendix 1: Peers in Storage/Warehousing
Below we provide Safety Godown Co Ltd benchmarking against other companies in Storage/Warehousing 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Daido Group Ltd ($544) | -3.0% | 7.8% | 3.9% | 10.5% | |
| |
|---|
| Median (1 company) | -3.0% | 7.8% | 3.9% | 10.5% | |
|---|
| Safety Godown Co Ltd ($237) | | 17.1% | 7.0% | 16.2% | 12.4% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Daido Group Ltd ($544) | 8.6% | 12.0% | 11.5% | 9.3% | |
| |
|---|
| Median (1 company) | 8.6% | 12.0% | 11.5% | 9.3% | |
|---|
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Daido Group Ltd ($544) | -23.0% | -0.2% | -4.3% | -8.4% | |
| |
|---|
| Median (1 company) | -23.0% | -0.2% | -4.3% | -8.4% | |
|---|
| Safety Godown Co Ltd ($237) | 98.0% | 70.4% | 77.2% | 69.4% | 73.6% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Daido Group Ltd ($544) | 37.5% | 19.8% | 2.1% | 1.2% | |
| |
|---|
| Median (1 company) | 37.5% | 19.8% | 2.1% | 1.2% | |
|---|
| Safety Godown Co Ltd ($237) | 1.3% | 1.6% | 4.2% | 0.6% | 0.2% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Daido Group Ltd ($544) | -9.9% | -4.2% | -5.5% | -6.6% | |
| |
|---|
| Median (1 company) | -9.9% | -4.2% | -5.5% | -6.6% | |
|---|
| Safety Godown Co Ltd ($237) | 4.9% | 3.4% | 3.4% | 3.0% | 3.2% |
