Chuang's China Investments Ltd reports 171% EBITDA growth and 25.3% Revenue growth
26/06/2015 • About Chuang's China Investments Ltd (
$298) • By InTwits
Chuang's China Investments Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 22.8% in FY2015, 10.6% in FY2014, 11.6% in FY2013, 44.0% in FY2012, -9.7% in FY2011
- Chuang's China Investments Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's in pair with industry average of 4.4%.
- CAPEX is quite volatile: 6.8 in FY2015, 14.7 in FY2014, 9.6 in FY2013, 12.2 in FY2012, 6.7 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Chuang's China Investments Ltd ($298) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 198 | 1,487 | 510 | 805 | 1,009 | 25.3% |
| Gross Profit | 56 | 805 | 183 | 277 | 394 | 42.3% |
| SG&A | | | 125 | 205 | 176 | -14.3% |
| EBITDA | -19 | 654 | 59 | 85 | 230 | 170.5% |
| Net Income | 32 | 449 | 40 | 110 | 94 | -14.3% |
Balance Sheet
|
|---|
| Cash | 227 | 837 | 981 | 1,115 | 871 | -21.8% |
| Short Term Debt | 245 | 42 | 76 | 260 | 604 | 132.8% |
| Long Term Debt | 89 | 0 | 242 | 145 | 19 | -87.0% |
Cash flow
|
|---|
| Capex | 7 | 12 | 10 | 15 | 7 | -53.8% |
Ratios
|
|---|
| Revenue growth | -48.2% | 651.0% | -65.7% | 57.9% | 25.3% | |
| EBITDA growth | -31.2% | -3,490.8% | -91.0% | 44.5% | 170.5% | |
| Gross Margin | 28.1% | 54.1% | 36.0% | 34.4% | 39.0% | 4.7% |
| EBITDA Margin | -9.7% | 44.0% | 11.6% | 10.6% | 22.8% | 12.2% |
| Net Income Margin | 16.1% | 30.2% | 7.9% | 13.7% | 9.4% | -4.3% |
| SG&A, % of revenue | | | 24.6% | 25.5% | 17.4% | -8.1% |
| CAPEX, % of revenue | 3.4% | 0.8% | 1.9% | 1.8% | 0.7% | -1.2% |
| ROIC | -0.9% | 22.9% | 1.5% | 2.2% | 6.1% | 3.8% |
| ROE | 1.6% | 20.1% | 1.6% | 4.4% | 3.7% | -0.7% |
| Net Debt/EBITDA | | -1.2x | -11.3x | -8.3x | -1.1x | 7.3x |
Revenue and profitability
The company's Revenue jumped on 25.3% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 12.2 pp from 10.6% to 22.8% in FY2015.
Gross Margin increased on 4.7 pp from 34.4% to 39.0% in FY2015. SG&A as a % of Revenue decreased on 8.1 pp from 25.5% to 17.4% in FY2015.
Net Income marign decreased on 4.3 pp from 13.7% to 9.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.67% in FY2015. The company showed almost no change in CAPEX/Revenue from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 1.5%.
Return on investment
The company operates at low ROIC (6.05%) and ROE (3.66%). ROIC increased on 3.8 pp from 2.2% to 6.1% in FY2015. ROE decreased slightly on 0.72 pp from 4.4% to 3.7% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.1x and Debt / EBITDA is 2.7x. Net Debt / EBITDA surged on 7.3x from -8.3x to -1.1x in FY2015. Debt jumped on 54.0% in FY2015 while cash dropped on 21.8% in FY2015.
Appendix 1: Peers in Holding Companies-Divers
Below you can find Chuang's China Investments 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% | -79.6% |
| 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) | 13.3% | 11.4% | 4.9% | 12.6% | 0.5% |
|---|
| Chuang's China Investments Ltd ($298) | | 651.0% | -65.7% | 57.9% | 25.3% |
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% | 91.5% |
| Emperor International Holdings Ltd ($163) | 74.5% | 71.3% | 64.9% | 79.2% | 75.3% |
| 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 (39 companies) | 29.3% | 32.9% | 34.6% | 30.8% | 57.0% |
|---|
| Chuang's China Investments Ltd ($298) | 28.1% | 54.1% | 36.0% | 34.4% | 39.0% |
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% | 73.9% |
| 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% | 85.0% |
| 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) | 6.3% | 1.7% | 1.9% | 5.6% | 8.3% |
|---|
| Chuang's China Investments Ltd ($298) | -9.7% | 44.0% | 11.6% | 10.6% | 22.8% |
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% | 458.1% |
| New Century Group Hong Kong Ltd ($234) | 1.0% | 97.2% | 1.0% | 142.7% | 32.2% |
| Chinney Investments Ltd ($216) | 37.6% | 17.5% | 103.4% | 111.3% | 230.9% |
| |
|---|
| Median (44 companies) | 4.9% | 2.7% | 3.8% | 7.0% | 69.2% |
|---|
| Chuang's China Investments Ltd ($298) | 3.4% | 0.8% | 1.9% | 1.8% | 0.7% |
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) | 0.6% | -0.2% | -0.2% | 0.5% | 2.0% |
|---|
| Chuang's China Investments Ltd ($298) | -0.9% | 22.9% | 1.5% | 2.2% | 6.1% |
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 | 93.7x |
| Carnival Group International Holdings Ltd ($996) | | | | 23.7x | |
| Van Shung Chong Holdings Ltd ($1001) | 3.4x | | 0.9x | 12.3x | 7.7x |
| 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 (26 companies) | 3.0x | 2.6x | 3.1x | 3.2x | 7.5x |
|---|
| Chuang's China Investments Ltd ($298) | | -1.2x | -11.3x | -8.3x | -1.1x |
