New Century Group Hong Kong Ltd Net Income jumped on 230% in 2015 and EBITDA Margin jumped on 26.7 pp from 58.3% to 85.0%
26/06/2015 • About New Century Group Hong Kong Ltd (
$234) • By InTwits
New Century Group Hong Kong 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: 85.0% in FY2015, 58.3% in FY2014, 78.8% in FY2013, -5.5% in FY2012, 82.5% in FY2011
- New Century Group Hong Kong Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 54.8%. At the same time it's in pair with industry average of 51.0%.
- CAPEX is quite volatile: 47.6 in FY2015, 96.7 in FY2014, 2.2 in FY2013, 52.0 in FY2012, 1.7 in FY2011
- The company has business model with low profitability: ROIC is at 7.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
New Century Group Hong Kong Ltd ($234) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 172.2 | 53.5 | 228.1 | 67.8 | 147.9 | 118.2% |
| Gross Profit | 132.1 | 14.6 | 194.5 | 56.1 | 135.4 | 141.2% |
| SG&A | 55.3 | 29.9 | 34.0 | 31.8 | 25.4 | -20.0% |
| EBITDA | 142.0 | -2.9 | 179.9 | 39.5 | 125.7 | 218.2% |
| Net Income | 207.3 | 17.2 | 155.6 | 29.9 | 98.8 | 230.5% |
Balance Sheet
|
|---|
| Cash | 609.1 | 275.5 | 424.9 | 571.0 | 513.6 | -10.0% |
| Short Term Debt | 88.9 | 29.0 | 19.3 | 96.2 | 6.6 | -93.2% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 26.0 | 23.1 | -11.3% |
Cash flow
|
|---|
| Capex | 1.7 | 52.0 | 2.2 | 96.7 | 47.6 | -50.8% |
Ratios
|
|---|
| Revenue growth | -47.7% | -68.9% | 326.7% | -70.3% | 118.2% | |
| EBITDA growth | -43.2% | -102.1% | -6,220.6% | -78.0% | 218.2% | |
| Gross Margin | 76.7% | 27.3% | 85.2% | 82.8% | 91.5% | 8.7% |
| EBITDA Margin | 82.5% | -5.5% | 78.8% | 58.3% | 85.0% | 26.7% |
| Net Income Margin | 120.4% | 32.1% | 68.2% | 44.1% | 66.8% | 22.7% |
| SG&A, % of revenue | 32.1% | 55.8% | 14.9% | 46.9% | 17.2% | -29.7% |
| CAPEX, % of revenue | 1.0% | 97.2% | 1.0% | 142.7% | 32.2% | -110.5% |
| ROIC | 8.6% | -1.7% | 11.7% | 1.7% | 7.3% | 5.6% |
| ROE | 16.4% | 1.3% | 11.2% | 2.1% | 6.8% | 4.8% |
| Net Debt/EBITDA | -3.7x | | -2.3x | -11.4x | -3.9x | 7.5x |
Revenue and profitability
New Century Group Hong Kong Ltd's Revenue jumped on 118% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 26.7 pp from 58.3% to 85.0% in FY2015.
Gross Margin increased on 8.7 pp from 82.8% to 91.5% in FY2015. SG&A as a % of Revenue dropped on 29.7 pp from 46.9% to 17.2% in FY2015.
Net Income marign surged on 22.7 pp from 44.1% to 66.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 32.2%. New Century Group Hong Kong Ltd's CAPEX/Revenue dropped on 65.1 pp from 97.2% in FY2012 to 32.2% in FY2015. It's average level of CAPEX/Revenue for the last three years was 58.6%.
Return on investment
The company operates at low ROIC (7.30%) and ROE (6.85%). ROIC increased on 5.6 pp from 1.7% to 7.3% in FY2015. ROE increased on 4.8 pp from 2.1% to 6.8% in FY2015.
Leverage (Debt)
Debt level is -3.9x Net Debt / EBITDA and 0.2x Debt / EBITDA. Net Debt / EBITDA jumped on 7.5x from -11.4x to -3.9x in FY2015. Debt dropped on 75.7% in FY2015 while cash dropped on 10.0% in FY2015.
Appendix 1: Peers in Holding Companies-Divers
Below we provide New Century Group Hong Kong Ltd benchmarking against other companies in Holding Companies-Divers 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 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% | 12.2% | 3.3% | 15.7% | 0.5% |
|---|
| New Century Group Hong Kong Ltd ($234) | | -68.9% | 326.7% | -70.3% | 118.2% |
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% | |
| 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% | |
| Orient Victory China Holdings Ltd ($265) | 68.5% | 69.4% | 61.6% | 67.4% | |
| |
|---|
| Median (39 companies) | 27.9% | 33.4% | 34.6% | 30.8% | 42.2% |
|---|
| New Century Group Hong Kong Ltd ($234) | 76.7% | 27.3% | 85.2% | 82.8% | 91.5% |
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% | |
| 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% | |
| Wisdom Holdings Group ($1661) | 25.0% | 32.4% | 45.1% | 44.4% | |
| |
|---|
| Median (44 companies) | 5.2% | 2.8% | 1.9% | 5.6% | 8.3% |
|---|
| New Century Group Hong Kong Ltd ($234) | 82.5% | -5.5% | 78.8% | 58.3% | 85.0% |
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% |
| Chinney Investments Ltd ($216) | 37.6% | 17.5% | 103.4% | 111.3% | 230.9% |
| Emperor International Holdings Ltd ($163) | 93.5% | 100.9% | 48.5% | 105.9% | 110.6% |
| |
|---|
| Median (44 companies) | 4.9% | 2.2% | 3.8% | 6.1% | 69.2% |
|---|
| New Century Group Hong Kong Ltd ($234) | 1.0% | 97.2% | 1.0% | 142.7% | 32.2% |
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) | 0.3% | 0.1% | -0.2% | 0.5% | 2.0% |
|---|
| New Century Group Hong Kong Ltd ($234) | 8.6% | -1.7% | 11.7% | 1.7% | 7.3% |
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) | 3.1x | 2.5x | 3.1x | 3.2x | 7.5x |
|---|
| New Century Group Hong Kong Ltd ($234) | -3.7x | | -2.3x | -11.4x | -3.9x |
