Upbest Group Ltd reports 208% revenue growth in FY2015 and 27.9 pp EBITDA Margin decline from 52.8% to 24.9%
26/06/2015 • About Upbest Group Ltd (
$335) • By InTwits
Upbest Group 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: 24.9% in FY2015, 52.8% in FY2014, 49.3% in FY2013, 13.3% in FY2012, 9.3% in FY2011
- Upbest Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has potentially unprofitable business model: ROIC is at 3.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Upbest Group Ltd ($335) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 292.7 | 180.0 | 68.7 | 85.3 | 262.7 | 208.1% |
| EBITDA | 27.2 | 23.9 | 33.9 | 45.1 | 65.5 | 45.3% |
| Net Income | 122.2 | 95.3 | 167.6 | 164.9 | 315.4 | 91.3% |
Balance Sheet
|
|---|
| Cash | 137.6 | 145.8 | 173.0 | 176.8 | 218.2 | 23.4% |
| Short Term Debt | 14.1 | 38.5 | 44.9 | 76.1 | 15.5 | -79.6% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.7 | 0.1 | 0.6 | 0.3 | 0.1 | -47.9% |
Ratios
|
|---|
| Revenue growth | -26.2% | -38.5% | -61.8% | 24.1% | 208.1% | |
| EBITDA growth | -38.1% | -11.9% | 41.4% | 33.1% | 45.3% | |
| EBITDA Margin | 9.3% | 13.3% | 49.3% | 52.8% | 24.9% | -27.9% |
| Net Income Margin | 41.7% | 52.9% | 243.9% | 193.4% | 120.1% | -73.3% |
| CAPEX, % of revenue | 0.2% | 0.0% | 0.8% | 0.3% | 0.1% | -0.3% |
| ROIC | 2.0% | 1.7% | 2.2% | 2.7% | 3.6% | 0.9% |
| ROE | 11.0% | 8.0% | 13.1% | 11.8% | 19.8% | 8.0% |
| Net Debt/EBITDA | -4.5x | -4.5x | -3.8x | -2.2x | -3.1x | -0.9x |
Revenue and profitability
Upbest Group Ltd's Revenue jumped on 208% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 27.9 pp from 52.8% to 24.9% in FY2015.
Net Income marign dropped on 73.3 pp from 193% to 120% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.051% in FY2015. Upbest Group Ltd showed almost no change in CAPEX/Revenue from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 0.39%.
Return on investment
The company operates at good ROE (19.79%) while ROIC is low (3.62%). ROIC increased slightly on 0.88 pp from 2.7% to 3.6% in FY2015. ROE increased on 8.0 pp from 11.8% to 19.8% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.1x and Debt / EBITDA is 0.2x. Net Debt / EBITDA dropped on 0.9x from -2.2x to -3.1x in FY2015. Debt dropped on 79.6% in FY2015 while cash surged on 23.4% in FY2015.
Appendix 1: Peers in Diversified Finan Serv
Below we provide Upbest Group Ltd benchmarking against other companies in Diversified Finan Serv 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 |
|---|
| China New Energy Power Group Ltd ($1041) | | 100.0% | 0.0% | 64,246.0% | |
| ReOrient Group Ltd ($376) | 63.3% | 112.8% | 75.1% | 1,106.9% | |
| Global Strategic Group Ltd ($8007) | 2.2% | -3.9% | 2.1% | 806.3% | |
| AID Partners Capital Holdings Ltd ($8088) | -38.7% | 0.9% | -79.5% | 655.2% | |
| Willie International Holdings Ltd ($273) | | | | 543.9% | |
| |
|---|
| Median (62 companies) | 5.7% | 1.2% | 14.7% | 26.5% | 21.4% |
|---|
| Upbest Group Ltd ($335) | | -38.5% | -61.8% | 24.1% | 208.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Roma Group Ltd ($8072) | | | | 99.4% | 98.7% |
| Freeman Financial Corp Ltd ($279) | 97.1% | 52.3% | 99.3% | 98.5% | |
| Chinese Strategic Holdings Ltd ($8089) | 97.9% | 99.1% | 97.9% | 97.0% | |
| First China Financial Network Holdings Ltd ($8123) | 98.6% | 93.4% | | 94.5% | |
| Allied Group Ltd ($373) | 94.5% | 95.1% | 94.4% | 93.6% | |
| |
|---|
| Median (13 companies) | 80.8% | 64.2% | 75.1% | 88.2% | 91.7% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Styland Holdings Ltd ($211) | 68.6% | 198.6% | 91.5% | 161.0% | 17.9% |
| Roma Group Ltd ($8072) | 81.4% | 18.1% | 36.8% | 143.0% | 44.7% |
| First China Financial Network Holdings Ltd ($8123) | -231.6% | -329.2% | -211.2% | 124.3% | |
| Willie International Holdings Ltd ($273) | | | 75.3% | 95.2% | |
| Get Nice Holdings Ltd ($64) | 28.4% | 2.6% | 153.4% | 92.7% | 83.9% |
| |
|---|
| Median (63 companies) | 30.3% | 16.4% | 35.5% | 43.6% | 44.7% |
|---|
| Upbest Group Ltd ($335) | 9.3% | 13.3% | 49.3% | 52.8% | 24.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gemini Investments Holdings Ltd ($174) | 14.9% | 479.1% | 37.3% | 216.0% | |
| China Assurance Finance Group Ltd ($8090) | | 94.7% | 68.9% | 53.3% | |
| Chinese Strategic Holdings Ltd ($8089) | 93.2% | 376.0% | 5.7% | 32.6% | |
| AID Partners Capital Holdings Ltd ($8088) | 196.3% | 4.1% | 2.9% | 28.4% | |
| Asian Capital Holdings Ltd ($8295) | 2.3% | 0.1% | 0.2% | 15.6% | |
| |
|---|
| Median (63 companies) | 2.3% | 1.9% | 1.8% | 1.1% | 1.2% |
|---|
| Upbest Group Ltd ($335) | 0.2% | 0.0% | 0.8% | 0.3% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ReOrient Group Ltd ($376) | -24.9% | -45.6% | -53.5% | 128.6% | |
| Roma Group Ltd ($8072) | | 19.6% | 43.7% | 107.8% | 13.3% |
| Convoy Financial Holdings Ltd ($1019) | 31.1% | 3.4% | 39.3% | 47.3% | |
| Willie International Holdings Ltd ($273) | -28.1% | -9.5% | 4.7% | 30.9% | |
| Value Partners Group Ltd ($806) | 8.7% | 16.8% | 16.5% | 26.8% | |
| |
|---|
| Median (65 companies) | 4.9% | 3.9% | 4.0% | 4.8% | 3.5% |
|---|
| Upbest Group Ltd ($335) | 2.0% | 1.7% | 2.2% | 2.7% | 3.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cash Financial Services Group Ltd ($510) | -1.1x | 7.8x | | 67.5x | |
| Far East Horizon Ltd ($3360) | 17.8x | 16.9x | 21.7x | 20.0x | |
| Bright Smart Securities & Commodities Group Ltd ($1428) | 7.3x | 2.1x | 10.3x | 9.3x | 39.3x |
| China Cinda Asset Management Co Ltd ($1359) | 2.1x | 5.0x | 7.7x | 8.4x | |
| Aeon Credit Service Asia Co Ltd ($900) | 6.3x | 5.2x | 6.0x | 6.9x | 5.5x |
| |
|---|
| Median (45 companies) | -1.0x | -0.7x | 0.3x | 0.1x | 2.2x |
|---|
| Upbest Group Ltd ($335) | -4.5x | -4.5x | -3.8x | -2.2x | -3.1x |
