Chuang's Consortium International Ltd reports 27.9% CAPEX growth and 9.6% Revenue growth
29/06/2015 • About Chuang's Consortium International Ltd (
$367) • By InTwits
Chuang's Consortium International Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Chuang's Consortium International Ltd doesn't have a profitable business model yet: FY2015 ROIC is 0.3%
- EBITDA Margin is quite volatile: 7.8% in FY2015, -4.7% in FY2014, 14.6% in FY2013, 32.9% in FY2012, 121.5% in FY2011
- Chuang's Consortium International Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.6%. At the same time it's a lot of higher than industry average of 6.6%.
- CAPEX is quite volatile: 183 in FY2015, 143 in FY2014, 27.5 in FY2013, 73.0 in FY2012, 133 in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.3%
- It operates with high leverage: Net Debt/EBITDA is 23.9x while industry average is 5.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Chuang's Consortium International Ltd ($367) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 383 | 2,207 | 1,100 | 1,389 | 1,522 | 9.6% |
| Gross Profit | 161 | 1,065 | 434 | 515 | 571 | 10.8% |
| SG&A | | | 432 | 490 | 568 | 15.8% |
| EBITDA | 465 | 726 | 161 | -65 | 119 | -283.1% |
| Net Income | 790 | 901 | 1,148 | 469 | 503 | 7.3% |
Balance Sheet
|
|---|
| Cash | 1,537 | 1,890 | 1,803 | 2,313 | 853 | -63.1% |
| Short Term Debt | 162 | 452 | 548 | 595 | 1,163 | 95.4% |
| Long Term Debt | 2,401 | 1,930 | 2,062 | 2,717 | 2,538 | -6.6% |
Cash flow
|
|---|
| Capex | 133 | 73 | 28 | 143 | 183 | 27.9% |
Ratios
|
|---|
| Revenue growth | -31.8% | 476.6% | -50.1% | 26.2% | 9.6% | |
| EBITDA growth | -995.5% | 56.1% | -77.8% | -140.3% | -283.1% | |
| Gross Margin | 42.1% | 48.2% | 39.4% | 37.1% | 37.5% | 0.4% |
| EBITDA Margin | 121.5% | 32.9% | 14.6% | -4.7% | 7.8% | 12.5% |
| Net Income Margin | 206.3% | 40.8% | 104.3% | 33.7% | 33.1% | -0.7% |
| SG&A, % of revenue | | | 39.3% | 35.3% | 37.3% | 2.0% |
| CAPEX, % of revenue | 34.9% | 3.3% | 2.5% | 10.3% | 12.0% | 1.7% |
| ROIC | 5.2% | 6.8% | 1.0% | -0.9% | 0.3% | 1.2% |
| ROE | 15.8% | 15.5% | 16.9% | 6.2% | 6.3% | 0.1% |
| Net Debt/EBITDA | 2.2x | 0.7x | 5.0x | | 23.9x | 23.9x |
Revenue and profitability
Chuang's Consortium International Ltd's Revenue increased on 9.6% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.9 pp from 7.5% to 9.4% in 2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue increased on 2.0 pp from 35.3% to 37.3% in FY2015.
Net Income marign decreased slightly on 0.68 pp from 33.7% to 33.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Chuang's Consortium International Ltd had CAPEX/Revenue of 12.0%. Chuang's Consortium International Ltd's CAPEX/Revenue increased on 8.7 pp from 3.3% in FY2012 to 12.0% in FY2015. It's average level of CAPEX/Revenue for the last three years was 8.3%.The company investments to CAPEX were large: 153% of EBITDA.
Return on investment
The company operates at low ROIC (0.31%) and ROE (6.29%). ROIC increased slightly on 1.2 pp from -0.89% to 0.31% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt level is 23.9x Net Debt / EBITDA and 31.1x Debt / EBITDA. Net Debt / EBITDA jumped23.9x from to 23.9x in FY2015. Debt jumped on 11.7% in FY2015 while cash dropped on 63.1% in FY2015.
Appendix 1: Peers in Holding Companies-Divers
Below you can find Chuang's Consortium International 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) | 11.7% | 11.4% | 4.9% | 12.6% | 10.0% |
|---|
| Chuang's Consortium International Ltd ($367) | | 476.6% | -50.1% | 26.2% | 9.6% |
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) | 27.9% | 32.9% | 34.6% | 30.8% | 39.0% |
|---|
| Chuang's Consortium International Ltd ($367) | 42.1% | 48.2% | 39.4% | 37.1% | 37.5% |
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% | |
| 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) | 5.2% | 1.7% | 1.9% | 7.4% | 10.4% |
|---|
| Chuang's Consortium International Ltd ($367) | 121.5% | 32.9% | 14.6% | -4.7% | 7.8% |
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) | 4.1% | 2.2% | 3.8% | 6.1% | 32.1% |
|---|
| Chuang's Consortium International Ltd ($367) | 34.9% | 3.3% | 2.5% | 10.3% | 12.0% |
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% | -6.2% |
| C C Land Holdings Ltd ($1224) | 4.5% | 7.4% | 5.3% | 7.9% | |
| |
|---|
| Median (44 companies) | 0.3% | -0.2% | -0.2% | 0.8% | 1.2% |
|---|
| Chuang's Consortium International Ltd ($367) | 5.2% | 6.8% | 1.0% | -0.9% | 0.3% |
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 (27 companies) | 3.1x | 2.6x | 2.9x | 3.0x | 6.5x |
|---|
