Perfect Shape PRC Holdings Ltd CAPEX surged on 396% in 2015 and Revenue jumped on 55.0%
29/06/2015 • About Perfect Shape PRC Holdings Ltd (
$1830) • By InTwits
Perfect Shape PRC Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Perfect Shape PRC Holdings Ltd is a fast growth stock: FY2015 revenue growth was 55.0%, 5 year revenue CAGR was 25.4% at FY2015 ROIC 44.1%
- Perfect Shape PRC Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.1%. At the same time it's in pair with industry average of 12.0%.
- CAPEX is quite volatile: 181 in FY2015, 36.4 in FY2014, 39.4 in FY2013, 23.3 in FY2012, 24.4 in FY2011
- The company has highly profitable business model: ROIC is at 44.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Perfect Shape PRC Holdings Ltd ($1830) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 309.0 | 381.2 | 443.0 | 470.2 | 728.7 | 55.0% |
| SG&A | | | | | 73.8 | |
| EBITDA | 81.2 | 104.8 | 128.9 | 124.4 | 216.8 | 74.3% |
| Net Income | 50.3 | 68.7 | 78.0 | 83.0 | 134.9 | 62.5% |
Balance Sheet
|
|---|
| Cash | 74.2 | 205.7 | 109.5 | 178.9 | 387.3 | 116.5% |
| 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 | 24.4 | 23.3 | 39.4 | 36.4 | 180.6 | 396.0% |
Ratios
|
|---|
| Revenue growth | 31.6% | 23.4% | 16.2% | 6.1% | 55.0% | |
| EBITDA growth | 58.9% | 29.1% | 23.0% | -3.5% | 74.3% | |
| EBITDA Margin | 26.3% | 27.5% | 29.1% | 26.5% | 29.8% | 3.3% |
| Net Income Margin | 16.3% | 18.0% | 17.6% | 17.7% | 18.5% | 0.9% |
| SG&A, % of revenue | | | | | 10.1% | 10.1% |
| CAPEX, % of revenue | 7.9% | 6.1% | 8.9% | 7.7% | 24.8% | 17.0% |
| ROIC | 140.4% | 62.8% | 44.1% | 37.7% | 44.1% | 6.4% |
| ROE | 116.4% | 50.9% | 33.7% | 34.6% | 36.9% | 2.3% |
| Net Debt/EBITDA | -0.9x | -2.0x | -0.8x | -1.4x | -1.8x | -0.3x |
Revenue and profitability
The company's Revenue surged on 55.0% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.8 pp from 36.8% to 40.6% in FY2015.
Net Income marign increased slightly on 0.86 pp from 17.7% to 18.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Perfect Shape PRC Holdings Ltd's CAPEX/Revenue was 24.8% in FY2015. CAPEX/Revenue jumped on 18.7 pp from 6.1% in FY2012 to 24.8% in FY2015. For the last three years the average CAPEX/Revenue was 13.8%.The company invested a big chunk of EBITDA (83.3%) to CAPEX to fuel its growth.
Return on investment
The company operates at high and attractive ROIC (44.11%) and ROE (36.91%). ROIC increased on 6.4 pp from 37.7% to 44.1% in FY2015. ROE increased on 2.3 pp from 34.6% to 36.9% in FY2015.
Leverage (Debt)
The company has no debt. Cash jumped on 116% in FY2015.
Appendix 1: Peers in Leisure Time
Below we provide Perfect Shape PRC Holdings Ltd benchmarking against other companies in Leisure Time 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 |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | | 11.9% | 15.3% | 19.5% | 18.9% |
| Water Oasis Group Ltd ($1161) | 8.1% | -16.3% | -23.7% | 8.0% | |
| Genting Hong Kong Ltd ($678) | 23.6% | 5.3% | 6.6% | 2.9% | |
| Vietnam Manufacturing & Export Processing Holdings Ltd ($422) | 9.5% | -24.4% | -15.5% | 2.8% | |
| China Travel International Investment Hong Kong Ltd ($308) | -2.5% | 7.2% | -6.6% | 2.6% | |
| |
|---|
| Median (9 companies) | 4.8% | 5.3% | -6.6% | 2.6% | 18.9% |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | | 23.4% | 16.2% | 6.1% | 55.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino Splendid Holdings Ltd ($8006) | 55.1% | 51.7% | 51.4% | 51.9% | |
| China Travel International Investment Hong Kong Ltd ($308) | 48.2% | 46.1% | 47.8% | 46.0% | |
| China Jiuhao Health Industry Corp Ltd ($419) | 15.5% | 57.0% | 13.5% | 23.4% | |
| Sino Golf Holdings Ltd ($361) | 15.7% | 11.7% | 17.4% | 18.1% | |
| Vietnam Manufacturing & Export Processing Holdings Ltd ($422) | 17.5% | 10.9% | 7.8% | 6.7% | |
| |
|---|
| Median (6 companies) | 17.5% | 46.1% | 17.4% | 20.7% | 90.7% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Travel International Investment Hong Kong Ltd ($308) | 25.6% | 28.2% | 29.1% | 48.5% | |
| Travel Expert Asia Enterprises Ltd ($1235) | 20.1% | 17.4% | 16.2% | 18.3% | 15.0% |
| Water Oasis Group Ltd ($1161) | 11.3% | 6.5% | 4.7% | 11.4% | |
| Genting Hong Kong Ltd ($678) | 24.2% | 23.1% | 8.5% | 8.6% | |
| Sino Golf Holdings Ltd ($361) | 5.7% | 4.3% | 10.4% | 7.8% | |
| |
|---|
| Median (9 companies) | 7.5% | 6.5% | 4.7% | 7.8% | 15.0% |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | 26.3% | 27.5% | 29.1% | 26.5% | 29.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Jiuhao Health Industry Corp Ltd ($419) | 4.2% | 2.1% | 31.8% | 67.3% | |
| Genting Hong Kong Ltd ($678) | 7.3% | 16.6% | 25.4% | 33.0% | |
| China Travel International Investment Hong Kong Ltd ($308) | 14.6% | 13.4% | 28.3% | 29.9% | |
| Sino Golf Holdings Ltd ($361) | 1.8% | 3.0% | 2.8% | 3.2% | |
| Water Oasis Group Ltd ($1161) | 2.7% | 3.7% | 4.0% | 2.8% | |
| |
|---|
| Median (9 companies) | 2.7% | 3.0% | 4.0% | 2.8% | 2.8% |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | 7.9% | 6.1% | 8.9% | 7.7% | 24.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | 179.4% | 50.9% | 26.7% | 29.8% | 23.0% |
| Water Oasis Group Ltd ($1161) | 21.6% | 5.3% | 1.7% | 15.7% | |
| China Travel International Investment Hong Kong Ltd ($308) | 4.6% | 5.6% | 5.0% | 9.6% | |
| Sino Golf Holdings Ltd ($361) | -0.5% | -1.9% | 6.8% | 3.8% | |
| Genting Hong Kong Ltd ($678) | 2.1% | 2.0% | -1.0% | -1.1% | |
| |
|---|
| Median (9 companies) | 2.1% | 0.3% | -1.0% | -1.1% | 23.0% |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | 140.4% | 62.8% | 44.1% | 37.7% | 44.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino Golf Holdings Ltd ($361) | 7.3x | 10.0x | 1.9x | 3.0x | |
| China Travel International Investment Hong Kong Ltd ($308) | -2.4x | -1.7x | -1.1x | -1.1x | |
| Travel Expert Asia Enterprises Ltd ($1235) | -2.3x | -1.3x | -1.2x | -1.7x | -0.3x |
| Water Oasis Group Ltd ($1161) | -2.2x | -3.2x | -5.1x | -2.8x | |
| Genting Hong Kong Ltd ($678) | 1.6x | 3.3x | -4.0x | -5.3x | |
| |
|---|
| Median (5 companies) | -2.3x | 1.0x | -1.2x | -1.7x | -0.3x |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | -0.9x | -2.0x | -0.8x | -1.4x | -1.8x |
