Pizu Group Holdings Ltd reports 75,126% EBITDA growth and 158% Revenue growth
29/06/2015 • About Pizu Group Holdings Ltd (
$8053) • By InTwits
Pizu Group Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pizu Group Holdings Ltd is a fast growth stock: FY2015 revenue growth was 158%, 5 year revenue CAGR was 76.5% at FY2015 ROIC 120%
- EBITDA Margin is expanding: 9.8% in FY2015 vs. 0.0% in FY2014 vs. -4.5% in FY2011
- Pizu Group Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%. At the same time it's a lot of higher than industry average of 6.6%.
- CAPEX is quite volatile: 25.5 in FY2015, 0.11 in FY2014, 0.10 in FY2013, 0.57 in FY2012, 0.82 in FY2011
- The company has highly profitable business model: ROIC is at 120.0%
- It operates with high leverage: Net Debt/EBITDA is -0.4x while industry average is -2.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pizu Group Holdings Ltd ($8053) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 40 | 57 | 32 | 597 | 1,539 | 157.9% |
| Gross Profit | 21 | 3 | 5 | 0 | 213 | 43,674.5% |
| SG&A | | | | 6 | 72 | 1,140.4% |
| EBITDA | -2 | -20 | -4 | 0 | 151 | 75,125.9% |
| Net Income | -169 | -50 | -23 | -33 | 29 | -187.7% |
Balance Sheet
|
|---|
| Cash | 6 | 28 | 16 | 15 | 55 | 273.8% |
| Short Term Debt | 0 | 0 | 0 | 84 | 0 | -100.0% |
| Long Term Debt | 105 | 47 | 30 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 1 | 1 | 0 | 0 | 26 | 23,298.2% |
Ratios
|
|---|
| Revenue growth | -55.1% | 40.3% | -42.9% | 1,742.9% | 157.9% | |
| EBITDA growth | -88.3% | 1,005.6% | -81.0% | -105.3% | 75,125.9% | |
| Gross Margin | 52.8% | 6.1% | 15.1% | 0.1% | 13.8% | 13.7% |
| EBITDA Margin | -4.5% | -35.1% | -11.7% | 0.0% | 9.8% | 9.8% |
| Net Income Margin | -419.1% | -89.0% | -72.3% | -5.5% | 1.9% | 7.3% |
| SG&A, % of revenue | | | | 1.0% | 4.7% | 3.7% |
| CAPEX, % of revenue | 2.0% | 1.0% | 0.3% | 0.0% | 1.7% | 1.6% |
| ROIC | -3.2% | -21.8% | -13.4% | -6.8% | 120.0% | 126.9% |
| ROE | -200.8% | -209.8% | -103.1% | -397.2% | 220.1% | 617.3% |
| Net Debt/EBITDA | | | | 346.1x | -0.4x | -346.5x |
Revenue and profitability
Pizu Group Holdings Ltd's Revenue surged on 158% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.9 pp from 12.0% to 6.1% in 2015.
Gross Margin jumped on 13.7 pp from 0.081% to 13.8% in FY2015. SG&A as a % of Revenue increased on 3.7 pp from 0.97% to 4.7% in FY2015.
Net Income marign increased on 7.3 pp from -5.5% to 1.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 1.7%. Pizu Group Holdings Ltd showed small growth in CAPEX/Revenue of 0.65 pp from 1.0% in FY2012 to 1.7% in FY2015. It's average CAPEX/Revenue for the last three years was 0.66%.
Return on investment
The company operates at high and attractive ROIC (120.04%) and ROE (220.08%). ROIC jumped on 127 pp from -6.8% to 120% in FY2015. ROE surged on 617 pp from -397% to 220% in FY2015.
Leverage (Debt)
The company paid down all the debt in FY2015. Cash jumped on 274% in FY2015.
Appendix 1: Peers in Software
Below we provide Pizu Group Holdings Ltd benchmarking against other companies in Software 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 City Railway Transportation Technology Holdings Co Ltd ($1522) | 194.6% | 164.0% | 33.6% | 100.5% | |
| China Mobile Games and Cultural Investment Ltd ($8081) | -16.7% | 393.7% | -6.6% | 92.2% | |
| Epicurean and Co Ltd ($8213) | | 177.0% | 185.7% | 62.6% | 22.0% |
| China Bio Cassava Holdings Ltd ($8129) | -15.0% | -14.2% | 38.8% | 55.1% | |
| Kingsoft Corp Ltd ($3888) | 5.1% | 38.3% | 54.0% | 54.2% | |
| |
|---|
| Median (30 companies) | 17.0% | 10.6% | 11.4% | 20.9% | 28.4% |
|---|
| Pizu Group Holdings Ltd ($8053) | | 40.3% | -42.9% | 1,742.9% | 157.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Bio Cassava Holdings Ltd ($8129) | 90.2% | 90.4% | 97.4% | 98.4% | |
| NetDragon Websoft Inc ($777) | 90.1% | 93.4% | 90.8% | 89.3% | |
| China Mobile Games and Cultural Investment Ltd ($8081) | 19.4% | 6.5% | 45.3% | 84.8% | |
| Kingdee International Software Group Co Ltd ($268) | 70.1% | 65.0% | 75.3% | 82.5% | |
| Kingsoft Corp Ltd ($3888) | 85.5% | 86.8% | 86.3% | 82.4% | |
| |
|---|
| Median (29 companies) | 41.6% | 40.0% | 38.6% | 37.2% | 39.1% |
|---|
| Pizu Group Holdings Ltd ($8053) | 52.8% | 6.1% | 15.1% | 0.1% | 13.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sinosoft Technology Group Ltd ($1297) | 55.5% | 62.6% | 54.9% | 57.2% | |
| International Entertainment Corp ($1009) | 235.1% | 50.8% | 64.0% | 54.9% | 62.0% |
| Microsoft Corp ($4338) | 42.8% | 33.5% | 39.2% | 38.0% | |
| Kingdee International Software Group Co Ltd ($268) | 19.5% | 7.8% | 33.2% | 37.2% | |
| TravelSky Technology Ltd ($696) | 43.3% | 38.1% | 35.8% | 31.9% | |
| |
|---|
| Median (30 companies) | 10.3% | 7.8% | 10.9% | 7.4% | 2.3% |
|---|
| Pizu Group Holdings Ltd ($8053) | -4.5% | -35.1% | -11.7% | 0.0% | 9.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| NetDragon Websoft Inc ($777) | 13.3% | 21.1% | 34.6% | 54.6% | |
| China Eco-Farming Ltd ($8166) | 0.3% | 0.6% | 0.7% | 18.1% | |
| TravelSky Technology Ltd ($696) | 5.8% | 8.9% | 21.7% | 18.1% | |
| Kingsoft Corp Ltd ($3888) | 6.8% | 4.3% | 3.8% | 14.3% | |
| Sing Lee Software Group Ltd ($8076) | 19.4% | 3.3% | 0.2% | 14.0% | |
| |
|---|
| Median (29 companies) | 3.1% | 2.6% | 2.8% | 3.6% | 0.4% |
|---|
| Pizu Group Holdings Ltd ($8053) | 2.0% | 1.0% | 0.3% | 0.0% | 1.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Microsoft Corp ($4338) | 43.4% | 28.6% | 30.3% | 26.2% | |
| Sinosoft Technology Group Ltd ($1297) | 31.6% | 34.0% | 21.9% | 20.2% | |
| Boyaa Interactive International Ltd ($434) | 100.4% | 75.3% | 21.3% | 20.0% | |
| ITE Holdings Ltd ($8092) | -19.6% | -15.0% | 10.6% | 16.8% | 19.8% |
| TravelSky Technology Ltd ($696) | 16.2% | 15.0% | 13.8% | 12.5% | |
| |
|---|
| Median (30 companies) | 4.9% | 1.4% | 4.7% | -0.4% | 0.0% |
|---|
| Pizu Group Holdings Ltd ($8053) | -3.2% | -21.8% | -13.4% | -6.8% | 120.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Epicurean and Co Ltd ($8213) | 2.9x | 2.3x | 4.7x | 12.3x | 12.0x |
| Sing Lee Software Group Ltd ($8076) | | | | 6.2x | |
| China Technology Solar Power Holdings Ltd ($8111) | | | 7.4x | 3.3x | 0.2x |
| Chinasoft International Ltd ($354) | -1.3x | -0.7x | 0.7x | 1.5x | |
| Kingdee International Software Group Co Ltd ($268) | -0.1x | 5.0x | 1.1x | 0.5x | |
| |
|---|
| Median (18 companies) | -0.9x | -0.7x | -1.3x | -1.0x | -1.3x |
|---|
| Pizu Group Holdings Ltd ($8053) | | | | 346.1x | -0.4x |
