Come Sure Group Holdings Ltd reports 44.9% Net Income growth and almost no change in EBITDA Margin of 8.3%
30/06/2015 • About Come Sure Group Holdings Ltd (
$794) • By InTwits
Come Sure Group Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Come Sure Group Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.9%. At the same time it's a lot of higher than industry average of 6.8%.
- CAPEX is quite volatile: 39.3 in FY2015, 17.5 in FY2014, 181 in FY2013, 82.7 in FY2012, 63.8 in FY2011
- The company has potentially unprofitable business model: ROIC is at 4.4%
- It operates with high leverage: Net Debt/EBITDA is 3.4x while industry average is 0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Come Sure Group Holdings Ltd ($794) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 697.6 | 772.1 | 766.7 | 895.4 | 921.2 | 2.9% |
| Gross Profit | 123.5 | 135.4 | 159.0 | 200.1 | 206.6 | 3.2% |
| SG&A | | 120.7 | 136.7 | 162.4 | 165.5 | 1.9% |
| EBITDA | 43.6 | 40.6 | 52.1 | 72.3 | 76.9 | 6.3% |
| Net Income | 18.4 | 11.3 | 20.1 | 37.2 | 53.9 | 44.9% |
Balance Sheet
|
|---|
| Cash | 138.9 | 102.3 | 126.3 | 174.9 | 204.2 | 16.8% |
| Short Term Debt | 77.4 | 206.7 | 324.5 | 436.8 | 457.1 | 4.7% |
| Long Term Debt | 12.9 | 43.2 | 16.5 | 12.9 | 10.1 | -21.5% |
Cash flow
|
|---|
| Capex | 63.8 | 82.7 | 181.0 | 17.5 | 39.3 | 124.2% |
Ratios
|
|---|
| Revenue growth | 45.8% | 10.7% | -0.7% | 16.8% | 2.9% | |
| EBITDA growth | 7.8% | -6.9% | 28.3% | 39.0% | 6.3% | |
| Gross Margin | 17.7% | 17.5% | 20.7% | 22.3% | 22.4% | 0.1% |
| EBITDA Margin | 6.2% | 5.3% | 6.8% | 8.1% | 8.3% | 0.3% |
| Net Income Margin | 2.6% | 1.5% | 2.6% | 4.2% | 5.9% | 1.7% |
| SG&A, % of revenue | | 15.6% | 17.8% | 18.1% | 18.0% | -0.2% |
| CAPEX, % of revenue | 9.1% | 10.7% | 23.6% | 2.0% | 4.3% | 2.3% |
| ROIC | 3.9% | 2.5% | 2.4% | 4.2% | 4.4% | 0.2% |
| ROE | 4.2% | 2.3% | 3.7% | 6.3% | 8.6% | 2.3% |
| Net Debt/EBITDA | -1.1x | 3.6x | 4.1x | 3.8x | 3.4x | -0.4x |
Revenue and profitability
The company's Revenue increased on 2.9% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 11.0 pp from 26.9% to 37.9% in 2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign increased slightly on 1.7 pp from 4.2% to 5.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.3% in FY2015. CAPEX/Revenue decreased on 6.4 pp from 10.7% in FY2012 to 4.3% in FY2015. It's average level of CAPEX/Revenue for the last three years was 9.9%.Come Sure Group Holdings Ltd maintained rich investment policy and has spent a big chunk of EBITDA (51.1%) to CAPEX.
Return on investment
The company operates at low ROIC (4.38%) and ROE (8.59%). ROIC showed almost no change in FY2015. ROE increased on 2.3 pp from 6.3% to 8.6% in FY2015.
Leverage (Debt)
Debt level is 3.4x Net Debt / EBITDA and 6.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 3.8x to 3.4x in FY2015. Debt increased on 3.9% in FY2015 while cash jumped on 16.8% in FY2015.
Appendix 1: Peers in Packaging&Containers
Below you can find Come Sure Group Holdings Ltd benchmarking vs. other companies in Packaging&Containers 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 |
|---|
| China For You Group Co Ltd ($572) | 19.6% | -46.9% | -99.7% | 36,225.6% | |
| China Aluminum Cans Holdings Ltd ($6898) | 19.6% | 15.5% | -5.0% | 189.1% | |
| Zhengye International Holdings Co Ltd ($3363) | 10.5% | 6.8% | 16.4% | 18.6% | |
| Huajun Holdings Ltd ($377) | | 11.2% | 3.3% | 3.4% | 10.4% |
| Greatview Aseptic Packaging Co Ltd ($468) | 35.7% | 10.8% | 23.8% | 3.3% | |
| |
|---|
| Median (17 companies) | 19.6% | 4.2% | 5.0% | 0.8% | 11.5% |
|---|
| Come Sure Group Holdings Ltd ($794) | | 10.7% | -0.7% | 16.8% | 2.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huaxi Holdings Co Ltd ($1689) | 13.1% | 19.0% | 28.2% | 40.9% | 37.5% |
| Sheen Tai Holdings Grp Co Ltd ($1335) | 36.5% | 36.4% | 37.8% | 39.6% | |
| Jin Cai Holdings Co Ltd ($1250) | 39.6% | 36.6% | 39.1% | 37.7% | |
| China For You Group Co Ltd ($572) | 18.7% | 12.4% | | 34.6% | |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 30.2% | 34.3% | 36.5% | 32.8% | |
| |
|---|
| Median (17 companies) | 18.6% | 19.9% | 19.7% | 21.1% | 22.3% |
|---|
| Come Sure Group Holdings Ltd ($794) | 17.7% | 17.5% | 20.7% | 22.3% | 22.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sheen Tai Holdings Grp Co Ltd ($1335) | 35.5% | 31.9% | 32.2% | 32.1% | |
| Jin Cai Holdings Co Ltd ($1250) | 35.7% | 33.2% | 26.1% | 27.6% | |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 25.5% | 27.9% | 30.7% | 27.4% | |
| Huaxi Holdings Co Ltd ($1689) | 7.8% | 14.5% | 21.2% | 27.1% | 29.1% |
| Greatview Aseptic Packaging Co Ltd ($468) | 24.1% | 25.9% | 23.1% | 21.6% | |
| |
|---|
| Median (18 companies) | 11.5% | 13.2% | 13.9% | 13.5% | 6.6% |
|---|
| Come Sure Group Holdings Ltd ($794) | 6.2% | 5.3% | 6.8% | 8.1% | 8.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Aluminum Cans Holdings Ltd ($6898) | 1.3% | 6.9% | 9.5% | 20.7% | |
| Lee & Man Paper Manufacturing Ltd ($2314) | 13.5% | 19.7% | 13.7% | 13.1% | |
| Hao Tian Development Group Ltd ($474) | 88.2% | 81.6% | | 13.0% | 25.4% |
| CPMC Holdings Ltd ($906) | 13.7% | 16.7% | 19.7% | 8.6% | |
| Jin Bao Bao Holdings Ltd ($1239) | 3.8% | 5.2% | 3.3% | 8.3% | |
| |
|---|
| Median (18 companies) | 5.2% | 6.1% | 4.8% | 4.7% | 5.4% |
|---|
| Come Sure Group Holdings Ltd ($794) | 9.1% | 10.7% | 23.6% | 2.0% | 4.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huaxi Holdings Co Ltd ($1689) | | 21.4% | 28.5% | 26.2% | 23.6% |
| Sheen Tai Holdings Grp Co Ltd ($1335) | 32.5% | 26.8% | 26.2% | 24.7% | |
| China Aluminum Cans Holdings Ltd ($6898) | 14.8% | 19.7% | 14.6% | 20.2% | |
| Greatview Aseptic Packaging Co Ltd ($468) | 19.6% | 20.2% | 18.9% | 15.7% | |
| Jin Cai Holdings Co Ltd ($1250) | 38.7% | 35.3% | 18.4% | 15.4% | |
| |
|---|
| Median (18 companies) | 11.3% | 7.9% | 6.7% | 6.3% | 1.9% |
|---|
| Come Sure Group Holdings Ltd ($794) | 3.9% | 2.5% | 2.4% | 4.2% | 4.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zhengye International Holdings Co Ltd ($3363) | 4.0x | 6.2x | 6.4x | 7.8x | |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 0.7x | 9.4x | 6.7x | 7.4x | |
| Sino Haijing Holdings Ltd ($1106) | 4.7x | 6.4x | 6.1x | 6.2x | |
| Lee & Man Paper Manufacturing Ltd ($2314) | 2.5x | 4.1x | 3.5x | 3.4x | |
| Kith Holdings Ltd ($1201) | 2.9x | 3.0x | 3.2x | 2.9x | |
| |
|---|
| Median (17 companies) | 0.7x | 0.9x | 0.5x | 0.3x | 0.5x |
|---|
| Come Sure Group Holdings Ltd ($794) | -1.1x | 3.6x | 4.1x | 3.8x | 3.4x |
