Travel Expert Asia Enterprises Ltd demonstrated healthy growth over the last few years
01/07/2015 • About Travel Expert Asia Enterprises Ltd (
$1235) • By InTwits
Travel Expert Asia Enterprises Ltd is a fast-growing stock in Leisure Time industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Travel Expert Asia Enterprises Ltd showed fast growth in the last financial year. Travel Expert Asia Enterprises Ltd's revenue surged on 18.9% in FY2015. Together with revenue growth Travel Expert Asia Enterprises Ltd also managed to keep EBITDA growth. EBITDA grew -2.76% for the same period.
In the last 3 years Travel Expert Asia Enterprises Ltd showed fast revenue growth of 17.9% from FY2012 to FY2015 annualy. EBITDA surged on 12.2% from FY2012 to FY2015 annualy.
Travel Expert Asia Enterprises Ltd ($1235) financials for the last 5 years
| mln. HKD | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Revenue | 205 | 229 | 264 | 316 | 376 |
|---|
| Revenue growth, % | | 11.9% | 15.3% | 19.5% | 18.9% |
|---|
| Gross margin, % | | | | | 90.7% |
|---|
| SG&A, % | | | 87.9% | 85.5% | 80.3% |
|---|
| EBITDA | 41 | 40 | 43 | 58 | 56 |
|---|
| EBITDA growth, % | | -3.2% | 7.8% | 34.7% | -2.8% |
|---|
| EBITDA margin, % | 20.1% | 17.4% | 16.2% | 18.3% | 15.0% |
|---|
| Net Income | 31 | 30 | 41 | 43 | 45 |
|---|
| Net Income margin, % | 15.2% | 13.2% | 15.6% | 13.7% | 12.1% |
|---|
| |
| CAPEX | 5 | 52 | 59 | 7 | 10 |
|---|
| CAPEX/Revenue, % | 2.46% | 22.5% | 22.3% | 2.37% | 2.78% |
|---|
| Debt | 0 | 7 | 27 | 25 | 56 |
|---|
| Cash | 95 | 57 | 78 | 122 | 71 |
|---|
| Net Debt/EBITDA | -2.3x | -1.3x | -1.2x | -1.7x | -0.3x |
|---|
| |
| ROIC, % | 179.4% | 50.9% | 26.7% | 29.8% | 23.0% |
|---|
| ROE, % | 152.3% | 47.1% | 34.3% | 30.0% | 27.1% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 18.3% in FY2014 to 15% in FY2015. In the longer period Travel Expert Asia Enterprises Ltd showed big decline in EBITDA margin of 2.40 pp from 17.4% in FY2012 to 15% in FY2015.
Travel Expert Asia Enterprises Ltd shows attractive ROIC at 23.0% for the last 12 months which assumes stable development model. During the last three years it dropped - it was 50.9% in FY2012. It's average level of ROIC for the last three years was 26.5%.
Net Income margin dropped on 1.60 pp from 13.7% to 12.1% in FY2015. If we look for the longer period Travel Expert Asia Enterprises Ltd showed decline of 1.10 pp from 13.2% in FY2012 to 12.1% in FY2015.
Travel Expert Asia Enterprises Ltd operates at ROE of 27.1%. It's average ROE for the last three years was 30.5%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 2.78% in FY2015. The company's CAPEX/Revenue dropped on 19.7 pp from 22.5% in FY2012 to 2.78% in FY2015. It's average CAPEX/Revenue for the last three years was 9.13%.
Leverage (Debt)
Having such a fast growth profile the company keeps negative net debt at -0.3x Net Debt/EBITDA. In the last 3 years Travel Expert Asia Enterprises Ltd showed fast leverage growth of 1.00x from -1.27x in FY2012 to -0.27x in FY2015.
Peers in Leisure Time
Below we provide Travel Expert Asia Enterprises 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Water Oasis Group Ltd ($1161) | 8.1% | -16.3% | -23.7% | 8.0% | |
| Perfect Shape PRC Holdings Ltd ($1830) | 31.6% | 23.4% | 16.2% | 6.1% | |
| 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) | 8.1% | 5.3% | -6.6% | 2.6% | |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | | 11.9% | 15.3% | 19.5% | 18.9% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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% | |
|---|
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| China Travel International Investment Hong Kong Ltd ($308) | 25.6% | 28.2% | 29.1% | 48.5% | |
| Perfect Shape PRC Holdings Ltd ($1830) | 26.3% | 27.5% | 29.1% | 26.5% | |
| 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% | |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | 20.1% | 17.4% | 16.2% | 18.3% | 15.0% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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% | |
| Perfect Shape PRC Holdings Ltd ($1830) | 7.9% | 6.1% | 8.9% | 7.7% | |
| Sino Golf Holdings Ltd ($361) | 1.8% | 3.0% | 2.8% | 3.2% | |
| |
|---|
| Median (9 companies) | 4.1% | 3.0% | 4.0% | 3.2% | |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | 2.5% | 22.5% | 22.3% | 2.4% | 2.8% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | 140.4% | 62.8% | 44.1% | 37.7% | |
| 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% | |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | 179.4% | 50.9% | 26.7% | 29.8% | 23.0% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 | |
| Perfect Shape PRC Holdings Ltd ($1830) | -0.9x | -2.0x | -0.8x | -1.4x | |
| 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) | -2.2x | 0.8x | -1.1x | -1.4x | |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | -2.3x | -1.3x | -1.2x | -1.7x | -0.3x |
