Tanrich Financial Holdings Ltd reports 164% Net Income growth and 70.9% Revenue growth
18/09/2015 • About Tanrich Financial Holdings Ltd (
$812) • By InTwits
Tanrich Financial Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tanrich Financial Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is 0.9%
- EBITDA Margin is expanding: 20.5% in FY2015 vs. -21.6% in FY2014 vs. 7.8% in FY2011
- Tanrich Financial Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -11.8% for the sames years0
- Tanrich Financial Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.3%. At the same time it's in pair with industry average of 7.2%.
- CAPEX is quite volatile: 2.1 in FY2015, 5.0 in FY2014, 0.58 in FY2013, 0.96 in FY2012, 1.4 in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tanrich Financial Holdings Ltd ($812) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 119.1 | 75.1 | 61.8 | 79.0 | 135.0 | 70.9% |
| EBITDA | 9.3 | -42.9 | -32.4 | -17.1 | 27.6 | -261.6% |
| Net Income | 4.6 | -45.0 | -32.5 | -17.7 | 11.3 | -163.7% |
Balance Sheet
|
|---|
| Cash | 32.0 | 35.2 | 38.8 | 76.3 | 1,918.8 | 2,414.0% |
| Short Term Debt | 110.3 | 85.5 | 48.5 | 163.9 | 0.0 | -100.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 1,854.3 | |
Cash flow
|
|---|
| Capex | 1.4 | 1.0 | 0.6 | 5.0 | 2.1 | -57.8% |
Ratios
|
|---|
| Revenue growth | 57.7% | -37.0% | -17.6% | 27.8% | 70.9% | |
| EBITDA growth | -134.2% | -561.2% | -24.5% | -47.3% | -261.6% | |
| EBITDA Margin | 7.8% | -57.2% | -52.4% | -21.6% | 20.5% | 42.1% |
| Net Income Margin | 3.9% | -59.9% | -52.5% | -22.4% | 8.4% | 30.8% |
| CAPEX, % of revenue | 1.2% | 1.3% | 0.9% | 6.3% | 1.6% | -4.7% |
| ROIC | 1.9% | -13.8% | -14.4% | -7.3% | 0.9% | 8.2% |
| ROE | 1.9% | -19.7% | -18.5% | -10.9% | 3.3% | 14.2% |
| Net Debt/EBITDA | 8.4x | | | | -2.3x | -2.3x |
Revenue and profitability
The company's Revenue surged on 70.9% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 20.4 pp from 2.2% to -18.2% in FY2015.
Net Income marign jumped on 30.8 pp from -22.4% to 8.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 1.6%. CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 2.9%.
Return on investment
The company operates at low ROIC (0.93%) and ROE (3.26%). ROIC increased on 8.2 pp from -7.3% to 0.93% in FY2015. ROE surged on 14.2 pp from -10.9% to 3.3% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.3x and Debt / EBITDA is 67.1x. Net Debt / EBITDA dropped2.3x from to -2.3x in FY2015. Debt jumped on 1,031% in FY2015 while cash jumped on 2,414% in FY2015.
Appendix 1: Peers in Diversified Finan Serv
Below we provide Tanrich Financial Holdings Ltd benchmarking against other companies in Diversified Finan Serv 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 New Energy Power Group Ltd ($1041) | | 100.0% | 0.0% | 64,246.0% | |
| ReOrient Group Ltd ($376) | 63.3% | 112.8% | 75.1% | 1,106.9% | |
| Global Strategic Group Ltd ($8007) | 2.2% | -3.9% | 2.1% | 806.3% | |
| AID Partners Capital Holdings Ltd ($8088) | -38.7% | 0.9% | -79.5% | 655.2% | |
| Willie International Holdings Ltd ($273) | | | | 543.9% | |
| |
|---|
| Median (62 companies) | 6.3% | 1.2% | 14.7% | 24.9% | 16.4% |
|---|
| Tanrich Financial Holdings Ltd ($812) | | -37.0% | -17.6% | 27.8% | 70.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Roma Group Ltd ($8072) | | | | 99.4% | 98.7% |
| Freeman Financial Corp Ltd ($279) | 97.1% | 52.3% | 99.3% | 98.5% | |
| Chinese Strategic Holdings Ltd ($8089) | 97.9% | 99.1% | 97.9% | 97.0% | |
| First China Financial Network Holdings Ltd ($8123) | 98.6% | 93.4% | | 94.5% | |
| Allied Group Ltd ($373) | 94.5% | 95.1% | 94.4% | 93.6% | |
| |
|---|
| Median (13 companies) | 80.8% | 64.2% | 75.1% | 88.2% | 90.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Styland Holdings Ltd ($211) | 68.6% | 198.6% | 91.5% | 161.0% | 17.9% |
| Roma Group Ltd ($8072) | 81.4% | 18.1% | 36.8% | 143.0% | 44.7% |
| First China Financial Network Holdings Ltd ($8123) | -231.6% | -329.2% | -211.2% | 124.3% | |
| Willie International Holdings Ltd ($273) | | | 75.3% | 95.2% | |
| Get Nice Holdings Ltd ($64) | 28.4% | 2.6% | 153.4% | 92.7% | 83.9% |
| |
|---|
| Median (63 companies) | 30.3% | 16.4% | 36.2% | 47.2% | 31.6% |
|---|
| Tanrich Financial Holdings Ltd ($812) | 7.8% | -57.2% | -52.4% | -21.6% | 20.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gemini Investments Holdings Ltd ($174) | 14.9% | 479.1% | 37.3% | 216.0% | |
| China Assurance Finance Group Ltd ($8090) | | 94.7% | 68.9% | 53.3% | |
| Chinese Strategic Holdings Ltd ($8089) | 93.2% | 376.0% | 5.7% | 32.6% | |
| AID Partners Capital Holdings Ltd ($8088) | 196.3% | 4.1% | 2.9% | 28.4% | |
| Asian Capital Holdings Ltd ($8295) | 2.3% | 0.1% | 0.2% | 15.6% | |
| |
|---|
| Median (63 companies) | 2.3% | 1.9% | 1.8% | 1.1% | 2.2% |
|---|
| Tanrich Financial Holdings Ltd ($812) | 1.2% | 1.3% | 0.9% | 6.3% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ReOrient Group Ltd ($376) | -24.9% | -45.6% | -53.5% | 128.6% | |
| Roma Group Ltd ($8072) | | 19.6% | 43.7% | 107.8% | 13.3% |
| Convoy Financial Holdings Ltd ($1019) | 31.1% | 3.4% | 39.3% | 47.3% | |
| Willie International Holdings Ltd ($273) | -28.1% | -9.5% | 4.7% | 30.9% | |
| Value Partners Group Ltd ($806) | 8.7% | 16.8% | 16.5% | 26.8% | |
| |
|---|
| Median (65 companies) | 4.9% | 3.9% | 4.0% | 4.8% | 2.6% |
|---|
| Tanrich Financial Holdings Ltd ($812) | 1.9% | -13.8% | -14.4% | -7.3% | 0.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cash Financial Services Group Ltd ($510) | -1.1x | 7.8x | | 67.5x | |
| Far East Horizon Ltd ($3360) | 17.8x | 16.9x | 21.7x | 20.0x | |
| Bright Smart Securities & Commodities Group Ltd ($1428) | 7.3x | 2.1x | 10.3x | 9.3x | 39.3x |
| China Cinda Asset Management Co Ltd ($1359) | 2.1x | 5.0x | 7.7x | 8.4x | |
| Aeon Credit Service Asia Co Ltd ($900) | 6.3x | 5.2x | 6.0x | 6.9x | 5.5x |
| |
|---|
| Median (46 companies) | -1.1x | -1.0x | 0.1x | -0.0x | 0.6x |
|---|
