NWS Holdings Ltd revenue growth decelerated from 32.0% in FY2014 to 14.2% in FY2015
23/09/2015 • About NWS Holdings Ltd (
$659) • By InTwits
NWS Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- NWS Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's in pair with industry average of 10.8%.
- CAPEX is quite volatile: 237 in FY2015, 223 in FY2014, 140 in FY2013, 183 in FY2012, 1,174 in FY2011
- The company has potentially unprofitable business model: ROIC is at 5.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
NWS Holdings Ltd ($659) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 9,561 | 14,954 | 16,248 | 21,443 | 24,492 | 14.2% |
| Gross Profit | 1,659 | 3,078 | 3,134 | 3,080 | 3,151 | 2.3% |
| SG&A | 717 | 655 | 747 | 881 | 1,014 | 15.1% |
| EBITDA | 2,531 | 5,100 | 3,881 | 4,042 | 4,508 | 11.5% |
| Net Income | 4,627 | 5,251 | 4,008 | 4,325 | 4,478 | 3.5% |
Balance Sheet
|
|---|
| Cash | 4,501 | 5,199 | 7,748 | 7,619 | 10,406 | 36.6% |
| Short Term Debt | 3,898 | 2,556 | 1,404 | 5,514 | 3,324 | -39.7% |
| Long Term Debt | 2,764 | 15,110 | 16,276 | 12,154 | 13,487 | 11.0% |
Cash flow
|
|---|
| Capex | 1,174 | 183 | 140 | 223 | 237 | 6.2% |
Ratios
|
|---|
| Revenue growth | -20.9% | 56.4% | 8.7% | 32.0% | 14.2% | |
| EBITDA growth | 23.0% | 101.5% | -23.9% | 4.2% | 11.5% | |
| Gross Margin | 17.4% | 20.6% | 19.3% | 14.4% | 12.9% | -1.5% |
| EBITDA Margin | 26.5% | 34.1% | 23.9% | 18.9% | 18.4% | -0.4% |
| Net Income Margin | 48.4% | 35.1% | 24.7% | 20.2% | 18.3% | -1.9% |
| SG&A, % of revenue | 7.5% | 4.4% | 4.6% | 4.1% | 4.1% | 0.0% |
| CAPEX, % of revenue | 12.3% | 1.2% | 0.9% | 1.0% | 1.0% | -0.1% |
| ROIC | 6.6% | 9.1% | 5.1% | 5.0% | 5.4% | 0.4% |
| ROE | 16.2% | 15.7% | 10.6% | 10.5% | 10.2% | -0.3% |
| Net Debt/EBITDA | 0.9x | 2.4x | 2.6x | 2.5x | 1.4x | -1.1x |
Revenue and profitability
NWS Holdings Ltd's Revenue surged on 14.2% in FY2015. EBITDA Margin showed almost no change in FY2015.
Gross Margin decreased slightly on 1.5 pp from 14.4% to 12.9% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign decreased slightly on 1.9 pp from 20.2% to 18.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 NWS Holdings Ltd had CAPEX/Revenue of 0.97%. The company showed almost no change in CAPEX/Revenue from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 0.96%.
Return on investment
The company operates at low ROIC (5.43%) and ROE (10.22%). ROIC showed almost no change in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt level is 1.4x Net Debt / EBITDA and 3.7x Debt / EBITDA. Net Debt / EBITDA dropped on 1.1x from 2.5x to 1.4x in FY2015. Debt decreased on 4.8% in FY2015 while cash surged on 36.6% in FY2015.
Management team
Tsang Yam Pui is a NWS Holdings Ltd's CEO. Tsang Yam Pui has spent 3 years at the company.
Appendix 1: Peers in Holding Companies-Divers
Below we provide NWS Holdings Ltd benchmarking against other companies in Holding Companies-Divers 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 |
|---|
| Kong Sun Holdings Ltd ($295) | -18.7% | -88.3% | 5.1% | 7,067.0% | |
| Goldin Properties Holdings Ltd ($283) | | | 126.0% | 2,065.8% | -79.6% |
| China Primary Energy Holdings Ltd ($8117) | -43.1% | -56.3% | -23.6% | 195.4% | |
| Carnival Group International Holdings Ltd ($996) | | | | 159.1% | |
| 21 Holdings Ltd ($1003) | 20.3% | -57.4% | -12.4% | 106.4% | |
| |
|---|
| Median (42 companies) | 18.3% | 11.4% | 3.3% | 12.6% | 0.5% |
|---|
| NWS Holdings Ltd ($659) | | 56.4% | 8.7% | 32.0% | 14.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Multifield International Holdings Ltd ($898) | 66.4% | 87.5% | 84.7% | 89.1% | |
| New Century Group Hong Kong Ltd ($234) | 76.7% | 27.3% | 85.2% | 82.8% | 91.5% |
| Emperor International Holdings Ltd ($163) | 74.5% | 71.3% | 64.9% | 79.2% | 75.3% |
| China Renji Medical Group Ltd/Hong Kong ($648) | 54.9% | 70.0% | 67.3% | 78.6% | |
| Century Legend Holdings Ltd ($79) | 68.5% | 70.1% | 72.3% | 71.0% | |
| |
|---|
| Median (39 companies) | 29.5% | 33.4% | 36.0% | 34.4% | 44.7% |
|---|
| NWS Holdings Ltd ($659) | 17.4% | 20.6% | 19.3% | 14.4% | 12.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Emperor International Holdings Ltd ($163) | 224.8% | 180.7% | 131.8% | 100.6% | 73.9% |
| Multifield International Holdings Ltd ($898) | 49.8% | 80.1% | 68.3% | 97.5% | |
| New Century Group Hong Kong Ltd ($234) | 82.5% | -5.5% | 78.8% | 58.3% | 85.0% |
| Magnificent Estates ($201) | 42.1% | 45.5% | 47.8% | 53.0% | |
| China Merchants Holdings International Co Ltd ($144) | 63.7% | 56.4% | 50.8% | 45.2% | |
| |
|---|
| Median (44 companies) | 5.2% | 1.7% | 1.9% | 5.6% | 3.7% |
|---|
| NWS Holdings Ltd ($659) | 26.5% | 34.1% | 23.9% | 18.9% | 18.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Far East Holdings International Ltd ($36) | 2.7% | 0.1% | 13.2% | 422.1% | |
| China Investments Holdings Ltd ($132) | 20.7% | 4.8% | 81.9% | 382.2% | |
| Heng Fai Enterprises Ltd ($185) | 217.5% | 4.8% | 77.1% | 310.0% | 458.1% |
| New Century Group Hong Kong Ltd ($234) | 1.0% | 97.2% | 1.0% | 142.7% | 32.2% |
| Chinney Investments Ltd ($216) | 37.6% | 17.5% | 103.4% | 111.3% | 230.9% |
| |
|---|
| Median (44 companies) | 4.1% | 2.7% | 3.8% | 7.0% | 26.4% |
|---|
| NWS Holdings Ltd ($659) | 12.3% | 1.2% | 0.9% | 1.0% | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wisdom Holdings Group ($1661) | 62.7% | 68.6% | 42.1% | 28.8% | |
| Chinney Alliance Group Ltd ($385) | 3.4% | 6.4% | 8.1% | 13.6% | |
| Hutchison Whampoa Ltd ($13) | 3.3% | 3.7% | 4.2% | 8.1% | |
| Code Agriculture Holdings Ltd ($8153) | -0.1% | 2.4% | -3.3% | 7.9% | -6.2% |
| C C Land Holdings Ltd ($1224) | 4.5% | 7.4% | 5.3% | 7.9% | |
| |
|---|
| Median (44 companies) | 0.3% | -0.2% | -0.2% | 0.5% | -0.0% |
|---|
| NWS Holdings Ltd ($659) | 6.6% | 9.1% | 5.1% | 5.0% | 5.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chinney Investments Ltd ($216) | 111.3x | 10.3x | 63.7x | 48.6x | 93.7x |
| Carnival Group International Holdings Ltd ($996) | | | | 23.7x | |
| Van Shung Chong Holdings Ltd ($1001) | 3.4x | | 0.9x | 12.3x | 7.7x |
| Southeast Asia Properties & Finance Ltd ($252) | 6.8x | 6.7x | 5.7x | 9.2x | 4.3x |
| Code Agriculture Holdings Ltd ($8153) | 24.3x | 11.9x | 42.8x | 8.7x | |
| |
|---|
| Median (26 companies) | 3.1x | 2.6x | 3.1x | 3.2x | 7.2x |
|---|
| NWS Holdings Ltd ($659) | 0.9x | 2.4x | 2.6x | 2.5x | 1.4x |
