Good Fellow Resources Holdings Ltd reports 74.0% EBITDA growth and 16.8 pp EBITDA Margin growth from 43.6% to 60.4%
29/09/2015 • About Good Fellow Resources Holdings Ltd (
$109) • By InTwits
Good Fellow Resources Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Good Fellow Resources Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is 1.8%
- EBITDA Margin is expanding: 60.4% in FY2015 vs. 43.6% in FY2014 vs. -17.2% in FY2011
- Good Fellow Resources Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -32.4%0
- Good Fellow Resources Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has potentially unprofitable business model: ROIC is at 1.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Good Fellow Resources Holdings Ltd ($109) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 32.853 | 34.321 | 19.093 | 40.732 | 51.190 | 25.7% |
| Gross Profit | 31.395 | 10.408 | 19.011 | | | |
| SG&A | | | | | 24.502 | |
| EBITDA | -5.665 | -105.264 | 4.501 | 17.768 | 30.916 | 74.0% |
| Net Income | 471.910 | -619.312 | 104.239 | 19.924 | 13.167 | -33.9% |
Balance Sheet
|
|---|
| Cash | 119.758 | 34.883 | 271.099 | 97.939 | 687.883 | 602.4% |
| Short Term Debt | 0.000 | 29.487 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 30.089 | 0.000 | 0.000 | 0.000 | 448.485 | |
Cash flow
|
|---|
| Capex | 0.000 | 0.098 | 0.779 | 0.017 | 0.078 | 358.8% |
Ratios
|
|---|
| Revenue growth | 31.8% | 4.5% | -44.4% | 113.3% | 25.7% | |
| EBITDA growth | -3,247.2% | 1,758.1% | -104.3% | 294.8% | 74.0% | |
| Gross Margin | 95.6% | 30.3% | 99.6% | | | 0.0% |
| EBITDA Margin | -17.2% | -306.7% | 23.6% | 43.6% | 60.4% | 16.8% |
| Net Income Margin | 1,436.4% | -1,804.5% | 546.0% | 48.9% | 25.7% | -23.2% |
| SG&A, % of revenue | | | | | 47.9% | 47.9% |
| CAPEX, % of revenue | 0.0% | 0.3% | 4.1% | 0.0% | 0.2% | 0.1% |
| ROIC | -0.9% | -16.7% | 1.1% | 4.2% | 1.8% | -2.4% |
| ROE | 72.6% | -105.8% | 32.4% | 5.1% | 0.9% | -4.2% |
| Net Debt/EBITDA | | | -60.2x | -5.5x | -7.7x | -2.2x |
Revenue and profitability
Good Fellow Resources Holdings Ltd's Revenue surged on 25.7% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 28.4 pp from -16.7% to 11.7% in FY2015.
Net Income marign dropped on 23.2 pp from 48.9% to 25.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Good Fellow Resources Holdings Ltd's CAPEX/Revenue was 0.15% in FY2015. Good Fellow Resources Holdings Ltd showed almost no change in CAPEX/Revenue from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at low ROIC (1.78%) and ROE (0.90%). ROIC decreased on 2.4 pp from 4.2% to 1.8% in FY2015. ROE decreased on 4.2 pp from 5.1% to 0.90% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -7.7x and Debt / EBITDA is 14.5x. Net Debt / EBITDA dropped on 2.2x from -5.5x to -7.7x in FY2015. Debt jumped while cash surged on 602% in FY2015.
Appendix 1: Peers in Diversified Finan Serv
Below we provide Good Fellow Resources 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) | 5.7% | 0.9% | 14.7% | 24.9% | 21.4% |
|---|
| Good Fellow Resources Holdings Ltd ($109) | | 4.5% | -44.4% | 113.3% | 25.7% |
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) | 75.0% | 70.7% | 72.7% | 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% | 30.5% |
|---|
| Good Fellow Resources Holdings Ltd ($109) | -17.2% | -306.7% | 23.6% | 43.6% | 60.4% |
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% | 1.7% | 1.1% | 1.7% |
|---|
| Good Fellow Resources Holdings Ltd ($109) | 0.0% | 0.3% | 4.1% | 0.0% | 0.2% |
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% | 2.0% |
|---|
| Good Fellow Resources Holdings Ltd ($109) | -0.9% | -16.7% | 1.1% | 4.2% | 1.8% |
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 (45 companies) | -1.1x | -1.0x | 0.3x | 0.1x | -1.1x |
|---|
| Good Fellow Resources Holdings Ltd ($109) | | | -60.2x | -5.5x | -7.7x |
