Goldin Financial Holdings Ltd EBITDA surged on 82.1% in 2015 and EBITDA Margin surged on 78.4 pp from 286% to 364%
30/09/2015 • About Goldin Financial Holdings Ltd (
$530) • By InTwits
Goldin Financial Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Goldin Financial Holdings Ltd is a fast growth stock: FY2015 revenue growth was 42.9%, 5 year revenue CAGR was 18.8% at FY2015 ROIC 16.0%
- EBITDA Margin is quite volatile: 364.1% in FY2015, 285.7% in FY2014, 613.4% in FY2013, 163.7% in FY2012, -134.6% in FY2011
- Goldin Financial Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 26.9%. At the same time it's a lot of higher than industry average of 3.6%.
- CAPEX is quite volatile: 8.6 in FY2015, 7.7 in FY2014, 5.6 in FY2013, 7 in FY2012, 314 in FY2011
- The company has highly profitable business model: ROIC is at 16.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Goldin Financial Holdings Ltd ($530) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 252.7 | 153.2 | 250.5 | 401.5 | 573.8 | 42.9% |
| Gross Profit | 169.4 | 115.3 | 179.6 | 300.3 | 423.4 | 41.0% |
| SG&A | 64.2 | 87.7 | 119.2 | 150.7 | 318.0 | 111.1% |
| EBITDA | -340.2 | 250.8 | 1,536.4 | 1,147.1 | 2,089.3 | 82.1% |
| Net Income | -312.7 | 79.2 | 928.1 | 733.8 | 1,214.0 | 65.4% |
Balance Sheet
|
|---|
| Cash | 1,731.2 | 84.8 | 2,483.9 | 678.4 | 52.3 | -92.3% |
| Short Term Debt | 557.6 | 0.0 | 0.0 | 0.2 | 0.2 | -15.6% |
| Long Term Debt | 0.0 | 0.0 | 272.9 | 516.2 | 1,051.5 | 103.7% |
Cash flow
|
|---|
| Capex | 313.7 | 7.0 | 5.6 | 7.7 | 8.6 | 11.7% |
Ratios
|
|---|
| Revenue growth | 4.2% | -39.4% | 63.5% | 60.3% | 42.9% | |
| EBITDA growth | -311.9% | -173.7% | 512.7% | -25.3% | 82.1% | |
| Gross Margin | 67.0% | 75.3% | 71.7% | 74.8% | 73.8% | -1.0% |
| EBITDA Margin | -134.6% | 163.7% | 613.4% | 285.7% | 364.1% | 78.4% |
| Net Income Margin | -123.7% | 51.7% | 370.5% | 182.8% | 211.6% | 28.8% |
| SG&A, % of revenue | 25.4% | 57.2% | 47.6% | 37.5% | 55.4% | 17.9% |
| CAPEX, % of revenue | 124.1% | 4.6% | 2.3% | 1.9% | 1.5% | -0.4% |
| ROIC | -10.1% | 5.9% | 20.6% | 10.4% | 16.0% | 5.7% |
| ROE | -10.1% | 2.7% | 17.3% | 9.0% | 13.3% | 4.2% |
| Net Debt/EBITDA | | -0.3x | -1.4x | -0.1x | 0.5x | 0.6x |
Revenue and profitability
The company's Revenue surged on 42.9% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 78.4 pp from 286% to 364% in FY2015.
Gross Margin decreased slightly on 1.0 pp from 74.8% to 73.8% in FY2015. SG&A as a % of Revenue jumped on 17.9 pp from 37.5% to 55.4% in FY2015.
Net Income marign surged on 28.8 pp from 183% to 212% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 1.5%. The company's CAPEX/Revenue decreased on 3.1 pp from 4.6% in FY2012 to 1.5% in FY2015. Average CAPEX/Revenue for the last three years was 1.9%.
Return on investment
The company operates at good ROIC (16.04%) and ROE (13.27%). ROIC increased on 5.7 pp from 10.4% to 16.0% in FY2015. ROE increased on 4.2 pp from 9.0% to 13.3% in FY2015.
Leverage (Debt)
Debt level is 0.5x Net Debt / EBITDA and 0.5x Debt / EBITDA. Net Debt / EBITDA surged on 0.6x from -0.1x to 0.5x in FY2015. Debt jumped on 104% in FY2015 while cash dropped on 92.3% in FY2015.
Appendix 1: Peers in Distribution/Wholesale
Below we provide Goldin Financial Holdings Ltd benchmarking against other companies in Distribution/Wholesale 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 |
|---|
| Forefront Group Ltd ($885) | | | 504.6% | 3,871.0% | |
| China LNG Group Ltd ($931) | -84.5% | 694.8% | 13.6% | 1,341.3% | |
| Sheng Yuan Holdings Ltd ($851) | 571.1% | -86.1% | 756.9% | 567.2% | |
| China Infrastructure Investment Ltd ($600) | 346.9% | 412.1% | -50.9% | 557.9% | |
| China-Hongkong Photo Products Holdings Ltd ($1123) | | 24.9% | 9.0% | 81.2% | 12.2% |
| |
|---|
| Median (37 companies) | 18.6% | 3.1% | 0.0% | 0.8% | 6.1% |
|---|
| Goldin Financial Holdings Ltd ($530) | | -39.4% | 63.5% | 60.3% | 42.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Forefront Group Ltd ($885) | | | | 69.8% | |
| YGM Trading Ltd ($375) | 67.1% | 66.5% | 67.4% | 64.0% | 62.5% |
| Goldlion Holdings Ltd ($533) | 57.3% | 56.4% | 54.1% | 55.7% | |
| Sincere Watch Hong Kong Ltd ($444) | 34.2% | 35.6% | 39.7% | 38.8% | 38.3% |
| E.Bon Holdings Ltd ($599) | 36.6% | 40.3% | 37.4% | 35.8% | 39.6% |
| |
|---|
| Median (33 companies) | 15.5% | 17.3% | 17.1% | 18.0% | 22.5% |
|---|
| Goldin Financial Holdings Ltd ($530) | 67.0% | 75.3% | 71.7% | 74.8% | 73.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China LNG Group Ltd ($931) | 195.2% | 95.1% | 76.4% | 97.9% | |
| Forefront Group Ltd ($885) | | -2,113.8% | -803.1% | 57.7% | |
| China Infrastructure Investment Ltd ($600) | -1,171.2% | -274.9% | 120.0% | 52.0% | |
| GA Holdings Ltd ($8126) | -4.5% | 8.0% | 19.7% | 22.9% | |
| Goldlion Holdings Ltd ($533) | 27.8% | 25.8% | 23.4% | 22.5% | |
| |
|---|
| Median (37 companies) | 2.9% | 2.1% | 1.9% | 4.5% | 1.7% |
|---|
| Goldin Financial Holdings Ltd ($530) | -134.6% | 163.7% | 613.4% | 285.7% | 364.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| C Y Foundation Group Ltd ($1182) | 9.8% | 2.5% | 5.2% | 82.2% | 9.3% |
| Inspur International Ltd ($596) | 0.9% | 8.4% | 12.2% | 33.6% | |
| SIS International Holdings ($529) | 0.2% | 13.4% | 31.8% | 14.8% | |
| HKC International Holdings Ltd ($248) | 0.9% | 5.5% | 0.8% | 11.4% | 0.5% |
| Tan Chong International Ltd ($693) | 7.6% | 6.0% | 7.6% | 7.0% | |
| |
|---|
| Median (36 companies) | 1.3% | 1.3% | 1.7% | 1.6% | 1.8% |
|---|
| Goldin Financial Holdings Ltd ($530) | 124.1% | 4.6% | 2.3% | 1.9% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China LNG Group Ltd ($931) | 2.2% | 8.4% | 7.4% | 87.0% | |
| Yestar International Holdings Co Ltd ($2393) | 29.4% | 28.8% | 24.1% | 26.2% | |
| Powerwell Pacific Holdings Ltd ($8265) | 27.8% | 6.4% | 6.4% | 23.6% | |
| Forefront Group Ltd ($885) | -37.7% | -4.9% | -11.0% | 19.5% | |
| Sincere Watch Hong Kong Ltd ($444) | 46.4% | 51.7% | 27.7% | 14.6% | 5.5% |
| |
|---|
| Median (38 companies) | 2.9% | 2.1% | 0.9% | 3.1% | -0.7% |
|---|
| Goldin Financial Holdings Ltd ($530) | -10.1% | 5.9% | 20.6% | 10.4% | 16.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sheng Yuan Holdings Ltd ($851) | | | | 19.3x | |
| Takson Holdings Ltd ($918) | | | 11.5x | 11.7x | 15.7x |
| Huiyin Household Appliances Holdings Co Ltd ($1280) | 10.1x | | | 10.9x | |
| Pacific Andes International Holdings Ltd ($1174) | 4.9x | 5.1x | 9.1x | 7.8x | |
| SIS International Holdings ($529) | -62.1x | -1.8x | 7.0x | 7.2x | |
| |
|---|
| Median (26 companies) | -0.2x | -0.1x | -0.5x | 0.3x | -1.5x |
|---|
| Goldin Financial Holdings Ltd ($530) | | -0.3x | -1.4x | -0.1x | 0.5x |
