Goldin Financial Holdings Ltd's growth is outstanding: revenue grew 55.3% and EBITDA 103% annually over the last three years
07/10/2015 • About Goldin Financial Holdings Ltd (
$530) • By InTwits
Pay attention to Goldin Financial Holdings Ltd as a growth stock. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Goldin Financial Holdings Ltd showed growth in the last financial year. Goldin Financial Holdings Ltd's revenue surged on 42.9% in FY2015. In addition to revenue Goldin Financial Holdings Ltd also keeps delivering EBITDA growth. It was 82.1% in FY2015
In the longer period the company showed fast revenue growth of 55.3% from FY2012 to FY2015 annualy. EBITDA surged on 103% from FY2012 to FY2015 annualy.
Goldin Financial Holdings Ltd ($530) financials for the last 5 years
| mln. HKD | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Revenue | 253 | 153 | 250 | 402 | 574 |
|---|
| Revenue growth, % | | -39.4% | 63.5% | 60.3% | 42.9% |
|---|
| Gross margin, % | 67.0% | 75.3% | 71.7% | 74.8% | 73.8% |
|---|
| SG&A, % | 25.4% | 57.2% | 47.6% | 37.5% | 55.4% |
|---|
| EBITDA | -340 | 251 | 1,536 | 1,147 | 2,089 |
|---|
| EBITDA growth, % | | -173.7% | 512.7% | -25.3% | 82.1% |
|---|
| EBITDA margin, % | -135% | 164% | 613% | 286% | 364% |
|---|
| Net Income | -313 | 79 | 928 | 734 | 1,214 |
|---|
| Net Income margin, % | -124% | 51.7% | 371% | 183% | 212% |
|---|
| |
| CAPEX | 314 | 7 | 6 | 8 | 9 |
|---|
| CAPEX/Revenue, % | 124% | 4.57% | 2.26% | 1.92% | 1.50% |
|---|
| Debt | 558 | 0 | 273 | 516 | 1,052 |
|---|
| Cash | 1,731 | 85 | 2,484 | 678 | 52 |
|---|
| Net Debt/EBITDA | 3.4x | -0.3x | -1.4x | -0.1x | 0.5x |
|---|
| |
| ROIC, % | -10.1% | 5.9% | 20.6% | 10.4% | 16.0% |
|---|
| ROE, % | -10.1% | 2.7% | 17.3% | 9.0% | 13.3% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. EBITDA margin surged on 78.4 pp from 286% to 364% in FY2015. In the last 3 years the company's EBITDA margin surged on 200 pp from 164% in FY2012 to 364% in FY2015.
We call Goldin Financial Holdings Ltd an attractive growth stock as together with the growth it delivers high ROIC at 16.0%. During the last three years it surged - it was 5.88% in FY2012. For the last three years the average ROIC was 15.7%.
Net Income margin surged on 28.8 pp from 183% to 212% in FY2015. If we look for the longer period Net Income margin surged on 160 pp from 51.7% in FY2012 to 212% in FY2015.
Goldin Financial Holdings Ltd operates at ROE of 13.3%. Average ROE for the last three years was 13.2%.
Capital expenditures (CAPEX)
Goldin Financial Holdings Ltd's CAPEX/Revenue was 1.50% in FY2015. Goldin Financial Holdings Ltd's CAPEX/Revenue dropped on 3.07 pp from 4.57% in FY2012 to 1.50% in FY2015. For the last three years the average CAPEX/Revenue was 1.89%.
Leverage (Debt)
Having such a fast growth profile the company keeps low debt level at 0.5x Net Debt/EBITDA. In the last 3 years leverage surged on 0.82x from -0.34x in FY2012 to 0.48x in FY2015.
Valuation vs. comparable companies
The market closed today at 50.6x EV/EBITDA for Goldin Financial Holdings Ltd which is 41.6% higher than 35.8x Distribution/Wholesale peer group avearge calculated on the basis of 41 companies. The company trades at 86.3x P/E which is 74.6% lower than 339.9x Distribution/Wholesale industry avearge calculated based on 16 companies.
Peers in Distribution/Wholesale
Below you can find Goldin Financial Holdings Ltd benchmarking vs. other companies in Distribution/Wholesale industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 |
