Emperor Capital Group Ltd Net Income jumped on 94.9% in 2015 and Revenue surged on 52.8%
09/12/2015 • About Emperor Capital Group Ltd (
$717) • By InTwits
Emperor Capital Group Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Emperor Capital Group Ltd is a fast growth stock: FY2015 revenue growth was 52.8%, 5 year revenue CAGR was 32.8% at FY2015 ROIC 14.6%
- EBITDA Margin is expanding: 68.4% in FY2015 vs. 56.5% in FY2014 vs. 37.8% in FY2011
- Emperor Capital Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has highly profitable business model: ROIC is at 14.6%
- It operates with high leverage: Net Debt/EBITDA is 1.1x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Emperor Capital Group Ltd ($717) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 204.4 | 223.8 | 434.8 | 546.4 | 835.1 | 52.8% |
| EBITDA | 77.3 | 66.1 | 192.8 | 308.7 | 571.6 | 85.2% |
| Net Income | 62.1 | 63.4 | 155.7 | 220.8 | 430.3 | 94.9% |
Balance Sheet
|
|---|
| Cash | 637.3 | 222.2 | 338.6 | 527.5 | 462.4 | -12.4% |
| Short Term Debt | 0.0 | 0.0 | 310.0 | 720.0 | 480.0 | -33.3% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 605.7 | 605.9 | 0.0% |
Cash flow
|
|---|
| Capex | 0.8 | 3.8 | 1.8 | 2.1 | 1.6 | -23.5% |
Ratios
|
|---|
| Revenue growth | 1.2% | 9.5% | 94.3% | 25.7% | 52.8% | |
| EBITDA growth | -16.0% | -14.5% | 191.4% | 60.2% | 85.2% | |
| EBITDA Margin | 37.8% | 29.6% | 44.3% | 56.5% | 68.4% | 11.9% |
| Net Income Margin | 30.4% | 28.3% | 35.8% | 40.4% | 51.5% | 11.1% |
| CAPEX, % of revenue | 0.4% | 1.7% | 0.4% | 0.4% | 0.2% | -0.2% |
| ROIC | 5.1% | 5.1% | 12.8% | 13.1% | 14.6% | 1.5% |
| ROE | 6.9% | 5.1% | 11.8% | 14.9% | 16.5% | 1.6% |
| Net Debt/EBITDA | -8.2x | -3.4x | -0.1x | 2.6x | 1.1x | -1.5x |
Revenue and profitability
The company's Revenue jumped on 52.8% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 24.3 pp from -5.7% to 18.6% in 2015.
Net Income marign surged on 11.1 pp from 40.4% to 51.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Emperor Capital Group Ltd had CAPEX/Revenue of 0.19%. Emperor Capital Group Ltd's CAPEX/Revenue decreased slightly on 1.5 pp from 1.7% in FY2012 to 0.19% in FY2015. Average CAPEX/Revenue for the last three years was 0.34%.
Return on investment
The company operates at good ROIC (14.61%) and ROE (16.52%). ROIC increased slightly on 1.5 pp from 13.1% to 14.6% in FY2015. ROE increased slightly on 1.6 pp from 14.9% to 16.5% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.1x and Debt / EBITDA is 1.9x. Net Debt / EBITDA dropped on 1.5x from 2.6x to 1.1x in FY2015. Debt dropped on 18.1% in FY2015 while cash dropped on 12.4% in FY2015.
Appendix 1: Peers in Diversified Finan Serv
Below we provide Emperor Capital Group 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% | 0.9% | 12.9% | 25.7% | 23.1% |
|---|
| Emperor Capital Group Ltd ($717) | | 9.5% | 94.3% | 25.7% | 52.8% |
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) | 29.5% | 14.0% | 35.5% | 43.6% | 31.6% |
|---|
| Emperor Capital Group Ltd ($717) | 37.8% | 29.6% | 44.3% | 56.5% | 68.4% |
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% | 1.8% | 1.1% | 1.6% |
|---|
| Emperor Capital Group Ltd ($717) | 0.4% | 1.7% | 0.4% | 0.4% | 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) | 4.6% | 3.4% | 4.0% | 4.7% | 1.8% |
|---|
| Emperor Capital Group Ltd ($717) | 5.1% | 5.1% | 12.8% | 13.1% | 14.6% |
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) | -1.0x | -0.7x | 0.3x | -0.1x | -1.3x |
|---|
| Emperor Capital Group Ltd ($717) | -8.2x | -3.4x | -0.1x | 2.6x | 1.1x |
