Water Oasis Group Ltd reports 16.9% EBITDA growth and 1.9% Revenue growth
23/12/2015 • About Water Oasis Group Ltd (
$1161) • By InTwits
Water Oasis Group Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 13.1% in FY2015, 11.4% in FY2014, 4.7% in FY2013, 6.5% in FY2012, 11.3% in FY2011
- Water Oasis Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.4%. At the same time it's a lot of higher than industry average of 7.4%.
- CAPEX is quite volatile: 0 in 2015, 76.3 in 2014, 165 in 2013, 128 in 2012, 104 in 2011
- The company has highly profitable business model: ROIC is at 19.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Water Oasis Group Ltd ($1161) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 985.3 | 824.4 | 629.0 | 679.0 | 691.7 | 1.9% |
| Gross Profit | 784.0 | 665.7 | 557.5 | | | |
| EBITDA | 111.4 | 53.7 | 29.8 | 77.6 | 90.7 | 16.9% |
| Net Income | 84.6 | 68.0 | 34.3 | 47.9 | 50.6 | 5.5% |
Balance Sheet
|
|---|
| Cash | 325.0 | 255.2 | 184.7 | 243.4 | 260.0 | 6.8% |
| Short Term Debt | 37.1 | 80.8 | 3.1 | 2.9 | 3.0 | 2.2% |
| Long Term Debt | 42.7 | 0.0 | 28.5 | 25.6 | 22.6 | -11.7% |
Cash flow
|
|---|
| Capex | 26.9 | 30.8 | 25.1 | 19.1 | 24.1 | 25.9% |
Ratios
|
|---|
| Revenue growth | 8.1% | -16.3% | -23.7% | 8.0% | 1.9% | |
| EBITDA growth | 101.4% | -51.8% | -44.5% | 160.4% | 16.9% | |
| Gross Margin | 79.6% | 80.7% | 88.6% | | | 0.0% |
| EBITDA Margin | 11.3% | 6.5% | 4.7% | 11.4% | 13.1% | 1.7% |
| Net Income Margin | 8.6% | 8.2% | 5.4% | 7.1% | 7.3% | 0.3% |
| CAPEX, % of revenue | 2.7% | 3.7% | 4.0% | 2.8% | 3.5% | 0.7% |
| ROIC | 21.6% | 5.3% | 1.7% | 15.7% | 19.2% | 3.5% |
| ROE | 30.7% | 23.2% | 12.5% | 17.0% | 17.6% | 0.6% |
| Net Debt/EBITDA | -2.2x | -3.2x | -5.1x | -2.8x | -2.6x | 0.2x |
Revenue and profitability
Water Oasis Group Ltd's Revenue increased slightly on 1.9% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.7 pp from 11.4% to 13.1% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
Water Oasis Group Ltd's CAPEX/Revenue was 3.5% in FY2015. Water Oasis Group Ltd's CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 3.4%.
Return on investment
The company operates at good ROIC (19.22%) and ROE (17.61%). ROIC increased on 3.5 pp from 15.7% to 19.2% in FY2015. ROE increased slightly on 0.64 pp from 17.0% to 17.6% in FY2015.
Leverage (Debt)
Debt level is -2.6x Net Debt / EBITDA and 0.3x Debt / EBITDA. Net Debt / EBITDA jumped on 0.2x from -2.8x to -2.6x in FY2015. Debt dropped on 10.3% in FY2015 while cash increased on 6.8% in FY2015.
Appendix 1: Peers in Leisure Time
Below we provide Water Oasis Group Ltd benchmarking against other companies in Leisure Time 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 |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | | 11.9% | 15.3% | 19.5% | 18.9% |
| Perfect Shape PRC Holdings Ltd ($1830) | | 23.4% | 16.2% | 6.1% | 55.0% |
| Genting Hong Kong Ltd ($678) | 23.6% | 5.3% | 6.6% | 2.9% | |
| Vietnam Manufacturing & Export Processing Holdings Ltd ($422) | 9.5% | -24.4% | -15.5% | 2.8% | |
| China Travel International Investment Hong Kong Ltd ($308) | -2.5% | 7.2% | -6.6% | 2.6% | |
| |
|---|
| Median (9 companies) | 1.6% | 7.2% | 2.0% | 2.6% | 36.9% |
|---|
| Water Oasis Group Ltd ($1161) | | -16.3% | -23.7% | 8.0% | 1.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino Splendid Holdings Ltd ($8006) | 55.1% | 51.7% | 51.4% | 51.9% | |
| China Travel International Investment Hong Kong Ltd ($308) | 48.2% | 46.1% | 47.8% | 46.0% | |
| China Jiuhao Health Industry Corp Ltd ($419) | 15.5% | 57.0% | 13.5% | 23.4% | |
| Sino Golf Holdings Ltd ($361) | 15.7% | 11.7% | 17.4% | 18.1% | |
| Vietnam Manufacturing & Export Processing Holdings Ltd ($422) | 17.5% | 10.9% | 7.8% | 6.7% | |
| |
|---|
| Median (6 companies) | 16.6% | 28.9% | 15.5% | 20.7% | 90.7% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Travel International Investment Hong Kong Ltd ($308) | 25.6% | 28.2% | 29.1% | 48.5% | |
| Perfect Shape PRC Holdings Ltd ($1830) | 26.3% | 27.5% | 29.1% | 26.5% | 29.8% |
| Travel Expert Asia Enterprises Ltd ($1235) | 20.1% | 17.4% | 16.2% | 18.3% | 15.0% |
| Genting Hong Kong Ltd ($678) | 24.2% | 23.1% | 8.5% | 8.6% | |
| Sino Golf Holdings Ltd ($361) | 5.7% | 4.3% | 10.4% | 7.8% | |
| |
|---|
| Median (9 companies) | 7.5% | 17.4% | 8.5% | 7.8% | 22.4% |
|---|
| Water Oasis Group Ltd ($1161) | 11.3% | 6.5% | 4.7% | 11.4% | 13.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Jiuhao Health Industry Corp Ltd ($419) | 4.2% | 2.1% | 31.8% | 67.3% | |
| Genting Hong Kong Ltd ($678) | 7.3% | 16.6% | 25.4% | 33.0% | |
| China Travel International Investment Hong Kong Ltd ($308) | 14.6% | 13.4% | 28.3% | 29.9% | |
| Perfect Shape PRC Holdings Ltd ($1830) | 7.9% | 6.1% | 8.9% | 7.7% | 24.8% |
| Sino Golf Holdings Ltd ($361) | 1.8% | 3.0% | 2.8% | 3.2% | |
| |
|---|
| Median (9 companies) | 4.1% | 3.0% | 8.9% | 3.2% | 13.8% |
|---|
| Water Oasis Group Ltd ($1161) | 2.7% | 3.7% | 4.0% | 2.8% | 3.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | 140.4% | 62.8% | 44.1% | 37.7% | 44.1% |
| Travel Expert Asia Enterprises Ltd ($1235) | 179.4% | 50.9% | 26.7% | 29.8% | 23.0% |
| China Travel International Investment Hong Kong Ltd ($308) | 4.6% | 5.6% | 5.0% | 9.6% | |
| Sino Golf Holdings Ltd ($361) | -0.5% | -1.9% | 6.8% | 3.8% | |
| Genting Hong Kong Ltd ($678) | 2.1% | 2.0% | -1.0% | -1.1% | |
| |
|---|
| Median (9 companies) | 2.1% | 0.3% | -1.0% | -1.1% | 33.6% |
|---|
| Water Oasis Group Ltd ($1161) | 21.6% | 5.3% | 1.7% | 15.7% | 19.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino Golf Holdings Ltd ($361) | 7.3x | 10.0x | 1.9x | 3.0x | |
| China Travel International Investment Hong Kong Ltd ($308) | -2.4x | -1.7x | -1.1x | -1.1x | |
| Perfect Shape PRC Holdings Ltd ($1830) | -0.9x | -2.0x | -0.8x | -1.4x | -1.8x |
| Travel Expert Asia Enterprises Ltd ($1235) | -2.3x | -1.3x | -1.2x | -1.7x | -0.3x |
| Genting Hong Kong Ltd ($678) | 1.6x | 3.3x | -4.0x | -5.3x | |
| |
|---|
| Median (5 companies) | -2.3x | 1.0x | -1.1x | -1.4x | -1.0x |
|---|
| Water Oasis Group Ltd ($1161) | -2.2x | -3.2x | -5.1x | -2.8x | -2.6x |
