Public Financial Holdings Ltd reports 10.0% Net Income growth and 3.7% Revenue growth
14/01/2016 • About Public Financial Holdings Ltd (
$626) • By InTwits
Public Financial Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Public Financial Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's a lot of higher than industry average of 11.4%.
- CAPEX is quite volatile: 77.0 in 2015, 351 in 2014, 220 in 2013, 109 in 2012, 156 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Public Financial Holdings Ltd ($626) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,902 | 1,863 | 1,871 | 1,851 | 1,919 | 3.7% |
| EBITDA | 877 | 892 | 821 | 886 | 889 | 0.3% |
| Net Income | 376 | 382 | 368 | 384 | 423 | 10.0% |
Balance Sheet
|
|---|
| Cash | 4,575 | 3,951 | 3,962 | 3,982 | 3,928 | -1.4% |
| Short Term Debt | 2,744 | 2,633 | 2,147 | 1,035 | 1,539 | 48.7% |
| Long Term Debt | 1,463 | 866 | 0 | 1,083 | 1,087 | 0.4% |
Cash flow
|
|---|
| Capex | 17 | 24 | 21 | 21 | 17 | -16.8% |
Ratios
|
|---|
| Revenue growth | 5.7% | -2.1% | 0.4% | -1.1% | 3.7% | |
| EBITDA growth | 2.2% | 1.7% | -8.0% | 8.0% | 0.3% | |
| EBITDA Margin | 46.1% | 47.9% | 43.9% | 47.9% | 46.3% | -1.6% |
| Net Income Margin | 19.8% | 20.5% | 19.7% | 20.8% | 22.0% | 1.3% |
| CAPEX, % of revenue | 0.9% | 1.3% | 1.1% | 1.1% | 0.9% | -0.2% |
| ROIC | 4.5% | 4.4% | 4.7% | 5.2% | 5.3% | 0.2% |
| ROE | 6.1% | 6.0% | 5.5% | 5.6% | 6.0% | 0.4% |
| Net Debt/EBITDA | -0.4x | -0.5x | -2.2x | -2.1x | -1.5x | 0.6x |
Revenue and profitability
Public Financial Holdings Ltd's Revenue increased on 3.7% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.6 pp from 47.9% to 46.3% in 2015.
Net Income marign increased slightly on 1.3 pp from 20.8% to 22.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.91%. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. Average CAPEX/Revenue for the last three years was 1.0%.
Return on investment
The company operates at low ROIC (5.32%) and ROE (6.02%). ROIC showed almost no change in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt level is -1.5x Net Debt / EBITDA and 3.0x Debt / EBITDA. Net Debt / EBITDA surged on 0.6x from -2.1x to -1.5x in 2015. Debt surged on 24.0% in 2015 while cash decreased slightly on 1.4% in 2015.
Appendix 1: Peers in Diversified Finan Serv
Below you can find Public Financial Holdings Ltd benchmarking vs. other companies in Diversified Finan Serv 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, %
| 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) | 6.8% | 1.2% | 14.7% | 26.5% | 24.9% |
|---|
| Public Financial Holdings Ltd ($626) | | -2.1% | 0.4% | -1.1% | 3.7% |
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) | 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% | 32.6% |
|---|
| Public Financial Holdings Ltd ($626) | 46.1% | 47.9% | 43.9% | 47.9% | 46.3% |
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% |
|---|
| Public Financial Holdings Ltd ($626) | 0.9% | 1.3% | 1.1% | 1.1% | 0.9% |
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% | 3.4% | 4.0% | 4.7% | 2.2% |
|---|
| Public Financial Holdings Ltd ($626) | 4.5% | 4.4% | 4.7% | 5.2% | 5.3% |
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 | -1.3x | 0.3x | 0.1x | -1.1x |
|---|
| Public Financial Holdings Ltd ($626) | -0.4x | -0.5x | -2.2x | -2.1x | -1.5x |
