Pico Far East Holdings Ltd reports 22.7% EBITDA growth and 10.0% Revenue growth
25/01/2016 • About Pico Far East Holdings Ltd (
$752) • By InTwits
Pico Far East Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 8.8% in FY2015 vs. 7.9% in FY2014 vs. 9.1% in FY2011
- Pico Far East Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.5%. At the same time it's a lot of higher than industry average of 5.9%.
- CAPEX is quite volatile: 20.8 in FY2015, 73.3 in FY2014, 148 in FY2013, 119 in FY2012, 86.1 in FY2011
- The company has highly profitable business model: ROIC is at 17.4%
- It operates with high leverage: Net Debt/EBITDA is -2.7x while industry average is -22.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pico Far East Holdings Ltd ($752) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,509 | 3,858 | 3,319 | 3,833 | 4,216 | 10.0% |
| Gross Profit | 1,048 | 1,083 | 1,033 | 1,139 | 1,207 | 5.9% |
| SG&A | | | 857 | 914 | 466 | -49.1% |
| EBITDA | 321 | 305 | 240 | 301 | 369 | 22.7% |
| Net Income | 248 | 239 | 211 | 240 | 275 | 14.2% |
Balance Sheet
|
|---|
| Cash | 1,060 | 934 | 876 | 842 | 999 | 18.7% |
| Short Term Debt | 15 | 13 | 10 | 7 | 0 | -92.9% |
| Long Term Debt | 0 | 0 | 1 | 0 | 0 | 33.2% |
Cash flow
|
|---|
| Capex | 86 | 119 | 148 | 73 | 21 | -71.7% |
Ratios
|
|---|
| Revenue growth | 14.1% | 9.9% | -14.0% | 15.5% | 10.0% | |
| EBITDA growth | 24.6% | -5.0% | -21.3% | 25.5% | 22.7% | |
| Gross Margin | 29.9% | 28.1% | 31.1% | 29.7% | 28.6% | -1.1% |
| EBITDA Margin | 9.1% | 7.9% | 7.2% | 7.9% | 8.8% | 0.9% |
| Net Income Margin | 7.1% | 6.2% | 6.4% | 6.3% | 6.5% | 0.2% |
| SG&A, % of revenue | | | 25.8% | 23.9% | 11.0% | -12.8% |
| CAPEX, % of revenue | 2.5% | 3.1% | 4.5% | 1.9% | 0.5% | -1.4% |
| ROIC | 18.8% | 16.7% | 12.3% | 14.3% | 17.4% | 3.1% |
| ROE | 20.4% | 17.6% | 14.5% | 15.4% | 16.7% | 1.3% |
| Net Debt/EBITDA | -3.3x | -3.0x | -3.6x | -2.8x | -2.7x | 0.1x |
Revenue and profitability
The company's Revenue increased on 10.0% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.7 pp from 9.1% to 7.4% in 2015.
Gross Margin decreased slightly on 1.1 pp from 29.7% to 28.6% in FY2015. SG&A as a % of Revenue dropped on 12.8 pp from 23.9% to 11.0% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
Pico Far East Holdings Ltd's CAPEX/Revenue was 0.49% in FY2015. The company showed decline in CAPEX/Revenue of 2.6 pp from 3.1% in FY2012 to 0.49% in FY2015. It's average level of CAPEX/Revenue for the last three years was 2.3%.
Return on investment
The company operates at good ROIC (17.41%) and ROE (16.68%). ROIC increased on 3.1 pp from 14.3% to 17.4% in FY2015. ROE increased slightly on 1.3 pp from 15.4% to 16.7% in FY2015.
Leverage (Debt)
Debt level is -2.7x Net Debt / EBITDA and 0.0x Debt / EBITDA. Net Debt / EBITDA increased on 0.1x from -2.8x to -2.7x in FY2015. Debt dropped on 89.2% in FY2015 while cash jumped on 18.7% in FY2015.
Appendix 1: Peers in Commercial Services
Below you can find Pico Far East Holdings Ltd benchmarking vs. other companies in Commercial Services 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 |
|---|
| Global Energy Resources International Group Ltd ($8192) | 429.3% | -61.9% | -27.8% | 2,912.9% | |
| Dingyi Group Investment Ltd ($508) | | 8.8% | -95.9% | 1,361.2% | -32.6% |
| China Smartpay Group Holdings Ltd ($8325) | | 60.0% | 274.7% | 75.6% | 124.5% |
| Goldpac Group Ltd ($3315) | 24.4% | 52.3% | 64.4% | 36.8% | |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | | 21.3% | 4.5% | 33.5% | 14.2% |
| |
|---|
| Median (58 companies) | 19.5% | 6.9% | 4.7% | 8.0% | 4.7% |
|---|
| Pico Far East Holdings Ltd ($752) | | 9.9% | -14.0% | 15.5% | 10.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HC International Inc ($2280) | 84.7% | 87.5% | 91.9% | 92.5% | |
| Fu Shou Yuan International Group Ltd ($1448) | 81.6% | 80.5% | 80.4% | 80.0% | |
| China Communication Telecom Services Co Ltd ($8206) | -56.6% | 61.6% | 58.6% | 69.1% | 70.2% |
| Dingyi Group Investment Ltd ($508) | 76.5% | 75.8% | | 64.5% | 86.0% |
| Yuexiu Transport Infrastructure Ltd ($1052) | 67.1% | 66.2% | 66.8% | 62.8% | |
| |
|---|
| Median (54 companies) | 33.8% | 31.9% | 29.2% | 30.9% | 28.7% |
|---|
| Pico Far East Holdings Ltd ($752) | 29.9% | 28.1% | 31.1% | 29.7% | 28.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shenzhen International Holdings Ltd ($152) | 69.3% | 60.2% | 65.8% | 97.1% | |
| Shenzhen Expressway Co Ltd ($548) | 80.4% | 74.3% | 79.4% | 76.6% | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 74.3% | 78.3% | 74.5% | 74.0% | |
| Anhui Expressway Co Ltd ($995) | 62.7% | 56.9% | 54.1% | 60.4% | |
| Dragon Crown Group Holdings Ltd ($935) | 57.8% | 67.3% | 62.9% | 60.2% | |
| |
|---|
| Median (58 companies) | 16.4% | 16.0% | 13.4% | 10.9% | -0.0% |
|---|
| Pico Far East Holdings Ltd ($752) | 9.1% | 7.9% | 7.2% | 7.9% | 8.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 16.8% | 3.9% | 7.0% | 59.8% | |
| COSCO Pacific Ltd ($1199) | 111.3% | 96.6% | 66.6% | 43.3% | |
| Finet Group Ltd ($8317) | 3.9% | 10.3% | 9.1% | 26.0% | 8.4% |
| HC International Inc ($2280) | 15.1% | 8.5% | 28.7% | 24.7% | |
| Dragon Crown Group Holdings Ltd ($935) | 2.5% | 37.2% | 52.0% | 23.0% | |
| |
|---|
| Median (57 companies) | 3.8% | 3.4% | 4.0% | 4.8% | 2.3% |
|---|
| Pico Far East Holdings Ltd ($752) | 2.5% | 3.1% | 4.5% | 1.9% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mega Expo Holdings Ltd ($1360) | | 270.5% | 481.1% | 54.4% | 10.1% |
| China Packaging Holdings Development Ltd ($1439) | 50.0% | 52.0% | 46.6% | 34.1% | |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 136.8% | 51.5% | 26.6% | 30.0% | 29.5% |
| PPS International Holdings Ltd ($8201) | | 101.6% | 35.6% | 23.8% | -13.7% |
| 1010 Printing Group Ltd ($1127) | 14.4% | 13.5% | 20.8% | 17.8% | |
| |
|---|
| Median (58 companies) | 5.0% | 6.0% | 4.2% | 3.2% | -1.1% |
|---|
| Pico Far East Holdings Ltd ($752) | 18.8% | 16.7% | 12.3% | 14.3% | 17.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dalian Port PDA Co Ltd ($2880) | 5.7x | 5.7x | 4.8x | 4.7x | |
| Sichuan Expressway Co Ltd ($107) | 1.8x | 2.7x | 3.8x | 4.3x | |
| Anxian Yuan China Holdings Ltd ($922) | | | 4.6x | 3.8x | 0.8x |
| Eagle Legend Asia Ltd ($936) | 4.3x | 4.0x | 4.0x | 3.3x | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 2.9x | 4.5x | 3.1x | 2.7x | |
| |
|---|
| Median (37 companies) | -0.0x | -0.0x | -0.8x | -0.5x | -2.2x |
|---|
| Pico Far East Holdings Ltd ($752) | -3.3x | -3.0x | -3.6x | -2.8x | -2.7x |
