1010 Printing Group Ltd EBITDA surged on 34.2% in 2015 and Revenue jumped on 33.3%
29/02/2016 • About 1010 Printing Group Ltd (
$1127) • By InTwits
1010 Printing Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- 1010 Printing Group Ltd is a fast growth stock: 2015 revenue growth was 33.3%, 5 year revenue CAGR was 27.4% at 2015 ROIC 19.9%
- EBITDA Margin is relatively stable: 14.1% in 2015 vs. 14.0% in 2014 vs. 15.2% in 2011
- 1010 Printing Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's a lot of higher than industry average of 4.4%.
- CAPEX is quite volatile: 17.0 in 2015, 23.7 in 2014, 27.6 in 2013, 21.9 in 2012, 41.0 in 2011
- The company has highly profitable business model: ROIC is at 19.9%
- It operates with high leverage: Net Debt/EBITDA is -0.5x while industry average is -22.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
1010 Printing Group Ltd ($1127) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 640 | 700 | 1,164 | 1,316 | 1,755 | 33.3% |
| Gross Profit | 122 | 157 | 312 | 353 | 497 | 41.0% |
| SG&A | | | 195 | 229 | 329 | 43.8% |
| EBITDA | 98 | 111 | 173 | 184 | 247 | 34.2% |
| Net Income | 62 | 68 | 121 | 146 | 163 | 11.5% |
Balance Sheet
|
|---|
| Cash | 77 | 96 | 112 | 158 | 263 | 66.0% |
| Short Term Debt | 117 | 152 | 65 | 122 | 132 | 8.2% |
| Long Term Debt | 7 | 1 | 0 | 6 | 0 | -97.2% |
Cash flow
|
|---|
| Capex | 41 | 22 | 28 | 24 | 17 | -28.4% |
Ratios
|
|---|
| Revenue growth | 22.6% | 9.4% | 66.2% | 13.1% | 33.3% | |
| EBITDA growth | 12.9% | 14.0% | 56.0% | 6.2% | 34.2% | |
| Gross Margin | 19.0% | 22.5% | 26.8% | 26.8% | 28.3% | 1.6% |
| EBITDA Margin | 15.2% | 15.9% | 14.9% | 14.0% | 14.1% | 0.1% |
| Net Income Margin | 9.7% | 9.8% | 10.4% | 11.1% | 9.3% | -1.8% |
| SG&A, % of revenue | | | 16.7% | 17.4% | 18.7% | 1.4% |
| CAPEX, % of revenue | 6.4% | 3.1% | 2.4% | 1.8% | 1.0% | -0.8% |
| ROIC | 14.4% | 13.5% | 20.8% | 17.8% | 19.9% | 2.2% |
| ROE | 17.7% | 15.9% | 21.8% | 20.7% | 20.8% | 0.1% |
| Net Debt/EBITDA | 0.5x | 0.5x | -0.3x | -0.2x | -0.5x | -0.4x |
Revenue and profitability
1010 Printing Group Ltd's Revenue surged on 33.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.2 pp from 18.0% to 22.2% in 2015.
Gross Margin increased slightly on 1.6 pp from 26.8% to 28.3% in 2015. SG&A as a % of Revenue increased slightly on 1.4 pp from 17.4% to 18.7% in 2015.
Net Income marign decreased slightly on 1.8 pp from 11.1% to 9.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
1010 Printing Group Ltd's CAPEX/Revenue was 0.97% in 2015. 1010 Printing Group Ltd showed decline in CAPEX/Revenue of 2.2 pp from 3.1% in 2012 to 0.97% in 2015. For the last three years the average CAPEX/Revenue was 1.7%.
Return on investment
The company operates at high and attractive ROE (20.78%) while ROIC is a bit lower (19.92%). ROIC increased on 2.2 pp from 17.8% to 19.9% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.5x and Debt / EBITDA is 0.5x. Net Debt / EBITDA dropped on 0.4x from -0.2x to -0.5x in 2015. Debt increased on 3.2% in 2015 while cash surged on 66.0% in 2015.
Appendix 1: Peers in Commercial Services
Below we provide 1010 Printing Group Ltd benchmarking against other companies in Commercial Services 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 |
|---|
| 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% | 4.5% | 8.0% | 10.0% |
|---|
| 1010 Printing Group Ltd ($1127) | | 9.4% | 66.2% | 13.1% | 33.3% |
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% | 65.2% |
| |
|---|
| Median (54 companies) | 33.8% | 31.9% | 30.5% | 30.9% | 28.7% |
|---|
| 1010 Printing Group Ltd ($1127) | 19.0% | 22.5% | 26.8% | 26.8% | 28.3% |
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% | 71.6% |
| 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% | 15.9% | 12.2% | 9.3% | 3.3% |
|---|
| 1010 Printing Group Ltd ($1127) | 15.2% | 15.9% | 14.9% | 14.0% | 14.1% |
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) | 3.6% | 3.4% | 4.5% | 4.8% | 2.1% |
|---|
| 1010 Printing Group Ltd ($1127) | 6.4% | 3.1% | 2.4% | 1.8% | 1.0% |
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% |
| Poly Culture Group Corp Ltd ($3636) | 48.0% | 29.1% | 33.0% | 16.3% | |
| |
|---|
| Median (58 companies) | 5.0% | 6.0% | 4.2% | 3.2% | 0.9% |
|---|
| 1010 Printing Group Ltd ($1127) | 14.4% | 13.5% | 20.8% | 17.8% | 19.9% |
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 | 5.3x |
| |
|---|
| Median (37 companies) | -0.1x | -0.1x | -0.9x | -1.0x | -2.2x |
|---|
| 1010 Printing Group Ltd ($1127) | 0.5x | 0.5x | -0.3x | -0.2x | -0.5x |
