Wharf Holdings Ltd/The Net Income dropped on 55.4% in 2015 while Revenue increased on 7.2%
09/03/2016 • About Wharf Holdings Ltd/The (
$4) • By InTwits
Wharf Holdings Ltd/The reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Wharf Holdings Ltd/The has high CAPEX intensity: 5 year average CAPEX/Revenue was 37.4%. At the same time it's in pair with industry average of 52.7%.
- CAPEX is quite volatile: 5,917 in 2015, 9,553 in 2014, 15,405 in 2013, 15,391 in 2012, 13,507 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Wharf Holdings Ltd/The ($4) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 24,004 | 30,856 | 31,887 | 38,136 | 40,875 | 7.2% |
| SG&A | 2,126 | 2,652 | 3,021 | 2,859 | 3,192 | 11.6% |
| EBITDA | 12,386 | 15,011 | 13,859 | 15,020 | 15,864 | 5.6% |
| Net Income | 30,568 | 47,263 | 29,380 | 35,930 | 16,024 | -55.4% |
Balance Sheet
|
|---|
| Cash | 32,528 | 18,795 | 24,515 | 18,725 | 23,510 | 25.6% |
| Short Term Debt | 8,903 | 5,330 | 9,502 | 8,653 | 8,463 | -2.2% |
| Long Term Debt | 67,090 | 69,090 | 73,085 | 69,331 | 62,244 | -10.2% |
Cash flow
|
|---|
| Capex | 11,950 | 14,709 | 13,914 | 11,159 | 6,733 | -39.7% |
Ratios
|
|---|
| Revenue growth | 23.9% | 28.5% | 3.3% | 19.6% | 7.2% | |
| EBITDA growth | 18.9% | 21.2% | -7.7% | 8.4% | 5.6% | |
| EBITDA Margin | 51.6% | 48.6% | 43.5% | 39.4% | 38.8% | -0.6% |
| Net Income Margin | 127.3% | 153.2% | 92.1% | 94.2% | 39.2% | -55.0% |
| SG&A, % of revenue | 8.9% | 8.6% | 9.5% | 7.5% | 7.8% | 0.3% |
| CAPEX, % of revenue | 49.8% | 47.7% | 43.6% | 29.3% | 16.5% | -12.8% |
| ROIC | 4.2% | 4.3% | 3.5% | 3.5% | 3.6% | 0.1% |
| ROE | 16.7% | 20.9% | 11.2% | 12.4% | 5.2% | -7.1% |
| Net Debt/EBITDA | 3.5x | 3.7x | 4.2x | 3.9x | 3.0x | -1.0x |
Revenue and profitability
The company's Revenue increased on 7.2% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 0.57 pp from 39.4% to 38.8% in 2015.
SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign dropped on 55.0 pp from 94.2% to 39.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 16.5%. CAPEX/Revenue dropped on 31.2 pp from 47.7% in 2012 to 16.5% in 2015. For the last three years the average CAPEX/Revenue was 29.8%.
Return on investment
The company operates at low ROIC (3.57%) and ROE (5.23%). ROIC showed almost no change in 2015. ROE decreased on 7.1 pp from 12.4% to 5.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.0x and Debt / EBITDA is 4.5x. Net Debt / EBITDA dropped on 1.0x from 3.9x to 3.0x in 2015. Debt decreased on 9.3% in 2015 while cash jumped on 25.6% in 2015.
Appendix 1: Peers in Holding Companies-Divers
Below you can find Wharf Holdings Ltd/The benchmarking vs. other companies in Holding Companies-Divers 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 |
|---|
| Kong Sun Holdings Ltd ($295) | -18.7% | -88.3% | 5.1% | 7,067.0% | |
| Goldin Properties Holdings Ltd ($283) | | | 126.0% | 2,065.8% | -79.6% |
| China Primary Energy Holdings Ltd ($8117) | -43.1% | -56.3% | -23.6% | 195.4% | |
| Carnival Group International Holdings Ltd ($996) | | | | 159.1% | |
| 21 Holdings Ltd ($1003) | 20.3% | -57.4% | -12.4% | 106.4% | |
| |
|---|
| Median (42 companies) | 14.4% | 11.4% | 4.9% | 12.6% | 0.5% |
|---|
| Wharf Holdings Ltd/The ($4) | | 28.5% | 3.3% | 19.6% | 7.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Multifield International Holdings Ltd ($898) | 66.4% | 87.5% | 84.7% | 89.1% | |
| New Century Group Hong Kong Ltd ($234) | 76.7% | 27.3% | 85.2% | 82.8% | 91.5% |
| Emperor International Holdings Ltd ($163) | 74.5% | 71.3% | 64.9% | 79.2% | 75.3% |
| China Renji Medical Group Ltd/Hong Kong ($648) | 54.9% | 70.0% | 67.3% | 78.6% | |
| Century Legend Holdings Ltd ($79) | 68.5% | 70.1% | 72.3% | 71.0% | |
| |
|---|
| Median (40 companies) | 28.1% | 33.2% | 35.3% | 32.6% | 39.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Emperor International Holdings Ltd ($163) | 224.8% | 180.7% | 131.8% | 100.6% | 73.9% |
| Multifield International Holdings Ltd ($898) | 49.8% | 80.1% | 68.3% | 97.5% | |
| New Century Group Hong Kong Ltd ($234) | 82.5% | -5.5% | 78.8% | 58.3% | 85.0% |
| Magnificent Estates ($201) | 42.1% | 45.5% | 47.8% | 53.0% | |
| China Merchants Holdings International Co Ltd ($144) | 63.7% | 56.4% | 50.8% | 45.2% | |
| |
|---|
| Median (44 companies) | 5.2% | 1.7% | 1.9% | 5.6% | 4.8% |
|---|
| Wharf Holdings Ltd/The ($4) | 51.6% | 48.6% | 43.5% | 39.4% | 38.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Far East Holdings International Ltd ($36) | 2.7% | 0.1% | 13.2% | 422.1% | |
| China Investments Holdings Ltd ($132) | 20.7% | 4.8% | 81.9% | 382.2% | |
| Heng Fai Enterprises Ltd ($185) | 217.5% | 4.8% | 77.1% | 310.0% | 458.1% |
| New Century Group Hong Kong Ltd ($234) | 1.0% | 97.2% | 1.0% | 142.7% | 32.2% |
| Chinney Investments Ltd ($216) | 37.6% | 17.5% | 103.4% | 111.3% | 230.9% |
| |
|---|
| Median (44 companies) | 4.1% | 2.2% | 3.6% | 6.1% | 15.6% |
|---|
| Wharf Holdings Ltd/The ($4) | 49.8% | 47.7% | 43.6% | 29.3% | 16.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wisdom Holdings Group ($1661) | 62.7% | 68.6% | 42.1% | 28.8% | |
| Chinney Alliance Group Ltd ($385) | 3.4% | 6.4% | 8.1% | 13.6% | |
| Hutchison Whampoa Ltd ($13) | 3.3% | 3.7% | 4.2% | 8.1% | |
| Code Agriculture Holdings Ltd ($8153) | -0.1% | 2.4% | -3.3% | 7.9% | -6.2% |
| C C Land Holdings Ltd ($1224) | 4.5% | 7.4% | 5.3% | 7.9% | |
| |
|---|
| Median (44 companies) | 0.3% | -0.2% | -0.2% | 0.5% | 0.2% |
|---|
| Wharf Holdings Ltd/The ($4) | 4.2% | 4.3% | 3.5% | 3.5% | 3.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chinney Investments Ltd ($216) | 111.3x | 10.3x | 63.7x | 48.6x | 93.7x |
| Carnival Group International Holdings Ltd ($996) | | | | 23.7x | |
| Van Shung Chong Holdings Ltd ($1001) | 3.4x | | 0.9x | 12.3x | 7.7x |
| Southeast Asia Properties & Finance Ltd ($252) | 6.8x | 6.7x | 5.7x | 9.2x | 4.3x |
| Code Agriculture Holdings Ltd ($8153) | 24.3x | 11.9x | 42.8x | 8.7x | |
| |
|---|
| Median (26 companies) | 2.7x | 2.4x | 2.9x | 2.9x | 6.5x |
|---|
| Wharf Holdings Ltd/The ($4) | 3.5x | 3.7x | 4.2x | 3.9x | 3.0x |
