Haitong International Securities Group Ltd EBITDA jumped on 157% in 2015 and Revenue jumped on 115%
10/03/2016 • About Haitong International Securities Group Ltd (
$665) • By InTwits
Haitong International Securities Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 71.4% in 2015 vs. 59.9% in 2014 vs. 24.1% in 2011
- EBITDA Margin is quite volatile: 71.4% in 2015, 59.9% in 2014, 45.7% in 2013, 34.9% in 2012, 24.1% in 2011
- Haitong International Securities Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's a lot of higher than industry average of 8.3%.
- CAPEX is quite volatile: 25.7 in 2015, 20.0 in 2014, 24.1 in 2013, 12.5 in 2012, 70.5 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.8%
- It operates with high leverage: Net Debt/EBITDA is 3.9x while industry average is 0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Haitong International Securities Group Ltd ($665) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,016 | 1,179 | 1,650 | 2,700 | 5,815 | 115.4% |
| EBITDA | 245 | 411 | 753 | 1,616 | 4,152 | 156.9% |
| Net Income | 153 | 293 | 529 | 1,018 | 2,510 | 146.5% |
Balance Sheet
|
|---|
| Cash | 5,993 | 5,560 | 12,542 | 14,905 | 24,671 | 65.5% |
| Short Term Debt | 1,695 | 4,362 | 9,122 | 14,257 | 30,339 | 112.8% |
| Long Term Debt | 0 | 0 | 1,393 | 6,362 | 10,459 | 64.4% |
Cash flow
|
|---|
| Capex | 70 | 13 | 24 | 20 | 26 | 28.7% |
Ratios
|
|---|
| Revenue growth | 11.9% | 16.1% | 39.9% | 63.7% | 115.4% | |
| EBITDA growth | -23.3% | 67.8% | 83.2% | 114.5% | 156.9% | |
| EBITDA Margin | 24.1% | 34.9% | 45.7% | 59.9% | 71.4% | 11.5% |
| Net Income Margin | 15.1% | 24.9% | 32.1% | 37.7% | 43.2% | 5.5% |
| CAPEX, % of revenue | 6.9% | 1.1% | 1.5% | 0.7% | 0.4% | -0.3% |
| ROIC | 3.6% | 5.5% | 5.1% | 5.5% | 6.8% | 1.3% |
| ROE | 6.0% | 9.3% | 12.9% | 15.1% | 17.1% | 2.0% |
| Net Debt/EBITDA | -17.5x | -2.9x | -2.7x | 3.5x | 3.9x | 0.3x |
Revenue and profitability
Haitong International Securities Group Ltd's Revenue jumped on 115% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 11.5 pp from 59.9% to 71.4% in 2015.
Net Income marign increased on 5.5 pp from 37.7% to 43.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Haitong International Securities Group Ltd had CAPEX/Revenue of 0.44%. The company showed small CAPEX/Revenue decline of 0.62 pp from 1.1% in 2012 to 0.44% in 2015. Average CAPEX/Revenue for the last three years was 0.88%.
Return on investment
The company operates at good ROE (17.06%) while ROIC is low (6.79%). ROIC increased slightly on 1.3 pp from 5.5% to 6.8% in 2015. ROE increased slightly on 2.0 pp from 15.1% to 17.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.9x and Debt / EBITDA is 9.8x. Net Debt / EBITDA surged on 0.3x from 3.5x to 3.9x in 2015. Debt surged on 97.9% in 2015 while cash surged on 65.5% in 2015.
Appendix 1: Peers in Diversified Finan Serv
Below you can find Haitong International Securities Group 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) | | 112.8% | 75.1% | 1,106.9% | -90.8% |
| Global Strategic Group Ltd ($8007) | | -3.9% | 2.1% | 806.3% | 681.2% |
| 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% | 0.9% | 12.9% | 24.9% | 24.9% |
|---|
| Haitong International Securities Group Ltd ($665) | | 16.1% | 39.9% | 63.7% | 115.4% |
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% | 89.0% |
|---|
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) | 30.3% | 14.0% | 35.5% | 43.6% | 30.5% |
|---|
| Haitong International Securities Group Ltd ($665) | 24.1% | 34.9% | 45.7% | 59.9% | 71.4% |
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% | 10.0% |
| 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) | 2.2% | 1.9% | 1.8% | 1.1% | 1.6% |
|---|
| Haitong International Securities Group Ltd ($665) | 6.9% | 1.1% | 1.5% | 0.7% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ReOrient Group Ltd ($376) | -24.9% | -45.6% | -53.5% | 128.6% | -2.8% |
| 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% | 9.6% |
| |
|---|
| Median (65 companies) | 4.9% | 3.4% | 4.0% | 4.7% | 3.1% |
|---|
| Haitong International Securities Group Ltd ($665) | 3.6% | 5.5% | 5.1% | 5.5% | 6.8% |
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) | -1.0x | -0.7x | 0.3x | -0.1x | -1.5x |
|---|
| Haitong International Securities Group Ltd ($665) | -17.5x | -2.9x | -2.7x | 3.5x | 3.9x |
