Value Partners Group Ltd reports 66.0% Net Income decline and 34.4 pp EBITDA Margin decline from 56.6% to 22.1%
10/03/2016 • About Value Partners Group Ltd (
$806) • By InTwits
Value Partners Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 22.1% in 2015, 56.6% in 2014, 43.3% in 2013, 62.2% in 2012, 29.5% in 2011
- Value Partners Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has business model with low profitability: ROIC is at 9.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Value Partners Group Ltd ($806) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 725 | 702 | 1,072 | 1,620 | 1,768 | 9.1% |
| EBITDA | 214 | 437 | 464 | 916 | 391 | -57.3% |
| Net Income | 167 | 376 | 384 | 804 | 274 | -66.0% |
Balance Sheet
|
|---|
| Cash | 1,315 | 888 | 692 | 1,801 | 2,299 | 27.6% |
| Short Term Debt | | | | 62 | 60 | -4.2% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 5 | 8 | 4 | 19 | 20 | 4.5% |
Ratios
|
|---|
| Revenue growth | -38.6% | -3.1% | 52.6% | 51.2% | 9.1% | |
| EBITDA growth | -71.9% | 104.2% | 6.2% | 97.3% | -57.3% | |
| EBITDA Margin | 29.5% | 62.2% | 43.3% | 56.6% | 22.1% | -34.4% |
| Net Income Margin | 23.1% | 53.6% | 35.9% | 49.6% | 15.5% | -34.2% |
| CAPEX, % of revenue | 0.7% | 1.1% | 0.3% | 1.2% | 1.1% | -0.1% |
| ROIC | 8.7% | 16.8% | 16.5% | 26.8% | 9.6% | -17.2% |
| ROE | 7.0% | 15.2% | 14.3% | 24.5% | 7.2% | -17.3% |
| Net Debt/EBITDA | -6.1x | -2.0x | -1.5x | -1.9x | -5.7x | -3.8x |
Revenue and profitability
The company's Revenue increased on 9.1% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.1 pp from 5.2% to 2.1% in FY2015.
Net Income marign dropped on 34.2 pp from 49.6% to 15.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.1%. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 0.89%.
Return on investment
The company operates at low ROIC (9.63%) and ROE (7.20%). ROIC dropped on 17.2 pp from 26.8% to 9.6% in 2015. ROE dropped on 17.3 pp from 24.5% to 7.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -5.7x and Debt / EBITDA is 0.2x. Net Debt / EBITDA dropped on 3.8x from -1.9x to -5.7x in 2015. Debt decreased on 4.2% in 2015 while cash surged on 27.6% in 2015.
Appendix 1: Peers in Diversified Finan Serv
Below you can find Value Partners 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% | 1.2% | 12.9% | 24.9% | 25.7% |
|---|
| Value Partners Group Ltd ($806) | | -3.1% | 52.6% | 51.2% | 9.1% |
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% | 32.2% |
|---|
| Value Partners Group Ltd ($806) | 29.5% | 62.2% | 43.3% | 56.6% | 22.1% |
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) | 2.3% | 1.9% | 1.8% | 1.1% | 1.6% |
|---|
| Value Partners Group Ltd ($806) | 0.7% | 1.1% | 0.3% | 1.2% | 1.1% |
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% | |
| China New Energy Power Group Ltd ($1041) | -8.5% | -5.6% | -4.2% | 24.9% | |
| |
|---|
| Median (65 companies) | 4.6% | 3.4% | 4.0% | 4.7% | 3.1% |
|---|
| Value Partners Group Ltd ($806) | 8.7% | 16.8% | 16.5% | 26.8% | 9.6% |
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 | -1.3x |
|---|
| Value Partners Group Ltd ($806) | -6.1x | -2.0x | -1.5x | -1.9x | -5.7x |
