Capital Finance Holdings Ltd reports 128 pp EBITDA Margin growth from -56.2% to 71.5% in 2015 and 70.6% Revenue growth
11/03/2016 • About Capital Finance Holdings Ltd (
$8239) • By InTwits
Capital Finance Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Capital Finance Holdings Ltd is a fast growth stock: 2015 revenue growth was 70.6%, 5 year revenue CAGR was 59.1% at 2015 ROIC 21.0%
- Capital Finance Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -8.2% for the sames years0
- The company has highly profitable business model: ROIC is at 21.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Capital Finance Holdings Ltd ($8239) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 54.8 | 100.6 | 95.4 | 90.2 | 153.8 | 70.6% |
| Gross Profit | 3.5 | 6.4 | 6.8 | 7.9 | 151.0 | 1,823.2% |
| SG&A | 57.5 | 40.2 | 34.9 | 61.0 | 74.1 | 21.6% |
| EBITDA | -49.7 | -27.4 | -22.6 | -50.7 | 110.0 | -317.0% |
| Net Income | -106.0 | -36.4 | -25.7 | -61.1 | -275.9 | 351.9% |
Balance Sheet
|
|---|
| Cash | 18.0 | 8.5 | 27.8 | 1.4 | 119.1 | 8,523.5% |
| Short Term Debt | 3.7 | 0.0 | 0.0 | 0.0 | 4.8 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 510.8 | |
Cash flow
|
|---|
| Capex | 2.0 | 2.5 | 1.0 | 0.0 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 263.0% | 83.6% | -5.2% | -5.5% | 70.6% | |
| EBITDA growth | 64.7% | -44.9% | -17.4% | 124.1% | -317.0% | |
| Gross Margin | 6.3% | 6.4% | 7.2% | 8.7% | 98.2% | 89.5% |
| EBITDA Margin | -90.6% | -27.2% | -23.7% | -56.2% | 71.5% | 127.7% |
| Net Income Margin | -193.5% | -36.1% | -26.9% | -67.7% | -179.4% | -111.7% |
| SG&A, % of revenue | 104.8% | 40.0% | 36.6% | 67.6% | 48.2% | -19.4% |
| CAPEX, % of revenue | 3.6% | 2.4% | 1.0% | 0.0% | | -0.0% |
| ROIC | -31.3% | -25.1% | -14.9% | -26.9% | 21.0% | 47.9% |
| ROE | -65.7% | -32.3% | -17.0% | -33.3% | -127.0% | -93.7% |
| Net Debt/EBITDA | | | | | 3.6x | 3.6x |
Revenue and profitability
Capital Finance Holdings Ltd's Revenue jumped on 70.6% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 11.5 pp from -10.3% to 1.3% in 2015.
Gross Margin surged on 89.5 pp from 8.7% to 98.2% in 2015. SG&A as a % of Revenue dropped on 19.4 pp from 67.6% to 48.2% in 2015.
Net Income marign dropped on 112 pp from -67.7% to -179% in 2015.
Return on investment
The company operates at low but positive ROIC (20.99%) and negative ROE (-127.05%). ROIC surged on 47.9 pp from -26.9% to 21.0% in 2015. ROE dropped on 93.7 pp from -33.3% to -127% in 2015.
Leverage (Debt)
Debt level is 3.6x Net Debt / EBITDA and 4.7x Debt / EBITDA. Net Debt / EBITDA jumped3.6x from to 3.6x in 2015. Debt surged while cash surged on 8,524% in 2015.
Appendix 1: Peers in Coal
Below you can find Capital Finance Holdings Ltd benchmarking vs. other companies in Coal 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 |
|---|
| Kinetic Mines and Energy Ltd ($1277) | | | 299.9% | 563.4% | |
| Feishang Anthracite Resources Ltd ($1738) | 172.1% | 34.9% | 25.8% | 103.6% | |
| Loudong General Nice Resources China Holdings Ltd ($988) | 8.5% | -12.7% | 39.1% | 87.6% | |
| Rosan Resources Holdings Ltd ($578) | -19.9% | -74.1% | 71.1% | 49.1% | |
| Asia Coal Ltd ($835) | | 32.1% | -15.3% | 43.2% | 133.6% |
| |
|---|
| Median (22 companies) | 25.2% | -6.5% | -8.6% | -12.5% | 28.4% |
|---|
| Capital Finance Holdings Ltd ($8239) | | 83.6% | -5.2% | -5.5% | 70.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asia Coal Ltd ($835) | 32.4% | 56.7% | 62.6% | 76.7% | 5.8% |
| Shougang Fushan Resources Group Ltd ($639) | 70.4% | 63.5% | 50.9% | 40.1% | |
| Agritrade Resources Ltd ($1131) | 7.6% | 22.9% | 29.4% | 31.8% | 30.0% |
| Kinetic Mines and Energy Ltd ($1277) | | 20.6% | 28.8% | 30.3% | |
| China Shenhua Energy Co Ltd ($1088) | 39.9% | 31.4% | 28.7% | 29.6% | |
| |
|---|
| Median (22 companies) | 31.5% | 20.3% | 17.6% | 10.5% | 3.0% |
|---|
| Capital Finance Holdings Ltd ($8239) | 6.3% | 6.4% | 7.2% | 8.7% | 98.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Shenhua Energy Co Ltd ($1088) | 41.2% | 35.6% | 31.6% | 34.2% | |
| Agritrade Resources Ltd ($1131) | 1.4% | 41.6% | 37.3% | 33.4% | 31.1% |
| Kinetic Mines and Energy Ltd ($1277) | | -277.0% | -51.9% | 29.3% | |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 40.9% | 33.1% | 30.7% | 22.8% | |
| Feishang Anthracite Resources Ltd ($1738) | -9.2% | -13.1% | -32.9% | 19.0% | |
| |
|---|
| Median (23 companies) | 17.4% | 7.2% | 0.2% | -6.5% | -46.8% |
|---|
| Capital Finance Holdings Ltd ($8239) | -90.6% | -27.2% | -23.7% | -56.2% | 71.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Up Energy Development Group Ltd ($307) | | | | 279.5% | 75.2% |
| Siberian Mining Group Co Ltd ($1142) | 129.1% | 4.6% | 78.8% | 217.3% | 279.7% |
| King Stone Energy Group Ltd ($663) | 82.7% | 58.5% | 135.3% | 205.7% | |
| Asia Coal Ltd ($835) | 121.4% | 12.5% | 25.8% | 111.0% | 0.3% |
| Hidili Industry International Development Ltd ($1393) | 74.1% | 82.3% | 144.6% | 92.3% | |
| |
|---|
| Median (23 companies) | 22.1% | 18.2% | 26.0% | 20.5% | 26.0% |
|---|
| Capital Finance Holdings Ltd ($8239) | 3.6% | 2.4% | 1.0% | 0.0% | |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Shenhua Energy Co Ltd ($1088) | 21.0% | 19.5% | 17.4% | 14.6% | |
| Loudong General Nice Resources China Holdings Ltd ($988) | 11.5% | 4.1% | 8.2% | 9.6% | |
| Kinetic Mines and Energy Ltd ($1277) | -2.6% | -6.6% | -5.7% | 8.5% | |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 37.6% | 28.5% | 15.2% | 8.5% | |
| Agritrade Resources Ltd ($1131) | -2.3% | 2.7% | 5.8% | 6.4% | 6.9% |
| |
|---|
| Median (23 companies) | 4.8% | -1.3% | -0.4% | -1.8% | -5.9% |
|---|
| Capital Finance Holdings Ltd ($8239) | -31.3% | -25.1% | -14.9% | -26.9% | 21.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Feishang Anthracite Resources Ltd ($1738) | | | | 24.3x | |
| China Coal Energy Co Ltd ($1898) | 0.5x | 1.9x | 4.9x | 9.7x | |
| Loudong General Nice Resources China Holdings Ltd ($988) | 2.0x | 5.8x | 4.4x | 6.0x | |
| Yanzhou Coal Mining Co Ltd ($1171) | 1.1x | 2.9x | 6.2x | 4.9x | |
| Kinetic Mines and Energy Ltd ($1277) | | | | 4.5x | |
| |
|---|
| Median (9 companies) | 1.1x | 2.4x | 4.4x | 4.5x | -0.7x |
|---|
