GF Securities Co Ltd EBITDA surged on 187% in 2015 and EBITDA Margin increased on 5.0 pp from 57.8% to 62.8%
18/03/2016 • About GF Securities Co Ltd (
$1776) • By InTwits
GF Securities Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 62.8% in 2015 vs. 57.8% in 2014 vs. 45.1% in 2011
- GF Securities Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's a lot of higher than industry average of 7.0%.
- CAPEX is quite volatile: 548 in 2015, 1,287 in 2014, 1,797 in 2013, 1,975 in 2012, 1,325 in 2011
- The company has business model with low profitability: ROIC is at 8.2%
- It operates with high leverage: Net Debt/EBITDA is 0.0x while industry average is -1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
GF Securities Co Ltd ($1776) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,008 | 6,990 | 9,215 | 16,126 | 42,555 | 163.9% |
| EBITDA | 2,710 | 3,063 | 4,710 | 9,326 | 26,738 | 186.7% |
| Net Income | 2,064 | 2,191 | 2,813 | 5,023 | 13,201 | 162.8% |
Balance Sheet
|
|---|
| Cash | 38,579 | 36,379 | 31,374 | 67,199 | 106,250 | 58.1% |
| Short Term Debt | 193 | 11,132 | 14,789 | 31,946 | 31,266 | -2.1% |
| Long Term Debt | 0 | 0 | 11,980 | 29,031 | 75,739 | 160.9% |
Cash flow
|
|---|
| Capex | 262 | 338 | 239 | 235 | 390 | 66.2% |
Ratios
|
|---|
| Revenue growth | -42.0% | 16.3% | 31.8% | 75.0% | 163.9% | |
| EBITDA growth | -52.2% | 13.0% | 53.8% | 98.0% | 186.7% | |
| EBITDA Margin | 45.1% | 43.8% | 51.1% | 57.8% | 62.8% | 5.0% |
| Net Income Margin | 34.3% | 31.4% | 30.5% | 31.1% | 31.0% | -0.1% |
| CAPEX, % of revenue | 4.4% | 4.8% | 2.6% | 1.5% | 0.9% | -0.5% |
| ROIC | 6.7% | 5.0% | 4.6% | 5.3% | 8.2% | 2.8% |
| ROE | 8.1% | 6.8% | 8.3% | 13.5% | 22.5% | 9.0% |
| Net Debt/EBITDA | -14.2x | -8.2x | -1.0x | -0.7x | 0.0x | 0.7x |
Revenue and profitability
The company's Revenue jumped on 164% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 10.1 pp from 8.1% to -2.0% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.92%. CAPEX/Revenue decreased on 3.9 pp from 4.8% in 2012 to 0.92% in 2015. It's average level of CAPEX/Revenue for the last three years was 1.7%.
Return on investment
The company operates at good ROE (22.54%) while ROIC is low (8.16%). ROIC increased on 2.8 pp from 5.3% to 8.2% in 2015. ROE increased on 9.0 pp from 13.5% to 22.5% in 2015.
Leverage (Debt)
Debt level is 0.0x Net Debt / EBITDA and 4.0x Debt / EBITDA. Net Debt / EBITDA jumped on 0.7x from -0.7x to 0.028x in 2015. Debt surged on 75.5% in 2015 while cash jumped on 58.1% in 2015.
Appendix 1: Peers in Diversified Finan Serv
Below you can find GF Securities Co 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 (63 companies) | 3.8% | 1.1% | 13.8% | 25.7% | 25.3% |
|---|
| GF Securities Co Ltd ($1776) | | 16.3% | 31.8% | 75.0% | 163.9% |
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% | 96.6% |
| First China Financial Network Holdings Ltd ($8123) | 98.6% | 93.4% | | 94.5% | 97.4% |
| Allied Group Ltd ($373) | 94.5% | 95.1% | 94.4% | 93.6% | |
| |
|---|
| Median (13 companies) | 80.8% | 64.2% | 75.1% | 88.2% | 91.7% |
|---|
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% | -25.5% |
| 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 (64 companies) | 28.9% | 14.7% | 35.6% | 45.4% | 29.5% |
|---|
| GF Securities Co Ltd ($1776) | 45.1% | 43.8% | 51.1% | 57.8% | 62.8% |
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% | 5.8% |
| 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 (64 companies) | 2.3% | 1.9% | 1.7% | 1.1% | 1.6% |
|---|
| GF Securities Co Ltd ($1776) | 4.4% | 4.8% | 2.6% | 1.5% | 0.9% |
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 (66 companies) | 4.6% | 3.4% | 4.0% | 4.7% | 3.4% |
|---|
| GF Securities Co Ltd ($1776) | 6.7% | 5.0% | 4.6% | 5.3% | 8.2% |
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 | -4.3x |
| 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 (46 companies) | -1.1x | -1.0x | 0.1x | -0.0x | -1.1x |
|---|
| GF Securities Co Ltd ($1776) | -14.2x | -8.2x | -1.0x | -0.7x | 0.0x |
