Guotai Junan International Holdings Ltd Debt surged on 120% in 2015 and EBITDA surged on 38.2%
18/03/2016 • About Guotai Junan International Holdings Ltd (
$1788) • By InTwits
Guotai Junan International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Guotai Junan International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's in pair with industry average of 6.1%.
- CAPEX is quite volatile: 27.3 in 2015, 18.1 in 2014, 6.9 in 2013, 5.3 in 2012, 17.9 in 2011
- The company has business model with low profitability: ROIC is at 7.9%
- It operates with high leverage: Net Debt/EBITDA is 5.4x 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.
Guotai Junan International Holdings Ltd ($1788) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 703 | 766 | 1,139 | 1,661 | 2,279 | 37.2% |
| EBITDA | 355 | 386 | 665 | 1,050 | 1,452 | 38.2% |
| Net Income | 288 | 307 | 536 | 800 | 1,014 | 26.7% |
Balance Sheet
|
|---|
| Cash | 662 | 385 | 485 | 889 | 2,409 | 170.9% |
| Short Term Debt | 200 | 826 | 3,711 | 3,644 | 7,124 | 95.5% |
| Long Term Debt | 0 | 0 | 0 | 990 | 3,090 | 212.1% |
Cash flow
|
|---|
| Capex | 18 | 5 | 7 | 18 | 27 | 50.9% |
Ratios
|
|---|
| Revenue growth | 6.8% | 9.0% | 48.7% | 45.8% | 37.2% | |
| EBITDA growth | 13.8% | 8.9% | 72.1% | 58.0% | 38.2% | |
| EBITDA Margin | 50.5% | 50.4% | 58.4% | 63.2% | 63.7% | 0.5% |
| Net Income Margin | 40.9% | 40.1% | 47.1% | 48.1% | 44.5% | -3.7% |
| CAPEX, % of revenue | 2.5% | 0.7% | 0.6% | 1.1% | 1.2% | 0.1% |
| ROIC | 10.1% | 9.2% | 10.3% | 9.6% | 7.9% | -1.7% |
| ROE | 9.1% | 9.3% | 14.6% | 14.5% | 13.8% | -0.7% |
| Net Debt/EBITDA | -1.3x | 1.1x | 4.9x | 3.6x | 5.4x | 1.8x |
Revenue and profitability
The company's Revenue jumped on 37.2% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.5 pp from 11.7% to 15.2% in 2015.
Net Income marign decreased on 3.7 pp from 48.1% to 44.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Guotai Junan International Holdings Ltd had CAPEX/Revenue of 1.2%. Guotai Junan International Holdings Ltd showed small growth in CAPEX/Revenue of 0.51 pp from 0.69% in 2012 to 1.2% in 2015. It's average CAPEX/Revenue for the last three years was 0.97%.
Return on investment
The company operates at good ROE (13.81%) while ROIC is low (7.86%). ROIC decreased slightly on 1.7 pp from 9.6% to 7.9% in 2015. ROE decreased slightly on 0.74 pp from 14.5% to 13.8% in 2015.
Leverage (Debt)
Debt level is 5.4x Net Debt / EBITDA and 7.0x Debt / EBITDA. Net Debt / EBITDA surged on 1.8x from 3.6x to 5.4x in 2015. Debt jumped on 120% in 2015 while cash jumped on 171% in 2015.
Management team
Guotai Junan International Holdings Ltd's CEO Yim Fung has spent 3 years at the company.
Appendix 1: Peers in Diversified Finan Serv
Below we provide Guotai Junan International Holdings Ltd benchmarking against other companies in Diversified Finan Serv industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
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% |
|---|
| Guotai Junan International Holdings Ltd ($1788) | | 9.0% | 48.7% | 45.8% | 37.2% |
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% |
|---|
| Guotai Junan International Holdings Ltd ($1788) | 50.5% | 50.4% | 58.4% | 63.2% | 63.7% |
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% | 2.0% | 1.9% | 1.1% | 1.6% |
|---|
| Guotai Junan International Holdings Ltd ($1788) | 2.5% | 0.7% | 0.6% | 1.1% | 1.2% |
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% |
|---|
| Guotai Junan International Holdings Ltd ($1788) | 10.1% | 9.2% | 10.3% | 9.6% | 7.9% |
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 | -1.5x | -0.1x | -0.1x | -1.1x |
|---|
| Guotai Junan International Holdings Ltd ($1788) | -1.3x | 1.1x | 4.9x | 3.6x | 5.4x |
