Hong Kong Ferry Holdings Co Ltd EBITDA dropped on 81.3% in 2015 and EBITDA Margin dropped on 11.3 pp from 29.2% to 17.9%
18/03/2016 • About Hong Kong Ferry Holdings Co Ltd (
$50) • By InTwits
Hong Kong Ferry Holdings Co 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: 17.9% in 2015, 29.2% in 2014, 9.1% in 2013, 32.1% in 2012, 35.8% in 2011
- Hong Kong Ferry Holdings Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has potentially unprofitable business model: ROIC is at 3.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hong Kong Ferry Holdings Co Ltd ($50) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 635 | 616 | 440 | 3,507 | 1,068 | -69.6% |
| Gross Profit | 305 | 326 | 209 | 1,231 | 326 | -73.5% |
| SG&A | | 85 | 104 | 160 | 99 | -38.0% |
| EBITDA | 228 | 198 | 40 | 1,023 | 191 | -81.3% |
| Net Income | 565 | 397 | 293 | 1,031 | 193 | -81.3% |
Balance Sheet
|
|---|
| Cash | 685 | 837 | 1,760 | 2,531 | 2,392 | -5.5% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 2 | 1 | 2 | 3 | 1 | -76.8% |
Ratios
|
|---|
| Revenue growth | -30.3% | -3.0% | -28.6% | 696.6% | -69.6% | |
| EBITDA growth | -23.5% | -13.0% | -79.8% | 2,457.5% | -81.3% | |
| Gross Margin | 48.0% | 52.9% | 47.6% | 35.1% | 30.5% | -4.6% |
| EBITDA Margin | 35.8% | 32.1% | 9.1% | 29.2% | 17.9% | -11.3% |
| Net Income Margin | 89.0% | 64.5% | 66.7% | 29.4% | 18.1% | -11.3% |
| SG&A, % of revenue | | 13.9% | 23.6% | 4.6% | 9.3% | 4.7% |
| CAPEX, % of revenue | 0.3% | 0.2% | 0.5% | 0.1% | 0.1% | -0.0% |
| ROIC | 4.7% | 3.8% | 0.6% | 18.0% | 3.1% | -14.9% |
| ROE | 12.3% | 8.0% | 5.7% | 18.7% | 3.4% | -15.4% |
| Net Debt/EBITDA | -3.0x | -4.2x | -44.0x | -2.5x | -12.5x | -10.0x |
Revenue and profitability
Hong Kong Ferry Holdings Co Ltd's Revenue dropped on 69.6% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.4 pp from -11.2% to -6.8% in FY2015.
Gross Margin decreased on 4.6 pp from 35.1% to 30.5% in 2015. SG&A as a % of Revenue increased on 4.7 pp from 4.6% to 9.3% in 2015.
Net Income marign dropped on 11.3 pp from 29.4% to 18.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.063% in 2015. Hong Kong Ferry Holdings Co Ltd's CAPEX/Revenue showed almost no change from 2012 to 2015. For the last three years the average CAPEX/Revenue was 0.20%.
Return on investment
The company operates at low ROIC (3.08%) and ROE (3.36%). ROIC dropped on 14.9 pp from 18.0% to 3.1% in 2015. ROE dropped on 15.4 pp from 18.7% to 3.4% in 2015.
Leverage (Debt)
The company has no debt. Cash decreased on 5.5% in 2015.
Appendix 1: Peers in Real Estate
Below you can find Hong Kong Ferry Holdings Co Ltd benchmarking vs. other companies in Real Estate 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 |
|---|
| Common Splendor International Health Industry Group Ltd ($286) | -0.9% | -0.5% | 1.9% | 4,120.2% | |
| Landsea Green Properties Co Ltd ($106) | -91.1% | -35.1% | -51.2% | 3,097.3% | |
| LVGEM China Real Estate Invest ($95) | -0.1% | -27.5% | -21.9% | 3,008.3% | |
| Rivera Holdings Ltd ($281) | | 197.1% | -89.9% | 2,067.2% | -92.7% |
| Ceneric Holdings Ltd ($542) | -94.0% | -73.9% | -49.8% | 1,922.5% | |
| |
|---|
| Median (173 companies) | 11.5% | 15.8% | 13.1% | 5.0% | 4.8% |
|---|
| Hong Kong Ferry Holdings Co Ltd ($50) | | -3.0% | -28.6% | 696.6% | -69.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tern Properties Co Ltd ($277) | 96.9% | 96.7% | 98.4% | 98.4% | 98.7% |
| GR Properties Ltd ($108) | 37.4% | 39.3% | | 98.2% | |
| Renhe Commercial Holdings Co Ltd ($1387) | 71.1% | 79.0% | 95.2% | 97.9% | 99.9% |
| YT Realty Group Ltd ($75) | 91.5% | 94.4% | 96.6% | 96.7% | |
| ITC Properties Group Ltd ($199) | 29.8% | 22.8% | 92.9% | 95.2% | 62.7% |
| |
|---|
| Median (155 companies) | 43.6% | 41.9% | 40.5% | 39.3% | 43.8% |
|---|
| Hong Kong Ferry Holdings Co Ltd ($50) | 48.0% | 52.9% | 47.6% | 35.1% | 30.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ITC Properties Group Ltd ($199) | 24.0% | -125.5% | -2,995.7% | 1,685.3% | -525.1% |
| Beijing Properties Holdings Ltd ($925) | 33.2% | -606.3% | 2,162.6% | 224.3% | |
| Chinese Estates Holdings Ltd ($127) | 340.9% | 356.2% | 91.6% | 195.5% | 397.4% |
| Zall Development Group Ltd ($2098) | 73.6% | 105.3% | 133.1% | 143.2% | |
| Ceneric Holdings Ltd ($542) | -5.9% | -382.7% | -1,024.0% | 126.8% | |
| |
|---|
| Median (173 companies) | 35.1% | 28.9% | 28.2% | 26.4% | 29.1% |
|---|
| Hong Kong Ferry Holdings Co Ltd ($50) | 35.8% | 32.1% | 9.1% | 29.2% | 17.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| LT Commercial Real Estate Ltd ($112) | 0.0% | 0.0% | 18.0% | 27,965.5% | |
| ITC Properties Group Ltd ($199) | 25.6% | 56.2% | 4,202.4% | 1,304.7% | 189.7% |
| Wanda Hotel Development Co Ltd ($169) | | 5.9% | 24.1% | 1,091.1% | 190.4% |
| Pacific Century Premium Developments Ltd ($432) | 6.5% | 2.9% | 323.1% | 351.2% | 340.6% |
| Liu Chong Hing Investment Ltd ($194) | 9.4% | 18.5% | 6.1% | 269.7% | 0.9% |
| |
|---|
| Median (174 companies) | 5.9% | 5.5% | 6.2% | 4.7% | 6.9% |
|---|
| Hong Kong Ferry Holdings Co Ltd ($50) | 0.3% | 0.2% | 0.5% | 0.1% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rykadan Capital Ltd ($2288) | 17.2% | -1.8% | -2.6% | 48.4% | -3.7% |
| Colour Life Services Group Co Ltd ($1778) | | 44.2% | 47.9% | 29.3% | 14.5% |
| LVGEM China Real Estate Invest ($95) | 0.2% | -0.2% | -1.1% | 22.1% | |
| Zall Development Group Ltd ($2098) | 39.0% | 19.2% | 17.6% | 18.7% | |
| China Overseas Land & Investment Ltd ($688) | 18.0% | 18.4% | 15.1% | 18.5% | 15.4% |
| |
|---|
| Median (177 companies) | 4.6% | 4.1% | 3.9% | 3.8% | 3.0% |
|---|
| Hong Kong Ferry Holdings Co Ltd ($50) | 4.7% | 3.8% | 0.6% | 18.0% | 3.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Properties Group Ltd ($1838) | 16.9x | 43.0x | 21.4x | 1,523.0x | |
| SRE Group Ltd ($1207) | 10.6x | 14.1x | 24.7x | 1,184.6x | |
| Cheuk Nang Holdings Ltd ($131) | 53.2x | | 177.3x | 901.7x | |
| Tian An China Investment Co Ltd ($28) | 2.4x | 13.2x | 15.1x | 486.6x | |
| Greenland Hong Kong Holdings Ltd ($337) | 3.7x | | 6.2x | 49.3x | |
| |
|---|
| Median (140 companies) | 2.1x | 2.4x | 2.8x | 3.0x | 2.8x |
|---|
| Hong Kong Ferry Holdings Co Ltd ($50) | -3.0x | -4.2x | -44.0x | -2.5x | -12.5x |
