Infinity Financial Group Holdings Ltd CAPEX surged on 152% in 2015 and Revenue surged on 143%
18/03/2016 • About Infinity Financial Group Holdings Ltd (
$1152) • By InTwits
Infinity Financial Group Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Infinity Financial Group Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -9.4%
- The company operates at negative EBITDA Margin: -35.0%
- Infinity Financial Group Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.0%. At the same time it's a lot of higher than industry average of 8.8%.
- CAPEX is quite volatile: 8.2 in 2015, 3.3 in 2014, 1.9 in 2013, 2.2 in 2012, 43.2 in 2011
- The company has unprofitable business model: ROIC is at -9.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Infinity Financial Group Holdings Ltd ($1152) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 326.6 | 400.0 | 310.9 | 42.4 | 103.2 | 143.3% |
| Gross Profit | 79.4 | 76.0 | 54.3 | 9.5 | 16.3 | 71.5% |
| SG&A | 66.7 | 62.9 | 65.6 | 26.9 | 47.5 | 76.8% |
| EBITDA | 24.4 | 28.5 | 4.3 | -5.0 | -36.1 | 615.4% |
| Net Income | 11.1 | 13.7 | -7.2 | -23.4 | -77.4 | 230.2% |
Balance Sheet
|
|---|
| Cash | 48.0 | 87.2 | 84.6 | 238.3 | 219.6 | -7.9% |
| Short Term Debt | 33.8 | 26.1 | 18.3 | 23.2 | 30.3 | 30.7% |
| Long Term Debt | 0.2 | 1.0 | 0.7 | 278.2 | 144.5 | -48.0% |
Cash flow
|
|---|
| Capex | 43.2 | 2.2 | 1.9 | 3.3 | 8.2 | 151.8% |
Ratios
|
|---|
| Revenue growth | -8.3% | 22.5% | -22.3% | -86.4% | 143.3% | |
| EBITDA growth | -32.6% | 17.0% | -84.9% | -216.9% | 615.4% | |
| Gross Margin | 24.3% | 19.0% | 17.5% | 22.4% | 15.8% | -6.6% |
| EBITDA Margin | 7.5% | 7.1% | 1.4% | -11.9% | -35.0% | -23.1% |
| Net Income Margin | 3.4% | 3.4% | -2.3% | -55.3% | -75.0% | -19.7% |
| SG&A, % of revenue | 20.4% | 15.7% | 21.1% | 63.4% | 46.1% | -17.3% |
| CAPEX, % of revenue | 13.2% | 0.5% | 0.6% | 7.7% | 8.0% | 0.3% |
| ROIC | 11.2% | 9.8% | -5.4% | -5.2% | -9.4% | -4.2% |
| ROE | 11.7% | 10.4% | -5.3% | -13.6% | -43.1% | -29.4% |
| Net Debt/EBITDA | -0.6x | -2.1x | -15.2x | | | 0.0x |
Revenue and profitability
The company's Revenue surged on 143% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 23.1 pp from -11.9% to -35.0% in 2015.
Gross Margin decreased on 6.6 pp from 22.4% to 15.8% in 2015. SG&A as a % of Revenue dropped on 17.3 pp from 63.4% to 46.1% in 2015.
Net Income marign dropped on 19.7 pp from -55.3% to -75.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
Infinity Financial Group Holdings Ltd's CAPEX/Revenue was 8.0% in 2015. Infinity Financial Group Holdings Ltd's CAPEX/Revenue increased on 7.4 pp from 0.55% in 2012 to 8.0% in 2015. For the last three years the average CAPEX/Revenue was 5.4%.
Return on investment
The company operates at negative ROIC (-9.43%) and ROE (-43.06%). ROIC decreased on 4.2 pp from -5.2% to -9.4% in 2015. ROE dropped on 29.4 pp from -13.6% to -43.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.3x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt dropped on 42.0% in 2015 while cash decreased on 7.9% in 2015.
Appendix 1: Peers in Investment Companies
Below we provide Infinity Financial Group Holdings Ltd benchmarking against other companies in Investment Companies 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 |
|---|
| DT Capital Ltd ($356) | | | -49.8% | 1,065.5% | |
| Capital VC Ltd ($2324) | | | | 489.2% | 861.9% |
| Oriental Explorer Holdings Ltd ($430) | | | -62.7% | 414.5% | |
| China Merchants China Direct Investments Ltd ($133) | | | 59.1% | 255.9% | |
| Eternity Investment Ltd ($764) | 1.2% | -14.8% | -61.8% | 243.8% | |
| |
|---|
| Median (24 companies) | -6.3% | -10.9% | 4.8% | 17.5% | 72.3% |
|---|
| Infinity Financial Group Holdings Ltd ($1152) | | 22.5% | -22.3% | -86.4% | 143.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Eternity Investment Ltd ($764) | 100.0% | | | 86.6% | |
| City e-Solutions Ltd ($557) | 69.0% | 81.1% | 81.5% | 81.6% | 79.1% |
| China Properties Investment Holdings Ltd ($736) | 10.6% | 47.5% | 40.8% | 46.2% | 87.2% |
| AVIC Joy Holdings HK Ltd ($260) | 20.4% | 19.5% | 20.9% | 14.0% | |
| Harmonic Strait Financial Holdings Ltd ($33) | 16.9% | 40.8% | 8.4% | 11.8% | |
| |
|---|
| Median (6 companies) | 20.4% | 40.8% | 20.9% | 30.1% | 79.1% |
|---|
| Infinity Financial Group Holdings Ltd ($1152) | 24.3% | 19.0% | 17.5% | 22.4% | 15.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Capital VC Ltd ($2324) | -2,944.6% | | 36.7% | 93.1% | 99.3% |
| Unity Investments Holdings Ltd ($913) | | | 89.0% | 90.8% | |
| Oriental Explorer Holdings Ltd ($430) | | 93.6% | 100.5% | 90.4% | |
| China Merchants China Direct Investments Ltd ($133) | | 68.6% | 82.2% | 89.3% | |
| Langham Hospitality Investments and Langham Hospitality Investments Ltd ($1270) | 39.4% | | 101.3% | 85.9% | 85.8% |
| |
|---|
| Median (27 companies) | 4.6% | 6.6% | -28.8% | 1.9% | 20.3% |
|---|
| Infinity Financial Group Holdings Ltd ($1152) | 7.5% | 7.1% | 1.4% | -11.9% | -35.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CK Hutchison Holdings Ltd ($1) | 3.9% | 0.7% | 1.0% | 503.6% | 13.5% |
| Opes Asia Development Ltd ($810) | | | 11.3% | 76.1% | |
| Cosmopolitan International Holdings Ltd ($120) | 0.0% | 0.4% | 1.8% | 55.2% | |
| Great China Properties Holdings Ltd ($21) | 1.7% | 6.8% | 0.9% | 30.9% | |
| China Properties Investment Holdings Ltd ($736) | 215.9% | 55.3% | 3.0% | 20.8% | 58.1% |
| |
|---|
| Median (29 companies) | 2.3% | 1.1% | 0.8% | 0.2% | 1.3% |
|---|
| Infinity Financial Group Holdings Ltd ($1152) | 13.2% | 0.5% | 0.6% | 7.7% | 8.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Unity Investments Holdings Ltd ($913) | -69.6% | -36.2% | 26.4% | 47.4% | |
| China Merchants China Direct Investments Ltd ($133) | -3.2% | 4.8% | 8.8% | 28.6% | |
| Capital VC Ltd ($2324) | -5.0% | | | 21.8% | 100.7% |
| Shanghai International Shanghai Growth Investment Ltd ($770) | 9.7% | -15.9% | -51.2% | 18.4% | -37.7% |
| Oriental Explorer Holdings Ltd ($430) | -8.5% | 9.3% | 3.2% | 14.4% | |
| |
|---|
| Median (37 companies) | -5.0% | -3.1% | -2.1% | -4.9% | -0.2% |
|---|
| Infinity Financial Group Holdings Ltd ($1152) | 11.2% | 9.8% | -5.4% | -5.2% | -9.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Harmonic Strait Financial Holdings Ltd ($33) | 1.8x | -1.2x | | 162.5x | |
| AVIC Joy Holdings HK Ltd ($260) | -0.5x | 0.2x | 15.0x | 19.6x | |
| Langham Hospitality Investments and Langham Hospitality Investments Ltd ($1270) | 9.3x | | 12.5x | 9.5x | 11.2x |
| CK Hutchison Holdings Ltd ($1) | 1.8x | 1.9x | 0.6x | 7.2x | 5.5x |
| Lee Hing Development Ltd ($68) | -18.9x | -0.7x | | 2.7x | |
| |
|---|
| Median (15 companies) | -0.6x | -0.9x | 0.6x | -0.8x | -0.8x |
|---|
