Powerwell Pacific Holdings Ltd reports 173% EBITDA growth and 6.9 pp EBITDA Margin growth from 7.3% to 14.2%
18/03/2016 • About Powerwell Pacific Holdings Ltd (
$8265) • By InTwits
Powerwell Pacific Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 14.2% in 2015 vs. 7.3% in 2014 vs. 6.6% in 2011
- EBITDA Margin is quite volatile: 14.2% in 2015, 7.3% in 2014, 3.9% in 2013, 2.8% in 2012, 6.6% in 2011
- Powerwell Pacific Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's a lot of higher than industry average of 15.1%.
- CAPEX is quite volatile: 2.7 in 2015, 8.9 in 2014, 2.9 in 2013, 1.4 in 2012, 3.3 in 2011
- The company has highly profitable business model: ROIC is at 27.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Powerwell Pacific Holdings Ltd ($8265) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 240.2 | 197.7 | 127.8 | 158.1 | 222.6 | 40.8% |
| Gross Profit | 56.4 | 48.1 | 28.3 | 39.1 | 86.5 | 121.3% |
| SG&A | | 44.4 | 24.6 | 29.8 | 56.4 | 89.5% |
| EBITDA | 15.8 | 5.5 | 5.0 | 11.6 | 31.6 | 172.7% |
| Net Income | 10.4 | 2.3 | 15.6 | 6.8 | -1.7 | -124.5% |
Balance Sheet
|
|---|
| Cash | 41.2 | 45.2 | 37.3 | 36.7 | 145.7 | 296.9% |
| Short Term Debt | 9.2 | 6.6 | 0.0 | 4.4 | 15.0 | 243.5% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 3.3 | 1.4 | 2.9 | 8.9 | 2.7 | -70.0% |
Ratios
|
|---|
| Revenue growth | 15.4% | -17.7% | -35.3% | 23.7% | 40.8% | |
| EBITDA growth | -1.2% | -65.1% | -9.4% | 132.5% | 172.7% | |
| Gross Margin | 23.5% | 24.3% | 22.1% | 24.7% | 38.9% | 14.1% |
| EBITDA Margin | 6.6% | 2.8% | 3.9% | 7.3% | 14.2% | 6.9% |
| Net Income Margin | 4.3% | 1.2% | 12.2% | 4.3% | -0.7% | -5.0% |
| SG&A, % of revenue | | 22.5% | 19.3% | 18.8% | 25.4% | 6.5% |
| CAPEX, % of revenue | 1.4% | 0.7% | 2.2% | 5.6% | 1.2% | -4.4% |
| ROIC | 27.8% | 6.4% | 6.4% | 23.6% | 27.1% | 3.5% |
| ROE | 23.4% | 4.0% | 27.9% | 17.4% | -2.0% | -19.4% |
| Net Debt/EBITDA | -2.0x | -7.0x | -7.5x | -2.8x | -4.1x | -1.3x |
Revenue and profitability
The company's Revenue surged on 40.8% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 6.9 pp from 7.3% to 14.2% in 2015.
Gross Margin surged on 14.1 pp from 24.7% to 38.9% in 2015. SG&A as a % of Revenue increased on 6.5 pp from 18.8% to 25.4% in 2015.
Net Income marign decreased on 5.0 pp from 4.3% to -0.75% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Powerwell Pacific Holdings Ltd had CAPEX/Revenue of 1.2%. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. For the last three years the average CAPEX/Revenue was 3.0%.
Return on investment
The company operates at low but positive ROIC (27.10%) and negative ROE (-2.00%). ROIC increased on 3.5 pp from 23.6% to 27.1% in 2015. ROE dropped on 19.4 pp from 17.4% to -2.0% in 2015.
Leverage (Debt)
Debt level is -4.1x Net Debt / EBITDA and 0.5x Debt / EBITDA. Net Debt / EBITDA dropped on 1.3x from -2.8x to -4.1x in 2015. Debt jumped on 243% in 2015 while cash surged on 297% in 2015.
Appendix 1: Peers in Distribution/Wholesale
Below we provide Powerwell Pacific Holdings Ltd benchmarking against other companies in Distribution/Wholesale 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 |
|---|
| Forefront Group Ltd ($885) | | | 504.6% | 3,871.0% | |
| China LNG Group Ltd ($931) | -84.5% | 694.8% | 13.6% | 1,341.3% | |
| Sheng Yuan Holdings Ltd ($851) | | -86.1% | 756.9% | 567.2% | -2.1% |
| China Infrastructure Investment Ltd ($600) | 346.9% | 412.1% | -50.9% | 557.9% | |
| China-Hongkong Photo Products Holdings Ltd ($1123) | | 24.9% | 9.0% | 81.2% | 12.2% |
| |
|---|
| Median (37 companies) | 6.1% | 3.1% | 2.1% | 0.8% | -1.0% |
|---|
| Powerwell Pacific Holdings Ltd ($8265) | | -17.7% | -35.3% | 23.7% | 40.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goldin Financial Holdings Ltd ($530) | 67.0% | 75.3% | 71.7% | 74.8% | 73.8% |
| Forefront Group Ltd ($885) | | | | 69.8% | |
| YGM Trading Ltd ($375) | 67.1% | 66.5% | 67.4% | 64.0% | 62.5% |
| Goldlion Holdings Ltd ($533) | 57.3% | 56.4% | 54.1% | 55.7% | 60.0% |
| Sincere Watch Hong Kong Ltd ($444) | 34.2% | 35.6% | 39.7% | 38.8% | 38.3% |
| |
|---|
| Median (33 companies) | 15.5% | 17.3% | 17.1% | 18.0% | 22.3% |
|---|
| Powerwell Pacific Holdings Ltd ($8265) | 23.5% | 24.3% | 22.1% | 24.7% | 38.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goldin Financial Holdings Ltd ($530) | -134.6% | 163.7% | 613.4% | 285.7% | 364.1% |
| China LNG Group Ltd ($931) | 195.2% | 95.1% | 76.4% | 97.9% | |
| Forefront Group Ltd ($885) | | -2,113.8% | -803.1% | 57.7% | |
| China Infrastructure Investment Ltd ($600) | -1,171.2% | -274.9% | 120.0% | 52.0% | |
| GA Holdings Ltd ($8126) | -4.5% | 8.0% | 19.7% | 22.9% | |
| |
|---|
| Median (37 companies) | 2.2% | 2.1% | 1.9% | 4.5% | 2.9% |
|---|
| Powerwell Pacific Holdings Ltd ($8265) | 6.6% | 2.8% | 3.9% | 7.3% | 14.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| C Y Foundation Group Ltd ($1182) | 9.8% | 2.5% | 5.2% | 82.2% | 9.3% |
| Inspur International Ltd ($596) | 0.9% | 8.4% | 12.2% | 33.6% | |
| SIS International Holdings ($529) | 0.2% | 13.4% | 31.8% | 14.8% | 49.8% |
| HKC International Holdings Ltd ($248) | 0.9% | 5.5% | 0.8% | 11.4% | 0.5% |
| Tan Chong International Ltd ($693) | 7.6% | 6.0% | 7.6% | 7.0% | |
| |
|---|
| Median (36 companies) | 1.4% | 1.4% | 1.7% | 1.6% | 1.2% |
|---|
| Powerwell Pacific Holdings Ltd ($8265) | 1.4% | 0.7% | 2.2% | 5.6% | 1.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China LNG Group Ltd ($931) | 2.2% | 8.4% | 7.4% | 87.0% | |
| Yestar International Holdings Co Ltd ($2393) | 29.4% | 28.8% | 24.1% | 26.2% | 25.4% |
| Forefront Group Ltd ($885) | -37.7% | -4.9% | -11.0% | 19.5% | |
| Sincere Watch Hong Kong Ltd ($444) | 46.4% | 51.7% | 27.7% | 14.6% | 5.5% |
| GA Holdings Ltd ($8126) | -6.1% | 3.3% | 12.0% | 13.5% | |
| |
|---|
| Median (38 companies) | 2.2% | 2.1% | 0.9% | 3.1% | 2.4% |
|---|
| Powerwell Pacific Holdings Ltd ($8265) | 27.8% | 6.4% | 6.4% | 23.6% | 27.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sheng Yuan Holdings Ltd ($851) | | | | 19.3x | 15.4x |
| Takson Holdings Ltd ($918) | | | 11.5x | 11.7x | 15.7x |
| Huiyin Household Appliances Holdings Co Ltd ($1280) | 10.1x | | | 10.9x | |
| Pacific Andes International Holdings Ltd ($1174) | 4.9x | 5.1x | 9.1x | 7.8x | |
| SIS International Holdings ($529) | -62.1x | -1.8x | 7.0x | 7.2x | 16.8x |
| |
|---|
| Median (26 companies) | -0.2x | -0.1x | -0.5x | 0.3x | 0.1x |
|---|
| Powerwell Pacific Holdings Ltd ($8265) | -2.0x | -7.0x | -7.5x | -2.8x | -4.1x |
