Allied Group Ltd Net Income surged on 80.2% in 2015 and Revenue showed almost no change
23/03/2016 • About Allied Group Ltd (
$373) • By InTwits
Allied Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Allied Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.7%. At the same time it's in pair with industry average of 50.9%.
- CAPEX is quite volatile: 95.3 in 2015, 196 in 2014, 130 in 2013, 92 in 2012, 98.5 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.4%
- It operates with high leverage: Net Debt/EBITDA is 1.4x while industry average is 0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Allied Group Ltd ($373) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,112 | 4,162 | 5,038 | 4,693 | 4,701 | 0.2% |
| Gross Profit | 3,884 | 3,956 | 4,755 | 4,393 | 4,333 | -1.4% |
| SG&A | 1,432 | 1,542 | 1,736 | 1,507 | 1,608 | 6.7% |
| EBITDA | 1,742 | 2,241 | 2,431 | 2,312 | 1,247 | -46.0% |
| Net Income | 1,258 | 1,395 | 1,333 | 1,656 | 2,983 | 80.2% |
Balance Sheet
|
|---|
| Cash | 2,453 | 5,984 | 5,753 | 6,387 | 8,427 | 32.0% |
| Short Term Debt | 3,098 | 4,735 | 3,284 | 4,595 | 2,653 | -42.3% |
| Long Term Debt | 3,961 | 4,525 | 6,395 | 6,713 | 7,547 | 12.4% |
Cash flow
|
|---|
| Capex | 99 | 92 | 130 | 196 | 95 | -51.4% |
Ratios
|
|---|
| Revenue growth | 15.3% | 1.2% | 21.1% | -6.9% | 0.2% | |
| EBITDA growth | -18.5% | 28.7% | 8.5% | -4.9% | -46.0% | |
| Gross Margin | 94.5% | 95.1% | 94.4% | 93.6% | 92.2% | -1.4% |
| EBITDA Margin | 42.4% | 53.8% | 48.3% | 49.3% | 26.5% | -22.7% |
| Net Income Margin | 30.6% | 33.5% | 26.5% | 35.3% | 63.5% | 28.2% |
| SG&A, % of revenue | 34.8% | 37.1% | 34.4% | 32.1% | 34.2% | 2.1% |
| CAPEX, % of revenue | 2.4% | 2.2% | 2.6% | 4.2% | 2.0% | -2.2% |
| ROIC | 5.1% | 5.8% | 5.8% | 5.1% | 2.4% | -2.6% |
| ROE | 10.2% | 10.2% | 8.8% | 10.0% | 16.3% | 6.3% |
| Net Debt/EBITDA | 2.6x | 1.5x | 1.6x | 2.1x | 1.4x | -0.7x |
Revenue and profitability
Allied Group Ltd's Revenue showed almost no change in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.6 pp from 19.1% to 13.6% in 2015.
Gross Margin decreased slightly on 1.4 pp from 93.6% to 92.2% in 2015. SG&A as a % of Revenue increased on 2.1 pp from 32.1% to 34.2% in 2015.
Net Income marign jumped on 28.2 pp from 35.3% to 63.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.0% in 2015. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 2.9%.
Return on investment
The company operates at good ROE (16.34%) while ROIC is low (2.45%). ROIC decreased on 2.6 pp from 5.1% to 2.4% in 2015. ROE increased on 6.3 pp from 10.0% to 16.3% in 2015.
Leverage (Debt)
Debt level is 1.4x Net Debt / EBITDA and 8.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.7x from 2.1x to 1.4x in 2015. Debt decreased on 9.8% in 2015 while cash surged on 32.0% in 2015.
Appendix 1: Peers in Diversified Finan Serv
Below we provide Allied Group 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) | | 0.9% | -79.5% | 655.2% | 162.0% |
| Willie International Holdings Ltd ($273) | | | | 543.9% | -89.6% |
| |
|---|
| Median (64 companies) | -3.7% | 3.6% | 14.7% | 27.6% | 27.2% |
|---|
| Allied Group Ltd ($373) | | 1.2% | 21.1% | -6.9% | 0.2% |
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% |
| China Fortune Financial Group Ltd ($290) | 86.7% | 91.4% | 93.7% | 91.6% | 89.0% |
| |
|---|
| Median (12 companies) | 75.0% | 57.7% | 72.7% | 81.8% | 91.7% |
|---|
| Allied Group Ltd ($373) | 94.5% | 95.1% | 94.4% | 93.6% | 92.2% |
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% | -3.7% |
| China Aircraft Leasing Group Holdings Ltd ($1848) | 89.3% | 91.3% | 86.4% | 92.9% | 107.0% |
| |
|---|
| Median (65 companies) | 29.5% | 16.4% | 36.2% | 47.2% | 32.4% |
|---|
| Allied Group Ltd ($373) | 42.4% | 53.8% | 48.3% | 49.3% | 26.5% |
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% | |
| China Aircraft Leasing Group Holdings Ltd ($1848) | 0.4% | 351.0% | 0.1% | 33.3% | 64.6% |
| 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% | 26.6% |
| |
|---|
| Median (65 companies) | 2.2% | 1.9% | 1.7% | 1.1% | 1.5% |
|---|
| Allied Group Ltd ($373) | 2.4% | 2.2% | 2.6% | 4.2% | 2.0% |
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% | -0.2% |
| Value Partners Group Ltd ($806) | 8.7% | 16.8% | 16.5% | 26.8% | 9.6% |
| |
|---|
| Median (67 companies) | 4.6% | 3.4% | 4.0% | 4.8% | 3.6% |
|---|
| Allied Group Ltd ($373) | 5.1% | 5.8% | 5.8% | 5.1% | 2.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| South China Financial Holdings Ltd ($619) | | | | | 56.9x |
| Bright Smart Securities & Commodities Group Ltd ($1428) | 7.3x | 2.1x | 10.3x | 9.3x | 39.3x |
| Quam Ltd ($952) | 4.9x | 58.9x | 15.9x | 4.1x | 14.8x |
| China Aircraft Leasing Group Holdings Ltd ($1848) | 13.9x | 14.7x | 19.0x | 17.5x | 14.6x |
| Crown International Corp Ltd ($727) | | | | | 9.9x |
| |
|---|
| Median (39 companies) | -1.1x | -1.3x | -0.0x | -0.1x | -0.8x |
|---|
| Allied Group Ltd ($373) | 2.6x | 1.5x | 1.6x | 2.1x | 1.4x |
