Boyaa Interactive International Ltd reports 33.5% EBITDA growth and 16.9 pp EBITDA Margin growth from 30.7% to 47.6%
23/03/2016 • About Boyaa Interactive International Ltd (
$434) • By InTwits
Boyaa Interactive International Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Boyaa Interactive International Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's a lot of higher than industry average of 6.4%.
- CAPEX is quite volatile: 16.1 in 2015, 9.6 in 2014, 7.0 in 2013, 4.4 in 2012, 4.8 in 2011
- The company has highly profitable business model: ROIC is at 21.4%
- It operates with high leverage: Net Debt/EBITDA is -2.8x while industry average is -2.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Boyaa Interactive International Ltd ($434) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 317.9 | 517.7 | 681.3 | 945.3 | 813.5 | -13.9% |
| Gross Profit | 182.7 | 313.8 | 416.2 | 567.9 | 427.9 | -24.6% |
| SG&A | 64.7 | 127.1 | 255.9 | 261.0 | 281.3 | 7.7% |
| EBITDA | 123.5 | 199.3 | 175.5 | 290.0 | 387.1 | 33.5% |
| Net Income | 88.1 | 142.8 | 135.5 | 280.1 | 357.8 | 27.8% |
Balance Sheet
|
|---|
| Cash | 111.6 | 274.7 | 965.6 | 1,029.3 | 1,065.8 | 3.5% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 4.8 | 4.4 | 7.0 | 9.6 | 16.1 | 67.5% |
Ratios
|
|---|
| Revenue growth | 103.6% | 62.9% | 31.6% | 38.8% | -13.9% | |
| EBITDA growth | 65.6% | 61.3% | -11.9% | 65.2% | 33.5% | |
| Gross Margin | 57.5% | 60.6% | 61.1% | 60.1% | 52.6% | -7.5% |
| EBITDA Margin | 38.9% | 38.5% | 25.8% | 30.7% | 47.6% | 16.9% |
| Net Income Margin | 27.7% | 27.6% | 19.9% | 29.6% | 44.0% | 14.4% |
| SG&A, % of revenue | 20.4% | 24.6% | 37.6% | 27.6% | 34.6% | 7.0% |
| CAPEX, % of revenue | 1.5% | 0.9% | 1.0% | 1.0% | 2.0% | 1.0% |
| ROIC | 100.4% | 75.3% | 21.3% | 20.0% | 21.4% | 1.4% |
| ROE | 80.8% | 62.6% | 17.9% | 20.8% | 21.8% | 1.0% |
| Net Debt/EBITDA | -0.9x | -1.4x | -5.5x | -3.5x | -2.8x | 0.8x |
Revenue and profitability
Boyaa Interactive International Ltd's Revenue dropped on 13.9% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 16.9 pp from 30.7% to 47.6% in 2015.
Gross Margin decreased on 7.5 pp from 60.1% to 52.6% in 2015. SG&A as a % of Revenue increased on 7.0 pp from 27.6% to 34.6% in 2015.
Net Income marign surged on 14.4 pp from 29.6% to 44.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.0% in 2015. Boyaa Interactive International Ltd's CAPEX/Revenue increased slightly on 1.1 pp from 0.86% in 2012 to 2.0% in 2015. It's average CAPEX/Revenue for the last three years was 1.3%.
Return on investment
The company operates at high and attractive ROIC (21.40%) and ROE (21.82%). ROIC increased slightly on 1.4 pp from 20.0% to 21.4% in 2015. ROE increased slightly on 0.98 pp from 20.8% to 21.8% in 2015.
Leverage (Debt)
The company has no debt. Cash increased on 3.5% in 2015.
Appendix 1: Peers in Software
Below you can find Boyaa Interactive International Ltd benchmarking vs. other companies in Software 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 |
|---|
| Pizu Group Holdings Ltd ($8053) | | 40.3% | -42.9% | 1,742.9% | 157.9% |
| China City Railway Transportation Technology Holdings Co Ltd ($1522) | 194.6% | 164.0% | 33.6% | 100.5% | |
| China Mobile Games and Cultural Investment Ltd ($8081) | | 393.7% | -6.6% | 92.2% | 34.8% |
| Epicurean and Co Ltd ($8213) | | 177.0% | 185.7% | 62.6% | 22.0% |
| China Bio Cassava Holdings Ltd ($8129) | | -14.2% | 38.8% | 55.1% | -19.7% |
| |
|---|
| Median (34 companies) | 16.2% | 10.6% | 11.1% | 20.9% | 15.0% |
|---|
| Boyaa Interactive International Ltd ($434) | | 62.9% | 31.6% | 38.8% | -13.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Bio Cassava Holdings Ltd ($8129) | 90.2% | 90.4% | 97.4% | 98.4% | 98.3% |
| Chanjet Information Technology Co Ltd ($1588) | 91.9% | 89.2% | 91.3% | 92.4% | 91.4% |
| NetDragon Websoft Inc ($777) | 90.1% | 93.4% | 90.8% | 89.3% | |
| Tian Ge Interactive Holdings Ltd ($1980) | 87.5% | 88.5% | 87.6% | 84.8% | 77.7% |
| China Mobile Games and Cultural Investment Ltd ($8081) | 19.4% | 6.5% | 45.3% | 84.8% | 72.8% |
| |
|---|
| Median (33 companies) | 49.2% | 45.4% | 42.5% | 42.1% | 43.5% |
|---|
| Boyaa Interactive International Ltd ($434) | 57.5% | 60.6% | 61.1% | 60.1% | 52.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sinosoft Technology Group Ltd ($1297) | 55.5% | 62.6% | 54.9% | 57.2% | 59.0% |
| International Entertainment Corp ($1009) | 235.1% | 50.8% | 64.0% | 54.9% | 62.0% |
| China Binary Sale Technology Ltd ($8255) | 41.3% | 35.1% | 35.4% | 44.4% | 50.5% |
| Microsoft Corp ($4338) | 42.8% | 33.5% | 39.2% | 38.0% | 25.8% |
| Kingdee International Software Group Co Ltd ($268) | 19.5% | 7.8% | 33.2% | 37.2% | 31.9% |
| |
|---|
| Median (34 companies) | 11.9% | 8.5% | 10.9% | 8.9% | 9.5% |
|---|
| Boyaa Interactive International Ltd ($434) | 38.9% | 38.5% | 25.8% | 30.7% | 47.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| NetDragon Websoft Inc ($777) | 13.3% | 21.1% | 34.6% | 54.6% | |
| China Eco-Farming Ltd ($8166) | 0.3% | 0.6% | 0.7% | 18.1% | 2.5% |
| TravelSky Technology Ltd ($696) | 5.8% | 8.9% | 21.7% | 18.1% | |
| Kingsoft Corp Ltd ($3888) | 6.8% | 4.3% | 3.8% | 14.3% | 11.1% |
| Sing Lee Software Group Ltd ($8076) | 19.4% | 3.3% | 0.2% | 14.0% | 1.1% |
| |
|---|
| Median (33 companies) | 2.4% | 1.4% | 2.6% | 3.6% | 2.0% |
|---|
| Boyaa Interactive International Ltd ($434) | 1.5% | 0.9% | 1.0% | 1.0% | 2.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Binary Sale Technology Ltd ($8255) | | 27.7% | 26.9% | 28.4% | 19.0% |
| Microsoft Corp ($4338) | 43.4% | 28.6% | 30.3% | 26.2% | 15.6% |
| Finsoft Corp ($8018) | | 140.5% | 4.6% | 25.0% | -5.6% |
| Sinosoft Technology Group Ltd ($1297) | 31.6% | 34.0% | 21.9% | 20.2% | 20.8% |
| ITE Holdings Ltd ($8092) | -19.6% | -15.0% | 10.6% | 16.8% | 19.8% |
| |
|---|
| Median (34 companies) | 1.6% | 4.7% | 5.2% | 1.9% | 3.6% |
|---|
| Boyaa Interactive International Ltd ($434) | 100.4% | 75.3% | 21.3% | 20.0% | 21.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pizu Group Holdings Ltd ($8053) | | | | 346.1x | -0.4x |
| Epicurean and Co Ltd ($8213) | 2.9x | 2.3x | 4.7x | 12.3x | 12.0x |
| Sing Lee Software Group Ltd ($8076) | | | | 6.2x | 4.4x |
| China Technology Solar Power Holdings Ltd ($8111) | | | 7.4x | 3.3x | 0.2x |
| Chinasoft International Ltd ($354) | -1.3x | -0.7x | 0.7x | 1.5x | 0.7x |
| |
|---|
| Median (22 companies) | -0.8x | -0.9x | -1.4x | -1.3x | -0.4x |
|---|
| Boyaa Interactive International Ltd ($434) | -0.9x | -1.4x | -5.5x | -3.5x | -2.8x |
