Cross-Harbour Holdings Ltd/The CAPEX jumped on 149% in 2015 and Revenue surged on 15.6%
23/03/2016 • About Cross-Harbour Holdings Ltd/The (
$32) • By InTwits
Cross-Harbour Holdings Ltd/The reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cross-Harbour Holdings Ltd/The doesn't have a profitable business model yet: 2015 ROIC is 1.6%
- Cross-Harbour Holdings Ltd/The has high CAPEX intensity: 5 year average CAPEX/Revenue was 14.7%. At the same time it's a lot of higher than industry average of 9.7%.
- CAPEX is quite volatile: 53.0 in 2015, 21.3 in 2014, 3.1 in 2013, 127 in 2012, 20.1 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.6%
- It operates with high leverage: Net Debt/EBITDA is -18.3x while industry average is -20.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cross-Harbour Holdings Ltd/The ($32) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 247.4 | 283.9 | 290.5 | 343.9 | 397.4 | 15.6% |
| Gross Profit | 136.8 | 168.2 | 174.3 | 210.1 | 243.2 | 15.7% |
| SG&A | 82.1 | 95.6 | 92.4 | 113.6 | 136.6 | 20.3% |
| EBITDA | 69.3 | 60.6 | 75.2 | 85.7 | 102.4 | 19.5% |
| Net Income | 238.5 | 403.8 | 440.2 | 472.2 | 619.8 | 31.3% |
Balance Sheet
|
|---|
| Cash | 806.4 | 707.1 | 1,174.7 | 1,794.3 | 1,873.6 | 4.4% |
| Short Term Debt | 156.3 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 20.1 | 126.5 | 3.1 | 21.3 | 53.0 | 149.0% |
Ratios
|
|---|
| Revenue growth | 8.9% | 14.8% | 2.3% | 18.4% | 15.6% | |
| EBITDA growth | 13.2% | -12.6% | 24.1% | 14.0% | 19.5% | |
| Gross Margin | 55.3% | 59.2% | 60.0% | 61.1% | 61.2% | 0.1% |
| EBITDA Margin | 28.0% | 21.3% | 25.9% | 24.9% | 25.8% | 0.8% |
| Net Income Margin | 96.4% | 142.2% | 151.5% | 137.3% | 156.0% | 18.7% |
| SG&A, % of revenue | 33.2% | 33.7% | 31.8% | 33.0% | 34.4% | 1.4% |
| CAPEX, % of revenue | 8.1% | 44.6% | 1.1% | 6.2% | 13.3% | 7.1% |
| ROIC | 1.6% | 1.2% | 1.5% | 1.6% | 1.6% | 0.0% |
| ROE | 8.0% | 12.6% | 12.3% | 12.0% | 13.9% | 1.9% |
| Net Debt/EBITDA | -9.4x | -11.7x | -15.6x | -20.9x | -18.3x | 2.6x |
Revenue and profitability
Cross-Harbour Holdings Ltd/The's Revenue jumped on 15.6% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.84 pp from 24.9% to 25.8% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased slightly on 1.4 pp from 33.0% to 34.4% in 2015.
Net Income marign jumped on 18.7 pp from 137% to 156% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Cross-Harbour Holdings Ltd/The had CAPEX/Revenue of 13.3%. Cross-Harbour Holdings Ltd/The's CAPEX/Revenue dropped on 31.2 pp from 44.6% in 2012 to 13.3% in 2015. It's average CAPEX/Revenue for the last three years was 6.9%.To fuel this fast growth Cross-Harbour Holdings Ltd/The invested a large share of EBITDA (51.8%) to CAPEX.
Return on investment
The company operates at good ROE (13.88%) while ROIC is low (1.64%). ROIC showed almost no change in 2015. ROE increased slightly on 1.9 pp from 12.0% to 13.9% in 2015.
Leverage (Debt)
The company has no debt. Cash increased on 4.4% in 2015.
Appendix 1: Peers in Commercial Services
Below we provide Cross-Harbour Holdings Ltd/The benchmarking against other companies in Commercial Services 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 |
|---|
| Global Energy Resources International Group Ltd ($8192) | | -61.9% | -27.8% | 2,912.9% | 19.7% |
| Dingyi Group Investment Ltd ($508) | | 8.8% | -95.9% | 1,361.2% | -32.6% |
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | | | 34.6% | 86.9% | 37.2% |
| China Smartpay Group Holdings Ltd ($8325) | | 60.0% | 274.7% | 75.6% | 124.5% |
| Goldpac Group Ltd ($3315) | | 52.3% | 64.4% | 36.8% | 10.8% |
| |
|---|
| Median (61 companies) | 23.2% | 8.0% | 4.8% | 8.9% | 6.3% |
|---|
| Cross-Harbour Holdings Ltd/The ($32) | | 14.8% | 2.3% | 18.4% | 15.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HC International Inc ($2280) | 84.7% | 87.5% | 91.9% | 92.5% | |
| Fu Shou Yuan International Group Ltd ($1448) | 81.6% | 80.5% | 80.4% | 80.0% | 77.6% |
| China Communication Telecom Services Co Ltd ($8206) | -56.6% | 61.6% | 58.6% | 69.1% | 70.2% |
| Dingyi Group Investment Ltd ($508) | 76.5% | 75.8% | | 64.5% | 86.0% |
| Yuexiu Transport Infrastructure Ltd ($1052) | 67.1% | 66.2% | 66.8% | 62.8% | 65.2% |
| |
|---|
| Median (56 companies) | 32.9% | 31.0% | 29.2% | 30.8% | 28.7% |
|---|
| Cross-Harbour Holdings Ltd/The ($32) | 55.3% | 59.2% | 60.0% | 61.1% | 61.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shenzhen International Holdings Ltd ($152) | 69.3% | 60.2% | 65.8% | 97.1% | 73.6% |
| Shenzhen Expressway Co Ltd ($548) | 80.4% | 74.3% | 79.4% | 76.6% | 53.0% |
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | | 61.6% | 84.9% | 75.9% | 80.9% |
| Yuexiu Transport Infrastructure Ltd ($1052) | 74.3% | 78.3% | 74.5% | 74.0% | 71.6% |
| Anhui Expressway Co Ltd ($995) | 62.7% | 56.9% | 54.1% | 60.4% | |
| |
|---|
| Median (61 companies) | 16.4% | 16.1% | 13.5% | 11.1% | 5.4% |
|---|
| Cross-Harbour Holdings Ltd/The ($32) | 28.0% | 21.3% | 25.9% | 24.9% | 25.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 16.8% | 3.9% | 7.0% | 59.8% | |
| COSCO Pacific Ltd ($1199) | 111.3% | 96.6% | 66.6% | 43.3% | |
| Finet Group Ltd ($8317) | 3.9% | 10.3% | 9.1% | 26.0% | 8.4% |
| HC International Inc ($2280) | 15.1% | 8.5% | 28.7% | 24.7% | |
| Dragon Crown Group Holdings Ltd ($935) | 2.5% | 37.2% | 52.0% | 23.0% | |
| |
|---|
| Median (60 companies) | 3.8% | 3.1% | 4.2% | 3.4% | 2.7% |
|---|
| Cross-Harbour Holdings Ltd/The ($32) | 8.1% | 44.6% | 1.1% | 6.2% | 13.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mega Expo Holdings Ltd ($1360) | | 270.5% | 481.1% | 54.4% | 10.1% |
| China Packaging Holdings Development Ltd ($1439) | 50.0% | 52.0% | 46.6% | 34.1% | |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 136.8% | 51.5% | 26.6% | 30.0% | 29.5% |
| PPS International Holdings Ltd ($8201) | | 101.6% | 35.6% | 23.8% | -13.7% |
| 1010 Printing Group Ltd ($1127) | 14.4% | 13.5% | 20.8% | 17.8% | 19.9% |
| |
|---|
| Median (61 companies) | 5.2% | 6.0% | 5.5% | 5.2% | 3.7% |
|---|
| Cross-Harbour Holdings Ltd/The ($32) | 1.6% | 1.2% | 1.5% | 1.6% | 1.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dalian Port PDA Co Ltd ($2880) | 5.7x | 5.7x | 4.8x | 4.7x | |
| Sichuan Expressway Co Ltd ($107) | 1.8x | 2.7x | 3.8x | 4.3x | |
| Anxian Yuan China Holdings Ltd ($922) | | | 4.6x | 3.8x | 0.8x |
| Eagle Legend Asia Ltd ($936) | 4.3x | 4.0x | 4.0x | 3.3x | 6.2x |
| Yuexiu Transport Infrastructure Ltd ($1052) | 2.9x | 4.5x | 3.1x | 2.7x | 5.3x |
| |
|---|
| Median (40 companies) | -0.0x | 0.0x | -0.7x | -0.5x | -0.5x |
|---|
| Cross-Harbour Holdings Ltd/The ($32) | -9.4x | -11.7x | -15.6x | -20.9x | -18.3x |
