Dah Sing Banking Group Ltd reports 253% CAPEX growth and 2.1% Revenue growth
23/03/2016 • About Dah Sing Banking Group Ltd (
$2356) • By InTwits
Dah Sing Banking Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dah Sing Banking Group Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.1%. At the same time it's a lot of higher than industry average of 3.5%.
- CAPEX is quite volatile: 493 in 2015, 140 in 2014, 230 in 2013, 189 in 2012, 327 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.5%
- It operates with high leverage: Net Debt/EBITDA is -0.5x while industry average is -5.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dah Sing Banking Group Ltd ($2356) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,181 | 4,916 | 5,551 | 6,410 | 6,543 | 2.1% |
| Net Income | 1,093 | 1,480 | 1,756 | 2,034 | 2,201 | 8.2% |
Balance Sheet
|
|---|
| Cash | 4,278 | 2,327 | 3,305 | 2,729 | 2,183 | -20.0% |
| Short Term Debt | 5,430 | 4,924 | 5,358 | 7,170 | 7,822 | 9.1% |
| Long Term Debt | 6,416 | 6,692 | 4,538 | 5,432 | 5,320 | -2.1% |
Cash flow
|
|---|
| Capex | 327 | 189 | 230 | 140 | 493 | 253.4% |
Ratios
|
|---|
| Revenue growth | 20.3% | 17.6% | 12.9% | 15.5% | 2.1% | |
| Net Income Margin | 26.1% | 30.1% | 31.6% | 31.7% | 33.6% | 1.9% |
| CAPEX, % of revenue | 7.8% | 3.9% | 4.1% | 2.2% | 7.5% | 5.4% |
| ROIC | 3.2% | 4.2% | 5.4% | 5.4% | 5.5% | 0.1% |
| ROE | 7.7% | 9.7% | 10.8% | 11.0% | 10.6% | -0.4% |
Revenue and profitability
The company's Revenue increased on 2.1% in 2015.
Net Income marign increased slightly on 1.9 pp from 31.7% to 33.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Dah Sing Banking Group Ltd had CAPEX/Revenue of 7.5%. Dah Sing Banking Group Ltd's CAPEX/Revenue increased on 3.7 pp from 3.9% in 2012 to 7.5% in 2015. It's average CAPEX/Revenue for the last three years was 4.6%.
Return on investment
The company operates at low ROIC (5.47%) and ROE (10.63%). ROIC showed almost no change in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt increased on 4.3% in 2015 while cash dropped on 20.0% in 2015.
Management team
Dah Sing Banking Group Ltd's CEO is Tsu-Hing Wong "Harold". Tsu-Hing Wong "Harold" has 7 years tenure at the company.
Appendix 1: Peers in Banks
Below you can find Dah Sing Banking Group Ltd benchmarking vs. other companies in Banks 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 |
|---|
| Chong Hing Bank Ltd ($1111) | | 10.0% | -1.2% | 121.1% | -17.4% |
| Shengjing Bank Co Ltd ($2066) | | 36.5% | 36.3% | 40.1% | 24.3% |
| China Merchants Bank Co Ltd ($3968) | 42.3% | 24.0% | 18.6% | 33.9% | |
| Harbin Bank Co Ltd ($6138) | | 58.3% | 12.1% | 29.2% | 10.5% |
| Dah Sing Financial Holdings Ltd ($440) | | 9.9% | -0.1% | 29.0% | -7.8% |
| |
|---|
| Median (22 companies) | 33.4% | 21.6% | 10.4% | 13.8% | 4.3% |
|---|
| Dah Sing Banking Group Ltd ($2356) | | 17.6% | 12.9% | 15.5% | 2.1% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | 34.2% | 4.1% | 29.9% | 27.0% | 33.5% |
| |
|---|
| Median (1 company) | 34.2% | 4.1% | 29.9% | 27.0% | 33.5% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Minsheng Banking Corp Ltd ($1988) | 5.0% | 5.2% | 6.8% | 7.6% | |
| Harbin Bank Co Ltd ($6138) | 20.0% | 19.8% | 9.9% | 6.5% | 5.8% |
| Industrial & Commercial Bank of China Ltd ($1398) | 3.2% | 3.8% | 4.9% | 5.4% | |
| Bank of Communications Co Ltd ($3328) | 3.1% | 3.6% | 5.1% | 5.3% | |
| Shengjing Bank Co Ltd ($2066) | 3.3% | 1.6% | 2.2% | 5.0% | 3.0% |
| |
|---|
| Median (22 companies) | 3.2% | 3.2% | 3.7% | 3.3% | 2.6% |
|---|
| Dah Sing Banking Group Ltd ($2356) | 7.8% | 3.9% | 4.1% | 2.2% | 7.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chong Hing Bank Ltd ($1111) | 6.3% | 5.5% | 5.2% | 16.4% | 5.7% |
| KVB Kunlun Financial Group Ltd ($8077) | | 1.2% | 16.3% | 12.3% | |
| China Construction Bank Corp ($939) | 11.6% | 11.1% | 11.7% | 10.8% | |
| Industrial & Commercial Bank of China Ltd ($1398) | 10.6% | 9.9% | 10.2% | 9.9% | |
| Agricultural Bank of China Ltd ($1288) | 10.3% | 9.9% | 10.0% | 9.3% | |
| |
|---|
| Median (22 companies) | 6.4% | 6.0% | 6.4% | 5.5% | 3.9% |
|---|
| Dah Sing Banking Group Ltd ($2356) | 3.2% | 4.2% | 5.4% | 5.4% | 5.5% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | -5.7x | -66.3x | -7.1x | -10.6x | -5.7x |
| |
|---|
| Median (1 company) | -5.7x | -66.3x | -7.1x | -10.6x | -5.7x |
|---|
