Top Spring International Holdings Ltd revenue growth accelerated to 50.9% in 2015 vs. 21.3% a year earliner
23/03/2016 • About Top Spring International Holdings Ltd (
$3688) • By InTwits
Top Spring International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 19.9% in 2015, 29.5% in 2014, 28.5% in 2013, 41.9% in 2012, 56.1% in 2011
- Top Spring International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has business model with low profitability: ROIC is at 8.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Top Spring International Holdings Ltd ($3688) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,861 | 6,065 | 5,747 | 6,971 | 10,520 | 50.9% |
| Gross Profit | 3,879 | 3,175 | 2,300 | 2,920 | 3,195 | 9.4% |
| SG&A | | 692 | 789 | 953 | 903 | -5.2% |
| EBITDA | 3,287 | 2,540 | 1,637 | 2,057 | 2,091 | 1.6% |
| Net Income | 1,022 | 1,200 | 1,284 | 922 | 773 | -16.1% |
Balance Sheet
|
|---|
| Cash | 4,541 | 4,901 | 5,606 | 6,375 | 3,790 | -40.5% |
| Short Term Debt | 1,720 | 3,293 | 9,071 | 8,487 | 6,615 | -22.1% |
| Long Term Debt | 5,712 | 5,589 | 7,213 | 6,654 | 4,106 | -38.3% |
Cash flow
|
|---|
| Capex | 42 | 32 | 61 | 23 | 13 | -45.6% |
Ratios
|
|---|
| Revenue growth | 112.4% | 3.5% | -5.3% | 21.3% | 50.9% | |
| EBITDA growth | 154.8% | -22.7% | -35.6% | 25.7% | 1.6% | |
| Gross Margin | 66.2% | 52.4% | 40.0% | 41.9% | 30.4% | -11.5% |
| EBITDA Margin | 56.1% | 41.9% | 28.5% | 29.5% | 19.9% | -9.6% |
| Net Income Margin | 17.4% | 19.8% | 22.4% | 13.2% | 7.4% | -5.9% |
| SG&A, % of revenue | | 11.4% | 13.7% | 13.7% | 8.6% | -5.1% |
| CAPEX, % of revenue | 0.7% | 0.5% | 1.1% | 0.3% | 0.1% | -0.2% |
| ROIC | 27.9% | 15.6% | 6.9% | 7.3% | 8.0% | 0.8% |
| ROE | 48.9% | 30.5% | 25.4% | 15.7% | 12.5% | -3.1% |
| Net Debt/EBITDA | 0.9x | 1.6x | 6.5x | 4.3x | 3.3x | -0.9x |
Revenue and profitability
Top Spring International Holdings Ltd's Revenue jumped on 50.9% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 9.6 pp from 29.5% to 19.9% in 2015.
Gross Margin dropped on 11.5 pp from 41.9% to 30.4% in 2015. SG&A as a % of Revenue decreased on 5.1 pp from 13.7% to 8.6% in 2015.
Net Income marign decreased on 5.9 pp from 13.2% to 7.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
Top Spring International Holdings Ltd's CAPEX/Revenue was 0.12% in 2015. Top Spring International Holdings Ltd's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 0.51%.
Return on investment
The company operates at good ROE (12.53%) while ROIC is low (8.04%). ROIC increased slightly on 0.78 pp from 7.3% to 8.0% in 2015. ROE decreased on 3.1 pp from 15.7% to 12.5% in 2015.
Leverage (Debt)
Debt level is 3.3x Net Debt / EBITDA and 5.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.9x from 4.3x to 3.3x in 2015. Debt dropped on 29.2% in 2015 while cash dropped on 40.5% in 2015.
Appendix 1: Peers in Holding Companies-Divers
Below we provide Top Spring International Holdings Ltd benchmarking against other companies in Holding Companies-Divers 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 |
|---|
| Kong Sun Holdings Ltd ($295) | -18.7% | -88.3% | 5.1% | 7,067.0% | |
| Goldin Properties Holdings Ltd ($283) | | | 126.0% | 2,065.8% | -79.6% |
| China Primary Energy Holdings Ltd ($8117) | -43.1% | -56.3% | -23.6% | 195.4% | |
| Carnival Group International Holdings Ltd ($996) | | | | 159.1% | |
| 21 Holdings Ltd ($1003) | | -57.4% | -12.4% | 106.4% | 31.0% |
| |
|---|
| Median (42 companies) | 11.6% | 12.2% | 4.9% | 12.6% | 6.6% |
|---|
| Top Spring International Holdings Ltd ($3688) | | 3.5% | -5.3% | 21.3% | 50.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Multifield International Holdings Ltd ($898) | 66.4% | 87.5% | 84.7% | 89.1% | |
| New Century Group Hong Kong Ltd ($234) | 76.7% | 27.3% | 85.2% | 82.8% | 91.5% |
| Emperor International Holdings Ltd ($163) | 74.5% | 71.3% | 64.9% | 79.2% | 75.3% |
| China Renji Medical Group Ltd/Hong Kong ($648) | 54.9% | 70.0% | 67.3% | 78.6% | 22.3% |
| Century Legend Holdings Ltd ($79) | 68.5% | 70.1% | 72.3% | 71.0% | 70.3% |
| |
|---|
| Median (39 companies) | 27.9% | 32.9% | 34.6% | 30.8% | 37.6% |
|---|
| Top Spring International Holdings Ltd ($3688) | 66.2% | 52.4% | 40.0% | 41.9% | 30.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Emperor International Holdings Ltd ($163) | 224.8% | 180.7% | 131.8% | 100.6% | 73.9% |
| Multifield International Holdings Ltd ($898) | 49.8% | 80.1% | 68.3% | 97.5% | |
| New Century Group Hong Kong Ltd ($234) | 82.5% | -5.5% | 78.8% | 58.3% | 85.0% |
| Magnificent Estates ($201) | 42.1% | 45.5% | 47.8% | 53.0% | 40.6% |
| China Merchants Holdings International Co Ltd ($144) | 63.7% | 56.4% | 50.8% | 45.2% | |
| |
|---|
| Median (44 companies) | 5.2% | 1.7% | 1.9% | 5.6% | 4.3% |
|---|
| Top Spring International Holdings Ltd ($3688) | 56.1% | 41.9% | 28.5% | 29.5% | 19.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Far East Holdings International Ltd ($36) | 2.7% | 0.1% | 13.2% | 422.1% | 0.8% |
| China Investments Holdings Ltd ($132) | 20.7% | 4.8% | 81.9% | 382.2% | 222.5% |
| Heng Fai Enterprises Ltd ($185) | 217.5% | 4.8% | 77.1% | 310.0% | 458.1% |
| New Century Group Hong Kong Ltd ($234) | 1.0% | 97.2% | 1.0% | 142.7% | 32.2% |
| Chinney Investments Ltd ($216) | 37.6% | 17.5% | 103.4% | 111.3% | 230.9% |
| |
|---|
| Median (44 companies) | 4.9% | 2.7% | 3.8% | 7.0% | 12.3% |
|---|
| Top Spring International Holdings Ltd ($3688) | 0.7% | 0.5% | 1.1% | 0.3% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wisdom Holdings Group ($1661) | 62.7% | 68.6% | 42.1% | 28.8% | |
| Chinney Alliance Group Ltd ($385) | 3.4% | 6.4% | 8.1% | 13.6% | |
| Hutchison Whampoa Ltd ($13) | 3.3% | 3.7% | 4.2% | 8.1% | |
| Code Agriculture Holdings Ltd ($8153) | -0.1% | 2.4% | -3.3% | 7.9% | -6.2% |
| C C Land Holdings Ltd ($1224) | 4.5% | 7.4% | 5.3% | 7.9% | 15.0% |
| |
|---|
| Median (44 companies) | 0.3% | -0.2% | -0.2% | 0.5% | 0.2% |
|---|
| Top Spring International Holdings Ltd ($3688) | 27.9% | 15.6% | 6.9% | 7.3% | 8.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chinney Investments Ltd ($216) | 111.3x | 10.3x | 63.7x | 48.6x | 93.7x |
| Carnival Group International Holdings Ltd ($996) | | | | 23.7x | |
| Van Shung Chong Holdings Ltd ($1001) | 3.4x | | 0.9x | 12.3x | 7.7x |
| Southeast Asia Properties & Finance Ltd ($252) | 6.8x | 6.7x | 5.7x | 9.2x | 4.3x |
| Code Agriculture Holdings Ltd ($8153) | 24.3x | 11.9x | 42.8x | 8.7x | |
| |
|---|
| Median (26 companies) | 3.1x | 2.6x | 2.9x | 2.9x | 3.0x |
|---|
| Top Spring International Holdings Ltd ($3688) | 0.9x | 1.6x | 6.5x | 4.3x | 3.3x |
