VST Holdings Ltd Debt surged on 58.0% in 2015 and Net Debt / EBITDA jumped on 0.3x from 2.4x to 2.7x
23/03/2016 • About VST Holdings Ltd (
$856) • By InTwits
VST Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- VST Holdings Ltd is a growth stock: 2015 revenue growth was 8.8%, 5 year revenue CAGR was 11.7% at 2015 ROIC 10.2%
- EBITDA Margin is relatively stable: 1.9% in 2015 vs. 2.1% in 2014 vs. 2.1% in 2011
- VST Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.1%.
- The company has business model with average profitability: ROIC is at 10.2%
- It operates with high leverage: Net Debt/EBITDA is 2.7x while industry average is 1.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
VST Holdings Ltd ($856) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 32,617 | 37,098 | 40,239 | 41,893 | 45,576 | 8.8% |
| Gross Profit | 1,513 | 1,407 | 1,517 | 1,673 | 1,697 | 1.5% |
| SG&A | | 817 | 866 | 844 | 1,017 | 20.5% |
| EBITDA | 695 | 621 | 683 | 861 | 886 | 2.9% |
| Net Income | 463 | 444 | 503 | 607 | 450 | -25.8% |
Balance Sheet
|
|---|
| Cash | 1,573 | 936 | 1,169 | 1,495 | 3,234 | 116.3% |
| Short Term Debt | 1,174 | 1,520 | 2,002 | 3,557 | 4,635 | 30.3% |
| Long Term Debt | 697 | 747 | 696 | 0 | 986 | 262,081.6% |
Cash flow
|
|---|
| Capex | 31 | 14 | 15 | 24 | 77 | 226.0% |
Ratios
|
|---|
| Revenue growth | 24.4% | 13.7% | 8.5% | 4.1% | 8.8% | |
| EBITDA growth | 44.3% | -10.6% | 9.9% | 26.0% | 2.9% | |
| Gross Margin | 4.6% | 3.8% | 3.8% | 4.0% | 3.7% | -0.3% |
| EBITDA Margin | 2.1% | 1.7% | 1.7% | 2.1% | 1.9% | -0.1% |
| Net Income Margin | 1.4% | 1.2% | 1.2% | 1.4% | 1.0% | -0.5% |
| SG&A, % of revenue | | 2.2% | 2.2% | 2.0% | 2.2% | 0.2% |
| CAPEX, % of revenue | 0.1% | 0.0% | 0.0% | 0.1% | 0.2% | 0.1% |
| ROIC | 15.1% | 11.8% | 11.2% | 12.1% | 10.2% | -1.9% |
| ROE | 19.6% | 15.9% | 15.7% | 16.5% | 11.6% | -5.0% |
| Net Debt/EBITDA | 0.4x | 2.1x | 2.2x | 2.4x | 2.7x | 0.3x |
Revenue and profitability
The company's Revenue increased on 8.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.7 pp from 26.4% to 30.2% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.17% in 2015. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. Average CAPEX/Revenue for the last three years was 0.088%.
Return on investment
The company operates at low ROIC (10.16%) and ROE (11.59%). ROIC decreased slightly on 1.9 pp from 12.1% to 10.2% in 2015. ROE decreased on 5.0 pp from 16.5% to 11.6% in 2015.
Leverage (Debt)
Debt level is 2.7x Net Debt / EBITDA and 6.3x Debt / EBITDA. Net Debt / EBITDA jumped on 0.3x from 2.4x to 2.7x in 2015. Debt jumped on 58.0% in 2015 while cash surged on 116% in 2015.
Appendix 1: Peers in Distribution/Wholesale
Below we provide VST Holdings Ltd benchmarking against other companies in Distribution/Wholesale 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 |
|---|
| Forefront Group Ltd ($885) | | | 504.6% | 3,871.0% | 72.0% |
| China LNG Group Ltd ($931) | -84.5% | 694.8% | 13.6% | 1,341.3% | |
| Sheng Yuan Holdings Ltd ($851) | | -86.1% | 756.9% | 567.2% | -2.1% |
| China Infrastructure Investment Ltd ($600) | 346.9% | 412.1% | -50.9% | 557.9% | |
| China-Hongkong Photo Products Holdings Ltd ($1123) | | 24.9% | 9.0% | 81.2% | 12.2% |
| |
|---|
| Median (37 companies) | 13.5% | 2.6% | 0.0% | 0.8% | -2.0% |
|---|
| VST Holdings Ltd ($856) | | 13.7% | 8.5% | 4.1% | 8.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goldin Financial Holdings Ltd ($530) | 67.0% | 75.3% | 71.7% | 74.8% | 73.8% |
| Forefront Group Ltd ($885) | | | | 69.8% | 39.1% |
| YGM Trading Ltd ($375) | 67.1% | 66.5% | 67.4% | 64.0% | 62.5% |
| Goldlion Holdings Ltd ($533) | 57.3% | 56.4% | 54.1% | 55.7% | 60.0% |
| Sincere Watch Hong Kong Ltd ($444) | 34.2% | 35.6% | 39.7% | 38.8% | 38.3% |
| |
|---|
| Median (33 companies) | 16.4% | 17.5% | 18.2% | 19.3% | 22.5% |
|---|
| VST Holdings Ltd ($856) | 4.6% | 3.8% | 3.8% | 4.0% | 3.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goldin Financial Holdings Ltd ($530) | -134.6% | 163.7% | 613.4% | 285.7% | 364.1% |
| China LNG Group Ltd ($931) | 195.2% | 95.1% | 76.4% | 97.9% | |
| Forefront Group Ltd ($885) | | -2,113.8% | -803.1% | 57.7% | 4.9% |
| China Infrastructure Investment Ltd ($600) | -1,171.2% | -274.9% | 120.0% | 52.0% | |
| GA Holdings Ltd ($8126) | -4.5% | 8.0% | 19.7% | 22.9% | |
| |
|---|
| Median (37 companies) | 2.9% | 2.6% | 2.5% | 4.6% | 2.8% |
|---|
| VST Holdings Ltd ($856) | 2.1% | 1.7% | 1.7% | 2.1% | 1.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| C Y Foundation Group Ltd ($1182) | 9.8% | 2.5% | 5.2% | 82.2% | 9.3% |
| Inspur International Ltd ($596) | 0.9% | 8.4% | 12.2% | 33.6% | |
| SIS International Holdings ($529) | 0.2% | 13.4% | 31.8% | 14.8% | 49.8% |
| HKC International Holdings Ltd ($248) | 0.9% | 5.5% | 0.8% | 11.4% | 0.5% |
| Tan Chong International Ltd ($693) | 7.6% | 6.0% | 7.6% | 7.0% | |
| |
|---|
| Median (36 companies) | 1.5% | 1.4% | 1.8% | 1.7% | 1.2% |
|---|
| VST Holdings Ltd ($856) | 0.1% | 0.0% | 0.0% | 0.1% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China LNG Group Ltd ($931) | 2.2% | 8.4% | 7.4% | 87.0% | |
| Yestar International Holdings Co Ltd ($2393) | 29.4% | 28.8% | 24.1% | 26.2% | 25.4% |
| Powerwell Pacific Holdings Ltd ($8265) | 27.8% | 6.4% | 6.4% | 23.6% | 27.1% |
| Forefront Group Ltd ($885) | -37.7% | -4.9% | -11.0% | 19.5% | 1.3% |
| Sincere Watch Hong Kong Ltd ($444) | 46.4% | 51.7% | 27.7% | 14.6% | 5.5% |
| |
|---|
| Median (38 companies) | 2.2% | 2.1% | 0.9% | 3.1% | 1.9% |
|---|
| VST Holdings Ltd ($856) | 15.1% | 11.8% | 11.2% | 12.1% | 10.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sheng Yuan Holdings Ltd ($851) | | | | 19.3x | 15.4x |
| Takson Holdings Ltd ($918) | | | 11.5x | 11.7x | 15.7x |
| Huiyin Household Appliances Holdings Co Ltd ($1280) | 10.1x | | | 10.9x | |
| Pacific Andes International Holdings Ltd ($1174) | 4.9x | 5.1x | 9.1x | 7.8x | |
| SIS International Holdings ($529) | -62.1x | -1.8x | 7.0x | 7.2x | 16.8x |
| |
|---|
| Median (26 companies) | -0.4x | -0.3x | -0.8x | -0.1x | 0.1x |
|---|
| VST Holdings Ltd ($856) | 0.4x | 2.1x | 2.2x | 2.4x | 2.7x |
