Brilliant Circle Holdings International Ltd reports 21.1% EBITDA decline and 3.3 pp EBITDA Margin decline from 32.3% to 29.0%
24/03/2016 • About Brilliant Circle Holdings International Ltd (
$1008) • By InTwits
Brilliant Circle Holdings International Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Brilliant Circle Holdings International Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.8%. At the same time it's a lot of higher than industry average of 7.5%.
- CAPEX is quite volatile: 0 in 2015, 144 in 2014, 160 in 2013, 104 in 2012, 24.8 in 2011
- The company has business model with low profitability: ROIC is at 8.1%
- It operates with high leverage: Net Debt/EBITDA is 1.2x while industry average is -20.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Brilliant Circle Holdings International Ltd ($1008) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,690 | 1,939 | 1,883 | 1,703 | 1,495 | -12.2% |
| Gross Profit | 515 | 581 | 625 | 553 | 462 | -16.4% |
| SG&A | | 150 | 176 | 151 | 148 | -2.3% |
| EBITDA | 454 | 524 | 599 | 551 | 434 | -21.1% |
| Net Income | 388 | 433 | 454 | 454 | 386 | -14.8% |
Balance Sheet
|
|---|
| Cash | 354 | 559 | 415 | 379 | 300 | -20.9% |
| Short Term Debt | 275 | 419 | 724 | 742 | 536 | -27.8% |
| Long Term Debt | 346 | 487 | 384 | 95 | 278 | 191.0% |
Cash flow
|
|---|
| Capex | 25 | 104 | 160 | 144 | 0 | -100.0% |
Ratios
|
|---|
| Revenue growth | 12.4% | 14.8% | -2.9% | -9.5% | -12.2% | |
| EBITDA growth | 18.7% | 15.3% | 14.4% | -8.1% | -21.1% | |
| Gross Margin | 30.5% | 30.0% | 33.2% | 32.5% | 30.9% | -1.6% |
| EBITDA Margin | 26.9% | 27.0% | 31.8% | 32.3% | 29.0% | -3.3% |
| Net Income Margin | 22.9% | 22.3% | 24.1% | 26.6% | 25.8% | -0.8% |
| SG&A, % of revenue | | 7.7% | 9.4% | 8.9% | 9.9% | 1.0% |
| CAPEX, % of revenue | 1.5% | 5.4% | 8.5% | 8.4% | 0.0% | -8.4% |
| ROIC | 13.5% | 13.2% | 12.0% | 10.0% | 8.1% | -1.8% |
| ROE | 20.0% | 20.8% | 18.6% | 16.2% | 13.1% | -3.1% |
| Net Debt/EBITDA | 0.6x | 0.7x | 1.2x | 0.8x | 1.2x | 0.4x |
Revenue and profitability
Brilliant Circle Holdings International Ltd's Revenue dropped on 12.2% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.3 pp from 32.3% to 29.0% in 2015.
Gross Margin decreased slightly on 1.6 pp from 32.5% to 30.9% in 2015. SG&A as a % of Revenue increased slightly on 1.0 pp from 8.9% to 9.9% in 2015.
Net Income marign decreased slightly on 0.79 pp from 26.6% to 25.8% in 2015.
Return on investment
The company operates at good ROE (13.10%) while ROIC is low (8.13%). ROIC decreased slightly on 1.8 pp from 10.0% to 8.1% in 2015. ROE decreased on 3.1 pp from 16.2% to 13.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.2x and Debt / EBITDA is 1.9x. Net Debt / EBITDA surged on 0.4x from 0.8x to 1.2x in 2015. Debt decreased on 2.8% in 2015 while cash dropped on 20.9% in 2015.
Appendix 1: Peers in Commercial Services
Below you can find Brilliant Circle Holdings International Ltd benchmarking vs. other companies in Commercial Services 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 |
|---|
| 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 (62 companies) | 34.2% | 8.8% | 6.7% | 9.9% | 6.5% |
|---|
| Brilliant Circle Holdings International Ltd ($1008) | | 14.8% | -2.9% | -9.5% | -12.2% |
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% |
| U Banquet Group Holding Ltd ($8107) | | | | 76.5% | 74.5% |
| 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% |
| |
|---|
| Median (57 companies) | 33.0% | 31.5% | 29.2% | 30.9% | 31.5% |
|---|
| Brilliant Circle Holdings International Ltd ($1008) | 30.5% | 30.0% | 33.2% | 32.5% | 30.9% |
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 (62 companies) | 16.0% | 16.0% | 13.4% | 11.0% | 8.5% |
|---|
| Brilliant Circle Holdings International Ltd ($1008) | 26.9% | 27.0% | 31.8% | 32.3% | 29.0% |
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% | 13.0% |
| |
|---|
| Median (61 companies) | 3.9% | 3.1% | 4.0% | 3.6% | 4.9% |
|---|
| Brilliant Circle Holdings International Ltd ($1008) | 1.5% | 5.4% | 8.5% | 8.4% | 0.0% |
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% |
| U Banquet Group Holding Ltd ($8107) | | 98.5% | 23.9% | 28.0% | -3.7% |
| PPS International Holdings Ltd ($8201) | | 101.6% | 35.6% | 23.8% | -13.7% |
| |
|---|
| Median (62 companies) | 5.0% | 6.0% | 5.2% | 4.2% | 3.4% |
|---|
| Brilliant Circle Holdings International Ltd ($1008) | 13.5% | 13.2% | 12.0% | 10.0% | 8.1% |
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 | 4.1x |
| 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 (41 companies) | -0.1x | -0.1x | -0.8x | -0.5x | -0.6x |
|---|
| Brilliant Circle Holdings International Ltd ($1008) | 0.6x | 0.7x | 1.2x | 0.8x | 1.2x |
