Poly Culture Group Corp Ltd reports CAPEX growth
24/03/2016 • About Poly Culture Group Corp Ltd (
$3636) • By InTwits
Poly Culture Group Corp Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 17.6% in 2015 vs. 24.0% in 2014 vs. 45.6% in 2011
- EBITDA Margin is quite volatile: 17.6% in 2015, 24.0% in 2014, 31.2% in 2013, 32.9% in 2012, 45.6% in 2011
- The company has business model with low profitability: ROIC is at 8.5%
- It operates with high leverage: Net Debt/EBITDA is -3.0x 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.
Poly Culture Group Corp Ltd ($3636) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,758 | 1,650 | 2,003 | 2,243 | 2,505 | 11.7% |
| Gross Profit | 1,043 | 812 | 990 | 993 | 956 | -3.7% |
| SG&A | 267 | 337 | 433 | 540 | 627 | 16.0% |
| EBITDA | 802 | 542 | 624 | 539 | 440 | -18.3% |
| Net Income | 345 | 242 | 275 | 252 | 238 | -5.5% |
Balance Sheet
|
|---|
| Cash | 1,071 | 904 | 1,005 | 1,536 | 1,415 | -7.9% |
| Short Term Debt | 618 | 298 | 208 | 100 | 25 | -74.9% |
| Long Term Debt | 0 | 0 | 0 | 19 | 68 | 263.5% |
Cash flow
|
|---|
| Capex | 96 | 158 | 145 | | 135 | |
Ratios
|
|---|
| Revenue growth | 44.6% | -6.2% | 21.4% | 12.0% | 11.7% | |
| EBITDA growth | 64.5% | -32.3% | 15.1% | -13.7% | -18.3% | |
| Gross Margin | 59.3% | 49.2% | 49.4% | 44.3% | 38.2% | -6.1% |
| EBITDA Margin | 45.6% | 32.9% | 31.2% | 24.0% | 17.6% | -6.5% |
| Net Income Margin | 19.6% | 14.7% | 13.7% | 11.2% | 9.5% | -1.7% |
| SG&A, % of revenue | 15.2% | 20.4% | 21.6% | 24.1% | 25.0% | 0.9% |
| CAPEX, % of revenue | 5.5% | 9.6% | 7.2% | | 5.4% | 5.4% |
| ROIC | 48.0% | 29.1% | 33.0% | 16.3% | 8.5% | -7.8% |
| ROE | 54.6% | 26.2% | 25.0% | 10.9% | 6.7% | -4.2% |
| Net Debt/EBITDA | -0.6x | -1.1x | -1.3x | -2.6x | -3.0x | -0.4x |
Revenue and profitability
Poly Culture Group Corp Ltd's Revenue surged on 11.7% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.6 pp from 2.6% to 6.1% in 2015.
Gross Margin decreased on 6.1 pp from 44.3% to 38.2% in 2015. SG&A as a % of Revenue increased slightly on 0.94 pp from 24.1% to 25.0% in 2015.
Net Income marign decreased slightly on 1.7 pp from 11.2% to 9.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 5.4%. Poly Culture Group Corp Ltd showed decline in CAPEX/Revenue of 4.2 pp from 9.6% in 2012 to 5.4% in 2015.
Return on investment
The company operates at low ROIC (8.53%) and ROE (6.68%). ROIC decreased on 7.8 pp from 16.3% to 8.5% in 2015. ROE decreased on 4.2 pp from 10.9% to 6.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.0x and Debt / EBITDA is 0.2x. Net Debt / EBITDA dropped on 0.4x from -2.6x to -3.0x in 2015. Debt dropped on 21.7% in 2015 while cash decreased on 7.9% in 2015.
Appendix 1: Peers in Commercial Services
Below you can find Poly Culture Group Corp 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% | 9.0% | 4.7% | 9.4% | 6.1% |
|---|
| Poly Culture Group Corp Ltd ($3636) | | -6.2% | 21.4% | 12.0% | 11.7% |
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) | 32.9% | 31.0% | 29.2% | 30.9% | 30.9% |
|---|
| Poly Culture Group Corp Ltd ($3636) | 59.3% | 49.2% | 49.4% | 44.3% | 38.2% |
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 (62 companies) | 16.0% | 16.0% | 13.4% | 11.0% | 8.5% |
|---|
| Poly Culture Group Corp Ltd ($3636) | 45.6% | 32.9% | 31.2% | 24.0% | 17.6% |
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 (62 companies) | 3.7% | 3.1% | 4.0% | 3.8% | 4.3% |
|---|
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% |
| 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% |
|---|
| Poly Culture Group Corp Ltd ($3636) | 48.0% | 29.1% | 33.0% | 16.3% | 8.5% |
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 | -0.0x | -0.7x | -0.4x | -0.5x |
|---|
| Poly Culture Group Corp Ltd ($3636) | -0.6x | -1.1x | -1.3x | -2.6x | -3.0x |
