Convoy Financial Holdings Ltd reports 290% Net Income decline and 65.1% Revenue decline
28/03/2016 • About Convoy Financial Holdings Ltd (
$1019) • By InTwits
Convoy Financial Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Convoy Financial Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -14.9%
- Convoy Financial Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.7%. At the same time it's a lot of higher than industry average of 8.1%.
- CAPEX is quite volatile: 24.0 in 2015, 36.1 in 2014, 20.9 in 2013, 17.0 in 2012, 14.8 in 2011
- The company has unprofitable business model: ROIC is at -14.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Convoy Financial Holdings Ltd ($1019) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 655 | 705 | 1,026 | 1,592 | 555 | -65.1% |
| EBITDA | 80 | 22 | 131 | 373 | -426 | -214.3% |
| Net Income | 53 | 1 | 98 | 246 | -467 | -289.8% |
Balance Sheet
|
|---|
| Cash | 219 | 160 | 275 | 526 | 2,342 | 345.3% |
| Short Term Debt | 0 | 0 | 0 | 0 | 20 | |
| Long Term Debt | 0 | 0 | 0 | 261 | 601 | 130.4% |
Cash flow
|
|---|
| Capex | 15 | 17 | 21 | 36 | 24 | -33.5% |
Ratios
|
|---|
| Revenue growth | 13.9% | 7.7% | 45.4% | 55.2% | -65.1% | |
| EBITDA growth | -15.5% | -73.1% | 506.5% | 185.6% | -214.3% | |
| EBITDA Margin | 12.2% | 3.1% | 12.7% | 23.4% | -76.8% | -100.2% |
| Net Income Margin | 8.1% | 0.2% | 9.5% | 15.5% | -84.1% | -99.6% |
| CAPEX, % of revenue | 2.3% | 2.4% | 2.0% | 2.3% | 4.3% | 2.1% |
| ROIC | 31.1% | 3.4% | 39.3% | 47.3% | -14.9% | -62.1% |
| ROE | 25.2% | 0.7% | 33.5% | 39.4% | -16.1% | -55.4% |
| Net Debt/EBITDA | -2.7x | -7.4x | -2.1x | -0.7x | | 0.7x |
Revenue and profitability
The company's Revenue dropped on 65.1% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 100 pp from 23.4% to -76.8% in 2015.
Net Income marign dropped on 99.6 pp from 15.5% to -84.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.3% in 2015. The company showed small growth in CAPEX/Revenue of 1.9 pp from 2.4% in 2012 to 4.3% in 2015. Average CAPEX/Revenue for the last three years was 2.9%.
Return on investment
The company operates at negative ROIC (-14.87%) and ROE (-16.06%). ROIC dropped on 62.1 pp from 47.3% to -14.9% in 2015. ROE dropped on 55.4 pp from 39.4% to -16.1% in 2015.
Leverage (Debt)
Debt level is -5.3x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA surged on 0.7x from -0.7x to in 2015. Debt surged on 138% in 2015 while cash surged on 345% in 2015.
Appendix 1: Peers in Diversified Finan Serv
Below you can find Convoy Financial Holdings Ltd benchmarking vs. other companies in Diversified Finan Serv 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 |
|---|
| China Smarter Energy Group Holdings Ltd ($1004) | | -4.0% | -23.1% | -87.3% | 1,860.5% |
| Crown International Corp Ltd ($727) | | 225.8% | -75.0% | 117.4% | 802.5% |
| Global Strategic Group Ltd ($8007) | | -3.9% | 2.1% | 806.3% | 681.2% |
| Upbest Group Ltd ($335) | | -38.5% | -61.8% | 24.1% | 208.1% |
| GF Securities Co Ltd ($1776) | | 16.3% | 31.8% | 75.0% | 163.9% |
| |
|---|
| Median (55 companies) | 1.4% | 3.6% | 14.9% | 26.5% | 25.7% |
|---|
| Convoy Financial Holdings Ltd ($1019) | | 7.7% | 45.4% | 55.2% | -65.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Roma Group Ltd ($8072) | | | | 99.4% | 98.7% |
| Freeman Financial Corp Ltd ($279) | 97.1% | 52.3% | 99.3% | 98.5% | |
| Chinese Strategic Holdings Ltd ($8089) | 97.9% | 99.1% | 97.9% | 97.0% | 96.6% |
| First China Financial Network Holdings Ltd ($8123) | 98.6% | 93.4% | | 94.5% | 97.4% |
| Allied Group Ltd ($373) | 94.5% | 95.1% | 94.4% | 93.6% | 92.2% |
| |
|---|
| Median (13 companies) | 80.8% | 64.2% | 75.1% | 88.2% | 91.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Smarter Energy Group Holdings Ltd ($1004) | -122.8% | -282.7% | -373.2% | -1,524.9% | 212.2% |
| China Aircraft Leasing Group Holdings Ltd ($1848) | 89.3% | 91.3% | 86.4% | 92.9% | 107.0% |
| Get Nice Holdings Ltd ($64) | 28.4% | 2.6% | 153.4% | 92.7% | 83.9% |
| Hong Kong Exchanges and Clearing Ltd ($388) | 83.5% | 81.6% | 73.4% | 75.7% | 82.1% |
| Hong Kong Finance Group Co Ltd ($1273) | 79.8% | 76.9% | 67.5% | 65.2% | 74.8% |
| |
|---|
| Median (56 companies) | 30.4% | 23.0% | 37.2% | 47.9% | 35.3% |
|---|
| Convoy Financial Holdings Ltd ($1019) | 12.2% | 3.1% | 12.7% | 23.4% | -76.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Aircraft Leasing Group Holdings Ltd ($1848) | 0.4% | 351.0% | 0.1% | 33.3% | 64.6% |
| Willie International Holdings Ltd ($273) | | | 0.3% | 0.8% | 58.0% |
| China Assurance Finance Group Ltd ($8090) | | 94.7% | 68.9% | 53.3% | 51.0% |
| AID Partners Capital Holdings Ltd ($8088) | 196.3% | 4.1% | 2.9% | 28.4% | 26.6% |
| Hongkong Chinese Ltd ($655) | | | | 0.1% | 25.6% |
| |
|---|
| Median (55 companies) | 2.2% | 1.9% | 1.8% | 1.1% | 1.5% |
|---|
| Convoy Financial Holdings Ltd ($1019) | 2.3% | 2.4% | 2.0% | 2.3% | 4.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hong Kong Exchanges and Clearing Ltd ($388) | 65.6% | 29.1% | 20.1% | 21.5% | 29.1% |
| China Smarter Energy Group Holdings Ltd ($1004) | -8.2% | -19.4% | -23.0% | -14.0% | 22.5% |
| Oi Wah Pawnshop Credit Holdings Ltd ($1319) | 30.4% | 32.7% | 20.7% | 14.0% | 15.3% |
| Emperor Capital Group Ltd ($717) | 5.1% | 5.1% | 12.8% | 13.1% | 14.6% |
| Roma Group Ltd ($8072) | | 19.6% | 43.7% | 107.8% | 13.3% |
| |
|---|
| Median (58 companies) | 4.6% | 4.4% | 4.0% | 4.8% | 4.4% |
|---|
| Convoy Financial Holdings Ltd ($1019) | 31.1% | 3.4% | 39.3% | 47.3% | -14.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| South China Financial Holdings Ltd ($619) | | | | | 56.9x |
| Bright Smart Securities & Commodities Group Ltd ($1428) | 7.3x | 2.1x | 10.3x | 9.3x | 39.3x |
| Quam Ltd ($952) | 4.9x | 58.9x | 15.9x | 4.1x | 14.8x |
| China Aircraft Leasing Group Holdings Ltd ($1848) | 13.9x | 14.7x | 19.0x | 17.5x | 14.6x |
| Crown International Corp Ltd ($727) | | | | | 9.9x |
| |
|---|
| Median (44 companies) | -1.0x | -0.5x | 0.3x | 0.1x | -0.7x |
|---|
