GA Holdings Ltd reports 70.8% Net Income growth while 2.6 pp EBITDA Margin decline from 22.9% to 20.3%
28/03/2016 • About GA Holdings Ltd (
$8126) • By InTwits
GA Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- GA Holdings Ltd is a growth stock: 2015 revenue growth was 17.2%, 5 year revenue CAGR was 15.1% at 2015 ROIC 11.9%
- EBITDA Margin is quite volatile: 20.3% in 2015, 22.9% in 2014, 19.7% in 2013, 8.0% in 2012, -4.5% in 2011
- GA Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's in pair with industry average of 7.0%.
- CAPEX is quite volatile: 7.4 in 2015, 15.0 in 2014, 12.8 in 2013, 1.7 in 2012, 10.7 in 2011
- The company has business model with average profitability: ROIC is at 11.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
GA Holdings Ltd ($8126) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 301.8 | 394.2 | 408.3 | 422.9 | 495.5 | 17.2% |
| EBITDA | -13.6 | 31.5 | 80.3 | 97.0 | 100.8 | 3.9% |
| Net Income | 29.5 | 34.2 | 75.2 | 56.2 | 96.0 | 70.8% |
Balance Sheet
|
|---|
| Cash | 54.9 | 86.1 | 54.0 | 34.3 | 86.4 | 152.1% |
| Short Term Debt | 115.1 | 147.8 | 59.4 | 90.7 | 105.7 | 16.5% |
| Long Term Debt | 7.1 | 10.0 | 6.6 | 6.9 | 6.3 | -8.4% |
Cash flow
|
|---|
| Capex | 10.7 | 1.7 | 12.8 | 15.0 | 7.4 | -50.5% |
Ratios
|
|---|
| Revenue growth | 23.3% | 30.6% | 3.6% | 3.6% | 17.2% | |
| EBITDA growth | 568.4% | -331.5% | 155.3% | 20.8% | 3.9% | |
| EBITDA Margin | -4.5% | 8.0% | 19.7% | 22.9% | 20.3% | -2.6% |
| Net Income Margin | 9.8% | 8.7% | 18.4% | 13.3% | 19.4% | 6.1% |
| CAPEX, % of revenue | 3.6% | 0.4% | 3.1% | 3.6% | 1.5% | -2.1% |
| ROIC | -6.1% | 3.3% | 12.0% | 13.5% | 11.9% | -1.5% |
| ROE | 10.7% | 10.9% | 20.1% | 12.7% | 19.4% | 6.7% |
| Net Debt/EBITDA | | 2.3x | 0.1x | 0.7x | 0.3x | -0.4x |
Revenue and profitability
The company's Revenue surged on 17.2% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.6 pp from 22.9% to 20.3% in 2015.
Net Income marign increased on 6.1 pp from 13.3% to 19.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.5% in 2015. The company's CAPEX/Revenue increased slightly on 1.1 pp from 0.42% in 2012 to 1.5% in 2015. It's average level of CAPEX/Revenue for the last three years was 2.7%.
Return on investment
The company operates at good ROE (19.41%) while ROIC is low (11.92%). ROIC decreased slightly on 1.5 pp from 13.5% to 11.9% in 2015. ROE increased on 6.7 pp from 12.7% to 19.4% in 2015.
Leverage (Debt)
Debt level is 0.3x Net Debt / EBITDA and 1.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 0.7x to 0.3x in 2015. Debt surged on 14.8% in 2015 while cash jumped on 152% in 2015.
Appendix 1: Peers in Distribution/Wholesale
Below we provide GA 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) | 7.9% | 2.6% | 0.0% | 0.8% | -2.1% |
|---|
| GA Holdings Ltd ($8126) | | 30.6% | 3.6% | 3.6% | 17.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Yunnan Tin Minerals Group Co Ltd ($263) | 32.6% | 79.6% | 66.3% | | 98.7% |
| Goldin Financial Holdings Ltd ($530) | 67.0% | 75.3% | 71.7% | 74.8% | 73.8% |
| 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% |
| E.Bon Holdings Ltd ($599) | 36.6% | 40.3% | 37.4% | 35.8% | 39.6% |
| |
|---|
| Median (28 companies) | 16.1% | 17.4% | 17.8% | 18.7% | 21.7% |
|---|
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% | |
| Goldlion Holdings Ltd ($533) | 27.8% | 25.8% | 23.4% | 22.5% | 22.8% |
| |
|---|
| Median (37 companies) | 2.9% | 2.1% | 1.9% | 4.5% | 2.8% |
|---|
| GA Holdings Ltd ($8126) | -4.5% | 8.0% | 19.7% | 22.9% | 20.3% |
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) | 1.3% | 1.4% | 1.7% | 1.6% | 1.2% |
|---|
| GA Holdings Ltd ($8126) | 3.6% | 0.4% | 3.1% | 3.6% | 1.5% |
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) | 2.9% | 2.1% | 0.9% | 3.1% | 2.4% |
|---|
| GA Holdings Ltd ($8126) | -6.1% | 3.3% | 12.0% | 13.5% | 11.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SIS International Holdings ($529) | -62.1x | -1.8x | 7.0x | 7.2x | 16.8x |
| Leeport Holdings Ltd ($387) | 3.1x | | | | 16.1x |
| Takson Holdings Ltd ($918) | | | 11.5x | 11.7x | 15.7x |
| Sheng Yuan Holdings Ltd ($851) | | | | 19.3x | 15.4x |
| Forefront Group Ltd ($885) | | | | -0.0x | 15.3x |
| |
|---|
| Median (21 companies) | -0.2x | -0.3x | -0.8x | -0.1x | -0.2x |
|---|
| GA Holdings Ltd ($8126) | | 2.3x | 0.1x | 0.7x | 0.3x |
