BOC Hong Kong Holdings Ltd revenue jumped on 11.6% in 2015
30/03/2016 • About BOC Hong Kong Holdings Ltd (
$2388) • By InTwits
BOC Hong Kong Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- BOC Hong Kong Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's a lot of higher than industry average of 5.5%.
- CAPEX is quite volatile: 4,279 in 2015, 479 in 2014, 331 in 2013, 506 in 2012, 1,793 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.2%
- It operates with high leverage: Net Debt/EBITDA is -2.4x while industry average is -5.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
BOC Hong Kong Holdings Ltd ($2388) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 50,558 | 58,194 | 64,805 | 62,892 | 70,208 | 11.6% |
| Net Income | 20,430 | 20,930 | 22,252 | 24,577 | 26,796 | 9.0% |
Balance Sheet
|
|---|
| Cash | 278,795 | 198,748 | 353,741 | 398,673 | 230,730 | -42.1% |
| Short Term Debt | 243,448 | 185,959 | 278,273 | 241,981 | 213,393 | -11.8% |
| Long Term Debt | 27,887 | 27,925 | 25,533 | 25,376 | 20,611 | -18.8% |
Cash flow
|
|---|
| Capex | 924 | 1,047 | 1,098 | 1,025 | 1,241 | 21.1% |
Ratios
|
|---|
| Revenue growth | 17.9% | 15.1% | 11.4% | -3.0% | 11.6% | |
| Net Income Margin | 40.4% | 36.0% | 34.3% | 39.1% | 38.2% | -0.9% |
| CAPEX, % of revenue | 1.8% | 1.8% | 1.7% | 1.6% | 1.8% | 0.1% |
| ROIC | 5.1% | 5.9% | 6.4% | 5.8% | 6.2% | 0.5% |
| ROE | 16.7% | 14.9% | 14.4% | 14.6% | 14.5% | -0.1% |
Revenue and profitability
BOC Hong Kong Holdings Ltd's Revenue surged on 11.6% in 2015.
Net Income marign decreased slightly on 0.91 pp from 39.1% to 38.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.8%. BOC Hong Kong Holdings Ltd's CAPEX/Revenue showed almost no change from 2012 to 2015. For the last three years the average CAPEX/Revenue was 1.7%.
Return on investment
The company operates at good ROE (14.51%) while ROIC is low (6.24%). ROIC showed almost no change in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt dropped on 12.5% in 2015 while cash dropped on 42.1% in 2015.
Management team
The company's CEO is Yue Yi. Yue Yi has 3 years tenure at the company. BOC Hong Kong Holdings Ltd's CFO Sui Yang has spent 4 years at the company.
Appendix 1: Peers in Banks
Below you can find BOC Hong Kong Holdings Ltd benchmarking vs. other companies in Banks 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 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | | -20.6% | 43.4% | 6.8% | 116.4% |
| Huishang Bank Corp Ltd ($3698) | | 33.9% | 22.8% | 24.3% | 24.6% |
| Shengjing Bank Co Ltd ($2066) | | 36.5% | 36.3% | 40.1% | 24.3% |
| Bank of Chongqing Co Ltd ($1963) | | 38.4% | 26.6% | 28.4% | 18.5% |
| Harbin Bank Co Ltd ($6138) | | 58.3% | 12.1% | 29.2% | 10.5% |
| |
|---|
| Median (20 companies) | 51.3% | 21.6% | 10.7% | 14.8% | 6.3% |
|---|
| BOC Hong Kong Holdings Ltd ($2388) | | 15.1% | 11.4% | -3.0% | 11.6% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | 34.2% | 4.1% | 29.9% | 27.0% | 33.5% |
| |
|---|
| Median (1 company) | 34.2% | 4.1% | 29.9% | 27.0% | 33.5% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dah Sing Banking Group Ltd ($2356) | 7.8% | 3.9% | 4.1% | 2.2% | 7.5% |
| Bank of Communications Co Ltd ($3328) | 3.1% | 3.6% | 5.1% | 5.3% | 7.2% |
| Dah Sing Financial Holdings Ltd ($440) | 5.4% | 3.0% | 3.4% | 1.7% | 5.9% |
| Harbin Bank Co Ltd ($6138) | 20.0% | 19.8% | 9.9% | 6.5% | 5.8% |
| Bank of China Ltd ($3988) | 6.3% | 4.7% | 5.4% | 4.7% | 4.8% |
| |
|---|
| Median (20 companies) | 3.3% | 3.4% | 3.9% | 3.3% | 2.9% |
|---|
| BOC Hong Kong Holdings Ltd ($2388) | 1.8% | 1.8% | 1.7% | 1.6% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Construction Bank Corp ($939) | 11.6% | 11.1% | 11.7% | 10.8% | 8.4% |
| Hang Seng Bank Ltd ($11) | 9.0% | 8.6% | 9.5% | 9.0% | 8.3% |
| Industrial & Commercial Bank of China Ltd ($1398) | 10.6% | 9.9% | 10.2% | 9.9% | 8.1% |
| Dah Sing Financial Holdings Ltd ($440) | 3.2% | 3.8% | 5.1% | 5.2% | 5.9% |
| Chong Hing Bank Ltd ($1111) | 6.3% | 5.5% | 5.2% | 16.4% | 5.7% |
| |
|---|
| Median (20 companies) | 6.4% | 6.0% | 6.3% | 5.4% | 4.3% |
|---|
| BOC Hong Kong Holdings Ltd ($2388) | 5.1% | 5.9% | 6.4% | 5.8% | 6.2% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | -5.7x | -66.3x | -7.1x | -10.6x | -5.7x |
| |
|---|
| Median (1 company) | -5.7x | -66.3x | -7.1x | -10.6x | -5.7x |
|---|
