Chinney Alliance Group Ltd reports 27.5% EBITDA growth and almost no change in EBITDA Margin of 6.2%
30/03/2016 • About Chinney Alliance Group Ltd (
$385) • By InTwits
Chinney Alliance Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Chinney Alliance Group Ltd is a fast growth stock: 2015 revenue growth was 19.4%, 5 year revenue CAGR was 18.0% at 2015 ROIC 15.0%
- EBITDA Margin is quite volatile: 6.2% in 2015, 5.8% in 2014, 4.1% in 2013, 3.3% in 2012, 2.6% in 2011
- Chinney Alliance Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.6%. At the same time it's in pair with industry average of 50.9%.
- CAPEX is quite volatile: 167 in 2015, 79.3 in 2014, 106 in 2013, 54.1 in 2012, 45.0 in 2011
- The company has highly profitable business model: ROIC is at 15.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Chinney Alliance Group Ltd ($385) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,220 | 2,852 | 3,201 | 3,813 | 4,552 | 19.4% |
| Gross Profit | 246 | 322 | 375 | 480 | 639 | 32.9% |
| SG&A | | 267 | 289 | 317 | 418 | 32.0% |
| EBITDA | 57 | 93 | 133 | 223 | 284 | 27.5% |
| Net Income | 23 | 50 | 105 | 142 | 169 | 18.8% |
Balance Sheet
|
|---|
| Cash | 112 | 165 | 312 | 373 | 773 | 107.5% |
| Short Term Debt | 232 | 231 | 351 | 254 | 192 | -24.4% |
| Long Term Debt | 21 | 13 | 5 | 4 | 3 | -23.9% |
Cash flow
|
|---|
| Capex | 45 | 54 | 106 | 79 | 167 | 111.1% |
Ratios
|
|---|
| Revenue growth | 11.6% | 28.4% | 12.2% | 19.1% | 19.4% | |
| EBITDA growth | -8.6% | 63.2% | 41.8% | 68.1% | 27.5% | |
| Gross Margin | 11.1% | 11.3% | 11.7% | 12.6% | 14.0% | 1.4% |
| EBITDA Margin | 2.6% | 3.3% | 4.1% | 5.8% | 6.2% | 0.4% |
| Net Income Margin | 1.0% | 1.7% | 3.3% | 3.7% | 3.7% | -0.0% |
| SG&A, % of revenue | | 9.4% | 9.0% | 8.3% | 9.2% | 0.9% |
| CAPEX, % of revenue | 2.0% | 1.9% | 3.3% | 2.1% | 3.7% | 1.6% |
| ROIC | 3.4% | 6.4% | 8.1% | 13.6% | 15.0% | 1.4% |
| ROE | 4.5% | 8.5% | 14.6% | 16.4% | 15.5% | -0.9% |
| Net Debt/EBITDA | 2.5x | 0.8x | 0.3x | -0.5x | -2.0x | -1.5x |
Revenue and profitability
Chinney Alliance Group Ltd's Revenue surged on 19.4% in 2015. EBITDA Margin showed almost no change in 2015.
Gross Margin increased slightly on 1.4 pp from 12.6% to 14.0% in 2015. SG&A as a % of Revenue increased slightly on 0.88 pp from 8.3% to 9.2% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Chinney Alliance Group Ltd had CAPEX/Revenue of 3.7%. Chinney Alliance Group Ltd showed small growth in CAPEX/Revenue of 1.8 pp from 1.9% in 2012 to 3.7% in 2015. For the last three years the average CAPEX/Revenue was 3.0%.To maintain this fast growth Chinney Alliance Group Ltd invested a large share of EBITDA (59.0%) to CAPEX.
Return on investment
The company operates at good ROIC (14.97%) and ROE (15.51%). ROIC increased slightly on 1.4 pp from 13.6% to 15.0% in 2015. ROE decreased slightly on 0.92 pp from 16.4% to 15.5% in 2015.
Leverage (Debt)
Debt level is -2.0x Net Debt / EBITDA and 0.7x Debt / EBITDA. Net Debt / EBITDA dropped on 1.5x from -0.5x to -2.0x in 2015. Debt dropped on 24.4% in 2015 while cash surged on 108% in 2015.
Appendix 1: Peers in Holding Companies-Divers
Below we provide Chinney Alliance Group Ltd benchmarking against other companies in Holding Companies-Divers 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 |
|---|
| CIAM Group Ltd ($378) | | -62.2% | 47.9% | -40.0% | 211.5% |
| New Century Group Hong Kong Ltd ($234) | | -68.9% | 326.7% | -70.3% | 118.2% |
| Greater China Holdings Ltd ($431) | | -35.8% | -72.1% | 67.3% | 110.3% |
| Heng Fai Enterprises Ltd ($185) | | 8.2% | -30.5% | -42.6% | 86.7% |
| China Primary Energy Holdings Ltd ($8117) | | -56.3% | -23.6% | 195.4% | 83.7% |
| |
|---|
| Median (36 companies) | 8.9% | 11.4% | 3.3% | 12.6% | 6.6% |
|---|
| Chinney Alliance Group Ltd ($385) | | 28.4% | 12.2% | 19.1% | 19.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| New Century Group Hong Kong Ltd ($234) | 76.7% | 27.3% | 85.2% | 82.8% | 91.5% |
| CIAM Group Ltd ($378) | | | | | 75.8% |
| Emperor International Holdings Ltd ($163) | 74.5% | 71.3% | 64.9% | 79.2% | 75.3% |
| Heng Fai Enterprises Ltd ($185) | 89.3% | 89.0% | 89.5% | 58.3% | 74.7% |
| Century Legend Holdings Ltd ($79) | 68.5% | 70.1% | 72.3% | 71.0% | 70.3% |
| |
|---|
| Median (32 companies) | 29.5% | 33.4% | 36.0% | 34.4% | 34.2% |
|---|
| Chinney Alliance Group Ltd ($385) | 11.1% | 11.3% | 11.7% | 12.6% | 14.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| New Century Group Hong Kong Ltd ($234) | 82.5% | -5.5% | 78.8% | 58.3% | 85.0% |
| Emperor International Holdings Ltd ($163) | 224.8% | 180.7% | 131.8% | 100.6% | 73.9% |
| Pioneer Global Group Ltd ($224) | 111.2% | -0.5% | -9.9% | -11.6% | 64.3% |
| C C Land Holdings Ltd ($1224) | 22.0% | 27.0% | 23.6% | 24.6% | 55.7% |
| Magnificent Estates ($201) | 42.1% | 45.5% | 47.8% | 53.0% | 40.6% |
| |
|---|
| Median (36 companies) | 6.3% | 1.7% | 1.9% | 7.2% | 1.2% |
|---|
| Chinney Alliance Group Ltd ($385) | 2.6% | 3.3% | 4.1% | 5.8% | 6.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Heng Fai Enterprises Ltd ($185) | 217.5% | 4.8% | 77.1% | 310.0% | 458.1% |
| Chinney Investments Ltd ($216) | 37.6% | 17.5% | 103.4% | 111.3% | 230.9% |
| China Investments Holdings Ltd ($132) | 20.7% | 4.8% | 81.9% | 382.2% | 222.5% |
| Goldin Properties Holdings Ltd ($283) | | 2,178.4% | 1,190.0% | 50.1% | 202.4% |
| Emperor International Holdings Ltd ($163) | 93.5% | 100.9% | 48.5% | 105.9% | 110.6% |
| |
|---|
| Median (36 companies) | 4.9% | 2.7% | 3.8% | 7.0% | 10.6% |
|---|
| Chinney Alliance Group Ltd ($385) | 2.0% | 1.9% | 3.3% | 2.1% | 3.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| C C Land Holdings Ltd ($1224) | 4.5% | 7.4% | 5.3% | 7.9% | 15.0% |
| Top Spring International Holdings Ltd ($3688) | 27.9% | 15.6% | 6.9% | 7.3% | 8.0% |
| New Century Group Hong Kong Ltd ($234) | 8.6% | -1.7% | 11.7% | 1.7% | 7.3% |
| Chuang's China Investments Ltd ($298) | -0.9% | 22.9% | 1.5% | 2.2% | 6.1% |
| NWS Holdings Ltd ($659) | 6.6% | 9.1% | 5.1% | 5.0% | 5.4% |
| |
|---|
| Median (36 companies) | 0.3% | -0.2% | -0.2% | 0.5% | -0.4% |
|---|
| Chinney Alliance Group Ltd ($385) | 3.4% | 6.4% | 8.1% | 13.6% | 15.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chinney Investments Ltd ($216) | 111.3x | 10.3x | 63.7x | 48.6x | 93.7x |
| Carnival Group International Holdings Ltd ($996) | | | | 23.7x | |
| Van Shung Chong Holdings Ltd ($1001) | 3.4x | | 0.9x | 12.3x | 7.7x |
| Southeast Asia Properties & Finance Ltd ($252) | 6.8x | 6.7x | 5.7x | 9.2x | 4.3x |
| Code Agriculture Holdings Ltd ($8153) | 24.3x | 11.9x | 42.8x | 8.7x | |
| |
|---|
| Median (26 companies) | 3.1x | 2.6x | 3.1x | 3.2x | 3.1x |
|---|
| Chinney Alliance Group Ltd ($385) | 2.5x | 0.8x | 0.3x | -0.5x | -2.0x |
