Daido Group Ltd revenue jumped on 29.0% in 2015 and EBITDA Margin jumped on 11.3 pp from -8.4% to 2.9%
30/03/2016 • About Daido Group Ltd (
$544) • By InTwits
Daido Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Daido Group Ltd doesn't have a profitable business model yet: 2015 ROIC is 0.9%
- Daido Group Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -5.6% for the sames years0
- Daido Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.5%. At the same time it's a lot of higher than industry average of 1.1%.
- CAPEX is quite volatile: 5.2 in 2015, 2.6 in 2014, 4.1 in 2013, 36.9 in 2012, 64.7 in 2011
- The company has potentially unprofitable business model: ROIC is at 0.9%
- It operates with high leverage: Net Debt/EBITDA is -2.0x while industry average is -2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Daido Group Ltd ($544) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 172.8 | 186.3 | 193.5 | 213.8 | 275.8 | 29.0% |
| Gross Profit | 14.9 | 22.3 | 22.3 | 20.0 | 49.1 | 146.1% |
| SG&A | | 34.9 | 37.6 | 41.6 | 46.8 | 12.6% |
| EBITDA | -39.8 | -0.4 | -8.4 | -17.9 | 8.1 | -145.3% |
| Net Income | -81.2 | -179.9 | -41.3 | -23.9 | -6.4 | -73.0% |
Balance Sheet
|
|---|
| Cash | 89.6 | 54.9 | 144.0 | 149.2 | 125.2 | -16.0% |
| Short Term Debt | 5.1 | 10.1 | 5.1 | 5.3 | 6.7 | 25.2% |
| Long Term Debt | 41.3 | 37.3 | 8.6 | 45.5 | 102.7 | 125.7% |
Cash flow
|
|---|
| Capex | 64.7 | 36.9 | 4.1 | 2.6 | 5.2 | 99.0% |
Ratios
|
|---|
| Revenue growth | -3.0% | 7.8% | 3.9% | 10.5% | 29.0% | |
| EBITDA growth | -746.2% | -98.9% | 1,812.8% | 113.3% | -145.3% | |
| Gross Margin | 8.6% | 12.0% | 11.5% | 9.3% | 17.8% | 8.5% |
| EBITDA Margin | -23.0% | -0.2% | -4.3% | -8.4% | 2.9% | 11.3% |
| Net Income Margin | -47.0% | -96.6% | -21.3% | -11.2% | -2.3% | 8.8% |
| SG&A, % of revenue | | 18.7% | 19.4% | 19.4% | 17.0% | -2.5% |
| CAPEX, % of revenue | 37.5% | 19.8% | 2.1% | 1.2% | 1.9% | 0.7% |
| ROIC | -9.9% | -4.2% | -5.5% | -6.6% | 0.9% | 7.4% |
| ROE | -20.8% | -52.0% | -13.9% | -8.3% | -2.4% | 5.9% |
| Net Debt/EBITDA | | | | | -2.0x | -2.0x |
Revenue and profitability
The company's Revenue jumped on 29.0% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.4 pp from 8.0% to 11.4% in 2015.
Gross Margin increased on 8.5 pp from 9.3% to 17.8% in 2015. SG&A as a % of Revenue decreased on 2.5 pp from 19.4% to 17.0% in 2015.
Net Income marign increased on 8.8 pp from -11.2% to -2.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.9% in 2015. Daido Group Ltd showed big decline in CAPEX/Revenue of 17.9 pp from 19.8% in 2012 to 1.9% in 2015. It's average level of CAPEX/Revenue for the last three years was 1.7%.Daido Group Ltd invested a big chunk of EBITDA (64.0%) to CAPEX to fuel its growth.
Return on investment
The company operates at low but positive ROIC (0.85%) and negative ROE (-2.38%). ROIC increased on 7.4 pp from -6.6% to 0.85% in 2015. ROE increased on 5.9 pp from -8.3% to -2.4% in 2015.
Leverage (Debt)
Debt level is -2.0x Net Debt / EBITDA and 13.5x Debt / EBITDA. Net Debt / EBITDA dropped2.0x from to -2.0x in 2015. Debt surged on 115% in 2015 while cash dropped on 16.0% in 2015.
Appendix 1: Peers in Storage/Warehousing
Below you can find Daido Group Ltd benchmarking vs. other companies in Storage/Warehousing 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Safety Godown Co Ltd ($237) | | 17.1% | 7.0% | 16.2% | 12.4% |
| |
|---|
| Median (1 company) | | 17.1% | 7.0% | 16.2% | 12.4% |
|---|
| Daido Group Ltd ($544) | | 7.8% | 3.9% | 10.5% | 29.0% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Safety Godown Co Ltd ($237) | 98.0% | 70.4% | 77.2% | 69.4% | 73.6% |
| |
|---|
| Median (1 company) | 98.0% | 70.4% | 77.2% | 69.4% | 73.6% |
|---|
| Daido Group Ltd ($544) | -23.0% | -0.2% | -4.3% | -8.4% | 2.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Safety Godown Co Ltd ($237) | 1.3% | 1.6% | 4.2% | 0.6% | 0.2% |
| |
|---|
| Median (1 company) | 1.3% | 1.6% | 4.2% | 0.6% | 0.2% |
|---|
| Daido Group Ltd ($544) | 37.5% | 19.8% | 2.1% | 1.2% | 1.9% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Safety Godown Co Ltd ($237) | 4.9% | 3.4% | 3.4% | 3.0% | 3.2% |
| |
|---|
| Median (1 company) | 4.9% | 3.4% | 3.4% | 3.0% | 3.2% |
|---|
| Daido Group Ltd ($544) | -9.9% | -4.2% | -5.5% | -6.6% | 0.9% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Safety Godown Co Ltd ($237) | -2.0x | -2.2x | -2.3x | -2.4x | -2.4x |
| |
|---|
| Median (1 company) | -2.0x | -2.2x | -2.3x | -2.4x | -2.4x |
|---|
| Daido Group Ltd ($544) | | | | | -2.0x |
