Orient Securities International Holdings Ltd is a growth stock to keep your eyes on
31/03/2016 • About Orient Securities International Holdings Ltd (
$8001) • By InTwits
Orient Securities International Holdings Ltd is a growth stock in Diversified Finan Serv industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Orient Securities International Holdings Ltd showed fast growth in the last financial year. The company's revenue surged on 19.4% in FY2015. At the same time Orient Securities International Holdings Ltd well managed its profitability and showed even faster growth in EBITDA of 39.9% for the same period.
In the longer period the company showed fast revenue growth of 22.0% from 2012 to 2015 annualy. EBITDA surged on 34.9% from 2012 to 2015 annualy.
Orient Securities International Holdings Ltd ($8001) financials for the last 5 years
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 29 | 29 | 36 | 44 | 52 |
|---|
| Revenue growth, % | | -1.8% | 26.3% | 20.4% | 19.4% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 13 | 13 | 17 | 23 | 32 |
|---|
| EBITDA growth, % | | -0.3% | 28.0% | 37.0% | 39.9% |
|---|
| EBITDA margin, % | 45.4% | 46.1% | 46.7% | 53.2% | 62.3% |
|---|
| Net Income | 10 | 10 | 13 | 18 | 26 |
|---|
| Net Income margin, % | 35.0% | 35.3% | 35.3% | 41.1% | 50.2% |
|---|
| |
| CAPEX | 0 | 0 | 0 | 0 | 0 |
|---|
| CAPEX/Revenue, % | 0.569% | 0.0733% | 0.337% | 0.193% | 0.611% |
|---|
| Debt | 0 | 0 | 0 | 0 | 0 |
|---|
| Cash | 78 | 71 | 102 | 184 | 180 |
|---|
| Net Debt/EBITDA | -5.9x | -5.4x | -6.1x | -7.9x | -5.6x |
|---|
| |
| ROIC, % | 9.9% | 10.6% | 13.3% | 12.1% | 12.4% |
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| ROE, % | 8.1% | 8.4% | 10.1% | 9.4% | 10.0% |
|---|
Profitability and return on investment
Margin expansion supported EBITDA growth. The company showed fast EBITDA margin growth of 9.10 pp from 53.2% to 62.3% in 2015. In the longer period EBITDA margin surged on 16.2 pp from 46.1% in 2012 to 62.3% in 2015.
We call Orient Securities International Holdings Ltd an attractive growth stock as together with the growth it delivers high ROIC at 12.4%. Three years ago it was a bit lower at 10.6%. It's average ROIC for the last three years was 12.6%.
Orient Securities International Holdings Ltd's Net Income margin surged on 9.10 pp from 41.1% to 50.2% in 2015. In the last 3 years Orient Securities International Holdings Ltd's Net Income margin surged on 14.9 pp from 35.3% in 2012 to 50.2% in 2015.
Orient Securities International Holdings Ltd operates at ROE of 10.0%. Average ROE for the last three years was 9.86%.
Capital expenditures (CAPEX)
Orient Securities International Holdings Ltd's CAPEX/Revenue was 0.611% in FY2015. CAPEX/Revenue surged on 0.538 pp from 0.0733% in 2012 to 0.611% in 2015. It's average level of CAPEX/Revenue for the last three years was 0.380%.
Leverage (Debt)
Having such a fast growth profile the company keeps negative net debt at -5.6x Net Debt/EBITDA. In the last 3 years leverage surged on 0.18x from -5.38x in 2012 to -5.56x in 2015.
Valuation vs. comparable companies
The company trades at 8.5x EV/EBITDA which is 75.7% lower than 35.2x Diversified Finan Serv industry avearge calculated based on 72 companies. The company trades at 17.5x P/E which is 75.2% lower than 70.7x Diversified Finan Serv industry avearge calculated based on 31 companies.
Peers in Diversified Finan Serv
Below we provide Orient Securities International Holdings Ltd benchmarking against other companies in Diversified Finan Serv 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 (51 companies) | 1.4% | 3.6% | 14.7% | 27.6% | 27.2% |
|---|
| Orient Securities International Holdings Ltd ($8001) | | -1.8% | 26.3% | 20.4% | 19.4% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 (52 companies) | 29.5% | 16.4% | 36.2% | 47.2% | 31.4% |
|---|
| Orient Securities International Holdings Ltd ($8001) | 45.4% | 46.1% | 46.7% | 53.2% | 62.3% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Gemini Investments Holdings Ltd ($174) | 14.9% | 479.1% | 37.3% | 216.0% | 10.0% |
| China Assurance Finance Group Ltd ($8090) | | 94.7% | 68.9% | 53.3% | 51.0% |
| China Aircraft Leasing Group Holdings Ltd ($1848) | 0.4% | 351.0% | 0.1% | 33.3% | 64.6% |
| Chinese Strategic Holdings Ltd ($8089) | 93.2% | 376.0% | 5.7% | 32.6% | 5.8% |
| AID Partners Capital Holdings Ltd ($8088) | 196.3% | 4.1% | 2.9% | 28.4% | 26.6% |
| |
|---|
| Median (65 companies) | 2.3% | 2.1% | 1.8% | 1.1% | 1.6% |
|---|
| Orient Securities International Holdings Ltd ($8001) | 0.6% | 0.1% | 0.3% | 0.2% | 0.6% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 (54 companies) | 4.6% | 3.4% | 4.0% | 4.8% | 3.6% |
|---|
| Orient Securities International Holdings Ltd ($8001) | 9.9% | 10.6% | 13.3% | 12.1% | 12.4% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 (40 companies) | -1.0x | -0.7x | 0.3x | 0.1x | -0.7x |
|---|
| Orient Securities International Holdings Ltd ($8001) | -5.9x | -5.4x | -6.1x | -7.9x | -5.6x |
