TravelSky Technology Ltd EBITDA surged on 32.3% in 2015 and EBITDA Margin increased on 9.2 pp from 31.9% to 41.1%
31/03/2016 • About TravelSky Technology Ltd (
$696) • By InTwits
TravelSky Technology Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- TravelSky Technology Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 14.5%. At the same time it's a lot of higher than industry average of 6.0%.
- CAPEX is quite volatile: 989 in 2015, 964 in 2014, 979 in 2013, 363 in 2012, 212 in 2011
- The company has highly profitable business model: ROIC is at 15.1%
- It operates with high leverage: Net Debt/EBITDA is -1.0x while industry average is -1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
TravelSky Technology Ltd ($696) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,672 | 4,061 | 4,509 | 5,336 | 5,472 | 2.5% |
| EBITDA | 1,588 | 1,549 | 1,614 | 1,702 | 2,251 | 32.3% |
| Net Income | 1,047 | 1,133 | 1,206 | 1,653 | 1,914 | 15.8% |
Balance Sheet
|
|---|
| Cash | 890 | 1,739 | 2,349 | 1,995 | 2,243 | 12.4% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 212 | 363 | 979 | 964 | 989 | 2.5% |
Ratios
|
|---|
| Revenue growth | 20.2% | 10.6% | 11.1% | 18.3% | 2.5% | |
| EBITDA growth | 14.1% | -2.5% | 4.2% | 5.4% | 32.3% | |
| EBITDA Margin | 43.3% | 38.1% | 35.8% | 31.9% | 41.1% | 9.2% |
| Net Income Margin | 28.5% | 27.9% | 26.7% | 31.0% | 35.0% | 4.0% |
| CAPEX, % of revenue | 5.8% | 8.9% | 21.7% | 18.1% | 18.1% | -0.0% |
| ROIC | 16.2% | 15.0% | 13.8% | 12.5% | 15.1% | 2.6% |
| ROE | 14.7% | 14.4% | 13.9% | 17.0% | 17.3% | 0.2% |
| Net Debt/EBITDA | -0.6x | -1.1x | -1.5x | -1.2x | -1.0x | 0.2x |
Revenue and profitability
The company's Revenue increased on 2.5% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 9.2 pp from 31.9% to 41.1% in 2015.
Net Income marign increased on 4.0 pp from 31.0% to 35.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 18.1% in 2015. CAPEX/Revenue increased on 9.1 pp from 8.9% in 2012 to 18.1% in 2015. It's average level of CAPEX/Revenue for the last three years was 19.3%.
Return on investment
The company operates at good ROIC (15.14%) and ROE (17.27%). ROIC increased on 2.6 pp from 12.5% to 15.1% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
The company has no debt. Cash jumped on 12.4% in 2015.
Management team
The company's CEO Xiao Yinhong has spent 10 years at the company.
Appendix 1: Peers in Software
Below you can find TravelSky Technology Ltd benchmarking vs. other companies in Software 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 |
|---|
| Yunbo Digital Synergy Group Ltd ($8050) | | -84.6% | 241.6% | -31.9% | 348.0% |
| Pizu Group Holdings Ltd ($8053) | | 40.3% | -42.9% | 1,742.9% | 157.9% |
| China Eco-Farming Ltd ($8166) | | -23.6% | -7.7% | 21.8% | 155.5% |
| Aurum Pacific China Group Ltd ($8148) | | | | 50.0% | 92.7% |
| Kingsoft Corp Ltd ($3888) | | 38.3% | 54.0% | 54.2% | 69.4% |
| |
|---|
| Median (36 companies) | | 15.6% | 11.4% | 21.5% | 9.2% |
|---|
| TravelSky Technology Ltd ($696) | | 10.6% | 11.1% | 18.3% | 2.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Bio Cassava Holdings Ltd ($8129) | 90.2% | 90.4% | 97.4% | 98.4% | 98.3% |
| Chanjet Information Technology Co Ltd ($1588) | 91.9% | 89.2% | 91.3% | 92.4% | 91.4% |
| China Binary Sale Technology Ltd ($8255) | 60.0% | 63.5% | 68.5% | 67.7% | 85.9% |
| Kingdee International Software Group Co Ltd ($268) | 70.1% | 65.0% | 75.3% | 82.5% | 81.5% |
| Tian Ge Interactive Holdings Ltd ($1980) | 87.5% | 88.5% | 87.6% | 84.8% | 77.7% |
| |
|---|
| Median (36 companies) | 51.0% | 46.5% | 43.1% | 42.8% | 43.5% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| International Entertainment Corp ($1009) | 235.1% | 50.8% | 64.0% | 54.9% | 62.0% |
| Sinosoft Technology Group Ltd ($1297) | 55.5% | 62.6% | 54.9% | 57.2% | 59.0% |
| China Binary Sale Technology Ltd ($8255) | 41.3% | 35.1% | 35.4% | 44.4% | 50.5% |
| Boyaa Interactive International Ltd ($434) | 38.9% | 38.5% | 25.8% | 30.7% | 47.6% |
| Kingdee International Software Group Co Ltd ($268) | 19.5% | 7.8% | 33.2% | 37.2% | 31.9% |
| |
|---|
| Median (36 companies) | 11.9% | 11.1% | 14.0% | 10.1% | 9.5% |
|---|
| TravelSky Technology Ltd ($696) | 43.3% | 38.1% | 35.8% | 31.9% | 41.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| NetDragon Websoft Inc ($777) | 13.3% | 21.1% | 34.6% | 54.6% | 42.9% |
| China Information Technology Development Ltd ($8178) | 1.7% | 4.1% | 1.1% | 0.5% | 40.7% |
| Aurum Pacific China Group Ltd ($8148) | 0.0% | | 2.9% | 7.5% | 20.6% |
| Kingsoft Corp Ltd ($3888) | 6.8% | 4.3% | 3.8% | 14.3% | 11.1% |
| Beijing Beida Jade Bird Universal Sci-Tech Co Ltd ($8095) | 3.5% | 8.7% | 5.5% | 4.3% | 10.9% |
| |
|---|
| Median (36 companies) | 2.4% | 1.4% | 1.8% | 3.5% | 2.1% |
|---|
| TravelSky Technology Ltd ($696) | 5.8% | 8.9% | 21.7% | 18.1% | 18.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pizu Group Holdings Ltd ($8053) | -3.2% | -21.8% | -13.4% | -6.8% | 120.0% |
| IGG Inc ($8002) | | | 55.9% | 41.4% | 25.9% |
| Boyaa Interactive International Ltd ($434) | 100.4% | 75.3% | 21.3% | 20.0% | 21.4% |
| Sinosoft Technology Group Ltd ($1297) | 31.6% | 34.0% | 21.9% | 20.2% | 20.8% |
| ITE Holdings Ltd ($8092) | -19.6% | -15.0% | 10.6% | 16.8% | 19.8% |
| |
|---|
| Median (36 companies) | 1.6% | 5.2% | 6.1% | 3.3% | 2.0% |
|---|
| TravelSky Technology Ltd ($696) | 16.2% | 15.0% | 13.8% | 12.5% | 15.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Epicurean and Co Ltd ($8213) | 2.9x | 2.3x | 4.7x | 12.3x | 12.0x |
| Sing Lee Software Group Ltd ($8076) | | | | 6.2x | 4.4x |
| Century Sage Scientific Holdings Ltd ($1450) | -0.3x | 0.2x | 0.0x | -0.2x | 1.8x |
| Microsoft Corp ($4338) | 0.1x | 0.2x | 0.4x | 0.4x | 1.2x |
| Chinasoft International Ltd ($354) | -1.3x | -0.7x | 0.7x | 1.5x | 0.7x |
| |
|---|
| Median (20 companies) | -1.0x | -0.9x | -1.6x | -1.6x | -0.9x |
|---|
| TravelSky Technology Ltd ($696) | -0.6x | -1.1x | -1.5x | -1.2x | -1.0x |
