Aeon Credit Service Asia Co Ltd Net Income dropped on 11.5% and Revenue decreased on 2.5%
25/04/2016 • About Aeon Credit Service Asia Co Ltd (
$900) • By InTwits
Aeon Credit Service Asia Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Aeon Credit Service Asia Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's a lot of higher than industry average of 9.4%.
- CAPEX is quite volatile: 19.2 in FY2016, 22.7 in FY2015, 45.8 in FY2014, 24.4 in FY2013, 31.1 in FY2012
- The company has potentially unprofitable business model: ROIC is at 6.6%
- It operates with high leverage: Net Debt/EBITDA is 5.6x while industry average is 2.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Aeon Credit Service Asia Co Ltd ($900) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,157 | 1,141 | 1,170 | 1,304 | 1,271 | -2.5% |
| EBITDA | 514 | 500 | 414 | 496 | 456 | -8.1% |
| Net Income | 301 | 295 | 222 | 282 | 250 | -11.5% |
Balance Sheet
|
|---|
| Cash | 357 | 156 | 516 | 346 | 405 | 17.2% |
| Short Term Debt | 280 | 714 | 803 | 1,047 | 1,111 | 6.1% |
| Long Term Debt | 2,728 | 2,426 | 2,587 | 2,032 | 1,845 | -9.2% |
Cash flow
|
|---|
| Capex | 31 | 24 | 46 | 23 | 19 | -15.2% |
Ratios
|
|---|
| Revenue growth | 3.6% | -1.5% | 2.6% | 11.4% | -2.5% | |
| EBITDA growth | 7.7% | -2.8% | -17.1% | 19.7% | -8.1% | |
| EBITDA Margin | 44.4% | 43.8% | 35.4% | 38.0% | 35.9% | -2.2% |
| Net Income Margin | 26.0% | 25.9% | 19.0% | 21.7% | 19.7% | -2.0% |
| CAPEX, % of revenue | 2.7% | 2.1% | 3.9% | 1.7% | 1.5% | -0.2% |
| ROIC | 6.8% | 6.8% | 4.9% | 6.1% | 6.6% | 0.4% |
| ROE | 14.8% | 13.8% | 9.7% | 11.8% | 10.0% | -1.8% |
| Net Debt/EBITDA | 5.2x | 6.0x | 6.9x | 5.5x | 5.6x | 0.1x |
Revenue and profitability
The company's Revenue decreased on 2.5%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.2 pp from 38.0% to 35.9% in FY2016.
Net Income marign decreased slightly on 2.0 pp from 21.7% to 19.7% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.5% in FY2016. Aeon Credit Service Asia Co Ltd showed small CAPEX/Revenue decline of 0.63 pp from 2.1% in FY2013 to 1.5% in FY2016. It's average CAPEX/Revenue for the last three years was 2.4%.
Return on investment
The company operates at low ROIC (6.56%) and ROE (10.02%). ROIC showed almost no change in FY2016. ROE decreased slightly on 1.8 pp from 11.8% to 10.0% in FY2016.
Leverage (Debt)
Debt level is 5.6x Net Debt / EBITDA and 6.5x Debt / EBITDA. Net Debt / EBITDA increased on 0.1x from 5.5x to 5.6x in FY2016. Debt decreased on 4.0% while cash surged on 17.2%.
Appendix 1: Peers in Diversified Finan Serv
Below you can find Aeon Credit Service Asia Co Ltd benchmarking vs. other companies in Diversified Finan Serv 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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 (64 companies) | 4.5% | 19.3% | 27.6% | 25.3% | |
|---|
| Aeon Credit Service Asia Co Ltd ($900) | | -1.5% | 2.6% | 11.4% | -2.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Roma Group Ltd ($8072) | | | 99.4% | 98.7% | |
| First China Financial Network Holdings Ltd ($8123) | 93.4% | | 94.5% | 97.4% | |
| China Smarter Energy Group Holdings Ltd ($1004) | 6.2% | 4.0% | 46.9% | 96.9% | |
| Chinese Strategic Holdings Ltd ($8089) | 99.1% | 97.9% | 97.0% | 96.6% | |
| Allied Group Ltd ($373) | 95.1% | 94.4% | 93.6% | 92.2% | |
| |
|---|
| Median (12 companies) | 64.2% | 75.1% | 88.2% | 90.3% | |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Smarter Energy Group Holdings Ltd ($1004) | -282.7% | -373.2% | -1,524.9% | 212.2% | |
| China Aircraft Leasing Group Holdings Ltd ($1848) | 91.3% | 86.4% | 92.9% | 107.0% | |
| Get Nice Holdings Ltd ($64) | 2.6% | 153.4% | 92.7% | 83.9% | |
| Hong Kong Exchanges and Clearing Ltd ($388) | 81.6% | 73.4% | 75.7% | 82.1% | |
| Hong Kong Finance Group Co Ltd ($1273) | 76.9% | 67.5% | 65.2% | 74.8% | |
| |
|---|
| Median (66 companies) | 18.8% | 36.2% | 47.9% | 31.4% | |
|---|
| Aeon Credit Service Asia Co Ltd ($900) | 44.4% | 43.8% | 35.4% | 38.0% | 35.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Aircraft Leasing Group Holdings Ltd ($1848) | 351.0% | 0.1% | 33.3% | 64.6% | |
| Willie International Holdings Ltd ($273) | | 0.3% | 0.8% | 58.0% | |
| China Assurance Finance Group Ltd ($8090) | 94.7% | 68.9% | 53.3% | 51.0% | |
| AID Partners Capital Holdings Ltd ($8088) | 4.1% | 2.9% | 28.4% | 26.6% | |
| Hongkong Chinese Ltd ($655) | | | 0.1% | 25.6% | |
| |
|---|
| Median (65 companies) | 1.9% | 1.8% | 1.1% | 1.5% | |
|---|
| Aeon Credit Service Asia Co Ltd ($900) | 2.7% | 2.1% | 3.9% | 1.7% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hong Kong Exchanges and Clearing Ltd ($388) | 29.1% | 20.1% | 21.5% | 29.1% | |
| China Smarter Energy Group Holdings Ltd ($1004) | -19.4% | -23.0% | -14.0% | 22.5% | |
| Oi Wah Pawnshop Credit Holdings Ltd ($1319) | 32.7% | 20.7% | 14.0% | 15.3% | |
| Emperor Capital Group Ltd ($717) | 5.1% | 12.8% | 13.1% | 14.6% | |
| Roma Group Ltd ($8072) | 19.6% | 43.7% | 107.8% | 13.3% | |
| |
|---|
| Median (69 companies) | 3.9% | 4.0% | 4.8% | 3.5% | |
|---|
| Aeon Credit Service Asia Co Ltd ($900) | 6.8% | 6.8% | 4.9% | 6.1% | 6.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hoifu Energy Group Ltd ($7) | | | | 62.5x | |
| South China Financial Holdings Ltd ($619) | | | | 56.9x | |
| Bright Smart Securities & Commodities Group Ltd ($1428) | 2.1x | 10.3x | 9.3x | 39.3x | |
| Far East Horizon Ltd ($3360) | 16.9x | 21.7x | 20.0x | 20.8x | |
| Quam Ltd ($952) | 58.9x | 15.9x | 4.1x | 14.8x | |
| |
|---|
| Median (49 companies) | -0.7x | 0.1x | -0.1x | -0.1x | |
|---|
| Aeon Credit Service Asia Co Ltd ($900) | 5.2x | 6.0x | 6.9x | 5.5x | 5.6x |
