Hong Kong Finance Group Co Ltd Debt surged on 33.6% and Revenue jumped on 12.0%
15/06/2016 • About Hong Kong Finance Group Co Ltd (
$1273) • By InTwits
Hong Kong Finance Group Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hong Kong Finance Group Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's in pair with industry average of 24.2%.
- CAPEX is quite volatile: 0.064 in FY2016, 0.15 in FY2015, 3.0 in FY2014, 1.2 in FY2013, 2.4 in FY2012
- It operates with high leverage: Net Debt/EBITDA is 3.4x 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.
Hong Kong Finance Group Co Ltd ($1273) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 59.6 | 68.5 | 83.4 | 101.2 | 113.4 | 12.0% |
| EBITDA | 45.8 | 46.2 | 54.4 | 75.7 | 79.8 | 5.3% |
| Net Income | 33.8 | 35.8 | 40.5 | 52.9 | 48.1 | -9.1% |
Balance Sheet
|
|---|
| Cash | 0.3 | 2.6 | 0.9 | 22.8 | 20.8 | -8.7% |
| Short Term Debt | 171.9 | 183.8 | 179.1 | 129.6 | 179.3 | 38.3% |
| Long Term Debt | | | | 87.9 | 111.5 | 26.8% |
Cash flow
|
|---|
| Capex | 2.4 | 1.2 | 3.0 | 0.2 | 0.1 | -58.4% |
Ratios
|
|---|
| Revenue growth | 59.4% | 14.9% | 21.9% | 21.4% | 12.0% | |
| EBITDA growth | 53.7% | 0.9% | 17.7% | 39.3% | 5.3% | |
| EBITDA Margin | 76.9% | 67.5% | 65.2% | 74.8% | 70.3% | -4.5% |
| Net Income Margin | 56.8% | 52.3% | 48.6% | 52.2% | 42.4% | -9.8% |
| CAPEX, % of revenue | 4.0% | 1.7% | 3.6% | 0.2% | 0.1% | -0.1% |
| ROE | 24.8% | 16.9% | 12.7% | 12.9% | 10.8% | -2.1% |
| Net Debt/EBITDA | 3.7x | 3.9x | 3.3x | 2.6x | 3.4x | 0.8x |
Revenue and profitability
The company's Revenue surged on 12.0%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 4.5 pp from 74.8% to 70.3% in FY2016.
Net Income marign decreased on 9.8 pp from 52.2% to 42.4% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Hong Kong Finance Group Co Ltd had CAPEX/Revenue of 0.056%. Hong Kong Finance Group Co Ltd's CAPEX/Revenue decreased slightly on 1.6 pp from 1.7% in FY2013 to 0.056% in FY2016. For the last three years the average CAPEX/Revenue was 1.3%.
Leverage (Debt)
Debt level is 3.4x Net Debt / EBITDA and 3.6x Debt / EBITDA. Net Debt / EBITDA surged on 0.8x from 2.6x to 3.4x in FY2016. Debt surged on 33.6% while cash decreased on 8.7%.
Appendix 1: Peers in Diversified Finan Serv
Below we provide Hong Kong Finance Group Co 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, %
| 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) | 2.8% | 19.3% | 27.6% | 25.3% | 22.0% |
|---|
| Hong Kong Finance Group Co Ltd ($1273) | | 14.9% | 21.9% | 21.4% | 12.0% |
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% | |
| Haitong International Securities Group Ltd ($665) | 34.9% | 45.7% | 59.9% | 71.4% | |
| |
|---|
| Median (66 companies) | 18.8% | 36.2% | 47.2% | 31.4% | 42.4% |
|---|
| Hong Kong Finance Group Co Ltd ($1273) | 76.9% | 67.5% | 65.2% | 74.8% | 70.3% |
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% | 1.9% | 1.1% | 1.5% | 0.2% |
|---|
| Hong Kong Finance Group Co Ltd ($1273) | 4.0% | 1.7% | 3.6% | 0.2% | 0.1% |
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% | 12.5% |
| 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% | 9.8% |
| |
|---|
| Median (69 companies) | 4.4% | 4.1% | 4.8% | 3.6% | 9.8% |
|---|
| Hong Kong Finance Group Co Ltd ($1273) | | | | | |
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 | 3.0x |
|---|
| Hong Kong Finance Group Co Ltd ($1273) | 3.7x | 3.9x | 3.3x | 2.6x | 3.4x |
