Starlite Holdings Ltd reports 91.1% EBITDA growth in 2016 and 5.0 pp EBITDA Margin growth from 5.7% to 10.6%
21/06/2016 • About Starlite Holdings Ltd (
$403) • By InTwits
Starlite Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Starlite Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.9%. At the same time it's in pair with industry average of 5.5%.
- CAPEX is quite volatile: 30.0 in FY2016, 57.6 in FY2015, 82.9 in FY2014, 46.2 in FY2013, 70.0 in FY2012
- The company has highly profitable business model: ROIC is at 13.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Starlite Holdings Ltd ($403) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,360 | 1,428 | 1,457 | 1,592 | 1,620 | 1.8% |
| Gross Profit | 238 | 271 | 297 | 299 | 358 | 19.6% |
| SG&A | | 163 | 178 | 183 | 165 | -9.9% |
| EBITDA | 80 | 100 | 101 | 90 | 172 | 91.1% |
| Net Income | -24 | 9 | 15 | 3 | 68 | 2,469.3% |
Balance Sheet
|
|---|
| Cash | 190 | 183 | 216 | 211 | 312 | 47.6% |
| Short Term Debt | 202 | 227 | 166 | 184 | 175 | -4.8% |
| Long Term Debt | 29 | 18 | 82 | 70 | 35 | -49.1% |
Cash flow
|
|---|
| Capex | 70 | 46 | 83 | 58 | 30 | -47.9% |
Ratios
|
|---|
| Revenue growth | -12.0% | 5.0% | 2.0% | 9.3% | 1.8% | |
| EBITDA growth | -28.0% | 24.6% | 1.3% | -10.5% | 91.1% | |
| Gross Margin | 17.5% | 19.0% | 20.4% | 18.8% | 22.1% | 3.3% |
| EBITDA Margin | 5.9% | 7.0% | 6.9% | 5.7% | 10.6% | 5.0% |
| Net Income Margin | -1.8% | 0.7% | 1.0% | 0.2% | 4.2% | 4.0% |
| SG&A, % of revenue | | 11.4% | 12.2% | 11.5% | 10.2% | -1.3% |
| CAPEX, % of revenue | 5.1% | 3.2% | 5.7% | 3.6% | 1.9% | -1.8% |
| ROIC | 1.6% | 3.9% | 4.1% | 3.0% | 13.3% | 10.3% |
| ROE | -4.2% | 1.7% | 2.7% | 0.5% | 12.1% | 11.6% |
| Net Debt/EBITDA | 0.5x | 0.6x | 0.3x | 0.5x | -0.6x | -1.1x |
Revenue and profitability
Starlite Holdings Ltd's Revenue increased slightly on 1.8%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 5.0 pp from 5.7% to 10.6% in FY2016.
Gross Margin increased on 3.3 pp from 18.8% to 22.1% in FY2016. SG&A as a % of Revenue decreased slightly on 1.3 pp from 11.5% to 10.2% in FY2016.
Net Income marign increased on 4.0 pp from 0.17% to 4.2% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Starlite Holdings Ltd had CAPEX/Revenue of 1.9%. The company showed small CAPEX/Revenue decline of 1.4 pp from 3.2% in FY2013 to 1.9% in FY2016. It's average level of CAPEX/Revenue for the last three years was 3.7%.
Return on investment
The company operates at good ROIC (13.33%) and ROE (12.09%). ROIC surged on 10.3 pp from 3.0% to 13.3% in FY2016. ROE surged on 11.6 pp from 0.48% to 12.1% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.6x and Debt / EBITDA is 1.2x. Net Debt / EBITDA dropped on 1.1x from 0.5x to -0.6x in FY2016. Debt dropped on 17.0% while cash surged on 47.6%.
Appendix 1: Peers in Packaging&Containers
Below we provide Starlite Holdings Ltd benchmarking against other companies in Packaging&Containers 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 |
|---|
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 34.9% | 17.5% | -6.5% | 69.5% | |
| Hao Tian Development Group Ltd ($474) | 14.8% | | | 51.0% | |
| Jin Cai Holdings Co Ltd ($1250) | 2.1% | -6.3% | -3.1% | 40.8% | |
| Huaxi Holdings Co Ltd ($1689) | 25.3% | 5.0% | -5.1% | 12.5% | |
| Huajun Holdings Ltd ($377) | 11.2% | 3.3% | 3.4% | 10.4% | |
| |
|---|
| Median (19 companies) | 4.9% | 5.3% | 0.7% | 2.9% | |
|---|
| Starlite Holdings Ltd ($403) | | 5.0% | 2.0% | 9.3% | 1.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jin Cai Holdings Co Ltd ($1250) | 36.6% | 39.1% | 37.7% | 44.7% | |
| Huaxi Holdings Co Ltd ($1689) | 19.0% | 28.2% | 40.9% | 37.5% | |
| China For You Group Co Ltd ($572) | 12.4% | | 34.6% | 31.9% | |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 34.3% | 36.5% | 32.8% | 31.4% | |
| Kith Holdings Ltd ($1201) | 30.8% | 31.9% | 31.4% | 30.5% | |
| |
|---|
| Median (18 companies) | 20.9% | 20.7% | 23.4% | 22.3% | |
|---|
| Starlite Holdings Ltd ($403) | 17.5% | 19.0% | 20.4% | 18.8% | 22.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huaxi Holdings Co Ltd ($1689) | 14.5% | 21.2% | 27.1% | 29.1% | |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 27.9% | 30.7% | 27.4% | 26.3% | |
| Greatview Aseptic Packaging Co Ltd ($468) | 25.9% | 23.1% | 21.6% | 23.4% | |
| Lee & Man Paper Manufacturing Ltd ($2314) | 14.6% | 17.2% | 18.7% | 21.6% | |
| Kith Holdings Ltd ($1201) | 21.6% | 19.4% | 20.1% | 20.5% | |
| |
|---|
| Median (19 companies) | 14.5% | 15.6% | 13.2% | 11.6% | |
|---|
| Starlite Holdings Ltd ($403) | 5.9% | 7.0% | 6.9% | 5.7% | 10.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jin Cai Holdings Co Ltd ($1250) | 0.0% | 0.0% | 3.0% | 122.3% | |
| Sheen Tai Holdings Grp Co Ltd ($1335) | 3.7% | 1.2% | 3.1% | 42.2% | |
| Hao Tian Development Group Ltd ($474) | 81.6% | | 13.0% | 25.4% | |
| Lee & Man Paper Manufacturing Ltd ($2314) | 19.7% | 13.7% | 13.1% | 17.1% | |
| Kith Holdings Ltd ($1201) | 3.7% | 4.8% | 3.3% | 13.3% | |
| |
|---|
| Median (19 companies) | 6.9% | 5.0% | 4.1% | 5.5% | |
|---|
| Starlite Holdings Ltd ($403) | 5.1% | 3.2% | 5.7% | 3.6% | 1.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huaxi Holdings Co Ltd ($1689) | 21.4% | 28.5% | 26.2% | 23.6% | |
| Greatview Aseptic Packaging Co Ltd ($468) | 20.2% | 18.9% | 15.7% | 17.7% | |
| China Aluminum Cans Holdings Ltd ($6898) | 19.7% | 14.6% | 20.2% | 17.1% | |
| Kith Holdings Ltd ($1201) | 6.9% | 5.6% | 7.8% | 12.2% | |
| Lee & Man Paper Manufacturing Ltd ($2314) | 7.2% | 8.7% | 8.0% | 9.2% | |
| |
|---|
| Median (19 companies) | 8.1% | 7.0% | 7.3% | 5.4% | |
|---|
| Starlite Holdings Ltd ($403) | 1.6% | 3.9% | 4.1% | 3.0% | 13.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sino Haijing Holdings Ltd ($1106) | 6.4x | 6.1x | 6.2x | 10.1x | |
| Huajun Holdings Ltd ($377) | 0.0x | 0.3x | 0.7x | 9.9x | |
| Zhengye International Holdings Co Ltd ($3363) | 6.2x | 6.4x | 7.8x | 5.5x | |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 9.4x | 6.7x | 7.4x | 4.4x | |
| Jin Bao Bao Holdings Ltd ($1239) | -1.7x | -1.7x | -1.2x | 4.2x | |
| |
|---|
| Median (16 companies) | 1.2x | 0.9x | 0.7x | 2.2x | |
|---|
| Starlite Holdings Ltd ($403) | 0.5x | 0.6x | 0.3x | 0.5x | -0.6x |
