E.Bon Holdings Ltd CAPEX jumped on 748% and Revenue increased on 9.2%
22/06/2016 • About E.Bon Holdings Ltd (
$599) • By InTwits
E.Bon Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- E.Bon Holdings Ltd is a growth stock: FY2016 revenue growth was 9.2%, 5 year revenue CAGR was 11.2% at FY2016 ROIC 17.4%
- EBITDA Margin is quite volatile: 15.5% in FY2016, 15.1% in FY2015, 5.5% in FY2014, 8.7% in FY2013, 9.0% in FY2012
- E.Bon Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.3%. At the same time it's in pair with industry average of 20.9%.
- CAPEX is quite volatile: 35.1 in FY2016, 4.1 in FY2015, 4.0 in FY2014, 8.3 in FY2013, 11.2 in FY2012
- The company has highly profitable business model: ROIC is at 17.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
E.Bon Holdings Ltd ($599) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 406.7 | 477.4 | 466.0 | 578.8 | 631.9 | 9.2% |
| Gross Profit | 163.9 | 178.7 | 166.9 | 229.0 | 268.0 | 17.0% |
| SG&A | 139.6 | 150.1 | 154.2 | 154.0 | 182.2 | 18.3% |
| EBITDA | 36.6 | 41.4 | 25.8 | 87.3 | 97.9 | 12.2% |
| Net Income | 19.4 | 24.5 | 9.0 | 65.9 | 78.4 | 18.9% |
Balance Sheet
|
|---|
| Cash | 33.5 | 71.9 | 47.9 | 122.0 | 127.8 | 4.8% |
| Short Term Debt | 89.7 | 74.0 | 68.0 | 60.6 | 58.9 | -2.8% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 11.2 | 8.3 | 4.0 | 4.1 | 35.1 | 747.9% |
Ratios
|
|---|
| Revenue growth | 9.5% | 17.4% | -2.4% | 24.2% | 9.2% | |
| EBITDA growth | 64.9% | 13.2% | -37.7% | 238.5% | 12.2% | |
| Gross Margin | 40.3% | 37.4% | 35.8% | 39.6% | 42.4% | 2.8% |
| EBITDA Margin | 9.0% | 8.7% | 5.5% | 15.1% | 15.5% | 0.4% |
| Net Income Margin | 4.8% | 5.1% | 1.9% | 11.4% | 12.4% | 1.0% |
| SG&A, % of revenue | 34.3% | 31.4% | 33.1% | 26.6% | 28.8% | 2.2% |
| CAPEX, % of revenue | 2.8% | 1.7% | 0.9% | 0.7% | 5.6% | 4.8% |
| ROIC | 7.0% | 7.2% | 3.3% | 16.9% | 17.4% | 0.6% |
| ROE | 6.9% | 8.0% | 2.8% | 18.5% | 19.3% | 0.8% |
| Net Debt/EBITDA | 1.5x | 0.0x | 0.8x | -0.7x | -0.7x | -0.0x |
Revenue and profitability
The company's Revenue increased on 9.2%. EBITDA Margin showed almost no change in FY2016.
Gross Margin increased on 2.8 pp from 39.6% to 42.4% in FY2016. SG&A as a % of Revenue increased on 2.2 pp from 26.6% to 28.8% in FY2016.
Net Income marign increased slightly on 1.0 pp from 11.4% to 12.4% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 5.6%. CAPEX/Revenue increased on 3.8 pp from 1.7% in FY2013 to 5.6% in FY2016. It's average level of CAPEX/Revenue for the last three years was 2.4%.
Return on investment
The company operates at good ROIC (17.44%) and ROE (19.26%). ROIC increased slightly on 0.55 pp from 16.9% to 17.4% in FY2016. ROE increased slightly on 0.76 pp from 18.5% to 19.3% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.7x and Debt / EBITDA is 0.6x. Net Debt / EBITDA showed almost no change in FY2016. Debt decreased on 2.8% while cash increased on 4.8%.
Appendix 1: Peers in Distribution/Wholesale
Below you can find E.Bon Holdings Ltd benchmarking vs. other companies in Distribution/Wholesale 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 |
|---|
| C Y Foundation Group Ltd ($1182) | | -65.6% | 5.9% | 214.6% | -14.6% |
| China Fortune Holdings Ltd ($110) | -64.7% | -68.2% | -71.0% | 174.2% | |
| Hailiang International Holdings Ltd ($2336) | 9.7% | -30.8% | -69.1% | 99.7% | |
| Forefront Group Ltd ($885) | | 504.6% | 3,871.0% | 72.0% | |
| Yestar International Holdings Co Ltd ($2393) | -2.2% | 22.8% | 30.5% | 60.3% | |
| |
|---|
| Median (35 companies) | 2.5% | 0.0% | 1.4% | -2.0% | -14.6% |
|---|
| E.Bon Holdings Ltd ($599) | | 17.4% | -2.4% | 24.2% | 9.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Yunnan Tin Minerals Group Co Ltd ($263) | 79.6% | 66.3% | | 98.7% | |
| Goldin Financial Holdings Ltd ($530) | 75.3% | 71.7% | 74.8% | 73.8% | |
| YGM Trading Ltd ($375) | 66.5% | 67.4% | 64.0% | 62.5% | |
| Goldlion Holdings Ltd ($533) | 56.4% | 54.1% | 55.7% | 60.0% | |
| Forefront Group Ltd ($885) | | | 69.8% | 39.1% | |
| |
|---|
| Median (33 companies) | 17.3% | 17.1% | 18.0% | 20.8% | 24.4% |
|---|
| E.Bon Holdings Ltd ($599) | 40.3% | 37.4% | 35.8% | 39.6% | 42.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China LNG Group Ltd ($931) | 95.1% | 76.4% | 97.9% | 1,277.8% | |
| Goldin Financial Holdings Ltd ($530) | 163.7% | 613.4% | 285.7% | 364.1% | |
| China Infrastructure Investment Ltd ($600) | -274.9% | 120.0% | 52.0% | 134.5% | |
| China Yunnan Tin Minerals Group Co Ltd ($263) | -1,064.4% | -252.1% | | 62.8% | |
| Goldlion Holdings Ltd ($533) | 25.8% | 23.4% | 22.5% | 22.8% | |
| |
|---|
| Median (36 companies) | 2.1% | 1.9% | 4.5% | 4.3% | -7.4% |
|---|
| E.Bon Holdings Ltd ($599) | 9.0% | 8.7% | 5.5% | 15.1% | 15.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SIS International Holdings ($529) | 13.4% | 31.8% | 14.8% | 49.8% | |
| Inspur International Ltd ($596) | 8.4% | 12.2% | 33.6% | 25.6% | |
| China LNG Group Ltd ($931) | 11.1% | 0.3% | 0.6% | 15.6% | |
| YGM Trading Ltd ($375) | 1.8% | 2.1% | 3.5% | 14.5% | |
| Victory Group Ltd ($1139) | 0.7% | 0.1% | 6.1% | 12.6% | |
| |
|---|
| Median (35 companies) | 1.3% | 1.7% | 1.7% | 1.2% | 70.8% |
|---|
| E.Bon Holdings Ltd ($599) | 2.8% | 1.7% | 0.9% | 0.7% | 5.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China LNG Group Ltd ($931) | 8.4% | 7.4% | 87.0% | 56.2% | |
| Powerwell Pacific Holdings Ltd ($8265) | 6.4% | 6.4% | 23.6% | 27.1% | |
| Yestar International Holdings Co Ltd ($2393) | 28.8% | 24.1% | 26.2% | 25.4% | |
| Goldin Financial Holdings Ltd ($530) | 5.9% | 20.6% | 10.4% | 16.0% | |
| Li & Fung Ltd ($494) | 13.0% | 11.8% | 12.3% | 13.1% | |
| |
|---|
| Median (37 companies) | 2.1% | 0.9% | 3.1% | 2.6% | -18.1% |
|---|
| E.Bon Holdings Ltd ($599) | 7.0% | 7.2% | 3.3% | 16.9% | 17.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SIS International Holdings ($529) | -1.8x | 7.0x | 7.2x | 16.8x | |
| Leeport Holdings Ltd ($387) | | | | 16.1x | |
| Takson Holdings Ltd ($918) | | 11.5x | 11.7x | 15.7x | |
| Sheng Yuan Holdings Ltd ($851) | | | 19.3x | 15.4x | |
| Forefront Group Ltd ($885) | | | -0.0x | 15.3x | |
| |
|---|
| Median (26 companies) | -0.3x | -0.8x | -0.1x | 0.0x | |
|---|
| E.Bon Holdings Ltd ($599) | 1.5x | 0.0x | 0.8x | -0.7x | -0.7x |
