Travel Expert Asia Enterprises Ltd CAPEX surged on 266% and Revenue increased on 3.2%
22/06/2016 • About Travel Expert Asia Enterprises Ltd (
$1235) • By InTwits
Travel Expert Asia Enterprises Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Travel Expert Asia Enterprises Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.0%. At the same time it's in pair with industry average of 13.3%.
- CAPEX is quite volatile: 38.2 in FY2016, 10.4 in FY2015, 7.5 in FY2014, 58.8 in FY2013, 51.6 in FY2012
- The company has highly profitable business model: ROIC is at 15.9%
- It operates with high leverage: Net Debt/EBITDA is -0.0x while industry average is -30.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Travel Expert Asia Enterprises Ltd ($1235) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 229.2 | 264.3 | 315.8 | 375.6 | 387.5 | 3.2% |
| Gross Profit | | | | 340.5 | 329.9 | -3.1% |
| SG&A | | 232.2 | 269.9 | 301.7 | 308.1 | 2.1% |
| EBITDA | 39.8 | 42.9 | 57.8 | 56.2 | 45.9 | -18.3% |
| Net Income | 30.3 | 41.3 | 43.3 | 45.4 | 31.6 | -30.4% |
Balance Sheet
|
|---|
| Cash | 57.1 | 78.3 | 121.9 | 71.0 | 34.0 | -52.1% |
| Short Term Debt | 6.5 | 27.4 | 24.6 | 56.0 | 33.6 | -40.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 51.6 | 58.8 | 7.5 | 10.4 | 38.2 | 266.3% |
Ratios
|
|---|
| Revenue growth | 11.9% | 15.3% | 19.5% | 18.9% | 3.2% | |
| EBITDA growth | -3.2% | 7.8% | 34.7% | -2.8% | -18.3% | |
| Gross Margin | | | | 90.7% | 85.1% | -5.5% |
| EBITDA Margin | 17.4% | 16.2% | 18.3% | 15.0% | 11.8% | -3.1% |
| Net Income Margin | 13.2% | 15.6% | 13.7% | 12.1% | 8.2% | -3.9% |
| SG&A, % of revenue | | 87.9% | 85.5% | 80.3% | 79.5% | -0.8% |
| CAPEX, % of revenue | 22.5% | 22.3% | 2.4% | 2.8% | 9.9% | 7.1% |
| ROIC | 50.9% | 26.7% | 29.8% | 23.0% | 15.9% | -7.1% |
| ROE | 47.1% | 34.3% | 30.0% | 27.1% | 17.2% | -9.9% |
| Net Debt/EBITDA | -1.3x | -1.2x | -1.7x | -0.3x | -0.0x | 0.3x |
Revenue and profitability
Travel Expert Asia Enterprises Ltd's Revenue increased on 3.2%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 3.1 pp from 15.0% to 11.8% in FY2016.
Gross Margin decreased on 5.5 pp from 90.7% to 85.1% in FY2016. SG&A as a % of Revenue decreased slightly on 0.83 pp from 80.3% to 79.5% in FY2016.
Net Income marign decreased on 3.9 pp from 12.1% to 8.2% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 9.9% in FY2016. Travel Expert Asia Enterprises Ltd's CAPEX/Revenue dropped on 12.4 pp from 22.3% in FY2013 to 9.9% in FY2016. Average CAPEX/Revenue for the last three years was 5.0%.The company maintained rich investment policy and has spent a big chunk of EBITDA (83.4%) to CAPEX.
Return on investment
The company operates at good ROIC (15.89%) and ROE (17.22%). ROIC decreased on 7.1 pp from 23.0% to 15.9% in FY2016. ROE decreased on 9.9 pp from 27.1% to 17.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.0x and Debt / EBITDA is 0.7x. Net Debt / EBITDA jumped on 0.3x from -0.3x to -0.010x in FY2016. Debt dropped on 40.0% while cash dropped on 52.1%.
Appendix 1: Peers in Leisure Time
Below you can find Travel Expert Asia Enterprises Ltd benchmarking vs. other companies in Leisure Time 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 |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | 23.4% | 16.2% | 6.1% | 55.0% | |
| Genting Hong Kong Ltd ($678) | 5.3% | 6.6% | 2.9% | 20.9% | |
| China Jiuhao Health Industry Corp Ltd ($419) | 61.8% | -23.6% | -12.7% | 11.5% | |
| EGL Holdings Co Ltd ($6882) | 9.5% | 20.7% | 2.3% | 10.3% | |
| Water Oasis Group Ltd ($1161) | -16.3% | -23.7% | 8.0% | 1.9% | |
| |
|---|
| Median (11 companies) | 7.2% | -6.6% | 2.6% | -1.8% | |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | | 15.3% | 19.5% | 18.9% | 3.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Feiyu Technology International Co Ltd ($1022) | 96.9% | 95.4% | 87.5% | 83.1% | |
| Sino Splendid Holdings Ltd ($8006) | 51.7% | 51.4% | 51.9% | 53.9% | |
| China Travel International Investment Hong Kong Ltd ($308) | 46.1% | 47.8% | 46.0% | 45.6% | |
| China Jiuhao Health Industry Corp Ltd ($419) | 57.0% | 13.5% | 23.4% | 44.9% | |
| EGL Holdings Co Ltd ($6882) | 16.7% | 21.4% | 20.2% | 23.4% | |
| |
|---|
| Median (8 companies) | 46.1% | 21.4% | 21.8% | 34.2% | |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | | | | 90.7% | 85.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Travel International Investment Hong Kong Ltd ($308) | 28.2% | 29.1% | 48.5% | 31.7% | |
| Feiyu Technology International Co Ltd ($1022) | 77.0% | 44.0% | 51.0% | 30.0% | |
| Perfect Shape PRC Holdings Ltd ($1830) | 27.5% | 29.1% | 26.5% | 29.8% | |
| Water Oasis Group Ltd ($1161) | 6.5% | 4.7% | 11.4% | 13.1% | |
| EGL Holdings Co Ltd ($6882) | 3.7% | 8.1% | 5.8% | 9.8% | |
| |
|---|
| Median (11 companies) | 6.5% | 8.1% | 7.8% | 0.9% | |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | 17.4% | 16.2% | 18.3% | 15.0% | 11.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Genting Hong Kong Ltd ($678) | 16.6% | 25.4% | 33.0% | 58.1% | |
| China Jiuhao Health Industry Corp Ltd ($419) | 2.1% | 31.8% | 67.3% | 43.3% | |
| Perfect Shape PRC Holdings Ltd ($1830) | 6.1% | 8.9% | 7.7% | 24.8% | |
| China Travel International Investment Hong Kong Ltd ($308) | 13.4% | 28.3% | 29.9% | 10.9% | |
| Water Oasis Group Ltd ($1161) | 3.7% | 4.0% | 2.8% | 3.5% | |
| |
|---|
| Median (11 companies) | 3.0% | 2.8% | 3.2% | 3.1% | |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | 22.5% | 22.3% | 2.4% | 2.8% | 9.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| EGL Holdings Co Ltd ($6882) | 30.4% | 63.2% | 39.4% | 58.3% | |
| Perfect Shape PRC Holdings Ltd ($1830) | 62.8% | 44.1% | 37.7% | 44.1% | |
| Water Oasis Group Ltd ($1161) | 5.3% | 1.7% | 15.7% | 19.2% | |
| Feiyu Technology International Co Ltd ($1022) | 329.5% | 19.2% | 17.1% | 6.1% | |
| China Travel International Investment Hong Kong Ltd ($308) | 5.6% | 5.0% | 9.6% | 5.0% | |
| |
|---|
| Median (11 companies) | 2.0% | 1.7% | 3.8% | -1.7% | |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | 50.9% | 26.7% | 29.8% | 23.0% | 15.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | -2.0x | -0.8x | -1.4x | -1.8x | |
| China Travel International Investment Hong Kong Ltd ($308) | -1.7x | -1.1x | -1.1x | -2.0x | |
| EGL Holdings Co Ltd ($6882) | -4.5x | -2.5x | -3.3x | -2.4x | |
| Water Oasis Group Ltd ($1161) | -3.2x | -5.1x | -2.8x | -2.6x | |
| Feiyu Technology International Co Ltd ($1022) | -0.3x | -1.9x | -3.2x | -4.3x | |
| |
|---|
| Median (6 companies) | -1.0x | -1.9x | -2.8x | -2.5x | |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | -1.3x | -1.2x | -1.7x | -0.3x | -0.0x |
