CL Group Holdings Ltd Net Income decreased on 7.0% while Revenue increased slightly on 1.4%
23/06/2016 • About CL Group Holdings Ltd (
$8098) • By InTwits
CL Group Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CL Group Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's a lot of higher than industry average of 23.1%.
- CAPEX is quite volatile: 0.22 in FY2016, 2.1 in FY2015, 0.096 in FY2014, 0.077 in FY2013, 1.1 in FY2012
- The company has business model with average profitability: ROIC is at 11.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CL Group Holdings Ltd ($8098) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 51.482 | 52.607 | 55.854 | 59.518 | 60.343 | 1.4% |
| EBITDA | 28.794 | 28.959 | 30.901 | 29.721 | 31.392 | 5.6% |
| Net Income | 22.749 | 22.492 | 24.784 | 22.675 | 21.091 | -7.0% |
Balance Sheet
|
|---|
| Cash | 48.023 | 48.563 | 36.682 | 32.192 | 1.229 | -96.2% |
| Short Term Debt | 0.000 | 0.000 | 10.000 | 0.000 | 15.230 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 1.061 | 0.077 | 0.096 | 2.102 | 0.223 | -89.4% |
Ratios
|
|---|
| Revenue growth | -44.3% | 2.2% | 6.2% | 6.6% | 1.4% | |
| EBITDA growth | -35.9% | 0.6% | 6.7% | -3.8% | 5.6% | |
| EBITDA Margin | 55.9% | 55.0% | 55.3% | 49.9% | 52.0% | 2.1% |
| Net Income Margin | 44.2% | 42.8% | 44.4% | 38.1% | 35.0% | -3.1% |
| CAPEX, % of revenue | 2.1% | 0.1% | 0.2% | 3.5% | 0.4% | -3.2% |
| ROIC | 14.9% | 15.0% | 14.1% | 12.0% | 11.9% | -0.1% |
| ROE | 12.4% | 12.0% | 12.0% | 9.9% | 9.1% | -0.9% |
| Net Debt/EBITDA | -1.7x | -1.7x | -0.9x | -1.1x | 0.4x | 1.5x |
Revenue and profitability
The company's Revenue increased slightly on 1.4%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.1 pp from 49.9% to 52.0% in FY2016.
Net Income marign decreased on 3.1 pp from 38.1% to 35.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.37%. The company's CAPEX/Revenue showed almost no change from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 1.4%.
Return on investment
The company operates at low ROIC (11.86%) and ROE (9.09%). ROIC showed almost no change in FY2016. ROE decreased slightly on 0.85 pp from 9.9% to 9.1% in FY2016.
Leverage (Debt)
Debt level is 0.4x Net Debt / EBITDA and 0.5x Debt / EBITDA. Net Debt / EBITDA jumped on 1.5x from -1.1x to 0.4x in FY2016. Debt surged while cash dropped on 96.2%.
Appendix 1: Peers in Diversified Finan Serv
Below we provide CL Group Holdings 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) | 4.5% | 19.3% | 27.6% | 25.3% | 17.0% |
|---|
| CL Group Holdings Ltd ($8098) | | 2.2% | 6.2% | 6.6% | 1.4% |
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% | 69.9% |
|---|
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% | 70.3% |
| |
|---|
| Median (66 companies) | 18.8% | 36.2% | 47.2% | 31.4% | 51.6% |
|---|
| CL Group Holdings Ltd ($8098) | 55.9% | 55.0% | 55.3% | 49.9% | 52.0% |
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% | 0.8% |
|---|
| CL Group Holdings Ltd ($8098) | 2.1% | 0.1% | 0.2% | 3.5% | 0.4% |
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) | 3.9% | 4.0% | 4.8% | 3.5% | 6.6% |
|---|
| CL Group Holdings Ltd ($8098) | 14.9% | 15.0% | 14.1% | 12.0% | 11.9% |
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 | 4.3x |
| 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) | -0.5x | 0.3x | 0.1x | 0.0x | 3.4x |
|---|
| CL Group Holdings Ltd ($8098) | -1.7x | -1.7x | -0.9x | -1.1x | 0.4x |
