Goldbond Group Holdings Ltd reports 45.0% EBITDA growth in 2016 and 44.8 pp EBITDA Margin growth from 44.2% to 89.0%
24/06/2016 • About Goldbond Group Holdings Ltd (
$172) • By InTwits
Goldbond Group Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Goldbond Group Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is 1.8%
- EBITDA Margin is quite volatile: 89.0% in FY2016, 44.2% in FY2015, 23.3% in FY2014, 40.3% in FY2013, 66.4% in FY2012
- Goldbond Group Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's a lot of higher than industry average of 5.5%.
- CAPEX is quite volatile: 1.1 in FY2016, 2.8 in FY2015, 2.3 in FY2014, 1.3 in FY2013, 9.5 in FY2012
- The company has potentially unprofitable business model: ROIC is at 1.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Goldbond Group Holdings Ltd ($172) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 124.8 | 50.5 | 64.3 | 67.3 | 48.4 | -28.0% |
| EBITDA | 82.9 | 20.3 | 15.0 | 29.7 | 43.1 | 45.0% |
| Net Income | 500.8 | 119.9 | 135.7 | 118.2 | 124.5 | 5.3% |
Balance Sheet
|
|---|
| Cash | 524.3 | 340.0 | 411.9 | 80.5 | 286.7 | 256.2% |
| Short Term Debt | 372.7 | 457.6 | 0.0 | 32.3 | 0.0 | -100.0% |
| Long Term Debt | 426.4 | 566.4 | 3.7 | 4.2 | 4.8 | 15.0% |
Cash flow
|
|---|
| Capex | 9.5 | 1.3 | 2.3 | 2.8 | 1.1 | -61.0% |
Ratios
|
|---|
| Revenue growth | 157.1% | -59.5% | 27.4% | 4.5% | -28.0% | |
| EBITDA growth | 336.5% | -75.5% | -26.3% | 98.0% | 45.0% | |
| EBITDA Margin | 66.4% | 40.3% | 23.3% | 44.2% | 89.0% | 44.8% |
| Net Income Margin | 401.2% | 237.3% | 210.8% | 175.7% | 257.1% | 81.4% |
| CAPEX, % of revenue | 7.6% | 2.6% | 3.6% | 4.1% | 2.2% | -1.9% |
| ROIC | 3.1% | 0.6% | 0.5% | 1.2% | 1.8% | 0.5% |
| ROE | 29.0% | 5.8% | 6.2% | 5.2% | 5.3% | 0.2% |
| Net Debt/EBITDA | 3.3x | 33.6x | -27.2x | -1.5x | -6.5x | -5.1x |
Revenue and profitability
Goldbond Group Holdings Ltd's Revenue dropped on 28.0%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 44.8 pp from 44.2% to 89.0% in FY2016.
Net Income marign jumped on 81.4 pp from 176% to 257% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 2.2%. The company showed almost no change in CAPEX/Revenue from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 3.3%.
Return on investment
The company operates at low ROIC (1.76%) and ROE (5.34%). ROIC increased slightly on 0.53 pp from 1.2% to 1.8% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -6.5x and Debt / EBITDA is 0.1x. Net Debt / EBITDA dropped on 5.1x from -1.5x to -6.5x in FY2016. Debt dropped on 86.8% while cash surged on 256%.
Appendix 1: Peers in Diversified Finan Serv
Below you can find Goldbond Group Holdings Ltd benchmarking vs. other companies in Diversified Finan Serv 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 |
|---|
| 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) | 1.2% | 19.3% | 26.7% | 25.3% | 15.9% |
|---|
| Goldbond Group Holdings Ltd ($172) | | -59.5% | 27.4% | 4.5% | -28.0% |
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% | 64.3% |
|---|
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% | |
| Hong Kong Finance Group Co Ltd ($1273) | 76.9% | 67.5% | 65.2% | 74.8% | 70.3% |
| |
|---|
| Median (66 companies) | 18.8% | 36.2% | 47.9% | 31.4% | 50.8% |
|---|
| Goldbond Group Holdings Ltd ($172) | 66.4% | 40.3% | 23.3% | 44.2% | 89.0% |
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% | 1.8% | 1.1% | 1.5% | 0.9% |
|---|
| Goldbond Group Holdings Ltd ($172) | 7.6% | 2.6% | 3.6% | 4.1% | 2.2% |
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% | 4.2% | 4.9% | 3.6% | 6.6% |
|---|
| Goldbond Group Holdings Ltd ($172) | 3.1% | 0.6% | 0.5% | 1.2% | 1.8% |
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) | -0.7x | 0.1x | 0.1x | 0.0x | 3.0x |
|---|
| Goldbond Group Holdings Ltd ($172) | 3.3x | 33.6x | -27.2x | -1.5x | -6.5x |
