Pizu Group Holdings Ltd revenue growth accelerated from 158% in FY2015 to 235% in FY2016
24/06/2016 • About Pizu Group Holdings Ltd (
$8053) • By InTwits
Pizu Group Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pizu Group Holdings Ltd is a fast growth stock: FY2016 revenue growth was 235%, 5 year revenue CAGR was 164% at FY2016 ROIC 51.7%
- Pizu Group Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has highly profitable business model: ROIC is at 51.7%
- It operates with high leverage: Net Debt/EBITDA is 0.4x while industry average is -2.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pizu Group Holdings Ltd ($8053) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 57 | 32 | 597 | 1,539 | 5,159 | 235.2% |
| Gross Profit | 3 | 5 | 0 | 213 | 173 | -18.5% |
| SG&A | | | 6 | 72 | 82 | 14.4% |
| EBITDA | -20 | -4 | 0 | 151 | 105 | -30.5% |
| Net Income | -50 | -23 | -33 | 29 | -6 | -121.5% |
Balance Sheet
|
|---|
| Cash | 28 | 16 | 15 | 55 | 38 | -30.7% |
| Short Term Debt | 0 | 0 | 84 | 0 | 0 | |
| Long Term Debt | 47 | 30 | 0 | 0 | 79 | |
Cash flow
|
|---|
| Capex | 1 | 0 | 0 | 26 | 60 | 134.2% |
Ratios
|
|---|
| Revenue growth | 40.3% | -42.9% | 1,742.9% | 157.9% | 235.2% | |
| EBITDA growth | 1,005.6% | -81.0% | -105.3% | 75,125.9% | -30.5% | |
| Gross Margin | 6.1% | 15.1% | 0.1% | 13.8% | 3.4% | -10.5% |
| EBITDA Margin | -35.1% | -11.7% | 0.0% | 9.8% | 2.0% | -7.8% |
| Net Income Margin | -89.0% | -72.3% | -5.5% | 1.9% | -0.1% | -2.0% |
| SG&A, % of revenue | | | 1.0% | 4.7% | 1.6% | -3.1% |
| CAPEX, % of revenue | 1.0% | 0.3% | 0.0% | 1.7% | 1.2% | -0.5% |
| ROIC | -21.8% | -13.4% | -6.8% | 120.0% | 51.7% | -68.4% |
| ROE | -209.8% | -103.1% | -397.2% | 220.1% | -18.2% | -238.3% |
| Net Debt/EBITDA | | | 346.1x | -0.4x | 0.4x | 0.8x |
Revenue and profitability
Pizu Group Holdings Ltd's Revenue surged on 235%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.8 pp from 10.7% to 8.9% in FY2016.
Gross Margin dropped on 10.5 pp from 13.8% to 3.4% in FY2016. SG&A as a % of Revenue decreased on 3.1 pp from 4.7% to 1.6% in FY2016.
Net Income marign decreased slightly on 2.0 pp from 1.9% to -0.12% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Pizu Group Holdings Ltd's CAPEX/Revenue was 1.2% in FY2016. Pizu Group Holdings Ltd showed small growth in CAPEX/Revenue of 0.85 pp from 0.31% in FY2013 to 1.2% in FY2016. It's average level of CAPEX/Revenue for the last three years was 0.94%.To secure this fast growth Pizu Group Holdings Ltd invested a large share of EBITDA (56.8%) to CAPEX.
Return on investment
The company operates at low but positive ROIC (51.66%) and negative ROE (-18.23%). ROIC dropped on 68.4 pp from 120% to 51.7% in FY2016. ROE dropped on 238 pp from 220% to -18.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.4x and Debt / EBITDA is 0.8x. Net Debt / EBITDA jumped on 0.8x from -0.4x to 0.4x in FY2016. Debt jumped while cash dropped on 30.7%.
Appendix 1: Peers in Software
Below you can find Pizu Group Holdings Ltd benchmarking vs. other companies in Software 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 |
|---|
| Yunbo Digital Synergy Group Ltd ($8050) | | 241.6% | -31.9% | 348.0% | 99.6% |
| China Eco-Farming Ltd ($8166) | -23.6% | -7.7% | 21.8% | 155.5% | |
| ICO Group Ltd ($8140) | | -11.1% | -3.1% | 104.9% | 29.8% |
| Aurum Pacific China Group Ltd ($8148) | | | 50.0% | 92.7% | |
| Kingsoft Corp Ltd ($3888) | 38.3% | 54.0% | 54.2% | 69.4% | |
| |
|---|
| Median (37 companies) | 21.1% | 11.4% | 20.9% | 7.8% | -2.6% |
|---|
| Pizu Group Holdings Ltd ($8053) | | -42.9% | 1,742.9% | 157.9% | 235.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Bio Cassava Holdings Ltd ($8129) | 90.4% | 97.4% | 98.4% | 98.3% | |
| Chanjet Information Technology Co Ltd ($1588) | 89.2% | 91.3% | 92.4% | 91.4% | |
| China Binary Sale Technology Ltd ($8255) | 63.5% | 68.5% | 67.7% | 85.9% | |
| Kingdee International Software Group Co Ltd ($268) | 65.0% | 75.3% | 82.5% | 81.5% | |
| Tian Ge Interactive Holdings Ltd ($1980) | 88.5% | 87.6% | 84.8% | 77.7% | |
| |
|---|
| Median (36 companies) | 45.4% | 42.5% | 42.8% | 43.5% | 38.6% |
|---|
| Pizu Group Holdings Ltd ($8053) | 6.1% | 15.1% | 0.1% | 13.8% | 3.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| International Entertainment Corp ($1009) | 50.8% | 64.0% | 54.9% | 62.0% | 45.5% |
| Sinosoft Technology Group Ltd ($1297) | 62.6% | 54.9% | 57.2% | 59.0% | |
| China Binary Sale Technology Ltd ($8255) | 35.1% | 35.4% | 44.4% | 50.5% | |
| Boyaa Interactive International Ltd ($434) | 38.5% | 25.8% | 30.7% | 47.6% | |
| TravelSky Technology Ltd ($696) | 38.1% | 35.8% | 31.9% | 41.1% | |
| |
|---|
| Median (37 companies) | 11.1% | 14.0% | 11.1% | 9.1% | 8.0% |
|---|
| Pizu Group Holdings Ltd ($8053) | -35.1% | -11.7% | 0.0% | 9.8% | 2.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| NetDragon Websoft Inc ($777) | 21.1% | 34.6% | 54.6% | 42.9% | |
| China Information Technology Development Ltd ($8178) | 4.1% | 1.1% | 0.5% | 40.7% | |
| Aurum Pacific China Group Ltd ($8148) | | 2.9% | 7.5% | 20.6% | |
| TravelSky Technology Ltd ($696) | 8.9% | 21.7% | 18.1% | 18.1% | |
| Kingsoft Corp Ltd ($3888) | 4.3% | 3.8% | 14.3% | 11.1% | |
| |
|---|
| Median (37 companies) | 1.4% | 1.8% | 3.5% | 2.2% | 0.5% |
|---|
| Pizu Group Holdings Ltd ($8053) | 1.0% | 0.3% | 0.0% | 1.7% | 1.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| ICO Group Ltd ($8140) | | 43.5% | 6.8% | 37.7% | 27.1% |
| IGG Inc ($8002) | | 55.9% | 41.4% | 25.9% | |
| Boyaa Interactive International Ltd ($434) | 75.3% | 21.3% | 20.0% | 21.4% | |
| Sinosoft Technology Group Ltd ($1297) | 34.0% | 21.9% | 20.2% | 20.8% | |
| ITE Holdings Ltd ($8092) | -15.0% | 10.6% | 16.8% | 19.8% | 4.1% |
| |
|---|
| Median (37 companies) | 5.6% | 6.7% | 6.8% | 2.2% | 4.1% |
|---|
| Pizu Group Holdings Ltd ($8053) | -21.8% | -13.4% | -6.8% | 120.0% | 51.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Epicurean and Co Ltd ($8213) | 2.3x | 4.7x | 12.3x | 12.0x | |
| Sing Lee Software Group Ltd ($8076) | | | 6.2x | 4.4x | |
| Century Sage Scientific Holdings Ltd ($1450) | 0.2x | 0.0x | -0.2x | 1.8x | |
| Microsoft Corp ($4338) | | | 0.4x | 1.2x | 1.4x |
| Chinasoft International Ltd ($354) | -0.7x | 0.7x | 1.5x | 0.7x | |
| |
|---|
| Median (21 companies) | -1.0x | -1.5x | -1.8x | -1.2x | -1.2x |
|---|
| Pizu Group Holdings Ltd ($8053) | | | 346.1x | -0.4x | 0.4x |
