Chuang's Consortium International Ltd reports 247% EBITDA growth in 2016 and 22.8% Revenue growth
29/06/2016 • About Chuang's Consortium International Ltd (
$367) • By InTwits
Chuang's Consortium International Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 22.1% in FY2016, 7.8% in FY2015, -4.7% in FY2014, 14.6% in FY2013, 32.9% in FY2012
- Chuang's Consortium International Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.3%. At the same time it's in pair with industry average of 56.8%.
- CAPEX is quite volatile: 158 in FY2016, 183 in FY2015, 143 in FY2014, 27.5 in FY2013, 73.0 in FY2012
- The company has potentially unprofitable business model: ROIC is at 2.1%
- It operates with medium-size leverage: Net Debt/EBITDA is 8.7x while industry average is 7.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Chuang's Consortium International Ltd ($367) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,207 | 1,100 | 1,389 | 1,522 | 1,869 | 22.8% |
| Gross Profit | 1,065 | 434 | 515 | 571 | 874 | 53.0% |
| SG&A | | 432 | 490 | 568 | 638 | 12.4% |
| EBITDA | 726 | 161 | -65 | 119 | 413 | 247.1% |
| Net Income | 901 | 1,148 | 469 | 503 | 598 | 18.9% |
Balance Sheet
|
|---|
| Cash | 1,890 | 1,803 | 2,313 | 853 | 384 | -55.0% |
| Short Term Debt | 452 | 548 | 595 | 1,163 | 858 | -26.2% |
| Long Term Debt | 1,930 | 2,062 | 2,717 | 2,538 | 3,113 | 22.7% |
Cash flow
|
|---|
| Capex | 73 | 28 | 143 | 183 | 158 | -13.2% |
Ratios
|
|---|
| Revenue growth | 476.6% | -50.1% | 26.2% | 9.6% | 22.8% | |
| EBITDA growth | 56.1% | -77.8% | -140.3% | -283.1% | 247.1% | |
| Gross Margin | 48.2% | 39.4% | 37.1% | 37.5% | 46.7% | 9.2% |
| EBITDA Margin | 32.9% | 14.6% | -4.7% | 7.8% | 22.1% | 14.3% |
| Net Income Margin | 40.8% | 104.3% | 33.7% | 33.1% | 32.0% | -1.1% |
| SG&A, % of revenue | | 39.3% | 35.3% | 37.3% | 34.1% | -3.2% |
| CAPEX, % of revenue | 3.3% | 2.5% | 10.3% | 12.0% | 8.5% | -3.5% |
| ROIC | 6.8% | 1.0% | -0.9% | 0.3% | 2.1% | 1.8% |
| ROE | 15.5% | 16.9% | 6.2% | 6.3% | 7.1% | 0.8% |
| Net Debt/EBITDA | 0.7x | 5.0x | | 23.9x | 8.7x | -15.2x |
Revenue and profitability
The company's Revenue jumped on 22.8%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 14.3 pp from 7.8% to 22.1% in FY2016.
Gross Margin increased on 9.2 pp from 37.5% to 46.7% in FY2016. SG&A as a % of Revenue decreased on 3.2 pp from 37.3% to 34.1% in FY2016.
Net Income marign decreased slightly on 1.1 pp from 33.1% to 32.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 8.5%. CAPEX/Revenue increased on 6.0 pp from 2.5% in FY2013 to 8.5% in FY2016. For the last three years the average CAPEX/Revenue was 10.2%.
Return on investment
The company operates at low ROIC (2.14%) and ROE (7.11%). ROIC increased slightly on 1.8 pp from 0.31% to 2.1% in FY2016. ROE increased slightly on 0.82 pp from 6.3% to 7.1% in FY2016.
Leverage (Debt)
Debt level is 8.7x Net Debt / EBITDA and 9.6x Debt / EBITDA. Net Debt / EBITDA dropped on 15.2x from 23.9x to 8.7x in FY2016. Debt increased on 7.3% while cash dropped on 55.0%.
Appendix 1: Peers in Holding Companies-Divers
Below you can find Chuang's Consortium International Ltd benchmarking vs. other companies in Holding Companies-Divers 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 |
|---|
| Beijing Development HK Ltd ($154) | 12.5% | | | 1,048.9% | |
| CIAM Group Ltd ($378) | -62.2% | 47.9% | -40.0% | 211.5% | |
| Melco International Development Ltd ($200) | 16.5% | 21.7% | 3.0% | 134.9% | |
| New Century Group Hong Kong Ltd ($234) | | 326.7% | -70.3% | 118.2% | -78.2% |
| Greater China Holdings Ltd ($431) | -35.8% | -72.1% | 67.3% | 110.3% | |
| |
|---|
| Median (43 companies) | 11.0% | 5.0% | 9.6% | 0.5% | -5.8% |
|---|
| Chuang's Consortium International Ltd ($367) | | -50.1% | 26.2% | 9.6% | 22.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Century Group Hong Kong Ltd ($234) | 27.3% | 85.2% | 82.8% | 91.5% | 43.4% |
| Melco International Development Ltd ($200) | 63.1% | 52.9% | 54.5% | 79.4% | |
| CIAM Group Ltd ($378) | | | | 75.8% | |
| Emperor International Holdings Ltd ($163) | 71.3% | 64.9% | 79.2% | 75.3% | 55.3% |
| Heng Fai Enterprises Ltd ($185) | 89.0% | 89.5% | 58.3% | 74.7% | |
| |
|---|
| Median (38 companies) | 32.9% | 34.6% | 30.8% | 34.2% | 36.7% |
|---|
| Chuang's Consortium International Ltd ($367) | 48.2% | 39.4% | 37.1% | 37.5% | 46.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Century Group Hong Kong Ltd ($234) | -5.5% | 78.8% | 58.3% | 85.0% | 33.8% |
| Emperor International Holdings Ltd ($163) | 180.7% | 131.8% | 100.6% | 73.9% | -20.1% |
| Pioneer Global Group Ltd ($224) | -0.5% | -9.9% | -11.6% | 64.3% | 66.8% |
| C C Land Holdings Ltd ($1224) | 27.0% | 23.6% | 24.6% | 55.7% | |
| China Merchants Holdings International Co Ltd ($144) | 56.4% | 50.8% | 45.2% | 55.7% | |
| |
|---|
| Median (43 companies) | 2.2% | 2.0% | 8.9% | 6.2% | 6.9% |
|---|
| Chuang's Consortium International Ltd ($367) | 32.9% | 14.6% | -4.7% | 7.8% | 22.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Heng Fai Enterprises Ltd ($185) | 4.8% | 77.1% | 310.0% | 458.1% | |
| Chinney Investments Ltd ($216) | 17.5% | 103.4% | 111.3% | 230.9% | 26.6% |
| China Investments Holdings Ltd ($132) | 4.8% | 81.9% | 382.2% | 222.5% | |
| Goldin Properties Holdings Ltd ($283) | 2,178.4% | 1,190.0% | 50.1% | 202.4% | 128.8% |
| Carnival Group International Holdings Ltd ($996) | | 137.9% | 61.0% | 133.3% | |
| |
|---|
| Median (43 companies) | 2.3% | 3.7% | 5.5% | 6.0% | 23.2% |
|---|
| Chuang's Consortium International Ltd ($367) | 3.3% | 2.5% | 10.3% | 12.0% | 8.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| C C Land Holdings Ltd ($1224) | 7.4% | 5.3% | 7.9% | 15.0% | |
| Chinney Alliance Group Ltd ($385) | 6.4% | 8.1% | 13.6% | 15.0% | |
| Niraku GC Holdings Inc ($1245) | | 19.0% | 18.8% | 13.1% | 2.7% |
| Top Spring International Holdings Ltd ($3688) | 15.6% | 6.9% | 7.3% | 8.0% | |
| New Century Group Hong Kong Ltd ($234) | -1.7% | 11.7% | 1.7% | 7.3% | -0.6% |
| |
|---|
| Median (43 companies) | -0.2% | 0.0% | 0.8% | 0.3% | 0.4% |
|---|
| Chuang's Consortium International Ltd ($367) | 6.8% | 1.0% | -0.9% | 0.3% | 2.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chinney Investments Ltd ($216) | 10.3x | 63.7x | 48.6x | 93.7x | 13.5x |
| Carnival Group International Holdings Ltd ($996) | | | 23.7x | 92.3x | |
| Multifield International Holdings Ltd ($898) | 3.2x | 7.3x | 3.0x | 55.9x | |
| CIAM Group Ltd ($378) | | | | 32.6x | |
| Pioneer Global Group Ltd ($224) | | | | 10.9x | 11.3x |
| |
|---|
| Median (24 companies) | 2.5x | 2.7x | 2.9x | 2.4x | 7.9x |
|---|
| Chuang's Consortium International Ltd ($367) | 0.7x | 5.0x | | 23.9x | 8.7x |
