Pioneer Global Group Ltd reports 83.1% CAPEX decline in 2016 while 22.0% Revenue growth
29/06/2016 • About Pioneer Global Group Ltd (
$224) • By InTwits
Pioneer Global Group 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: 66.8% in FY2016, 64.3% in FY2015, -11.6% in FY2014, -9.9% in FY2013, -0.5% in FY2012
- Pioneer Global Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 32.3%. At the same time it's in pair with industry average of 45.6%.
- CAPEX is quite volatile: 24.8 in FY2016, 147 in FY2015, 102 in FY2014, 15.9 in FY2013, 30.8 in FY2012
- The company has potentially unprofitable business model: ROIC is at 2.2%
- It operates with high leverage: Net Debt/EBITDA is 11.3x 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.
Pioneer Global Group Ltd ($224) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 179.8 | 199.4 | 177.6 | 212.1 | 258.7 | 22.0% |
| EBITDA | -0.8 | -19.7 | -20.6 | 136.5 | 172.8 | 26.6% |
| Net Income | 405.5 | 671.1 | 477.4 | 804.2 | 365.6 | -54.5% |
Balance Sheet
|
|---|
| Cash | 103.6 | 142.0 | 76.6 | 244.9 | 108.5 | -55.7% |
| Short Term Debt | 1,046.1 | 33.7 | 242.1 | 1,100.4 | 54.7 | -95.0% |
| Long Term Debt | 433.4 | 1,424.2 | 1,259.8 | 635.2 | 2,011.7 | 216.7% |
Cash flow
|
|---|
| Capex | 30.8 | 15.9 | 102.3 | 146.8 | 24.8 | -83.1% |
Ratios
|
|---|
| Revenue growth | 11.8% | 10.9% | -11.0% | 19.4% | 22.0% | |
| EBITDA growth | -100.5% | 2,239.5% | 5.0% | -761.3% | 26.6% | |
| EBITDA Margin | -0.5% | -9.9% | -11.6% | 64.3% | 66.8% | 2.4% |
| Net Income Margin | 225.6% | 336.6% | 268.9% | 379.2% | 141.3% | -237.9% |
| CAPEX, % of revenue | 17.1% | 8.0% | 57.6% | 69.2% | 9.6% | -59.6% |
| ROIC | -0.0% | -0.4% | -0.3% | 2.0% | 2.2% | 0.2% |
| ROE | 15.6% | 20.1% | 12.3% | 18.1% | 7.3% | -10.8% |
| Net Debt/EBITDA | | | | 10.9x | 11.3x | 0.4x |
Revenue and profitability
Pioneer Global Group Ltd's Revenue surged on 22.0%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.6 pp from -6.9% to -5.4% in FY2016.
Net Income marign dropped on 238 pp from 379% to 141% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 9.6% in FY2016. Pioneer Global Group Ltd's CAPEX/Revenue increased slightly on 1.6 pp from 8.0% in FY2013 to 9.6% in FY2016. For the last three years the average CAPEX/Revenue was 45.5%.
Return on investment
The company operates at low ROIC (2.23%) and ROE (7.34%). ROIC showed almost no change in FY2016. ROE dropped on 10.8 pp from 18.1% to 7.3% in FY2016.
Leverage (Debt)
Debt level is 11.3x Net Debt / EBITDA and 12.0x Debt / EBITDA. Net Debt / EBITDA surged on 0.4x from 10.9x to 11.3x in FY2016. Debt surged on 19.1% while cash dropped on 55.7%.
Appendix 1: Peers in Holding Companies-Divers
Below we provide Pioneer Global Group Ltd benchmarking against other companies in Holding Companies-Divers 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 |
|---|
| 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% | 4.1% | 15.5% | 0.5% | -5.8% |
|---|
| Pioneer Global Group Ltd ($224) | | 10.9% | -11.0% | 19.4% | 22.0% |
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 (39 companies) | 33.2% | 35.3% | 32.6% | 37.5% | 40.7% |
|---|
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% |
| 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% | |
| Magnificent Estates ($201) | 45.5% | 47.8% | 53.0% | 40.6% | |
| |
|---|
| Median (43 companies) | 3.0% | 3.5% | 8.9% | 6.2% | 6.9% |
|---|
| Pioneer Global Group Ltd ($224) | -0.5% | -9.9% | -11.6% | 64.3% | 66.8% |
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% | 3.5% | 5.5% | 6.0% | 23.2% |
|---|
| Pioneer Global Group Ltd ($224) | 17.1% | 8.0% | 57.6% | 69.2% | 9.6% |
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% | 0.5% | 0.8% | 0.2% | 0.4% |
|---|
| Pioneer Global Group Ltd ($224) | -0.0% | -0.4% | -0.3% | 2.0% | 2.2% |
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 | |
| Chuang's Consortium International Ltd ($367) | 0.7x | 5.0x | | 23.9x | 8.7x |
| |
|---|
| Median (24 companies) | 2.4x | 2.9x | 2.9x | 2.4x | 6.6x |
|---|
| Pioneer Global Group Ltd ($224) | | | | 10.9x | 11.3x |
