Crown International Corp Ltd EBITDA surged on 56.2% and EBITDA Margin jumped on 35.4 pp from 32.6% to 68.0%
30/06/2016 • About Crown International Corp Ltd (
$727) • By InTwits
Crown International Corp Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Crown International Corp Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 48.3%. At the same time it's a lot of higher than industry average of 6.5%.
- CAPEX is quite volatile: 3.3 in FY2016, 10.3 in FY2015, 1.9 in FY2014, 10.9 in FY2013, 21.0 in FY2012
- The company has potentially unprofitable business model: ROIC is at 2.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Crown International Corp Ltd ($727) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 29.4 | 7.4 | 16.0 | 144.2 | 108.0 | -25.1% |
| EBITDA | -7.3 | -21.4 | -46.6 | 47.1 | 73.5 | 56.2% |
| Net Income | -52.4 | -70.8 | -45.3 | 155.1 | 172.3 | 11.1% |
Balance Sheet
|
|---|
| Cash | 125.1 | 90.8 | 41.3 | 34.6 | 74.6 | 115.3% |
| Short Term Debt | 467.3 | 448.4 | 407.4 | 500.8 | 0.0 | -100.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 21.0 | 10.9 | 1.9 | 10.3 | 3.3 | -68.2% |
Ratios
|
|---|
| Revenue growth | 225.8% | -75.0% | 117.4% | 802.5% | -25.1% | |
| EBITDA growth | -67.2% | 192.1% | 118.2% | -201.0% | 56.2% | |
| EBITDA Margin | -24.9% | -290.5% | -291.6% | 32.6% | 68.0% | 35.4% |
| Net Income Margin | -178.4% | -963.1% | -283.4% | 107.5% | 159.5% | 52.0% |
| CAPEX, % of revenue | 71.6% | 147.6% | 12.1% | 7.1% | 3.0% | -4.1% |
| ROIC | -11.7% | -14.8% | -22.0% | 4.4% | 2.6% | -1.9% |
| ROE | | | | | 17.4% | 17.4% |
| Net Debt/EBITDA | | | | 9.9x | -1.0x | -10.9x |
Revenue and profitability
Crown International Corp Ltd's Revenue dropped on 25.1%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 35.4 pp from 32.6% to 68.0% in FY2016.
Net Income marign jumped on 52.0 pp from 108% to 159% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.0% in FY2016. CAPEX/Revenue dropped on 145 pp from 148% in FY2013 to 3.0% in FY2016. It's average CAPEX/Revenue for the last three years was 7.4%.
Return on investment
The company operates at good ROE (17.40%) while ROIC is low (2.57%). ROIC decreased slightly on 1.9 pp from 4.4% to 2.6% in FY2016.
Leverage (Debt)
The company paid down all the debt in FY2016. Cash jumped on 115%.
Appendix 1: Peers in Diversified Finan Serv
Below you can find Crown International Corp 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) | | -23.1% | -87.3% | 1,860.5% | 25.3% |
| Global Strategic Group Ltd ($8007) | -3.9% | 2.1% | 806.3% | 681.2% | |
| Upbest Group Ltd ($335) | | -61.8% | 24.1% | 208.1% | -63.4% |
| GF Securities Co Ltd ($1776) | 16.3% | 31.8% | 75.0% | 163.9% | |
| AID Partners Capital Holdings Ltd ($8088) | 0.9% | -79.5% | 655.2% | 162.0% | |
| |
|---|
| Median (64 companies) | 8.3% | 19.3% | 26.5% | 24.0% | 19.8% |
|---|
| Crown International Corp Ltd ($727) | | -75.0% | 117.4% | 802.5% | -25.1% |
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% | 98.4% |
| 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% | 80.7% |
|---|
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% | 55.6% |
| 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% | 84.5% |
| 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) | 23.0% | 37.2% | 47.9% | 31.4% | 53.8% |
|---|
| Crown International Corp Ltd ($727) | -24.9% | -290.5% | -291.6% | 32.6% | 68.0% |
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% | 0.1% |
| |
|---|
| Median (65 companies) | 1.9% | 1.8% | 1.1% | 1.5% | 0.9% |
|---|
| Crown International Corp Ltd ($727) | 71.6% | 147.6% | 12.1% | 7.1% | 3.0% |
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% | 2.1% |
| 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% | 3.5% | 4.6% |
|---|
| Crown International Corp Ltd ($727) | -11.7% | -14.8% | -22.0% | 4.4% | 2.6% |
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 | -18.0x |
| |
|---|
| Median (49 companies) | -0.6x | 0.1x | -0.0x | -0.1x | 0.5x |
|---|
| Crown International Corp Ltd ($727) | | | | 9.9x | -1.0x |
