Perfect Shape PRC Holdings Ltd reports 39.3% CAPEX decline in 2016 while 20.6% Revenue growth
30/06/2016 • About Perfect Shape PRC Holdings Ltd (
$1830) • By InTwits
Perfect Shape PRC Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Perfect Shape PRC Holdings Ltd is a fast growth stock: FY2016 revenue growth was 20.6%, 5 year revenue CAGR was 23.3% at FY2016 ROIC 32.0%
- Perfect Shape PRC Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.0%. At the same time it's in pair with industry average of 12.3%.
- CAPEX is quite volatile: 110 in FY2016, 181 in FY2015, 36.4 in FY2014, 39.4 in FY2013, 23.3 in FY2012
- The company has highly profitable business model: ROIC is at 32.0%
- It operates with high leverage: Net Debt/EBITDA is -1.0x while industry average is -30.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Perfect Shape PRC Holdings Ltd ($1830) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 381.2 | 443.0 | 470.2 | 728.7 | 879.1 | 20.6% |
| SG&A | | | | 73.8 | 113.7 | 54.0% |
| EBITDA | 104.8 | 128.9 | 124.4 | 216.8 | 241.2 | 11.2% |
| Net Income | 68.7 | 78.0 | 83.0 | 134.9 | 130.0 | -3.6% |
Balance Sheet
|
|---|
| Cash | 205.7 | 109.5 | 178.9 | 387.3 | 234.9 | -39.3% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 23.3 | 39.4 | 36.4 | 180.6 | 109.7 | -39.3% |
Ratios
|
|---|
| Revenue growth | 23.4% | 16.2% | 6.1% | 55.0% | 20.6% | |
| EBITDA growth | 29.1% | 23.0% | -3.5% | 74.3% | 11.2% | |
| EBITDA Margin | 27.5% | 29.1% | 26.5% | 29.8% | 27.4% | -2.3% |
| Net Income Margin | 18.0% | 17.6% | 17.7% | 18.5% | 14.8% | -3.7% |
| SG&A, % of revenue | | | | 10.1% | 12.9% | 2.8% |
| CAPEX, % of revenue | 6.1% | 8.9% | 7.7% | 24.8% | 12.5% | -12.3% |
| ROIC | 62.8% | 44.1% | 37.7% | 44.1% | 32.0% | -12.1% |
| ROE | 50.9% | 33.7% | 34.6% | 36.9% | 27.1% | -9.8% |
| Net Debt/EBITDA | -2.0x | -0.8x | -1.4x | -1.8x | -1.0x | 0.8x |
Revenue and profitability
Perfect Shape PRC Holdings Ltd's Revenue surged on 20.6%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.3 pp from 29.8% to 27.4% in FY2016.
SG&A as a % of Revenue increased on 2.8 pp from 10.1% to 12.9% in FY2016.
Net Income marign decreased on 3.7 pp from 18.5% to 14.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 12.5%. The company's CAPEX/Revenue increased on 3.6 pp from 8.9% in FY2013 to 12.5% in FY2016. For the last three years the average CAPEX/Revenue was 15.0%.
Return on investment
The company operates at high and attractive ROIC (31.98%) and ROE (27.09%). ROIC dropped on 12.1 pp from 44.1% to 32.0% in FY2016. ROE decreased on 9.8 pp from 36.9% to 27.1% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 39.3%.
Appendix 1: Peers in Leisure Time
Below we provide Perfect Shape PRC Holdings Ltd benchmarking against other companies in Leisure Time 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 |
|---|
| Genting Hong Kong Ltd ($678) | 5.3% | 6.6% | 2.9% | 20.9% | |
| Travel Expert Asia Enterprises Ltd ($1235) | | 15.3% | 19.5% | 18.9% | 3.2% |
| China Jiuhao Health Industry Corp Ltd ($419) | 61.8% | -23.6% | -12.7% | 11.5% | |
| EGL Holdings Co Ltd ($6882) | 9.5% | 20.7% | 2.3% | 10.3% | |
| Water Oasis Group Ltd ($1161) | -16.3% | -23.7% | 8.0% | 1.9% | |
| |
|---|
| Median (11 companies) | 6.3% | -6.6% | 2.6% | -1.8% | 3.2% |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | | 16.2% | 6.1% | 55.0% | 20.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | | | | 90.7% | 85.1% |
| Feiyu Technology International Co Ltd ($1022) | 96.9% | 95.4% | 87.5% | 83.1% | |
| Sino Splendid Holdings Ltd ($8006) | 51.7% | 51.4% | 51.9% | 53.9% | |
| China Travel International Investment Hong Kong Ltd ($308) | 46.1% | 47.8% | 46.0% | 45.6% | |
| China Jiuhao Health Industry Corp Ltd ($419) | 57.0% | 13.5% | 23.4% | 44.9% | |
| |
|---|
| Median (9 companies) | 46.1% | 21.4% | 21.8% | 44.9% | 85.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Travel International Investment Hong Kong Ltd ($308) | 28.2% | 29.1% | 48.5% | 31.7% | |
| Feiyu Technology International Co Ltd ($1022) | 77.0% | 44.0% | 51.0% | 30.0% | |
| Travel Expert Asia Enterprises Ltd ($1235) | 17.4% | 16.2% | 18.3% | 15.0% | 11.8% |
| Water Oasis Group Ltd ($1161) | 6.5% | 4.7% | 11.4% | 13.1% | |
| EGL Holdings Co Ltd ($6882) | 3.7% | 8.1% | 5.8% | 9.8% | |
| |
|---|
| Median (11 companies) | 6.5% | 8.1% | 7.8% | 0.9% | 11.8% |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | 27.5% | 29.1% | 26.5% | 29.8% | 27.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Genting Hong Kong Ltd ($678) | 16.6% | 25.4% | 33.0% | 58.1% | |
| China Jiuhao Health Industry Corp Ltd ($419) | 2.1% | 31.8% | 67.3% | 43.3% | |
| China Travel International Investment Hong Kong Ltd ($308) | 13.4% | 28.3% | 29.9% | 10.9% | |
| Water Oasis Group Ltd ($1161) | 3.7% | 4.0% | 2.8% | 3.5% | |
| Feiyu Technology International Co Ltd ($1022) | 6.3% | 1.6% | 3.2% | 3.1% | |
| |
|---|
| Median (11 companies) | 3.0% | 2.8% | 2.8% | 2.8% | 9.9% |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | 6.1% | 8.9% | 7.7% | 24.8% | 12.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| EGL Holdings Co Ltd ($6882) | 30.4% | 63.2% | 39.4% | 58.3% | |
| Travel Expert Asia Enterprises Ltd ($1235) | 50.9% | 26.7% | 29.8% | 23.0% | 15.9% |
| Water Oasis Group Ltd ($1161) | 5.3% | 1.7% | 15.7% | 19.2% | |
| Feiyu Technology International Co Ltd ($1022) | 329.5% | 19.2% | 17.1% | 6.1% | |
| China Travel International Investment Hong Kong Ltd ($308) | 5.6% | 5.0% | 9.6% | 5.0% | |
| |
|---|
| Median (11 companies) | 2.0% | 1.7% | 3.8% | -1.7% | 15.9% |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | 62.8% | 44.1% | 37.7% | 44.1% | 32.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | -1.3x | -1.2x | -1.7x | -0.3x | -0.0x |
| China Travel International Investment Hong Kong Ltd ($308) | -1.7x | -1.1x | -1.1x | -2.0x | |
| EGL Holdings Co Ltd ($6882) | -4.5x | -2.5x | -3.3x | -2.4x | |
| Water Oasis Group Ltd ($1161) | -3.2x | -5.1x | -2.8x | -2.6x | |
| Feiyu Technology International Co Ltd ($1022) | -0.3x | -1.9x | -3.2x | -4.3x | |
| |
|---|
| Median (6 companies) | -0.8x | -1.9x | -2.8x | -2.5x | -0.0x |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | -2.0x | -0.8x | -1.4x | -1.8x | -1.0x |
