Goldin Financial Holdings Ltd EBITDA Margin dropped on 91.4 pp from 364% to 273% in 2016 while Revenue increased on 8.8%
27/09/2016 • About Goldin Financial Holdings Ltd (
$530) • By InTwits
Goldin Financial Holdings 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: 272.7% in FY2016, 364.1% in FY2015, 285.7% in FY2014, 613.4% in FY2013, 163.7% in FY2012
- Goldin Financial Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's in pair with industry average of 20.9%.
- CAPEX is quite volatile: 35.1 in FY2016, 4.1 in FY2015, 4.0 in FY2014, 8.3 in FY2013, 11.2 in FY2012
- The company has business model with low profitability: ROIC is at 8.7%
- It operates with high leverage: Net Debt/EBITDA is 5.4x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Goldin Financial Holdings Ltd ($530) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 153.2 | 250.5 | 401.5 | 573.8 | 624.5 | 8.8% |
| Gross Profit | 115.3 | 179.6 | 300.3 | 423.4 | 348.4 | -17.7% |
| SG&A | 87.7 | 119.2 | 150.7 | 318.0 | 357.8 | 12.5% |
| EBITDA | 250.8 | 1,536.4 | 1,147.1 | 2,089.3 | 1,703.1 | -18.5% |
| Net Income | 79.2 | 928.1 | 733.8 | 1,214.0 | 893.2 | -26.4% |
Balance Sheet
|
|---|
| Cash | 84.8 | 2,483.9 | 678.4 | 52.3 | 84.9 | 62.3% |
| Short Term Debt | 0.0 | 0.0 | 0.2 | 0.2 | 9,272.5 | 5,723,680.2% |
| Long Term Debt | 0.0 | 272.9 | 516.2 | 1,051.5 | 66.7 | -93.7% |
Cash flow
|
|---|
| Capex | 7.0 | 5.6 | 7.7 | 8.6 | 10.6 | 23.3% |
Ratios
|
|---|
| Revenue growth | -39.4% | 63.5% | 60.3% | 42.9% | 8.8% | |
| EBITDA growth | -173.7% | 512.7% | -25.3% | 82.1% | -18.5% | |
| Gross Margin | 75.3% | 71.7% | 74.8% | 73.8% | 55.8% | -18.0% |
| EBITDA Margin | 163.7% | 613.4% | 285.7% | 364.1% | 272.7% | -91.4% |
| Net Income Margin | 51.7% | 370.5% | 182.8% | 211.6% | 143.0% | -68.6% |
| SG&A, % of revenue | 57.2% | 47.6% | 37.5% | 55.4% | 57.3% | 1.9% |
| CAPEX, % of revenue | 4.6% | 2.3% | 1.9% | 1.5% | 1.7% | 0.2% |
| ROIC | 5.9% | 20.6% | 10.4% | 16.0% | 8.7% | -7.4% |
| ROE | 2.7% | 17.3% | 9.0% | 13.3% | 8.8% | -4.5% |
| Net Debt/EBITDA | -0.3x | -1.4x | -0.1x | 0.5x | 5.4x | 5.0x |
Revenue and profitability
The company's Revenue increased on 8.8%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.8 pp from 3.7% to 1.9% in FY2016.
Gross Margin dropped on 18.0 pp from 73.8% to 55.8% in FY2016. SG&A as a % of Revenue increased slightly on 1.9 pp from 55.4% to 57.3% in FY2016.
Net Income marign dropped on 68.6 pp from 212% to 143% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 1.7%. Goldin Financial Holdings Ltd showed small CAPEX/Revenue decline of 0.56 pp from 2.3% in FY2013 to 1.7% in FY2016. It's average level of CAPEX/Revenue for the last three years was 1.7%.
Return on investment
The company operates at low ROIC (8.68%) and ROE (8.80%). ROIC decreased on 7.4 pp from 16.0% to 8.7% in FY2016. ROE decreased on 4.5 pp from 13.3% to 8.8% in FY2016.
Leverage (Debt)
Debt level is 5.4x Net Debt / EBITDA and 5.5x Debt / EBITDA. Net Debt / EBITDA surged on 5.0x from 0.5x to 5.4x in FY2016. Debt jumped on 788% while cash surged on 62.3%.
Appendix 1: Peers in Distribution/Wholesale
Below we provide Goldin Financial Holdings Ltd benchmarking against other companies in Distribution/Wholesale 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 |
|---|
| C Y Foundation Group Ltd ($1182) | | -65.6% | 5.9% | 214.6% | -14.6% |
| China Fortune Holdings Ltd ($110) | -64.7% | -68.2% | -71.0% | 174.2% | |
| Hailiang International Holdings Ltd ($2336) | 9.7% | -30.8% | -69.1% | 99.7% | |
| Forefront Group Ltd ($885) | | 504.6% | 3,871.0% | 72.0% | |
| Yestar International Holdings Co Ltd ($2393) | -2.2% | 22.8% | 30.5% | 60.3% | |
| |
|---|
| Median (36 companies) | 2.7% | 0.7% | -0.5% | -2.1% | -16.8% |
|---|
| Goldin Financial Holdings Ltd ($530) | | 63.5% | 60.3% | 42.9% | 8.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Yunnan Tin Minerals Group Co Ltd ($263) | 79.6% | 66.3% | | 98.7% | |
| YGM Trading Ltd ($375) | 66.5% | 67.4% | 64.0% | 62.5% | 58.7% |
| Goldlion Holdings Ltd ($533) | 56.4% | 54.1% | 55.7% | 60.0% | |
| E.Bon Holdings Ltd ($599) | 40.3% | 37.4% | 35.8% | 39.6% | 42.4% |
| Forefront Group Ltd ($885) | | | 69.8% | 39.1% | |
| |
|---|
| Median (34 companies) | 17.0% | 16.3% | 17.6% | 19.9% | 23.1% |
|---|
| Goldin Financial Holdings Ltd ($530) | 75.3% | 71.7% | 74.8% | 73.8% | 55.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China LNG Group Ltd ($931) | 95.1% | 76.4% | 97.9% | 1,277.8% | |
| China Infrastructure Investment Ltd ($600) | -274.9% | 120.0% | 52.0% | 134.5% | |
| China Yunnan Tin Minerals Group Co Ltd ($263) | -1,064.4% | -252.1% | | 62.8% | |
| Goldlion Holdings Ltd ($533) | 25.8% | 23.4% | 22.5% | 22.8% | |
| GA Holdings Ltd ($8126) | 8.0% | 19.7% | 22.9% | 20.3% | |
| |
|---|
| Median (37 companies) | 1.7% | 1.7% | 4.4% | 3.8% | -6.3% |
|---|
| Goldin Financial Holdings Ltd ($530) | 163.7% | 613.4% | 285.7% | 364.1% | 272.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SIS International Holdings ($529) | 13.4% | 31.8% | 14.8% | 49.8% | |
| Inspur International Ltd ($596) | 8.4% | 12.2% | 33.6% | 25.6% | |
| China LNG Group Ltd ($931) | 11.1% | 0.3% | 0.6% | 15.6% | |
| YGM Trading Ltd ($375) | 1.8% | 2.1% | 3.5% | 14.5% | 4.0% |
| Victory Group Ltd ($1139) | 0.7% | 0.1% | 6.1% | 12.6% | |
| |
|---|
| Median (36 companies) | 1.2% | 1.7% | 1.6% | 1.2% | 1.8% |
|---|
| Goldin Financial Holdings Ltd ($530) | 4.6% | 2.3% | 1.9% | 1.5% | 1.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China LNG Group Ltd ($931) | 8.4% | 7.4% | 87.0% | 56.2% | |
| Powerwell Pacific Holdings Ltd ($8265) | 6.4% | 6.4% | 23.6% | 27.1% | |
| Yestar International Holdings Co Ltd ($2393) | 28.8% | 24.1% | 26.2% | 25.4% | |
| E.Bon Holdings Ltd ($599) | 7.0% | 7.2% | 3.3% | 16.9% | 17.4% |
| Li & Fung Ltd ($494) | 13.0% | 11.8% | 12.3% | 13.1% | |
| |
|---|
| Median (38 companies) | 2.1% | 0.2% | 3.0% | 2.6% | -7.5% |
|---|
| Goldin Financial Holdings Ltd ($530) | 5.9% | 20.6% | 10.4% | 16.0% | 8.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SIS International Holdings ($529) | -1.8x | 7.0x | 7.2x | 16.8x | |
| Leeport Holdings Ltd ($387) | | | | 16.1x | |
| Takson Holdings Ltd ($918) | | 11.5x | 11.7x | 15.7x | |
| Sheng Yuan Holdings Ltd ($851) | | | 19.3x | 15.4x | |
| Forefront Group Ltd ($885) | | | -0.0x | 15.3x | |
| |
|---|
| Median (26 companies) | -0.1x | -0.5x | 0.7x | -0.3x | -2.7x |
|---|
| Goldin Financial Holdings Ltd ($530) | -0.3x | -1.4x | -0.1x | 0.5x | 5.4x |
