Emperor Capital Group Ltd Debt surged on 95.3% and EBITDA jumped on 23.2%
08/12/2016 • About Emperor Capital Group Ltd (
$717) • By InTwits
Emperor Capital Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Emperor Capital Group Ltd is a fast growth stock: FY2016 revenue growth was 18.1%, 5 year revenue CAGR was 37.0% at FY2016 ROIC 12.4%
- EBITDA Margin is expanding: 71.4% in FY2016 vs. 68.4% in FY2015 vs. 29.6% in FY2012
- Emperor Capital Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has highly profitable business model: ROIC is at 12.4%
- It operates with high leverage: Net Debt/EBITDA is 2.3x while industry average is 1.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Emperor Capital Group Ltd ($717) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 223.8 | 434.8 | 546.4 | 835.1 | 986.2 | 18.1% |
| EBITDA | 66.1 | 192.8 | 308.7 | 571.6 | 704.1 | 23.2% |
| Net Income | 63.4 | 155.7 | 220.8 | 430.3 | 525.6 | 22.2% |
Balance Sheet
|
|---|
| Cash | 222.2 | 338.6 | 527.5 | 462.4 | 480.3 | 3.9% |
| Short Term Debt | 0.0 | 310.0 | 720.0 | 480.0 | 1,156.0 | 140.8% |
| Long Term Debt | 0.0 | 0.0 | 605.7 | 605.9 | 964.2 | 59.1% |
Cash flow
|
|---|
| Capex | 3.8 | 1.8 | 2.1 | 1.6 | 1.0 | -37.4% |
Ratios
|
|---|
| Revenue growth | 9.5% | 94.3% | 25.7% | 52.8% | 18.1% | |
| EBITDA growth | -14.5% | 191.4% | 60.2% | 85.2% | 23.2% | |
| EBITDA Margin | 29.6% | 44.3% | 56.5% | 68.4% | 71.4% | 2.9% |
| Net Income Margin | 28.3% | 35.8% | 40.4% | 51.5% | 53.3% | 1.8% |
| CAPEX, % of revenue | 1.7% | 0.4% | 0.4% | 0.2% | 0.1% | -0.1% |
| ROIC | 5.1% | 12.8% | 13.1% | 14.6% | 12.4% | -2.2% |
| ROE | 5.1% | 11.8% | 14.9% | 16.5% | 13.3% | -3.2% |
| Net Debt/EBITDA | -3.4x | -0.1x | 2.6x | 1.1x | 2.3x | 1.2x |
Revenue and profitability
The company's Revenue surged on 18.1%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.0 pp from -16.3% to -15.3% in FY2016.
Net Income marign increased slightly on 1.8 pp from 51.5% to 53.3% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.10%. CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 0.23%.
Return on investment
The company operates at good ROIC (12.37%) and ROE (13.33%). ROIC decreased on 2.2 pp from 14.6% to 12.4% in FY2016. ROE decreased on 3.2 pp from 16.5% to 13.3% in FY2016.
Leverage (Debt)
Debt level is 2.3x Net Debt / EBITDA and 3.0x Debt / EBITDA. Net Debt / EBITDA surged on 1.2x from 1.1x to 2.3x in FY2016. Debt jumped on 95.3% while cash increased on 3.9%.
Appendix 1: Peers in Diversified Finan Serv
Below you can find Emperor Capital Group 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% |
| Crown International Corp Ltd ($727) | | -75.0% | 117.4% | 802.5% | -25.1% |
| 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% | |
| |
|---|
| Median (64 companies) | 7.7% | 14.9% | 27.6% | 24.0% | 19.1% |
|---|
| Emperor Capital Group Ltd ($717) | | 94.3% | 25.7% | 52.8% | 18.1% |
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% | 69.9% |
|---|
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) | 18.8% | 36.2% | 47.2% | 31.4% | 49.6% |
|---|
| Emperor Capital Group Ltd ($717) | 29.6% | 44.3% | 56.5% | 68.4% | 71.4% |
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) | 2.1% | 1.9% | 1.1% | 1.5% | 1.5% |
|---|
| Emperor Capital Group Ltd ($717) | 1.7% | 0.4% | 0.4% | 0.2% | 0.1% |
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% |
| Roma Group Ltd ($8072) | 19.6% | 43.7% | 107.8% | 13.3% | 9.8% |
| Orient Securities International Holdings Ltd ($8001) | 10.6% | 13.3% | 12.1% | 12.4% | |
| |
|---|
| Median (69 companies) | 3.9% | 4.0% | 4.8% | 3.5% | 3.0% |
|---|
| Emperor Capital Group Ltd ($717) | 5.1% | 12.8% | 13.1% | 14.6% | 12.4% |
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) | -0.5x | 0.3x | -0.1x | -0.1x | 0.5x |
|---|
| Emperor Capital Group Ltd ($717) | -3.4x | -0.1x | 2.6x | 1.1x | 2.3x |
