Water Oasis Group Ltd Net Income dropped on 42.5% and EBITDA Margin decreased on 3.4 pp from 13.1% to 9.7%
15/12/2016 • About Water Oasis Group Ltd (
$1161) • By InTwits
Water Oasis Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Water Oasis Group Ltd is a company in decline: FY2016 revenue growth was -9.4%, 5 years revenue CAGR was -8.6%
- EBITDA Margin is quite volatile: 9.7% in FY2016, 13.1% in FY2015, 11.4% in FY2014, 4.7% in FY2013, 6.5% in FY2012
- Water Oasis Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's in pair with industry average of 21.7%.
- CAPEX is quite volatile: 142 in FY2016, 85.8 in FY2015, 141 in FY2014, 218 in FY2013, 7.6 in FY2012
- The company has highly profitable business model: ROIC is at 12.2%
- It operates with high leverage: Net Debt/EBITDA is -4.6x while industry average is -31.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Water Oasis Group Ltd ($1161) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 824.4 | 629.0 | 679.0 | 691.7 | 626.8 | -9.4% |
| Gross Profit | 665.7 | 557.5 | | | | |
| EBITDA | 53.7 | 29.8 | 77.6 | 90.7 | 60.7 | -33.1% |
| Net Income | 68.0 | 34.3 | 47.9 | 50.6 | 29.1 | -42.5% |
Balance Sheet
|
|---|
| Cash | 255.2 | 184.7 | 243.4 | 260.0 | 300.5 | 15.6% |
| Short Term Debt | 80.8 | 3.1 | 2.9 | 3.0 | 3.1 | 2.2% |
| Long Term Debt | 0.0 | 28.5 | 25.6 | 22.6 | 19.5 | -13.6% |
Cash flow
|
|---|
| Capex | 30.8 | 25.1 | 19.1 | 24.1 | 15.6 | -35.4% |
Ratios
|
|---|
| Revenue growth | -16.3% | -23.7% | 8.0% | 1.9% | -9.4% | |
| EBITDA growth | -51.8% | -44.5% | 160.4% | 16.9% | -33.1% | |
| Gross Margin | 80.7% | 88.6% | | | | 0.0% |
| EBITDA Margin | 6.5% | 4.7% | 11.4% | 13.1% | 9.7% | -3.4% |
| Net Income Margin | 8.2% | 5.4% | 7.1% | 7.3% | 4.6% | -2.7% |
| CAPEX, % of revenue | 3.7% | 4.0% | 2.8% | 3.5% | 2.5% | -1.0% |
| ROIC | 5.3% | 1.7% | 15.7% | 19.2% | 12.2% | -7.0% |
| ROE | 23.2% | 12.5% | 17.0% | 17.6% | 10.4% | -7.2% |
| Net Debt/EBITDA | -3.2x | -5.1x | -2.8x | -2.6x | -4.6x | -2.0x |
Revenue and profitability
The company's Revenue decreased on 9.4%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 3.4 pp from 13.1% to 9.7% in FY2016.
Net Income marign decreased on 2.7 pp from 7.3% to 4.6% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.5% in FY2016. CAPEX/Revenue decreased slightly on 1.5 pp from 4.0% in FY2013 to 2.5% in FY2016. It's average CAPEX/Revenue for the last three years was 2.9%.
Return on investment
The company operates at good ROIC (12.18%) while ROE is low (10.44%). ROIC decreased on 7.0 pp from 19.2% to 12.2% in FY2016. ROE decreased on 7.2 pp from 17.6% to 10.4% in FY2016.
Leverage (Debt)
Debt level is -4.6x Net Debt / EBITDA and 0.4x Debt / EBITDA. Net Debt / EBITDA dropped on 2.0x from -2.6x to -4.6x in FY2016. Debt dropped on 11.7% while cash jumped on 15.6%.
Appendix 1: Peers in Leisure Time
Below you can find Water Oasis Group Ltd benchmarking vs. other companies in Leisure Time 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 |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | | 16.2% | 6.1% | 55.0% | 20.6% |
| 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% | |
| |
|---|
| Median (11 companies) | 7.2% | 2.0% | 2.6% | -1.8% | 11.9% |
|---|
| Water Oasis Group Ltd ($1161) | | -23.7% | 8.0% | 1.9% | -9.4% |
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) | 31.4% | 19.4% | 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% | |
| Perfect Shape PRC Holdings Ltd ($1830) | 27.5% | 29.1% | 26.5% | 29.8% | 27.4% |
| Travel Expert Asia Enterprises Ltd ($1235) | 17.4% | 16.2% | 18.3% | 15.0% | 11.8% |
| EGL Holdings Co Ltd ($6882) | 3.7% | 8.1% | 5.8% | 9.8% | |
| |
|---|
| Median (11 companies) | 17.4% | 8.5% | 7.8% | 0.9% | 19.6% |
|---|
| Water Oasis Group Ltd ($1161) | 6.5% | 4.7% | 11.4% | 13.1% | 9.7% |
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% | |
| Perfect Shape PRC Holdings Ltd ($1830) | 6.1% | 8.9% | 7.7% | 24.8% | 12.5% |
| China Travel International Investment Hong Kong Ltd ($308) | 13.4% | 28.3% | 29.9% | 10.9% | |
| Feiyu Technology International Co Ltd ($1022) | 6.3% | 1.6% | 3.2% | 3.1% | |
| |
|---|
| Median (11 companies) | 3.0% | 2.8% | 3.2% | 2.8% | 11.2% |
|---|
| Water Oasis Group Ltd ($1161) | 3.7% | 4.0% | 2.8% | 3.5% | 2.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| EGL Holdings Co Ltd ($6882) | 30.4% | 63.2% | 39.4% | 58.3% | |
| Perfect Shape PRC Holdings Ltd ($1830) | 62.8% | 44.1% | 37.7% | 44.1% | 32.0% |
| Travel Expert Asia Enterprises Ltd ($1235) | 50.9% | 26.7% | 29.8% | 23.0% | 15.9% |
| 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% | 5.0% | 3.8% | -1.7% | 23.9% |
|---|
| Water Oasis Group Ltd ($1161) | 5.3% | 1.7% | 15.7% | 19.2% | 12.2% |
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 |
| Perfect Shape PRC Holdings Ltd ($1830) | -2.0x | -0.8x | -1.4x | -1.8x | -1.0x |
| 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 | |
| Feiyu Technology International Co Ltd ($1022) | -0.3x | -1.9x | -3.2x | -4.3x | |
| |
|---|
| Median (6 companies) | -0.8x | -1.2x | -1.7x | -2.2x | -0.5x |
|---|
| Water Oasis Group Ltd ($1161) | -3.2x | -5.1x | -2.8x | -2.6x | -4.6x |
