Public Financial Holdings Ltd EBITDA decreased on 4.0% and Revenue decreased on 2.3%
19/01/2017 • About Public Financial Holdings Ltd (
$626) • By InTwits
Public Financial Holdings Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Public Financial Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's a lot of higher than industry average of 27.5%.
- CAPEX is quite volatile: 39.8 in 2016, 17.4 in 2015, 20.9 in 2014, 20.7 in 2013, 24.4 in 2012
- The company has potentially unprofitable business model: ROIC is at 5.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Public Financial Holdings Ltd ($626) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,863 | 1,871 | 1,851 | 1,919 | 1,875 | -2.3% |
| EBITDA | 892 | 821 | 886 | 889 | 853 | -4.0% |
| Net Income | 382 | 368 | 384 | 423 | 407 | -3.9% |
Balance Sheet
|
|---|
| Cash | 3,951 | 3,962 | 3,982 | 3,928 | 4,257 | 8.4% |
| Short Term Debt | 2,633 | 2,147 | 1,035 | 1,539 | 1,443 | -6.2% |
| Long Term Debt | 866 | 0 | 1,083 | 1,087 | 1,092 | 0.4% |
Cash flow
|
|---|
| Capex | 24 | 21 | 21 | 17 | 40 | 128.2% |
Ratios
|
|---|
| Revenue growth | -2.1% | 0.4% | -1.1% | 3.7% | -2.3% | |
| EBITDA growth | 1.7% | -8.0% | 8.0% | 0.3% | -4.0% | |
| EBITDA Margin | 47.9% | 43.9% | 47.9% | 46.3% | 45.5% | -0.8% |
| Net Income Margin | 20.5% | 19.7% | 20.8% | 22.0% | 21.7% | -0.4% |
| CAPEX, % of revenue | 1.3% | 1.1% | 1.1% | 0.9% | 2.1% | 1.2% |
| ROIC | 4.4% | 4.7% | 5.2% | 5.3% | 5.0% | -0.3% |
| ROE | 6.0% | 5.5% | 5.6% | 6.0% | 5.6% | -0.4% |
| Net Debt/EBITDA | -0.5x | -2.2x | -2.1x | -1.5x | -2.0x | -0.6x |
Revenue and profitability
Public Financial Holdings Ltd's Revenue decreased on 2.3%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.52 pp from 6.3% to 6.8% in FY2016.
Net Income marign showed almost no change in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 2.1%. Public Financial Holdings Ltd showed small growth in CAPEX/Revenue of 1.0 pp from 1.1% in 2013 to 2.1% in 2016. It's average level of CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at low ROIC (5.00%) and ROE (5.65%). ROIC showed almost no change in 2016. ROE showed almost no change in 2016.
Leverage (Debt)
Debt level is -2.0x Net Debt / EBITDA and 3.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from -1.5x to -2.0x in 2016. Debt decreased on 3.5% while cash increased on 8.4%.
Appendix 1: Peers in Diversified Finan Serv
Below you can find Public Financial Holdings 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) | 8.3% | 19.3% | 27.6% | 25.3% | 18.4% |
|---|
| Public Financial Holdings Ltd ($626) | | 0.4% | -1.1% | 3.7% | -2.3% |
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% | 50.8% |
|---|
| Public Financial Holdings Ltd ($626) | 47.9% | 43.9% | 47.9% | 46.3% | 45.5% |
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% |
|---|
| Public Financial Holdings Ltd ($626) | 1.3% | 1.1% | 1.1% | 0.9% | 2.1% |
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% |
| Emperor Capital Group Ltd ($717) | 5.1% | 12.8% | 13.1% | 14.6% | 12.4% |
| Roma Group Ltd ($8072) | 19.6% | 43.7% | 107.8% | 13.3% | 9.8% |
| |
|---|
| Median (69 companies) | 3.9% | 4.0% | 4.8% | 3.5% | 3.4% |
|---|
| Public Financial Holdings Ltd ($626) | 4.4% | 4.7% | 5.2% | 5.3% | 5.0% |
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) | -0.7x | 0.3x | 0.1x | 0.0x | 0.5x |
|---|
| Public Financial Holdings Ltd ($626) | -0.5x | -2.2x | -2.1x | -1.5x | -2.0x |
