Pico Far East Holdings Ltd EBITDA surged on 11.6% in 2016 while Revenue decreased slightly on 1.7%
20/01/2017 • About Pico Far East Holdings Ltd (
$752) • By InTwits
Pico Far East Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 10.0% in FY2016 vs. 8.8% in FY2015 vs. 7.9% in FY2012
- Pico Far East 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 9.6%.
- CAPEX is quite volatile: 94.8 in FY2016, 20.8 in FY2015, 73.3 in FY2014, 148 in FY2013, 119 in FY2012
- The company has highly profitable business model: ROIC is at 18.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pico Far East Holdings Ltd ($752) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,858 | 3,319 | 3,833 | 4,216 | 4,143 | -1.7% |
| Gross Profit | 1,083 | 1,033 | 1,139 | 1,207 | 1,248 | 3.4% |
| SG&A | | 857 | 914 | 466 | 466 | 0.0% |
| EBITDA | 305 | 240 | 301 | 369 | 412 | 11.6% |
| Net Income | 239 | 211 | 240 | 275 | 301 | 9.4% |
Balance Sheet
|
|---|
| Cash | 934 | 876 | 842 | 999 | 1,021 | 2.2% |
| Short Term Debt | 13 | 10 | 7 | 0 | 0 | -58.0% |
| Long Term Debt | 0 | 1 | 0 | 0 | 80 | 29,488.5% |
Cash flow
|
|---|
| Capex | 119 | 148 | 73 | 21 | 95 | 356.8% |
Ratios
|
|---|
| Revenue growth | 9.9% | -14.0% | 15.5% | 10.0% | -1.7% | |
| EBITDA growth | -5.0% | -21.3% | 25.5% | 22.7% | 11.6% | |
| Gross Margin | 28.1% | 31.1% | 29.7% | 28.6% | 30.1% | 1.5% |
| EBITDA Margin | 7.9% | 7.2% | 7.9% | 8.8% | 10.0% | 1.2% |
| Net Income Margin | 6.2% | 6.4% | 6.3% | 6.5% | 7.3% | 0.7% |
| SG&A, % of revenue | | 25.8% | 23.9% | 11.0% | 11.2% | 0.2% |
| CAPEX, % of revenue | 3.1% | 4.5% | 1.9% | 0.5% | 2.3% | 1.8% |
| ROIC | 16.7% | 12.3% | 14.3% | 17.4% | 18.7% | 1.3% |
| ROE | 17.6% | 14.5% | 15.4% | 16.7% | 17.4% | 0.7% |
| Net Debt/EBITDA | -3.0x | -3.6x | -2.8x | -2.7x | -2.3x | 0.4x |
Revenue and profitability
The company's Revenue decreased slightly on 1.7%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.2 pp from 8.8% to 10.0% in FY2016.
Gross Margin increased slightly on 1.5 pp from 28.6% to 30.1% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased slightly on 0.74 pp from 6.5% to 7.3% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 2.3%. CAPEX/Revenue decreased on 2.2 pp from 4.5% in FY2013 to 2.3% in FY2016. It's average level of CAPEX/Revenue for the last three years was 1.6%.
Return on investment
The company operates at good ROIC (18.73%) and ROE (17.36%). ROIC increased slightly on 1.3 pp from 17.4% to 18.7% in FY2016. ROE increased slightly on 0.68 pp from 16.7% to 17.4% in FY2016.
Leverage (Debt)
Debt level is -2.3x Net Debt / EBITDA and 0.2x Debt / EBITDA. Net Debt / EBITDA jumped on 0.4x from -2.7x to -2.3x in FY2016. Debt jumped on 10,683% while cash increased on 2.2%.
Appendix 1: Peers in Commercial Services
Below we provide Pico Far East Holdings Ltd benchmarking against other companies in Commercial Services 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 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 99.1% | 14.9% | -88.3% | 271.8% | |
| China Seven Star Holdings Ltd ($245) | 6.7% | -81.8% | -39.3% | 195.3% | |
| China Smartpay Group Holdings Ltd ($8325) | | 274.7% | 75.6% | 124.5% | 79.5% |
| Celebrate International Holdings Ltd ($8212) | | 1,437.6% | -6.3% | 117.0% | -78.1% |
| Haier Healthwise Holdings Ltd ($348) | | -50.1% | -7.5% | 101.1% | -9.4% |
| |
|---|
| Median (67 companies) | 6.3% | 8.6% | 9.8% | 4.0% | 9.4% |
|---|
| Pico Far East Holdings Ltd ($752) | | -14.0% | 15.5% | 10.0% | -1.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HC International Inc ($2280) | 87.5% | 91.9% | 92.5% | 89.6% | |
| Winto Group Holdings Ltd ($8238) | 90.2% | 93.4% | 92.0% | 88.4% | |
| Dingyi Group Investment Ltd ($508) | 75.8% | | 64.5% | 86.0% | 89.6% |
| Fu Shou Yuan International Group Ltd ($1448) | 80.5% | 80.4% | 80.0% | 77.6% | |
| Nirvana Asia Ltd ($1438) | 68.3% | 69.6% | 70.5% | 75.7% | |
| |
|---|
| Median (61 companies) | 31.9% | 30.5% | 31.1% | 31.5% | 30.4% |
|---|
| Pico Far East Holdings Ltd ($752) | 28.1% | 31.1% | 29.7% | 28.6% | 30.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | 61.6% | 84.9% | 75.9% | 80.9% | |
| Shenzhen International Holdings Ltd ($152) | 60.2% | 65.8% | 97.1% | 73.6% | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 78.3% | 74.5% | 74.0% | 71.6% | |
| CAR Inc ($699) | 43.6% | 30.1% | 43.1% | 67.4% | |
| Jiangsu Expressway Co Ltd ($177) | 57.0% | 60.7% | 59.3% | 61.5% | |
| |
|---|
| Median (67 companies) | 17.6% | 16.0% | 12.9% | 10.1% | -0.1% |
|---|
| Pico Far East Holdings Ltd ($752) | 7.9% | 7.2% | 7.9% | 8.8% | 10.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Blue Sky Power Holdings Ltd ($6828) | 21.3% | 9.0% | 13.9% | 47.4% | |
| COSCO Pacific Ltd ($1199) | 96.6% | 66.6% | 43.3% | 45.8% | |
| Shenzhen International Holdings Ltd ($152) | 23.0% | 22.1% | 20.9% | 35.0% | |
| Celebrate International Holdings Ltd ($8212) | 211.7% | 12.0% | 6.2% | 34.2% | 18.6% |
| China Maple Leaf Educational Systems Ltd ($1317) | 25.7% | 50.9% | 21.1% | 32.8% | 18.0% |
| |
|---|
| Median (67 companies) | 2.7% | 3.4% | 2.6% | 3.9% | 1.8% |
|---|
| Pico Far East Holdings Ltd ($752) | 3.1% | 4.5% | 1.9% | 0.5% | 2.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bamboos Health Care Holdings Ltd ($8216) | | 71.1% | 50.1% | 58.3% | 40.0% |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 51.5% | 26.6% | 30.0% | 29.5% | 19.8% |
| 1010 Printing Group Ltd ($1127) | 13.5% | 20.8% | 17.8% | 19.9% | |
| China Packaging Holdings Development Ltd ($1439) | 52.0% | 46.6% | 34.1% | 19.8% | |
| iOne Holdings Ltd ($982) | 12.5% | 11.1% | 9.4% | 19.2% | |
| |
|---|
| Median (67 companies) | 6.3% | 6.4% | 5.8% | 3.3% | -0.8% |
|---|
| Pico Far East Holdings Ltd ($752) | 16.7% | 12.3% | 14.3% | 17.4% | 18.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Celebrate International Holdings Ltd ($8212) | | | | 22.2x | |
| Kai Yuan Holdings Ltd ($1215) | -143.8x | -0.7x | | 18.8x | |
| Eagle Legend Asia Ltd ($936) | 4.0x | 4.0x | 3.3x | 6.2x | |
| Sichuan Expressway Co Ltd ($107) | 2.7x | 3.8x | 4.3x | 5.5x | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 4.5x | 3.1x | 2.7x | 5.3x | |
| |
|---|
| Median (44 companies) | 0.0x | -0.7x | -0.6x | -0.6x | -2.4x |
|---|
| Pico Far East Holdings Ltd ($752) | -3.0x | -3.6x | -2.8x | -2.7x | -2.3x |
