Guotai Junan International Holdings Ltd Debt jumped on 44.3% and Revenue surged on 10.7%
17/02/2017 • About Guotai Junan International Holdings Ltd (
$1788) • By InTwits
Guotai Junan International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company has potentially unprofitable business model: ROIC is at 5.4%
- It operates with high leverage: Net Debt/EBITDA is 8.1x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Guotai Junan International Holdings Ltd ($1788) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 766 | 1,139 | 1,661 | 2,279 | 2,522 | 10.7% |
| EBITDA | 386 | 665 | 1,050 | 1,452 | 1,567 | 7.9% |
| Net Income | 307 | 536 | 800 | 1,014 | 1,026 | 1.2% |
Balance Sheet
|
|---|
| Cash | 385 | 485 | 889 | 2,409 | 1,964 | -18.4% |
| Short Term Debt | 826 | 3,711 | 3,644 | 7,124 | 12,635 | 77.4% |
| Long Term Debt | 0 | 0 | 990 | 3,090 | 2,100 | -32.0% |
Cash flow
|
|---|
| Capex | 5 | 7 | 18 | 27 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 9.0% | 48.7% | 45.8% | 37.2% | 10.7% | |
| EBITDA growth | 8.9% | 72.1% | 58.0% | 38.2% | 7.9% | |
| EBITDA Margin | 50.4% | 58.4% | 63.2% | 63.7% | 62.1% | -1.6% |
| Net Income Margin | 40.1% | 47.1% | 48.1% | 44.5% | 40.7% | -3.8% |
| CAPEX, % of revenue | 0.7% | 0.6% | 1.1% | 1.2% | | -1.2% |
| ROIC | 9.2% | 10.3% | 9.6% | 7.9% | 5.4% | -2.4% |
| ROE | 9.3% | 14.6% | 14.5% | 13.8% | 13.0% | -0.8% |
| Net Debt/EBITDA | 1.1x | 4.9x | 3.6x | 5.4x | 8.1x | 2.8x |
Revenue and profitability
Guotai Junan International Holdings Ltd's Revenue jumped on 10.7%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.3 pp from 6.8% to 9.0% in FY2016.
Net Income marign decreased on 3.8 pp from 44.5% to 40.7% in FY2016.
Return on investment
The company operates at good ROE (12.99%) while ROIC is low (5.42%). ROIC decreased on 2.4 pp from 7.9% to 5.4% in FY2016. ROE decreased slightly on 0.82 pp from 13.8% to 13.0% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 8.1x and Debt / EBITDA is 9.4x. Net Debt / EBITDA jumped on 2.8x from 5.4x to 8.1x in FY2016. Debt jumped on 44.3% while cash dropped on 18.4%.
Management team
Guotai Junan International Holdings Ltd's CEO is Yim Fung. Yim Fung has 3 years tenure at the company.
Appendix 1: Peers in Diversified Finan Serv
Below we provide Guotai Junan International Holdings Ltd benchmarking against other companies in Diversified Finan Serv 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 |
|---|
| 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% | 26.5% | 24.0% | 18.2% |
|---|
| Guotai Junan International Holdings Ltd ($1788) | | 48.7% | 45.8% | 37.2% | 10.7% |
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% |
|---|
| Guotai Junan International Holdings Ltd ($1788) | 50.4% | 58.4% | 63.2% | 63.7% | 62.1% |
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% |
|---|
| Guotai Junan International Holdings Ltd ($1788) | 0.7% | 0.6% | 1.1% | 1.2% | |
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% | 3.8% |
|---|
| Guotai Junan International Holdings Ltd ($1788) | 9.2% | 10.3% | 9.6% | 7.9% | 5.4% |
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) | -0.7x | 0.1x | -0.1x | -0.1x | 0.5x |
|---|
| Guotai Junan International Holdings Ltd ($1788) | 1.1x | 4.9x | 3.6x | 5.4x | 8.1x |
