1010 Printing Group Ltd Net Income dropped on 10.5% while EBITDA Margin increased slightly on 1.5 pp from 14.1% to 15.6%
28/02/2017 • About 1010 Printing Group Ltd (
$1127) • By InTwits
1010 Printing Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 15.6% in FY2016 vs. 14.1% in FY2015 vs. 15.9% in FY2012
- The company has highly profitable business model: ROIC is at 18.8%
- It operates with high leverage: Net Debt/EBITDA is -1.5x while industry average is -1.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
1010 Printing Group Ltd ($1127) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 700 | 1,164 | 1,316 | 1,755 | 1,616 | -7.9% |
| Gross Profit | 157 | 312 | 353 | 497 | 458 | -8.0% |
| SG&A | | 195 | 229 | 329 | 306 | -7.0% |
| EBITDA | 111 | 173 | 184 | 247 | 252 | 1.9% |
| Net Income | 68 | 121 | 146 | 163 | 146 | -10.5% |
Balance Sheet
|
|---|
| Cash | 96 | 112 | 158 | 263 | 461 | 75.4% |
| Short Term Debt | 152 | 65 | 122 | 132 | 95 | -28.3% |
| Long Term Debt | 1 | 0 | 6 | 0 | 1 | 191.4% |
Cash flow
|
|---|
| Capex | 22 | 28 | 24 | 17 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 9.4% | 66.2% | 13.1% | 33.3% | -7.9% | |
| EBITDA growth | 14.0% | 56.0% | 6.2% | 34.2% | 1.9% | |
| Gross Margin | 22.5% | 26.8% | 26.8% | 28.3% | 28.3% | -0.0% |
| EBITDA Margin | 15.9% | 14.9% | 14.0% | 14.1% | 15.6% | 1.5% |
| Net Income Margin | 9.8% | 10.4% | 11.1% | 9.3% | 9.0% | -0.3% |
| SG&A, % of revenue | | 16.7% | 17.4% | 18.7% | 18.9% | 0.2% |
| CAPEX, % of revenue | 3.1% | 2.4% | 1.8% | 1.0% | | -1.0% |
| ROIC | 13.5% | 20.8% | 17.8% | 19.9% | 18.8% | -1.1% |
| ROE | 15.9% | 21.8% | 20.7% | 20.8% | 17.1% | -3.7% |
| Net Debt/EBITDA | 0.5x | -0.3x | -0.2x | -0.5x | -1.5x | -0.9x |
Revenue and profitability
1010 Printing Group Ltd's Revenue decreased on 7.9%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.5 pp from 14.1% to 15.6% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign showed almost no change in FY2016.
Return on investment
The company operates at good ROIC (18.84%) and ROE (17.13%). ROIC decreased slightly on 1.1 pp from 19.9% to 18.8% in FY2016. ROE decreased on 3.7 pp from 20.8% to 17.1% in FY2016.
Leverage (Debt)
Debt level is -1.5x Net Debt / EBITDA and 0.4x Debt / EBITDA. Net Debt / EBITDA dropped on 0.9x from -0.5x to -1.5x in FY2016. Debt dropped on 28.0% while cash jumped on 75.4%.
Appendix 1: Peers in Commercial Services
Below we provide 1010 Printing Group 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) | 6.2% | 8.6% | 9.8% | 4.0% | 9.4% |
|---|
| 1010 Printing Group Ltd ($1127) | | 66.2% | 13.1% | 33.3% | -7.9% |
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% | 31.0% | 31.1% | 31.5% | 30.8% |
|---|
| 1010 Printing Group Ltd ($1127) | 22.5% | 26.8% | 26.8% | 28.3% | 28.3% |
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% | 84.1% |
| 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% | 11.2% | 9.8% | 1.0% |
|---|
| 1010 Printing Group Ltd ($1127) | 15.9% | 14.9% | 14.0% | 14.1% | 15.6% |
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% | 3.8% | 2.6% | 3.9% | 1.8% |
|---|
| 1010 Printing Group Ltd ($1127) | 3.1% | 2.4% | 1.8% | 1.0% | |
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% |
| 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% | |
| CAR Inc ($699) | 5.2% | 2.7% | 12.2% | 19.0% | |
| |
|---|
| Median (67 companies) | 6.3% | 6.4% | 5.8% | 3.3% | 1.5% |
|---|
| 1010 Printing Group Ltd ($1127) | 13.5% | 20.8% | 17.8% | 19.9% | 18.8% |
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 | 3.5x |
| |
|---|
| Median (44 companies) | -0.0x | -0.7x | -0.9x | -0.8x | -2.4x |
|---|
| 1010 Printing Group Ltd ($1127) | 0.5x | -0.3x | -0.2x | -0.5x | -1.5x |
