Value Partners Group Ltd EBITDA dropped on 55.5% and EBITDA Margin dropped on 10.2 pp from 22.1% to 11.9%
07/03/2017 • About Value Partners Group Ltd (
$806) • By InTwits
Value Partners Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 11.9% in FY2016, 22.1% in FY2015, 56.6% in FY2014, 43.3% in FY2013, 62.2% in FY2012
- The company has potentially unprofitable business model: ROIC is at 4.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Value Partners Group Ltd ($806) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 702 | 1,072 | 1,620 | 1,768 | 1,464 | -17.2% |
| EBITDA | 437 | 464 | 916 | 391 | 174 | -55.5% |
| Net Income | 376 | 384 | 804 | 274 | 138 | -49.7% |
Balance Sheet
|
|---|
| Cash | 888 | 692 | 1,801 | 2,299 | 2,673 | 16.3% |
| Short Term Debt | | | 62 | 60 | 0 | -100.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 8 | 4 | 19 | 20 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -3.1% | 52.6% | 51.2% | 9.1% | -17.2% | |
| EBITDA growth | 104.2% | 6.2% | 97.3% | -57.3% | -55.5% | |
| EBITDA Margin | 62.2% | 43.3% | 56.6% | 22.1% | 11.9% | -10.2% |
| Net Income Margin | 53.6% | 35.9% | 49.6% | 15.5% | 9.4% | -6.1% |
| CAPEX, % of revenue | 1.1% | 0.3% | 1.2% | 1.1% | | -1.1% |
| ROIC | 16.8% | 16.5% | 26.8% | 9.6% | 4.2% | -5.5% |
| ROE | 15.2% | 14.3% | 24.5% | 7.2% | 3.7% | -3.5% |
| Net Debt/EBITDA | -2.0x | -1.5x | -1.9x | -5.7x | -15.4x | -9.6x |
Revenue and profitability
Value Partners Group Ltd's Revenue dropped on 17.2%. 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 decreased on 6.1 pp from 15.5% to 9.4% in FY2016.
Return on investment
The company operates at low ROIC (4.17%) and ROE (3.67%). ROIC decreased on 5.5 pp from 9.6% to 4.2% in FY2016. ROE decreased on 3.5 pp from 7.2% to 3.7% in FY2016.
Leverage (Debt)
The company paid down all the debt in FY2016. Cash jumped on 16.3%.
Appendix 1: Peers in Diversified Finan Serv
Below you can find Value Partners Group 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) | 9.9% | 14.9% | 26.5% | 25.3% | 18.1% |
|---|
| Value Partners Group Ltd ($806) | | 52.6% | 51.2% | 9.1% | -17.2% |
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% | 73.7% |
| 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% | 32.4% | 50.8% |
|---|
| Value Partners Group Ltd ($806) | 62.2% | 43.3% | 56.6% | 22.1% | 11.9% |
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% | 1.7% |
|---|
| Value Partners Group Ltd ($806) | 1.1% | 0.3% | 1.2% | 1.1% | |
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% | 19.3% |
| 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% | 4.2% |
|---|
| Value Partners Group Ltd ($806) | 16.8% | 16.5% | 26.8% | 9.6% | 4.2% |
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) | -0.5x | 0.3x | 0.1x | 0.0x | 0.5x |
|---|
| Value Partners Group Ltd ($806) | -2.0x | -1.5x | -1.9x | -5.7x | -15.4x |
