Wharf Holdings Ltd/The reports 33.8% Net Income growth and 14.1% Revenue growth
09/03/2017 • About Wharf Holdings Ltd/The (
$4) • By InTwits
Wharf Holdings Ltd/The 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 4.1%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Wharf Holdings Ltd/The ($4) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 30,856 | 31,887 | 38,136 | 40,875 | 46,627 | 14.1% |
| SG&A | 2,652 | 3,021 | 2,859 | 3,192 | 3,011 | -5.7% |
| EBITDA | 15,011 | 13,859 | 15,020 | 15,864 | 17,909 | 12.9% |
| Net Income | 47,263 | 29,380 | 35,930 | 16,024 | 21,440 | 33.8% |
Balance Sheet
|
|---|
| Cash | 18,795 | 24,515 | 18,725 | 23,510 | 36,957 | 57.2% |
| Short Term Debt | 5,330 | 9,502 | 8,653 | 8,463 | 15,178 | 79.3% |
| Long Term Debt | 69,090 | 73,085 | 69,331 | 62,244 | 45,616 | -26.7% |
Cash flow
|
|---|
| Capex | 14,709 | 13,914 | 11,159 | 6,733 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 28.5% | 3.3% | 19.6% | 7.2% | 14.1% | |
| EBITDA growth | 21.2% | -7.7% | 8.4% | 5.6% | 12.9% | |
| EBITDA Margin | 48.6% | 43.5% | 39.4% | 38.8% | 38.4% | -0.4% |
| Net Income Margin | 153.2% | 92.1% | 94.2% | 39.2% | 46.0% | 6.8% |
| SG&A, % of revenue | 8.6% | 9.5% | 7.5% | 7.8% | 6.5% | -1.4% |
| CAPEX, % of revenue | 47.7% | 43.6% | 29.3% | 16.5% | | -16.5% |
| ROIC | 4.3% | 3.5% | 3.5% | 3.6% | 4.1% | 0.6% |
| ROE | 20.9% | 11.2% | 12.4% | 5.2% | 6.9% | 1.6% |
| Net Debt/EBITDA | 3.7x | 4.2x | 3.9x | 3.0x | 1.3x | -1.6x |
Revenue and profitability
Wharf Holdings Ltd/The's Revenue jumped on 14.1%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.2 pp from 62.8% to 64.0% in 2016.
SG&A as a % of Revenue decreased slightly on 1.4 pp from 7.8% to 6.5% in FY2016.
Net Income marign increased on 6.8 pp from 39.2% to 46.0% in FY2016.
Return on investment
The company operates at low ROIC (4.14%) and ROE (6.87%). ROIC increased slightly on 0.58 pp from 3.6% to 4.1% in FY2016. ROE increased slightly on 1.6 pp from 5.2% to 6.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is 3.4x. Net Debt / EBITDA dropped on 1.6x from 3.0x to 1.3x in FY2016. Debt dropped on 14.0% while cash jumped on 57.2%.
Appendix 1: Peers in Holding Companies-Divers
Below you can find Wharf Holdings Ltd/The benchmarking vs. other companies in Holding Companies-Divers 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 |
|---|
| Beijing Development HK Ltd ($154) | 12.5% | | | 1,048.9% | |
| Kong Sun Holdings Ltd ($295) | -88.3% | 5.1% | 7,067.0% | 231.2% | |
| CIAM Group Ltd ($378) | -62.2% | 47.9% | -40.0% | 211.5% | |
| Melco International Development Ltd ($200) | 16.5% | 21.7% | 3.0% | 134.9% | |
| New Century Group Hong Kong Ltd ($234) | | 326.7% | -70.3% | 118.2% | -78.2% |
| |
|---|
| Median (45 companies) | 4.3% | 5.1% | 12.6% | 6.1% | -5.1% |
|---|
| Wharf Holdings Ltd/The ($4) | | 3.3% | 19.6% | 7.2% | 14.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Century Group Hong Kong Ltd ($234) | 27.3% | 85.2% | 82.8% | 91.5% | 43.4% |
| Melco International Development Ltd ($200) | 63.1% | 52.9% | 54.5% | 79.4% | |
| CIAM Group Ltd ($378) | | | | 75.8% | |
| Emperor International Holdings Ltd ($163) | 71.3% | 64.9% | 79.2% | 75.3% | 55.3% |
| Heng Fai Enterprises Ltd ($185) | 89.0% | 89.5% | 58.3% | 74.7% | |
| |
|---|
| Median (40 companies) | 33.2% | 35.3% | 32.6% | 34.2% | 32.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Century Group Hong Kong Ltd ($234) | -5.5% | 78.8% | 58.3% | 85.0% | 33.8% |
| Emperor International Holdings Ltd ($163) | 180.7% | 131.8% | 100.6% | 73.9% | -20.1% |
| Pioneer Global Group Ltd ($224) | -0.5% | -9.9% | -11.6% | 64.3% | 66.8% |
| C C Land Holdings Ltd ($1224) | 27.0% | 23.6% | 24.6% | 55.7% | |
| China Merchants Holdings International Co Ltd ($144) | 56.4% | 50.8% | 45.2% | 55.7% | |
| |
|---|
| Median (45 companies) | 2.8% | 2.8% | 7.4% | 6.2% | 9.1% |
|---|
| Wharf Holdings Ltd/The ($4) | 48.6% | 43.5% | 39.4% | 38.8% | 38.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Heng Fai Enterprises Ltd ($185) | 4.8% | 77.1% | 310.0% | 458.1% | |
| Chinney Investments Ltd ($216) | 17.5% | 103.4% | 111.3% | 230.9% | 26.6% |
| China Investments Holdings Ltd ($132) | 4.8% | 81.9% | 382.2% | 222.5% | |
| Goldin Properties Holdings Ltd ($283) | 2,178.4% | 1,190.0% | 50.1% | 202.4% | 128.8% |
| Carnival Group International Holdings Ltd ($996) | | 137.9% | 61.0% | 133.3% | |
| |
|---|
| Median (45 companies) | 2.5% | 3.6% | 5.4% | 6.0% | 8.5% |
|---|
| Wharf Holdings Ltd/The ($4) | 47.7% | 43.6% | 29.3% | 16.5% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Fulum Group Holdings Ltd ($1443) | | 116.3% | 55.5% | 29.8% | 12.9% |
| C C Land Holdings Ltd ($1224) | 7.4% | 5.3% | 7.9% | 15.0% | |
| Chinney Alliance Group Ltd ($385) | 6.4% | 8.1% | 13.6% | 15.0% | |
| Niraku GC Holdings Inc ($1245) | | 19.0% | 18.8% | 13.1% | 2.7% |
| Top Spring International Holdings Ltd ($3688) | 15.6% | 6.9% | 7.3% | 8.0% | |
| |
|---|
| Median (45 companies) | -0.2% | 0.2% | 0.8% | 0.2% | 1.8% |
|---|
| Wharf Holdings Ltd/The ($4) | 4.3% | 3.5% | 3.5% | 3.6% | 4.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chinney Investments Ltd ($216) | 10.3x | 63.7x | 48.6x | 93.7x | 13.5x |
| Carnival Group International Holdings Ltd ($996) | | | 23.7x | 92.3x | |
| Multifield International Holdings Ltd ($898) | 3.2x | 7.3x | 3.0x | 55.9x | |
| Kong Sun Holdings Ltd ($295) | | | -23.0x | 34.0x | |
| CIAM Group Ltd ($378) | | | | 32.6x | |
| |
|---|
| Median (26 companies) | 2.4x | 2.6x | 2.6x | 2.4x | 4.0x |
|---|
| Wharf Holdings Ltd/The ($4) | 3.7x | 4.2x | 3.9x | 3.0x | 1.3x |
