IPE Group Ltd reports 29.1 pp EBITDA Margin decline from 29.1% to in 2016 in 2016
20/03/2017 • About IPE Group Ltd (
$929) • By InTwits
IPE Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- IPE Group Ltd is a company in decline: FY2016 revenue growth was -2.9%, 5 years revenue CAGR was -3.0%
- It operates with high leverage: Net Debt/EBITDA is -1.7x while industry average is -5.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
IPE Group Ltd ($929) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 974.7 | 878.1 | 994.0 | 877.2 | 851.9 | -2.9% |
| Gross Profit | 211.1 | 164.5 | 278.4 | 244.9 | | -100.0% |
| SG&A | 126.8 | 135.7 | 136.4 | 124.3 | | -100.0% |
| EBITDA | 249.4 | 197.7 | 293.1 | 254.9 | | -100.0% |
| Net Income | 70.5 | 1.8 | 94.8 | 86.1 | 110.2 | 28.0% |
Balance Sheet
|
|---|
| Cash | 499.9 | 755.3 | 753.9 | 697.0 | | -100.0% |
| Short Term Debt | 434.6 | 426.9 | 448.0 | 481.5 | | -100.0% |
| Long Term Debt | 16.9 | 279.9 | 92.7 | 0.0 | | |
Cash flow
|
|---|
| Capex | 61.7 | 117.1 | 122.0 | 116.3 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -1.7% | -9.9% | 13.2% | -11.8% | -2.9% | |
| EBITDA growth | 1.2% | -20.7% | 48.2% | -13.0% | | |
| Gross Margin | 21.7% | 18.7% | 28.0% | 27.9% | | -27.9% |
| EBITDA Margin | 25.6% | 22.5% | 29.5% | 29.1% | 0.0% | -29.1% |
| Net Income Margin | 7.2% | 0.2% | 9.5% | 9.8% | 12.9% | 3.1% |
| SG&A, % of revenue | 13.0% | 15.4% | 13.7% | 14.2% | | -14.2% |
| CAPEX, % of revenue | 6.3% | 13.3% | 12.3% | 13.3% | | -13.3% |
| ROIC | 4.4% | 1.4% | 6.4% | 5.6% | | -5.6% |
| ROE | 5.2% | 0.1% | 6.5% | 5.9% | | -5.9% |
| Net Debt/EBITDA | -0.2x | -0.2x | -0.7x | -0.8x | | 0.8x |
Revenue and profitability
IPE Group Ltd's Revenue decreased on 2.9%.
Net Income marign increased on 3.1 pp from 9.8% to 12.9% in FY2016.
Appendix 1: Peers in Miscellaneous Manufactur
Below we provide IPE Group Ltd benchmarking against other companies in Miscellaneous Manufactur 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 |
|---|
| Karrie International Hldgs ($1050) | | 0.1% | -11.3% | 27.4% | 11.8% |
| Sunny Optical Technology Group Co Ltd ($2382) | | 45.9% | 45.0% | 26.9% | 36.6% |
| TK Group Holdings Ltd ($2283) | | 9.3% | 11.8% | 20.0% | 1.3% |
| AMCO United Holding Ltd ($2970) | | 10.8% | 53.9% | 16.8% | 31.1% |
| Yusei Holdings Ltd ($96) | 18.4% | -9.3% | 6.7% | 15.6% | |
| |
|---|
| Median (25 companies) | 1.5% | 0.1% | 6.7% | -4.8% | 6.9% |
|---|
| IPE Group Ltd ($929) | | -9.9% | 13.2% | -11.8% | -2.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Man Sang International Ltd ($938) | 42.4% | 32.8% | 60.3% | 78.6% | 56.4% |
| Time Watch Investments Ltd ($2033) | 60.2% | 60.6% | 65.0% | 68.1% | 68.5% |
| China Environmental Energy Investment Ltd ($986) | 14.0% | 1.2% | 9.0% | 49.2% | 40.4% |
| Lee & Man Chemical Co Ltd ($746) | 34.3% | 35.7% | 41.9% | 39.6% | 36.3% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 33.2% | 35.1% | 37.4% | 38.7% | |
| |
|---|
| Median (24 companies) | 19.7% | 20.8% | 23.4% | 22.4% | 21.1% |
|---|
| IPE Group Ltd ($929) | 21.7% | 18.7% | 28.0% | 27.9% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 30.4% | 31.3% | 38.4% | 37.6% | 37.0% |
| Man Sang International Ltd ($938) | 24.9% | 15.4% | 37.0% | 33.8% | 40.4% |
| DeTeam Co Ltd ($65) | 8.0% | 3.9% | -1.3% | 24.3% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 18.4% | 19.8% | 20.6% | 24.2% | |
| Time Watch Investments Ltd ($2033) | 17.6% | 16.8% | 19.4% | 20.5% | 16.4% |
| |
|---|
| Median (25 companies) | 7.9% | 7.8% | 7.4% | 6.1% | 7.9% |
|---|
| IPE Group Ltd ($929) | 25.6% | 22.5% | 29.5% | 29.1% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Environmental Energy Investment Ltd ($986) | 6.1% | 0.4% | 17.9% | 47.6% | 6.2% |
| DeTeam Co Ltd ($65) | 6.7% | 47.0% | 5.6% | 33.1% | |
| Lee & Man Chemical Co Ltd ($746) | 5.8% | 51.1% | 33.7% | 22.8% | |
| China International Marine Containers Group Co Ltd ($2039) | 3.9% | 12.1% | 18.5% | 21.2% | |
| Yusei Holdings Ltd ($96) | 3.3% | 4.2% | 3.8% | 9.3% | |
| |
|---|
| Median (25 companies) | 4.6% | 4.2% | 3.8% | 4.3% | 3.8% |
|---|
| IPE Group Ltd ($929) | 6.3% | 13.3% | 12.3% | 13.3% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Time Watch Investments Ltd ($2033) | 34.5% | 27.1% | 27.8% | 27.9% | 18.6% |
| TK Group Holdings Ltd ($2283) | 36.8% | 31.1% | 29.4% | 27.6% | 26.0% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 16.9% | 17.7% | 20.0% | 21.1% | |
| Sunny Optical Technology Group Co Ltd ($2382) | 19.7% | 17.8% | 16.5% | 19.4% | 26.8% |
| Yusei Holdings Ltd ($96) | 4.2% | 7.0% | 13.6% | 14.1% | |
| |
|---|
| Median (25 companies) | 3.2% | 4.4% | 3.9% | 1.5% | 9.2% |
|---|
| IPE Group Ltd ($929) | 4.4% | 1.4% | 6.4% | 5.6% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Continental Holdings Ltd ($513) | | 20.1x | 92.9x | 4,203.6x | |
| South China China Ltd ($413) | | 37.5x | 2,842.3x | 27.3x | |
| Launch Tech Co Ltd ($2488) | 7.6x | 2.4x | 3.9x | 14.5x | |
| China International Marine Containers Group Co Ltd ($2039) | 4.0x | 4.7x | 5.8x | 9.8x | |
| VS International Group Ltd ($1002) | 5.1x | 6.5x | 4.4x | 3.3x | 4.6x |
| |
|---|
| Median (22 companies) | -0.2x | 0.2x | 0.1x | 0.4x | -0.6x |
|---|
| IPE Group Ltd ($929) | -0.2x | -0.2x | -0.7x | -0.8x | |
