China Conch Venture Holdings Ltd EBITDA jumped on 13.4% while Revenue decreased slightly on 1.2%
24/03/2017 • About China Conch Venture Holdings Ltd (
$586) • By InTwits
China Conch Venture Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 38.2% in FY2016 vs. 33.3% in FY2015 vs. 27.7% in FY2012
- The company has potentially unprofitable business model: ROIC is at 3.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Conch Venture Holdings Ltd ($586) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,250 | 1,591 | 1,748 | 2,057 | 2,032 | -1.2% |
| Gross Profit | 402 | 493 | 574 | 782 | 797 | 2.0% |
| SG&A | 69 | 107 | 119 | 169 | 169 | 0.0% |
| EBITDA | 346 | 413 | 539 | 685 | 776 | 13.4% |
| Net Income | 1,299 | 1,837 | 2,239 | 1,944 | 1,981 | 1.9% |
Balance Sheet
|
|---|
| Cash | 276 | 3,698 | 2,058 | 2,332 | 2,166 | -7.1% |
| Short Term Debt | 527 | 580 | 809 | 228 | 60 | -73.8% |
| Long Term Debt | 30 | 1,104 | 130 | 480 | 535 | 11.5% |
Cash flow
|
|---|
| Capex | 173 | 91 | 390 | 155 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -21.0% | 27.3% | 9.8% | 17.7% | -1.2% | |
| EBITDA growth | -16.2% | 19.4% | 30.5% | 27.0% | 13.4% | |
| Gross Margin | 32.2% | 31.0% | 32.8% | 38.0% | 39.2% | 1.2% |
| EBITDA Margin | 27.7% | 26.0% | 30.8% | 33.3% | 38.2% | 4.9% |
| Net Income Margin | 103.9% | 115.4% | 128.1% | 94.5% | 97.5% | 3.0% |
| SG&A, % of revenue | 5.6% | 6.7% | 6.8% | 8.2% | 8.3% | 0.1% |
| CAPEX, % of revenue | 13.8% | 5.7% | 22.3% | 7.6% | | -7.6% |
| ROIC | 3.3% | 2.9% | 3.1% | 3.6% | 3.8% | 0.2% |
| ROE | 15.1% | 16.8% | 16.2% | 12.5% | 11.6% | -0.9% |
| Net Debt/EBITDA | 0.8x | -4.9x | -2.1x | -2.4x | -2.0x | 0.3x |
Revenue and profitability
The company's Revenue decreased slightly on 1.2%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.9 pp from 33.3% to 38.2% in FY2016.
Gross Margin increased slightly on 1.2 pp from 38.0% to 39.2% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased on 3.0 pp from 94.5% to 97.5% in FY2016.
Return on investment
The company operates at low ROIC (3.82%) and ROE (11.65%). ROIC showed almost no change in FY2016. ROE decreased slightly on 0.85 pp from 12.5% to 11.6% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.0x and Debt / EBITDA is 0.8x. Net Debt / EBITDA jumped on 0.3x from -2.4x to -2.0x in FY2016. Debt dropped on 15.9% while cash decreased on 7.1%.
Management team
The company's CEO is Ji Qinying. Ji Qinying has 11 years tenure at the company.
Appendix 1: Peers in Commercial Services
Below you can find China Conch Venture Holdings Ltd benchmarking vs. other companies in Commercial Services 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 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 99.1% | 14.9% | -88.3% | 271.8% | |
| China Seven Star Holdings Ltd ($245) | | -81.8% | -39.3% | 195.3% | 14.5% |
| 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 (68 companies) | -6.2% | 8.3% | 10.0% | 4.0% | 8.2% |
|---|
| China Conch Venture Holdings Ltd ($586) | | 27.3% | 9.8% | 17.7% | -1.2% |
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% | 79.1% |
| Nirvana Asia Ltd ($1438) | 68.3% | 69.6% | 70.5% | 75.7% | |
| |
|---|
| Median (61 companies) | 31.5% | 30.5% | 31.0% | 30.9% | 31.9% |
|---|
| China Conch Venture Holdings Ltd ($586) | 32.2% | 31.0% | 32.8% | 38.0% | 39.2% |
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% | 62.5% |
| Jiangsu Expressway Co Ltd ($177) | 57.0% | 60.7% | 59.3% | 61.5% | 63.6% |
| |
|---|
| Median (68 companies) | 17.5% | 15.5% | 11.1% | 9.3% | 3.0% |
|---|
| China Conch Venture Holdings Ltd ($586) | 27.7% | 26.0% | 30.8% | 33.3% | 38.2% |
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 (68 companies) | 2.6% | 3.2% | 2.5% | 3.4% | 3.1% |
|---|
| China Conch Venture Holdings Ltd ($586) | 13.8% | 5.7% | 22.3% | 7.6% | |
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% |
| 1010 Printing Group Ltd ($1127) | 13.5% | 20.8% | 17.8% | 19.9% | 18.8% |
| 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% | |
| |
|---|
| Median (68 companies) | 7.5% | 7.7% | 6.3% | 3.3% | 2.6% |
|---|
| China Conch Venture Holdings Ltd ($586) | 3.3% | 2.9% | 3.1% | 3.6% | 3.8% |
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 | -0.5x | -0.6x | -0.6x | -1.5x |
|---|
| China Conch Venture Holdings Ltd ($586) | 0.8x | -4.9x | -2.1x | -2.4x | -2.0x |
