Miko International Holdings Ltd's fundamentals demonstrate strong growth profile
26/03/2015 • About Miko International Holdings Ltd (
$1247) • By InTwits
Miko International Holdings Ltd is a growth stock in Apparel industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Miko International Holdings Ltd showed fast growth in the last financial year. Miko International Holdings Ltd's revenue surged on 20.3% in FY2014. At the same time the company well managed its profitability and also showed EBITDA growth of 7.90% for the same period.
In the last 3 years Miko International Holdings Ltd showed fast revenue growth of 26.6% from 2011 to 2014 annualy. EBITDA surged on 28.8% from 2011 to 2014 annualy.
Miko International Holdings Ltd ($1247) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 327 | 392 | 520 | 661 | 796 |
|---|
| Revenue growth, % | | 20.0% | 32.5% | 27.2% | 20.3% |
|---|
| Gross margin, % | 40.2% | 36.7% | 37.7% | 39.3% | 37.7% |
|---|
| SG&A, % | 13.1% | 13.9% | 12.1% | 12.0% | 13.2% |
|---|
| EBITDA | 92 | 94 | 136 | 185 | 200 |
|---|
| EBITDA growth, % | | 1.9% | 45.9% | 35.7% | 7.9% |
|---|
| EBITDA margin, % | 28.1% | 23.8% | 26.2% | 28.0% | 25.1% |
|---|
| Net Income | 76 | 77 | 115 | 130 | 138 |
|---|
| Net Income margin, % | 23.2% | 19.7% | 22.2% | 19.6% | 17.3% |
|---|
| |
| CAPEX | 2 | 1 | 0 | 54 | 64 |
|---|
| CAPEX/Revenue, % | 0.743% | 0.142% | 0.0129% | 8.09% | 8.01% |
|---|
| Debt | 43 | 28 | 45 | 77 | 38 |
|---|
| Cash | 55 | 4 | 9 | 260 | 432 |
|---|
| Net Debt/EBITDA | -0.1x | 0.3x | 0.3x | -1.0x | -2.0x |
|---|
| |
| ROIC, % | | 75.1% | 60.9% | 48.8% | 27.3% |
|---|
| ROE, % | | 95.8% | 64.7% | 42.7% | 21.3% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 28% in FY2013 to 25.1% in FY2014. If we look for the longer period the company showed EBITDA margin growth of 1.30 pp from 23.8% in 2011 to 25.1% in 2014.
We call Miko International Holdings Ltd an attractive growth stock as together with the growth it delivers high ROIC at 27.3%. During the last three years it dropped - it was 75.1% in FY2011. Average ROIC for the last three years was 45.6%.
Net Income margin dropped on 2.30 pp from 19.6% to 17.3% in 2014. If we look for the longer period Net Income margin dropped on 2.40 pp from 19.7% in 2011 to 17.3% in 2014.
Miko International Holdings Ltd operates at ROE of 21.3%. For the last three years the average ROE was 42.9%.
Capital expenditures (CAPEX)
To fuel this fast growth Miko International Holdings Ltd had to invest in CAPEX.In FY2014 Miko International Holdings Ltd had CAPEX/Revenue of 8.01%. The company's CAPEX/Revenue surged on 7.87 pp from 0.142% in 2011 to 8.01% in 2014. Average CAPEX/Revenue for the last three years was 5.37%.
Leverage (Debt)
Having such a fast growth profile Miko International Holdings Ltd keeps negative net debt at -2.0x Net Debt/EBITDA. In the longer period Miko International Holdings Ltd's leverage dropped on 2.23x from 0.26x in 2011 to -1.98x in 2014.
Peers in Apparel
Below we provide Miko International Holdings Ltd benchmarking against other companies in Apparel 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Ares Asia Ltd ($645) | | 60.9% | | | 144.2% |
| Texhong Textile Group Ltd ($2678) | | 25.6% | 6.8% | 12.1% | 27.2% |
| Symphony Holdings Ltd/Hong Kong ($1223) | | 27.3% | -94.0% | 46.8% | 20.4% |
| HOSA International Ltd ($2200) | | 99.9% | 22.0% | 20.5% | 19.1% |
| Cabbeen Fashion Ltd ($2030) | | 204.4% | 5.6% | 0.4% | 16.4% |
| |
|---|
| Median (26 companies) | | 17.5% | 5.6% | 0.4% | 4.3% |
|---|
| Miko International Holdings Ltd ($1247) | | 20.0% | 32.5% | 27.2% | 20.3% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Prada SpA ($1913) | 62.4% | 67.8% | 71.5% | 72.1% | 73.8% |
| S Culture International Holdings Ltd ($1255) | 59.4% | 62.8% | 64.7% | 63.7% | 62.9% |
| Crocodile Garments ($122) | 63.3% | 65.5% | 64.7% | 60.7% | 60.4% |
| Symphony Holdings Ltd/Hong Kong ($1223) | 18.6% | 15.4% | 38.5% | 42.3% | 59.6% |
| HOSA International Ltd ($2200) | 48.7% | 62.2% | 60.6% | 57.8% | 52.6% |
| |
|---|
| Median (26 companies) | 25.1% | 22.9% | 22.2% | 22.4% | 22.9% |
|---|
| Miko International Holdings Ltd ($1247) | 40.2% | 36.7% | 37.7% | 39.3% | 37.7% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| HOSA International Ltd ($2200) | 34.0% | 46.3% | 44.4% | 42.2% | 37.6% |
| Prada SpA ($1913) | 18.0% | 25.9% | 29.6% | 31.7% | 31.7% |
| China Lilang Ltd ($1234) | 24.1% | 26.7% | 26.3% | 26.9% | 29.4% |
| Cabbeen Fashion Ltd ($2030) | 1.9% | 16.0% | 25.0% | 29.7% | 28.4% |
| Fuguiniao Co Ltd ($1819) | 18.1% | 22.2% | 24.5% | 26.1% | 26.7% |
| |
|---|
| Median (26 companies) | 11.6% | 8.5% | 9.0% | 7.1% | 5.4% |
|---|
| Miko International Holdings Ltd ($1247) | 28.1% | 23.8% | 26.2% | 28.0% | 25.1% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Prada SpA ($1913) | 8.5% | 9.2% | 9.7% | 10.6% | 15.3% |
| Symphony Holdings Ltd/Hong Kong ($1223) | 2.0% | 14.9% | 136.9% | 70.3% | 13.5% |
| Mascotte Holdings Ltd ($136) | 0.3% | 0.4% | 74.2% | 45.0% | 12.2% |
| Tack Fiori International Group Ltd ($928) | 0.1% | 3.5% | 23.1% | 134.4% | 10.7% |
| UKF Holdings Ltd ($1468) | 0.4% | 0.0% | 0.0% | 5.6% | 9.3% |
| |
|---|
| Median (26 companies) | 2.5% | 1.7% | 2.4% | 2.8% | 2.3% |
|---|
| Miko International Holdings Ltd ($1247) | 0.7% | 0.1% | 0.0% | 8.1% | 8.0% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Prada SpA ($1913) | 11.3% | 24.6% | 32.1% | 37.4% | 34.0% |
| Sitoy Group Holdings Ltd ($1023) | 52.4% | 62.1% | 39.3% | 28.7% | 31.8% |
| HOSA International Ltd ($2200) | 31.4% | 44.2% | 34.6% | 32.0% | 28.2% |
| Cabbeen Fashion Ltd ($2030) | | 25.7% | 32.3% | 32.9% | 26.5% |
| Fuguiniao Co Ltd ($1819) | | 27.8% | 34.1% | 31.6% | 22.9% |
| |
|---|
| Median (26 companies) | 12.7% | 10.7% | 7.4% | 6.7% | 3.8% |
|---|
| Miko International Holdings Ltd ($1247) | | 75.1% | 60.9% | 48.8% | 27.3% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| S Culture International Holdings Ltd ($1255) | 1.2x | 0.8x | 1.4x | 0.7x | 2.4x |
| UKF Holdings Ltd ($1468) | 0.1x | 0.9x | 1.2x | -3.2x | 2.4x |
| Texhong Textile Group Ltd ($2678) | 0.6x | 3.9x | 1.4x | 1.3x | 2.3x |
| Highlight China IoT International Ltd ($1682) | -0.7x | -0.2x | -0.3x | 0.4x | 2.2x |
| Eagle Nice International Holdings Ltd ($2368) | -1.5x | -1.0x | 0.4x | 0.5x | 0.6x |
| |
|---|
| Median (18 companies) | -0.9x | -1.0x | -0.1x | -0.6x | -0.4x |
|---|
| Miko International Holdings Ltd ($1247) | -0.1x | 0.3x | 0.3x | -1.0x | -2.0x |
