Texwinca Holdings Ltd Net Income surged on 15.7% in 2015 while Revenue decreased on 5.4%
15/06/2015 • About Texwinca Holdings Ltd (
$321) • By InTwits
Texwinca Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Texwinca Holdings Ltd is a company in decline: FY2015 revenue growth was -5.4%, 5 years revenue CAGR was -2.4%
- Texwinca Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's a lot of higher than industry average of 7.0%.
- CAPEX is quite volatile: 1,499 in FY2015, 798 in FY2014, 2,105 in FY2013, 52.4 in FY2012, 99.2 in FY2011
- The company has business model with low profitability: ROIC is at 8.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Texwinca Holdings Ltd ($321) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 11,862 | 13,766 | 11,251 | 9,860 | 9,322 | -5.4% |
| Gross Profit | 3,996 | 4,074 | 3,473 | 3,281 | 3,178 | -3.2% |
| SG&A | 2,751 | 3,300 | 3,239 | 2,938 | 2,602 | -11.4% |
| EBITDA | 1,582 | 1,153 | 898 | 845 | 955 | 13.0% |
| Net Income | 1,133 | 938 | 734 | 668 | 773 | 15.7% |
Balance Sheet
|
|---|
| Cash | 1,467 | 1,295 | 1,313 | 1,289 | 1,476 | 14.5% |
| Short Term Debt | 3,025 | 3,193 | 3,283 | 1,502 | 1,748 | 16.4% |
| Long Term Debt | 564 | 413 | 225 | 367 | 158 | -56.8% |
Cash flow
|
|---|
| Capex | 189 | 249 | 164 | 164 | 128 | -21.8% |
Ratios
|
|---|
| Revenue growth | 12.6% | 16.1% | -18.3% | -12.4% | -5.4% | |
| EBITDA growth | 11.1% | -27.1% | -22.1% | -5.9% | 13.0% | |
| Gross Margin | 33.7% | 29.6% | 30.9% | 33.3% | 34.1% | 0.8% |
| EBITDA Margin | 13.3% | 8.4% | 8.0% | 8.6% | 10.2% | 1.7% |
| Net Income Margin | 9.6% | 6.8% | 6.5% | 6.8% | 8.3% | 1.5% |
| SG&A, % of revenue | 23.2% | 24.0% | 28.8% | 29.8% | 27.9% | -1.9% |
| CAPEX, % of revenue | 1.6% | 1.8% | 1.5% | 1.7% | 1.4% | -0.3% |
| ROIC | 15.5% | 8.3% | 5.3% | 5.5% | 8.1% | 2.5% |
| ROE | 23.1% | 17.4% | 12.9% | 11.3% | 12.8% | 1.5% |
| Net Debt/EBITDA | 1.3x | 2.0x | 2.4x | 0.7x | 0.5x | -0.2x |
Revenue and profitability
Texwinca Holdings Ltd's Revenue decreased on 5.4% in FY2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.7 pp from 8.6% to 10.2% in FY2015.
Gross Margin increased slightly on 0.81 pp from 33.3% to 34.1% in FY2015. SG&A as a % of Revenue decreased slightly on 1.9 pp from 29.8% to 27.9% in FY2015.
Net Income marign increased slightly on 1.5 pp from 6.8% to 8.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 1.4%. The company showed almost no change in CAPEX/Revenue from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 1.5%.
Return on investment
The company operates at good ROE (12.84%) while ROIC is low (8.07%). ROIC increased on 2.5 pp from 5.5% to 8.1% in FY2015. ROE increased slightly on 1.5 pp from 11.3% to 12.8% in FY2015.
Leverage (Debt)
Debt level is 0.5x Net Debt / EBITDA and 2.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 0.7x to 0.5x in FY2015. Debt increased on 2.0% in FY2015 while cash surged on 14.5% in FY2015.
Management team
The company's CEO is Ting Kit Chung. Ting Kit Chung has 5 years tenure at the company.
Appendix 1: Peers in Textiles
Below you can find Texwinca Holdings Ltd benchmarking vs. other companies in Textiles 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Victory City International Holdings Ltd ($539) | 4.8% | -5.2% | 6.5% | 31.5% | |
| Guangdong Tannery Ltd ($1058) | 12.7% | 6.1% | -4.5% | 29.0% | |
| Kingdom Holding Co Ltd ($528) | 13.1% | 1.1% | 6.0% | 20.0% | |
| Pacific Textiles Holdings Ltd ($1382) | 22.0% | -10.6% | 3.6% | 11.6% | |
| Kam Hing International Holdings Ltd ($2307) | 24.4% | 0.9% | -4.3% | 1.6% | |
| |
|---|
| Median (19 companies) | 16.7% | -5.2% | -4.3% | -8.6% | |
|---|
| Texwinca Holdings Ltd ($321) | | 16.1% | -18.3% | -12.4% | -5.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TAI Ping Carpet International Ltd ($146) | 40.4% | 41.0% | 45.4% | 46.7% | |
| Ping Shan Tea Group Ltd ($364) | 15.3% | 11.2% | 20.8% | 42.9% | |
| CECEP COSTIN New Materials Group Ltd ($2228) | 30.3% | 31.1% | 32.5% | 32.5% | |
| Kingdom Holding Co Ltd ($528) | 32.1% | 29.1% | 27.2% | 26.8% | |
| Yongsheng Advanced Materials Co Ltd ($3608) | 5.6% | 4.9% | 7.3% | 24.9% | |
| |
|---|
| Median (19 companies) | 15.3% | 16.3% | 12.6% | 13.6% | |
|---|
| Texwinca Holdings Ltd ($321) | 33.7% | 29.6% | 30.9% | 33.3% | 34.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ping Shan Tea Group Ltd ($364) | 14.9% | 11.2% | | 39.3% | |
| CECEP COSTIN New Materials Group Ltd ($2228) | 26.2% | 28.1% | 28.7% | 30.2% | |
| Kingdom Holding Co Ltd ($528) | 29.3% | 26.3% | 25.3% | 24.8% | |
| Weiqiao Textile Co ($2698) | 10.2% | 17.5% | 20.2% | 21.4% | |
| Pacific Textiles Holdings Ltd ($1382) | 19.5% | 19.1% | 19.0% | 19.5% | |
| |
|---|
| Median (19 companies) | 14.5% | 11.2% | 10.0% | 11.7% | |
|---|
| Texwinca Holdings Ltd ($321) | 13.3% | 8.4% | 8.0% | 8.6% | 10.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hua Lien International Holding Co Ltd ($969) | 0.0% | 19.7% | 40.5% | 79.6% | |
| Ping Shan Tea Group Ltd ($364) | 18.1% | 32.0% | | 14.0% | |
| Kingdom Holding Co Ltd ($528) | 6.2% | 8.4% | 18.8% | 10.9% | |
| Victory City International Holdings Ltd ($539) | 2.3% | 4.2% | 10.1% | 8.6% | |
| Silverman Holdings Ltd ($1616) | 8.7% | 6.5% | 18.0% | 8.4% | |
| |
|---|
| Median (19 companies) | 2.7% | 4.2% | 2.1% | 5.6% | |
|---|
| Texwinca Holdings Ltd ($321) | 1.6% | 1.8% | 1.5% | 1.7% | 1.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Textiles Holdings Ltd ($1382) | 28.8% | 23.7% | 26.4% | 31.6% | |
| CECEP COSTIN New Materials Group Ltd ($2228) | 24.2% | 22.3% | 20.1% | 17.6% | |
| Yongsheng Advanced Materials Co Ltd ($3608) | 7.9% | 6.2% | 13.2% | 15.4% | |
| Kingdom Holding Co Ltd ($528) | 16.3% | 13.8% | 12.7% | 13.8% | |
| TAI Ping Carpet International Ltd ($146) | | | 2.6% | 5.7% | |
| |
|---|
| Median (19 companies) | 7.3% | 5.0% | 3.8% | 3.5% | |
|---|
| Texwinca Holdings Ltd ($321) | 15.5% | 8.3% | 5.3% | 5.5% | 8.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Guangdong Tannery Ltd ($1058) | 8.9x | 6.5x | 5.8x | 11.6x | |
| Sijia Group Co ($1863) | -0.1x | 1.6x | 5.3x | 6.4x | |
| China Weaving Materials Holdings Ltd ($3778) | 1.3x | 3.6x | 3.0x | 5.3x | |
| Co-Prosperity Holdings Ltd ($707) | 8.3x | 34.8x | | 4.5x | |
| Victory City International Holdings Ltd ($539) | 1.8x | 1.5x | 2.0x | 3.2x | |
| |
|---|
| Median (17 companies) | 1.3x | 1.5x | 1.3x | 1.0x | |
|---|
| Texwinca Holdings Ltd ($321) | 1.3x | 2.0x | 2.4x | 0.7x | 0.5x |
