UKF Holdings Ltd EBITDA jumped on 72.6% in 2015 and EBITDA Margin increased on 7.2 pp from 9.9% to 17.0%
17/06/2015 • About UKF Holdings Ltd (
$1468) • By InTwits
UKF Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- UKF Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's in pair with industry average of 3.9%.
- CAPEX is quite volatile: 9.6 in FY2015, 28.0 in FY2014, 16.6 in FY2013, 0 in FY2012, 0 in FY2011
- The company has business model with average profitability: ROIC is at 10.8%
- It operates with high leverage: Net Debt/EBITDA is 0.4x while industry average is -2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
UKF Holdings Ltd ($1468) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 109.7 | 214.6 | 297.5 | 301.6 | 301.6 | -0.0% |
| Gross Profit | 21.7 | 34.8 | 47.7 | 59.6 | 83.6 | 40.2% |
| SG&A | | | | 34.8 | 55.5 | 59.5% |
| EBITDA | 18.9 | 22.2 | 29.0 | 29.8 | 51.4 | 72.6% |
| Net Income | 14.5 | 16.6 | 27.1 | 35.8 | 36.6 | 2.2% |
Balance Sheet
|
|---|
| Cash | 0.3 | 9.2 | 134.5 | 60.8 | 136.7 | 124.9% |
| Short Term Debt | 18.0 | 36.1 | 31.7 | 103.6 | 145.5 | 40.5% |
| Long Term Debt | 0.0 | 0.0 | 10.0 | 28.8 | 10.0 | -65.2% |
Cash flow
|
|---|
| Capex | 0.0 | 0.0 | 16.6 | 28.0 | 9.6 | -65.7% |
Ratios
|
|---|
| Revenue growth | 340.4% | 95.5% | 38.7% | 1.4% | -0.0% | |
| EBITDA growth | 153.7% | 17.4% | 30.4% | 2.7% | 72.6% | |
| Gross Margin | 19.8% | 16.2% | 16.0% | 19.8% | 27.7% | 7.9% |
| EBITDA Margin | 17.3% | 10.4% | 9.7% | 9.9% | 17.0% | 7.2% |
| Net Income Margin | 13.2% | 7.7% | 9.1% | 11.9% | 12.1% | 0.3% |
| SG&A, % of revenue | | | | 11.5% | 18.4% | 6.9% |
| CAPEX, % of revenue | 0.0% | 0.0% | 5.6% | 9.3% | 3.2% | -6.1% |
| ROIC | 89.3% | 42.2% | 19.9% | 8.5% | 10.8% | 2.3% |
| ROE | 158.5% | 81.2% | 27.2% | 16.2% | 12.8% | -3.4% |
| Net Debt/EBITDA | 0.9x | 1.2x | -3.2x | 2.4x | 0.4x | -2.0x |
Revenue and profitability
UKF Holdings Ltd's Revenue showed almost no change in FY2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 7.2 pp from 9.9% to 17.0% in FY2015.
Gross Margin increased on 7.9 pp from 19.8% to 27.7% in FY2015. SG&A as a % of Revenue increased on 6.9 pp from 11.5% to 18.4% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 3.2%. CAPEX/Revenue increased3.2 pp from 0% in FY2012 to 3.2% in FY2015. For the last three years the average CAPEX/Revenue was 6.0%.
Return on investment
The company operates at good ROE (12.81%) while ROIC is low (10.82%). ROIC increased on 2.3 pp from 8.5% to 10.8% in FY2015. ROE decreased on 3.4 pp from 16.2% to 12.8% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.4x and Debt / EBITDA is 3.0x. Net Debt / EBITDA dropped on 2.0x from 2.4x to 0.4x in FY2015. Debt jumped on 17.5% in FY2015 while cash jumped on 125% in FY2015.
Appendix 1: Peers in Apparel
Below we provide UKF 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ares Asia Ltd ($645) | 60.9% | | | 144.2% | |
| Texhong Textile Group Ltd ($2678) | 25.6% | 6.8% | 12.1% | 27.2% | |
| Win Hanverky Holdings Ltd ($3322) | 11.5% | -7.5% | -0.3% | 21.1% | |
| Symphony Holdings Ltd/Hong Kong ($1223) | 27.3% | -94.0% | 46.8% | 20.4% | |
| L & A International Holdings Ltd/ Hong Kong ($8387) | 33.1% | 27.9% | 7.9% | 20.4% | |
| |
|---|
| Median (46 companies) | 19.2% | 5.1% | 0.7% | 5.3% | -1.0% |
|---|
| UKF Holdings Ltd ($1468) | | 95.5% | 38.7% | 1.4% | -0.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prada SpA ($1913) | 67.8% | 71.5% | 72.1% | 73.8% | 71.8% |
| China Outfitters Holdings Ltd ($1146) | 76.1% | 74.9% | 74.3% | 70.0% | |
| C.banner International Holdings Ltd ($1028) | 63.5% | 63.3% | 62.0% | 63.4% | |
| S Culture International Holdings Ltd ($1255) | 62.8% | 64.7% | 63.7% | 62.9% | |
| Crocodile Garments ($122) | 65.5% | 64.7% | 60.7% | 60.4% | |
| |
|---|
| Median (45 companies) | 24.4% | 24.6% | 23.0% | 24.6% | 71.8% |
|---|
| UKF Holdings Ltd ($1468) | 19.8% | 16.2% | 16.0% | 19.8% | 27.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HOSA International Ltd ($2200) | 46.3% | 44.4% | 42.2% | 37.6% | |
| Prada SpA ($1913) | 25.9% | 29.6% | 31.7% | 31.7% | 26.8% |
| China Lilang Ltd ($1234) | 26.7% | 26.3% | 26.9% | 29.4% | |
| Cabbeen Fashion Ltd ($2030) | 16.0% | 25.0% | 29.7% | 28.4% | |
| Fuguiniao Co Ltd ($1819) | 22.2% | 24.5% | 26.1% | 26.7% | |
| |
|---|
| Median (46 companies) | 10.1% | 10.6% | 8.7% | 5.5% | 26.8% |
|---|
| UKF Holdings Ltd ($1468) | 17.3% | 10.4% | 9.7% | 9.9% | 17.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prada SpA ($1913) | 9.2% | 9.7% | 10.6% | 15.3% | 10.2% |
| Symphony Holdings Ltd/Hong Kong ($1223) | 14.9% | 136.9% | 70.3% | 13.5% | |
| Mascotte Holdings Ltd ($136) | 0.4% | 74.2% | 45.0% | 12.2% | |
| Addchance Holdings Ltd ($3344) | 12.2% | 8.6% | 9.3% | 10.9% | |
| Active Group Holdings Ltd ($1096) | 1.3% | 17.4% | 3.5% | 10.7% | |
| |
|---|
| Median (46 companies) | 2.2% | 2.2% | 3.0% | 2.1% | 10.2% |
|---|
| UKF Holdings Ltd ($1468) | 0.0% | 0.0% | 5.6% | 9.3% | 3.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prada SpA ($1913) | 24.6% | 32.1% | 37.4% | 34.0% | 21.9% |
| Sitoy Group Holdings Ltd ($1023) | 62.1% | 39.3% | 28.7% | 31.8% | |
| HOSA International Ltd ($2200) | 44.2% | 34.6% | 32.0% | 28.2% | |
| Miko International Holdings Ltd ($1247) | 75.1% | 60.9% | 48.8% | 27.3% | |
| Cabbeen Fashion Ltd ($2030) | 25.7% | 32.3% | 32.9% | 26.5% | |
| |
|---|
| Median (46 companies) | 11.5% | 8.6% | 6.7% | 3.0% | 21.9% |
|---|
| UKF Holdings Ltd ($1468) | 89.3% | 42.2% | 19.9% | 8.5% | 10.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| High Fashion International Ltd ($608) | 4.9x | 16.7x | 27.7x | 11.2x | |
| Citychamp Watch & Jewellery Group Ltd ($256) | -0.9x | 0.6x | 0.4x | 2.6x | |
| S Culture International Holdings Ltd ($1255) | 0.8x | 1.4x | 0.7x | 2.4x | |
| Texhong Textile Group Ltd ($2678) | 3.9x | 1.4x | 1.3x | 2.3x | |
| Highlight China IoT International Ltd ($1682) | -0.2x | -0.3x | 0.4x | 2.2x | |
| |
|---|
| Median (32 companies) | -0.9x | -0.3x | -0.7x | -0.4x | -0.2x |
|---|
| UKF Holdings Ltd ($1468) | 0.9x | 1.2x | -3.2x | 2.4x | 0.4x |
