Gold Peak Industries Holding Ltd EBITDA jumped on 31.5% in 2015 and Revenue showed almost no change
18/06/2015 • About Gold Peak Industries Holding Ltd (
$40) • By InTwits
Gold Peak Industries Holding Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gold Peak Industries Holding Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's a lot of higher than industry average of 8.3%.
- CAPEX is quite volatile: 179 in FY2015, 148 in FY2014, 145 in FY2013, 24.3 in FY2012, 32.2 in FY2011
- The company has potentially unprofitable business model: ROIC is at 4.1%
- It operates with high leverage: Net Debt/EBITDA is 2.8x while industry average is -1.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Gold Peak Industries Holding Ltd ($40) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,958 | 1,925 | 6,021 | 5,849 | 5,856 | 0.1% |
| Gross Profit | 524 | 497 | 1,420 | 1,456 | 1,501 | 3.1% |
| SG&A | | | 1,284 | 1,296 | 1,331 | 2.7% |
| EBITDA | 140 | 67 | 434 | 260 | 342 | 31.5% |
| Net Income | 85 | -25 | 40 | -128 | 52 | -140.3% |
Balance Sheet
|
|---|
| Cash | 474 | 389 | 820 | 994 | 846 | -14.9% |
| Short Term Debt | 735 | 681 | 1,593 | 1,421 | 1,268 | -10.7% |
| Long Term Debt | 527 | 395 | 711 | 504 | 526 | 4.2% |
Cash flow
|
|---|
| Capex | 32 | 24 | 145 | 148 | 179 | 20.9% |
Ratios
|
|---|
| Revenue growth | 34.3% | -1.6% | 212.7% | -2.8% | 0.1% | |
| EBITDA growth | 535.9% | -52.2% | 546.5% | -40.0% | 31.5% | |
| Gross Margin | 26.8% | 25.8% | 23.6% | 24.9% | 25.6% | 0.7% |
| EBITDA Margin | 7.2% | 3.5% | 7.2% | 4.5% | 5.8% | 1.4% |
| Net Income Margin | 4.3% | -1.3% | 0.7% | -2.2% | 0.9% | 3.1% |
| SG&A, % of revenue | | | 21.3% | 22.2% | 22.7% | 0.6% |
| CAPEX, % of revenue | 1.6% | 1.3% | 2.4% | 2.5% | 3.1% | 0.5% |
| ROIC | 2.9% | 0.8% | 5.5% | 1.8% | 4.1% | 2.3% |
| ROE | 5.6% | -1.6% | 2.7% | -8.9% | 3.7% | 12.6% |
| Net Debt/EBITDA | 5.6x | 10.2x | 3.4x | 3.6x | 2.8x | -0.8x |
Revenue and profitability
Gold Peak Industries Holding Ltd's Revenue showed almost no change in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.2 pp from 9.1% to 10.3% in 2015.
Gross Margin increased slightly on 0.75 pp from 24.9% to 25.6% in FY2015. SG&A as a % of Revenue increased slightly on 0.57 pp from 22.2% to 22.7% in FY2015.
Net Income marign increased on 3.1 pp from -2.2% to 0.88% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Gold Peak Industries Holding Ltd's CAPEX/Revenue was 3.1% in FY2015. Gold Peak Industries Holding Ltd's CAPEX/Revenue increased slightly on 1.8 pp from 1.3% in FY2012 to 3.1% in FY2015. It's average level of CAPEX/Revenue for the last three years was 2.7%.The company invested a large share of EBITDA (52.4%) to CAPEX.
Return on investment
The company operates at low ROIC (4.05%) and ROE (3.70%). ROIC increased on 2.3 pp from 1.8% to 4.1% in FY2015. ROE surged on 12.6 pp from -8.9% to 3.7% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.8x and Debt / EBITDA is 5.2x. Net Debt / EBITDA dropped on 0.8x from 3.6x to 2.8x in FY2015. Debt decreased on 6.8% in FY2015 while cash dropped on 14.9% in FY2015.
Appendix 1: Peers in Home Furnishings
Below we provide Gold Peak Industries Holding Ltd benchmarking against other companies in Home Furnishings 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 |
|---|
| Jiu Rong Holdings Ltd ($2358) | | | 136.9% | 438.7% | |
| See Corp Ltd ($491) | -58.7% | 13.7% | -31.9% | 134.1% | |
| BEP International Holdings Ltd ($2326) | 359.9% | 44.7% | -41.5% | 46.2% | |
| Aupu Group Holding Co Ltd ($477) | 2.6% | 5.7% | 9.0% | 26.4% | |
| Alco Holdings Ltd ($328) | -23.0% | -10.2% | -32.6% | 22.8% | |
| |
|---|
| Median (26 companies) | 19.1% | 2.3% | 5.4% | 3.0% | -44.3% |
|---|
| Gold Peak Industries Holding Ltd ($40) | | -1.6% | 212.7% | -2.8% | 0.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Aupu Group Holding Co Ltd ($477) | 47.1% | 48.6% | 45.0% | 47.8% | |
| South East Group Ltd ($726) | 36.2% | 25.5% | 51.6% | 38.8% | 82.4% |
| Grande Holdings Ltd/The ($186) | 19.9% | 23.7% | 25.4% | 29.0% | |
| Samson Holding Ltd ($531) | 24.9% | 25.6% | 25.4% | 27.3% | |
| Hing Lee HK Holdings Ltd ($396) | 23.1% | 16.3% | 18.7% | 22.7% | |
| |
|---|
| Median (26 companies) | 16.4% | 17.3% | 16.8% | 15.9% | 82.4% |
|---|
| Gold Peak Industries Holding Ltd ($40) | 26.8% | 25.8% | 23.6% | 24.9% | 25.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| See Corp Ltd ($491) | -58.7% | -38.4% | -59.5% | 32.0% | |
| Aupu Group Holding Co Ltd ($477) | 18.1% | 15.3% | 17.6% | 30.1% | |
| Welling Holding Ltd ($382) | 8.6% | 11.9% | 12.8% | 10.8% | |
| Hing Lee HK Holdings Ltd ($396) | 9.3% | -3.0% | 4.3% | 9.4% | |
| Samson Holding Ltd ($531) | 6.2% | 7.5% | 6.6% | 9.4% | |
| |
|---|
| Median (26 companies) | 5.9% | 5.5% | 4.5% | 4.6% | -3,347.3% |
|---|
| Gold Peak Industries Holding Ltd ($40) | 7.2% | 3.5% | 7.2% | 4.5% | 5.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Royale Furniture Holdings Ltd ($1198) | 35.8% | | 14.1% | 16.5% | |
| Sunrise China Technology Group Ltd ($8226) | 7.9% | 126.4% | 69.3% | 7.4% | |
| Aupu Group Holding Co Ltd ($477) | 1.9% | 1.5% | 6.3% | 5.3% | |
| Alco Holdings Ltd ($328) | 5.1% | 0.8% | 1.4% | 5.2% | |
| Skyworth Digital Holdings Ltd ($751) | 2.2% | 3.0% | 2.9% | 4.9% | |
| |
|---|
| Median (26 companies) | 1.8% | 1.5% | 1.9% | 2.8% | 7.9% |
|---|
| Gold Peak Industries Holding Ltd ($40) | 1.6% | 1.3% | 2.4% | 2.5% | 3.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mastercraft International Holdings Ltd ($8146) | 76.2% | 54.4% | 38.6% | 36.4% | |
| Aupu Group Holding Co Ltd ($477) | 18.0% | 14.8% | 17.0% | 32.2% | |
| Haier Electronics Group Co Ltd ($1169) | 45.3% | 37.5% | 32.8% | 20.8% | |
| Welling Holding Ltd ($382) | 29.4% | 23.5% | 24.3% | 18.7% | |
| Tonly Electronics Holdings Ltd ($1249) | 7.0% | 4.2% | 7.1% | 15.9% | |
| |
|---|
| Median (26 companies) | 7.0% | 4.2% | 4.4% | 4.0% | -7.2% |
|---|
| Gold Peak Industries Holding Ltd ($40) | 2.9% | 0.8% | 5.5% | 1.8% | 4.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kasen International Holdings Ltd ($496) | 9.6x | 2.2x | 3.7x | 44.9x | |
| Chigo Holding Ltd ($449) | 27.0x | 12.3x | 11.8x | 14.5x | |
| Skyworth Digital Holdings Ltd ($751) | 1.1x | 1.2x | 1.5x | 1.2x | |
| Hisense Kelon Electrical Holdings Co Ltd ($921) | 3.3x | 1.2x | 0.9x | 1.0x | |
| TCL Multimedia Technology Holdings Ltd ($1070) | -0.0x | -0.3x | -2.3x | 0.7x | |
| |
|---|
| Median (19 companies) | 0.0x | -0.3x | -1.1x | -1.9x | |
|---|
| Gold Peak Industries Holding Ltd ($40) | 5.6x | 10.2x | 3.4x | 3.6x | 2.8x |
