Alco Holdings Ltd EBITDA jumped on 414% in 2015 and Revenue surged on 11.8%
25/06/2015 • About Alco Holdings Ltd (
$328) • By InTwits
Alco Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 5.7% in FY2015, 1.2% in FY2014, 4.5% in FY2013, 4.7% in FY2012, 9.0% in FY2011
- Alco Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's in pair with industry average of 3.1%.
- CAPEX is quite volatile: 34.4 in FY2015, 119 in FY2014, 25.5 in FY2013, 20.9 in FY2012, 158 in FY2011
- The company has potentially unprofitable business model: ROIC is at 5.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Alco Holdings Ltd ($328) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,082 | 2,769 | 1,866 | 2,291 | 2,563 | 11.8% |
| Gross Profit | 384 | 302 | 179 | 130 | 287 | 120.8% |
| SG&A | | 210 | 153 | 148 | 167 | 13.1% |
| EBITDA | 279 | 131 | 84 | 29 | 147 | 413.6% |
| Net Income | 271 | 80 | 58 | -19 | 114 | -698.2% |
Balance Sheet
|
|---|
| Cash | 902 | 1,015 | 1,232 | 924 | 888 | -3.9% |
| Short Term Debt | 50 | 0 | 70 | 80 | 52 | -35.4% |
| Long Term Debt | 66 | 200 | 130 | 50 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 158 | 21 | 26 | 119 | 34 | -71.0% |
Ratios
|
|---|
| Revenue growth | -23.0% | -10.2% | -32.6% | 22.8% | 11.8% | |
| EBITDA growth | -18.7% | -52.9% | -36.4% | -65.8% | 413.6% | |
| Gross Margin | 12.5% | 10.9% | 9.6% | 5.7% | 11.2% | 5.5% |
| EBITDA Margin | 9.0% | 4.7% | 4.5% | 1.2% | 5.7% | 4.5% |
| Net Income Margin | 8.8% | 2.9% | 3.1% | -0.8% | 4.5% | 5.3% |
| SG&A, % of revenue | | 7.6% | 8.2% | 6.5% | 6.5% | 0.1% |
| CAPEX, % of revenue | 5.1% | 0.8% | 1.4% | 5.2% | 1.3% | -3.8% |
| ROIC | 9.6% | 3.0% | 1.3% | -0.8% | 5.4% | 6.2% |
| ROE | 14.7% | 4.2% | 3.1% | -1.0% | 6.0% | 7.0% |
| Net Debt/EBITDA | -2.8x | -6.2x | -12.3x | -27.8x | -5.7x | 22.1x |
Revenue and profitability
Alco Holdings Ltd's Revenue surged on 11.8% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.5 pp from 1.2% to 5.7% in FY2015.
Gross Margin increased on 5.5 pp from 5.7% to 11.2% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign increased on 5.3 pp from -0.83% to 4.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 1.3%. CAPEX/Revenue increased slightly on 0.59 pp from 0.75% in FY2012 to 1.3% in FY2015. It's average level of CAPEX/Revenue for the last three years was 2.6%.
Return on investment
The company operates at low ROIC (5.41%) and ROE (6.04%). ROIC increased on 6.2 pp from -0.79% to 5.4% in FY2015. ROE increased on 7.0 pp from -1.0% to 6.0% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -5.7x and Debt / EBITDA is 0.4x. Net Debt / EBITDA jumped on 22.1x from -27.8x to -5.7x in FY2015. Debt dropped on 60.3% in FY2015 while cash decreased on 3.9% in FY2015.
Appendix 1: Peers in Home Furnishings
Below we provide Alco Holdings 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% | |
| Tonly Electronics Holdings Ltd ($1249) | 9.0% | -10.4% | 24.0% | 19.0% | |
| |
|---|
| Median (26 companies) | 21.8% | 2.3% | 7.8% | 1.1% | 0.1% |
|---|
| Alco Holdings Ltd ($328) | | -10.2% | -32.6% | 22.8% | 11.8% |
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% | |
| Gold Peak Industries Holding Ltd ($40) | 26.8% | 25.8% | 23.6% | 24.9% | 25.6% |
| |
|---|
| Median (26 companies) | 16.5% | 18.9% | 18.2% | 16.7% | 20.0% |
|---|
| Alco Holdings Ltd ($328) | 12.5% | 10.9% | 9.6% | 5.7% | 11.2% |
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% | 4.6% | 4.6% | 3.2% |
|---|
| Alco Holdings Ltd ($328) | 9.0% | 4.7% | 4.5% | 1.2% | 5.7% |
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% | |
| Skyworth Digital Holdings Ltd ($751) | 2.2% | 3.0% | 2.9% | 4.9% | 2.9% |
| Kasen International Holdings Ltd ($496) | 2.6% | 5.0% | 2.6% | 4.7% | |
| |
|---|
| Median (26 companies) | 1.8% | 1.5% | 2.2% | 2.7% | 3.1% |
|---|
| Alco Holdings Ltd ($328) | 5.1% | 0.8% | 1.4% | 5.2% | 1.3% |
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) | 5.0% | 4.2% | 4.7% | 4.0% | 0.0% |
|---|
| Alco Holdings Ltd ($328) | 9.6% | 3.0% | 1.3% | -0.8% | 5.4% |
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 | |
| Gold Peak Industries Holding Ltd ($40) | 5.6x | 10.2x | 3.4x | 3.6x | 2.8x |
| Skyworth Digital Holdings Ltd ($751) | 1.1x | 1.2x | 1.5x | 1.2x | -0.2x |
| Hisense Kelon Electrical Holdings Co Ltd ($921) | 3.3x | 1.2x | 0.9x | 1.0x | |
| |
|---|
| Median (19 companies) | 0.2x | -0.2x | -0.9x | -0.8x | -0.2x |
|---|
| Alco Holdings Ltd ($328) | -2.8x | -6.2x | -12.3x | -27.8x | -5.7x |
