China-Hongkong Photo Products Holdings Ltd reports 183% EBITDA growth and 12.2% Revenue growth
25/06/2015 • About China-Hongkong Photo Products Holdings Ltd (
$1123) • By InTwits
China-Hongkong Photo Products Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China-Hongkong Photo Products Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is -0.7%
- EBITDA Margin is quite volatile: 1.6% in FY2015, 0.6% in FY2014, 1.4% in FY2013, 14.4% in FY2012, 4.3% in FY2011
- China-Hongkong Photo Products Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.3%. At the same time it's in pair with industry average of 9.9%.
- CAPEX is quite volatile: 26.3 in FY2015, 13.4 in FY2014, 7.2 in FY2013, 14.7 in FY2012, 7.6 in FY2011
- The company has unprofitable business model: ROIC is at -0.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China-Hongkong Photo Products Holdings Ltd ($1123) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 349.5 | 436.4 | 475.6 | 861.7 | 966.7 | 12.2% |
| Gross Profit | 118.2 | 135.5 | 142.4 | 204.4 | 220.0 | 7.7% |
| SG&A | | | 35.5 | 34.4 | 29.9 | -13.2% |
| EBITDA | 14.9 | 62.9 | 6.7 | 5.3 | 15.1 | 182.8% |
| Net Income | 23.0 | 44.7 | 32.6 | 15.5 | -33.3 | -315.2% |
Balance Sheet
|
|---|
| Cash | 252.6 | 529.1 | 529.6 | 360.1 | 270.2 | -25.0% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 7.6 | 14.7 | 7.2 | 13.4 | 26.3 | 96.6% |
Ratios
|
|---|
| Revenue growth | 2.5% | 24.9% | 9.0% | 81.2% | 12.2% | |
| EBITDA growth | 6.7% | 323.0% | -89.4% | -20.0% | 182.8% | |
| Gross Margin | 33.8% | 31.1% | 29.9% | 23.7% | 22.8% | -1.0% |
| EBITDA Margin | 4.3% | 14.4% | 1.4% | 0.6% | 1.6% | 0.9% |
| Net Income Margin | 6.6% | 10.2% | 6.8% | 1.8% | -3.4% | -5.2% |
| SG&A, % of revenue | | | 7.5% | 4.0% | 3.1% | -0.9% |
| CAPEX, % of revenue | 2.2% | 3.4% | 1.5% | 1.6% | 2.7% | 1.2% |
| ROIC | 0.4% | 5.3% | -0.3% | -0.9% | -0.7% | 0.2% |
| ROE | 2.5% | 5.0% | 3.8% | 1.9% | -4.3% | -6.2% |
| Net Debt/EBITDA | -17.0x | -8.4x | -79.4x | -67.5x | -17.9x | 49.6x |
Revenue and profitability
China-Hongkong Photo Products Holdings Ltd's Revenue surged on 12.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.57 pp from 5.7% to 6.2% in 2015.
Gross Margin decreased slightly on 0.95 pp from 23.7% to 22.8% in FY2015. SG&A as a % of Revenue decreased slightly on 0.90 pp from 4.0% to 3.1% in FY2015.
Net Income marign decreased on 5.2 pp from 1.8% to -3.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.7% in FY2015. CAPEX/Revenue decreased slightly on 0.65 pp from 3.4% in FY2012 to 2.7% in FY2015. It's average level of CAPEX/Revenue for the last three years was 1.9%.To secure this fast growth China-Hongkong Photo Products Holdings Ltd made large investments to CAPEX (174% of EBITDA).
Return on investment
The company operates at negative ROIC (-0.65%) and ROE (-4.30%). ROIC showed almost no change in FY2015. ROE decreased on 6.2 pp from 1.9% to -4.3% in FY2015.
Leverage (Debt)
The company has no debt. Cash dropped on 25.0% in FY2015.
Appendix 1: Peers in Distribution/Wholesale
Below you can find China-Hongkong Photo Products Holdings Ltd benchmarking vs. other companies in Distribution/Wholesale 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 |
|---|
| Forefront Group Ltd ($885) | | | 504.6% | 3,871.0% | |
| China LNG Group Ltd ($931) | -84.5% | 694.8% | 13.6% | 1,341.3% | |
| Sheng Yuan Holdings Ltd ($851) | 571.1% | -86.1% | 756.9% | 567.2% | |
| China Infrastructure Investment Ltd ($600) | 346.9% | 412.1% | -50.9% | 557.9% | |
| Goldin Financial Holdings Ltd ($530) | 4.2% | -39.4% | 63.5% | 60.3% | |
| |
|---|
| Median (37 companies) | 18.6% | 2.6% | 0.0% | 0.8% | 0.0% |
|---|
| China-Hongkong Photo Products Holdings Ltd ($1123) | | 24.9% | 9.0% | 81.2% | 12.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goldin Financial Holdings Ltd ($530) | 67.0% | 75.3% | 71.7% | 74.8% | |
| Forefront Group Ltd ($885) | | | | 69.8% | |
| YGM Trading Ltd ($375) | 67.1% | 66.5% | 67.4% | 64.0% | 62.5% |
| Goldlion Holdings Ltd ($533) | 57.3% | 56.4% | 54.1% | 55.7% | |
| Sincere Watch Hong Kong Ltd ($444) | 34.2% | 35.6% | 39.7% | 38.8% | 38.3% |
| |
|---|
| Median (33 companies) | 15.5% | 17.3% | 17.1% | 18.0% | 38.3% |
|---|
| China-Hongkong Photo Products Holdings Ltd ($1123) | 33.8% | 31.1% | 29.9% | 23.7% | 22.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goldin Financial Holdings Ltd ($530) | -134.6% | 163.7% | 613.4% | 285.7% | |
| China LNG Group Ltd ($931) | 195.2% | 95.1% | 76.4% | 97.9% | |
| Forefront Group Ltd ($885) | | -2,113.8% | -803.1% | 57.7% | |
| China Infrastructure Investment Ltd ($600) | -1,171.2% | -274.9% | 120.0% | 52.0% | |
| GA Holdings Ltd ($8126) | -4.5% | 8.0% | 19.7% | 22.9% | |
| |
|---|
| Median (37 companies) | 2.2% | 2.1% | 2.5% | 4.6% | 7.1% |
|---|
| China-Hongkong Photo Products Holdings Ltd ($1123) | 4.3% | 14.4% | 1.4% | 0.6% | 1.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| C Y Foundation Group Ltd ($1182) | 9.8% | 2.5% | 5.2% | 82.2% | 9.3% |
| Inspur International Ltd ($596) | 0.9% | 8.4% | 12.2% | 33.6% | |
| SIS International Holdings ($529) | 0.2% | 13.4% | 31.8% | 14.8% | |
| HKC International Holdings Ltd ($248) | 0.9% | 5.5% | 0.8% | 11.4% | |
| Tan Chong International Ltd ($693) | 7.6% | 6.0% | 7.6% | 7.0% | |
| |
|---|
| Median (36 companies) | 1.3% | 1.3% | 1.8% | 1.7% | 5.6% |
|---|
| China-Hongkong Photo Products Holdings Ltd ($1123) | 2.2% | 3.4% | 1.5% | 1.6% | 2.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China LNG Group Ltd ($931) | 2.2% | 8.4% | 7.4% | 87.0% | |
| Yestar International Holdings Co Ltd ($2393) | 29.4% | 28.8% | 24.1% | 26.2% | |
| Powerwell Pacific Holdings Ltd ($8265) | 27.8% | 6.4% | 6.4% | 23.6% | |
| Forefront Group Ltd ($885) | -37.7% | -4.9% | -11.0% | 19.5% | |
| Sincere Watch Hong Kong Ltd ($444) | 46.4% | 51.7% | 27.7% | 14.6% | 5.5% |
| |
|---|
| Median (38 companies) | 2.9% | 2.1% | 1.7% | 3.2% | 2.8% |
|---|
| China-Hongkong Photo Products Holdings Ltd ($1123) | 0.4% | 5.3% | -0.3% | -0.9% | -0.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sheng Yuan Holdings Ltd ($851) | | | | 19.3x | |
| Takson Holdings Ltd ($918) | | | 11.5x | 11.7x | |
| Huiyin Household Appliances Holdings Co Ltd ($1280) | 10.1x | | | 10.9x | |
| Pacific Andes International Holdings Ltd ($1174) | 4.9x | 5.1x | 9.1x | 7.8x | |
| SIS International Holdings ($529) | -62.1x | -1.8x | 7.0x | 7.2x | |
| |
|---|
| Median (26 companies) | -0.2x | -0.1x | -0.5x | 0.3x | -1.5x |
|---|
| China-Hongkong Photo Products Holdings Ltd ($1123) | -17.0x | -8.4x | -79.4x | -67.5x | -17.9x |
