Fujikon Industrial Holdings Ltd reports 60.0% EBITDA decline and 3.4 pp EBITDA Margin decline from 6.7% to 3.2%
25/06/2015 • About Fujikon Industrial Holdings Ltd (
$927) • By InTwits
Fujikon Industrial Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Fujikon Industrial Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is 0.0%
- EBITDA Margin is quite volatile: 3.2% in FY2015, 6.7% in FY2014, 10.5% in FY2013, 7.9% in FY2012, 6.0% in FY2011
- Fujikon Industrial 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 3.1%.
- CAPEX is quite volatile: 28.1 in FY2015, 57.8 in FY2014, 36.3 in FY2013, 20.1 in FY2012, 21.6 in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Fujikon Industrial Holdings Ltd ($927) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,224 | 1,306 | 1,606 | 1,525 | 1,264 | -17.1% |
| Gross Profit | 184 | 230 | 325 | 260 | 182 | -30.2% |
| SG&A | | | 201 | 187 | 182 | -3.0% |
| EBITDA | 74 | 104 | 168 | 102 | 41 | -60.0% |
| Net Income | 30 | 56 | 116 | 62 | 13 | -79.8% |
Balance Sheet
|
|---|
| Cash | 353 | 425 | 442 | 469 | 409 | -12.7% |
| Short Term Debt | 41 | 41 | 42 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 22 | 20 | 36 | 58 | 28 | -51.4% |
Ratios
|
|---|
| Revenue growth | 34.0% | 6.7% | 22.9% | -5.0% | -17.1% | |
| EBITDA growth | -28.9% | 41.1% | 61.9% | -39.5% | -60.0% | |
| Gross Margin | 15.0% | 17.6% | 20.3% | 17.1% | 14.4% | -2.7% |
| EBITDA Margin | 6.0% | 7.9% | 10.5% | 6.7% | 3.2% | -3.4% |
| Net Income Margin | 2.5% | 4.3% | 7.3% | 4.1% | 1.0% | -3.1% |
| SG&A, % of revenue | | | 12.5% | 12.3% | 14.4% | 2.1% |
| CAPEX, % of revenue | 1.8% | 1.5% | 2.3% | 3.8% | 2.2% | -1.6% |
| ROIC | 5.0% | 8.5% | 15.4% | 7.6% | 0.0% | -7.6% |
| ROE | 4.1% | 7.6% | 14.9% | 7.8% | 1.6% | -6.2% |
| Net Debt/EBITDA | -4.2x | -3.7x | -2.4x | -4.6x | -10.1x | -5.5x |
Revenue and profitability
The company's Revenue dropped on 17.1% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 3.4 pp from 6.7% to 3.2% in FY2015.
Gross Margin decreased on 2.7 pp from 17.1% to 14.4% in FY2015. SG&A as a % of Revenue increased on 2.1 pp from 12.3% to 14.4% in FY2015.
Net Income marign decreased on 3.1 pp from 4.1% to 1.00% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.2% in FY2015. The company showed small growth in CAPEX/Revenue of 0.68 pp from 1.5% in FY2012 to 2.2% in FY2015. Average CAPEX/Revenue for the last three years was 2.8%.The company invested a big chunk of EBITDA (69.0%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (0.01%) and ROE (1.62%). ROIC decreased on 7.6 pp from 7.6% to 0.0061% in FY2015. ROE decreased on 6.2 pp from 7.8% to 1.6% in FY2015.
Leverage (Debt)
The company has no debt. Cash dropped on 12.7% in FY2015.
Appendix 1: Peers in Home Furnishings
Below we provide Fujikon Industrial 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% | |
| Alco Holdings Ltd ($328) | | -10.2% | -32.6% | 22.8% | 11.8% |
| |
|---|
| Median (26 companies) | 21.8% | -0.2% | 5.4% | 3.0% | 1.7% |
|---|
| Fujikon Industrial Holdings Ltd ($927) | | 6.7% | 22.9% | -5.0% | -17.1% |
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% | |
| Gold Peak Industries Holding Ltd ($40) | 26.8% | 25.8% | 23.6% | 24.9% | 25.6% |
| |
|---|
| Median (26 companies) | 16.5% | 18.7% | 16.8% | 15.9% | 20.0% |
|---|
| Fujikon Industrial Holdings Ltd ($927) | 15.0% | 17.6% | 20.3% | 17.1% | 14.4% |
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% | 4.9% | 4.5% | 4.5% | 5.7% |
|---|
| Fujikon Industrial Holdings Ltd ($927) | 6.0% | 7.9% | 10.5% | 6.7% | 3.2% |
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% | 1.3% |
| Skyworth Digital Holdings Ltd ($751) | 2.2% | 3.0% | 2.9% | 4.9% | 2.9% |
| |
|---|
| Median (26 companies) | 1.8% | 1.5% | 1.9% | 2.7% | 3.1% |
|---|
| Fujikon Industrial Holdings Ltd ($927) | 1.8% | 1.5% | 2.3% | 3.8% | 2.2% |
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% | 3.7% | 4.4% | 3.9% | 4.1% |
|---|
| Fujikon Industrial Holdings Ltd ($927) | 5.0% | 8.5% | 15.4% | 7.6% | 0.0% |
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 |
|---|
| Fujikon Industrial Holdings Ltd ($927) | -4.2x | -3.7x | -2.4x | -4.6x | -10.1x |
