Allan International Holdings reports 20.0% EBITDA decline and 1.3 pp EBITDA Margin decline from 7.6% to 6.3%
26/06/2015 • About Allan International Holdings (
$684) • By InTwits
Allan International Holdings reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 6.3% in FY2015 vs. 7.6% in FY2014 vs. 10.2% in FY2011
- Allan International Holdings has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's a lot of higher than industry average of 3.2%.
- CAPEX is quite volatile: 29.3 in FY2015, 16.8 in FY2014, 50.9 in FY2013, 297 in FY2012, 73.3 in FY2011
- The company has potentially unprofitable business model: ROIC is at 4.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Allan International Holdings ($684) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,221 | 2,417 | 2,356 | 2,015 | 1,946 | -3.4% |
| Gross Profit | 367 | 312 | 284 | 245 | 221 | -9.5% |
| SG&A | 180 | 175 | 181 | 174 | 179 | 2.9% |
| EBITDA | 226 | 193 | 180 | 153 | 122 | -20.0% |
| Net Income | 161 | 127 | 109 | 83 | 70 | -15.5% |
Balance Sheet
|
|---|
| Cash | 316 | 358 | 299 | 538 | 406 | -24.6% |
| Short Term Debt | 1 | 34 | 54 | 47 | 26 | -43.4% |
| Long Term Debt | 0 | 146 | 92 | 65 | 52 | -20.7% |
Cash flow
|
|---|
| Capex | 73 | 297 | 51 | 17 | 29 | 74.3% |
Ratios
|
|---|
| Revenue growth | 22.0% | 8.8% | -2.5% | -14.5% | -3.4% | |
| EBITDA growth | -14.8% | -14.6% | -6.6% | -15.2% | -20.0% | |
| Gross Margin | 16.5% | 12.9% | 12.0% | 12.1% | 11.4% | -0.8% |
| EBITDA Margin | 10.2% | 8.0% | 7.6% | 7.6% | 6.3% | -1.3% |
| Net Income Margin | 7.3% | 5.3% | 4.6% | 4.1% | 3.6% | -0.5% |
| SG&A, % of revenue | 8.1% | 7.3% | 7.7% | 8.6% | 9.2% | 0.6% |
| CAPEX, % of revenue | 3.3% | 12.3% | 2.2% | 0.8% | 1.5% | 0.7% |
| ROIC | 22.2% | 13.2% | 8.8% | 6.1% | 4.1% | -1.9% |
| ROE | 20.0% | 14.2% | 11.2% | 8.1% | 6.6% | -1.5% |
| Net Debt/EBITDA | -1.4x | -0.9x | -0.8x | -2.8x | -2.7x | 0.1x |
Revenue and profitability
Allan International Holdings's Revenue decreased on 3.4% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.3 pp from 7.6% to 6.3% in FY2015.
Gross Margin decreased slightly on 0.76 pp from 12.1% to 11.4% in FY2015. SG&A as a % of Revenue increased slightly on 0.57 pp from 8.6% to 9.2% in FY2015.
Net Income marign decreased slightly on 0.52 pp from 4.1% to 3.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Allan International Holdings's CAPEX/Revenue was 1.5% in FY2015. Allan International Holdings showed big decline in CAPEX/Revenue of 10.8 pp from 12.3% in FY2012 to 1.5% in FY2015. It's average CAPEX/Revenue for the last three years was 1.5%.
Return on investment
The company operates at low ROIC (4.13%) and ROE (6.64%). ROIC decreased slightly on 1.9 pp from 6.1% to 4.1% in FY2015. ROE decreased slightly on 1.5 pp from 8.1% to 6.6% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.7x and Debt / EBITDA is 0.6x. Net Debt / EBITDA jumped on 0.1x from -2.8x to -2.7x in FY2015. Debt dropped on 30.2% in FY2015 while cash dropped on 24.6% in FY2015.
Appendix 1: Peers in Home Furnishings
Below we provide Allan International Holdings 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) | 21.6% | -0.2% | 7.8% | 3.0% | 0.9% |
|---|
| Allan International Holdings ($684) | | 8.8% | -2.5% | -14.5% | -3.4% |
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) | 16.4% | 18.9% | 18.2% | 16.7% | 17.7% |
|---|
| Allan International Holdings ($684) | 16.5% | 12.9% | 12.0% | 12.1% | 11.4% |
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% | 4.5% |
|---|
| Allan International Holdings ($684) | 10.2% | 8.0% | 7.6% | 7.6% | 6.3% |
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% | 2.8% | 3.0% |
|---|
| Allan International Holdings ($684) | 3.3% | 12.3% | 2.2% | 0.8% | 1.5% |
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% | 3.7% | 4.4% | 3.9% | 2.0% |
|---|
| Allan International Holdings ($684) | 22.2% | 13.2% | 8.8% | 6.1% | 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 | |
| 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 | -1.1x | -0.8x | -2.9x |
|---|
| Allan International Holdings ($684) | -1.4x | -0.9x | -0.8x | -2.8x | -2.7x |
