Elegance Optical International Holdings Ltd revenue dropped on 30.6% in 2015 and EBITDA Margin dropped on 13.7 pp from -11.0% to -24.7%
26/06/2015 • About Elegance Optical International Holdings Ltd (
$907) • By InTwits
Elegance Optical International Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Elegance Optical International Holdings Ltd is a company in decline: FY2015 revenue growth was -30.6%, 5 years revenue CAGR was -9.4%
- The company operates at negative EBITDA Margin: -24.7%
- Elegance Optical International Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -6.7% for the sames years0
- Elegance Optical International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.1%. At the same time it's in pair with industry average of 5.9%.
- CAPEX is quite volatile: 3.8 in 2015, 13.0 in 2014, 12.3 in 2013, 8.3 in 2012, 5.0 in 2011
- The company has unprofitable business model: ROIC is at -22.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Elegance Optical International Holdings Ltd ($907) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 505.4 | 431.2 | 361.5 | 377.2 | 261.7 | -30.6% |
| Gross Profit | 57.6 | 1.8 | 0.8 | 2.6 | -10.6 | -513.8% |
| SG&A | | | 68.5 | 71.7 | 70.9 | -1.1% |
| EBITDA | 31.6 | -22.6 | -33.5 | -41.5 | -64.5 | 55.6% |
| Net Income | 2.7 | -11.3 | -59.7 | -68.3 | -84.2 | 23.3% |
Balance Sheet
|
|---|
| Cash | 112.1 | 162.3 | 93.0 | 42.3 | 41.0 | -3.2% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 35.9 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 20.8 | 13.5 | 19.1 | 17.4 | 8.9 | -48.5% |
Ratios
|
|---|
| Revenue growth | 17.8% | -14.7% | -16.2% | 4.4% | -30.6% | |
| EBITDA growth | -28.4% | -171.6% | 48.2% | 23.7% | 55.6% | |
| Gross Margin | 11.4% | 0.4% | 0.2% | 0.7% | -4.1% | -4.7% |
| EBITDA Margin | 6.3% | -5.2% | -9.3% | -11.0% | -24.7% | -13.7% |
| Net Income Margin | 0.5% | -2.6% | -16.5% | -18.1% | -32.2% | -14.1% |
| SG&A, % of revenue | | | 18.9% | 19.0% | 27.1% | 8.1% |
| CAPEX, % of revenue | 4.1% | 3.1% | 5.3% | 4.6% | 3.4% | -1.2% |
| ROIC | 0.2% | -10.0% | -13.1% | -16.6% | -22.3% | -5.7% |
| ROE | 0.5% | -2.3% | -13.1% | -17.4% | -23.5% | -6.1% |
| Net Debt/EBITDA | -3.5x | | | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 30.6% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 13.7 pp from -11.0% to -24.7% in FY2015.
Gross Margin decreased on 4.7 pp from 0.68% to -4.1% in FY2015. SG&A as a % of Revenue increased on 8.1 pp from 19.0% to 27.1% in FY2015.
Net Income marign dropped on 14.1 pp from -18.1% to -32.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Elegance Optical International Holdings Ltd's CAPEX/Revenue was 3.4% in FY2015. Elegance Optical International Holdings Ltd's CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 4.4%.
Return on investment
The company operates at negative ROIC (-22.34%) and ROE (-23.55%). ROIC decreased on 5.7 pp from -16.6% to -22.3% in FY2015. ROE decreased on 6.1 pp from -17.4% to -23.5% in FY2015.
Leverage (Debt)
Debt level is -3.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt jumped while cash decreased on 3.2% in FY2015.
Appendix 1: Peers in Healthcare-Products
Below you can find Elegance Optical International Holdings Ltd benchmarking vs. other companies in Healthcare-Products 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 |
|---|
| Microport Scientific Corp ($853) | 20.9% | 13.5% | 2.8% | 134.3% | |
| PW Medtech Group Ltd ($1358) | 188.2% | 89.2% | 37.9% | 33.0% | |
| China Medical System Holdings Ltd ($867) | 52.0% | 30.8% | 26.5% | 31.0% | |
| Lifetech Scientific Corp ($1302) | 34.0% | 29.3% | 27.3% | 22.4% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 29.2% | 16.0% | 25.1% | 14.4% | |
| |
|---|
| Median (14 companies) | 21.0% | 13.5% | 16.0% | 10.8% | -22.4% |
|---|
| Elegance Optical International Holdings Ltd ($907) | | -14.7% | -16.2% | 4.4% | -30.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lifetech Scientific Corp ($1302) | 80.5% | 80.1% | 81.6% | 81.4% | |
| PW Medtech Group Ltd ($1358) | 62.3% | 66.0% | 67.9% | 72.8% | |
| Golden Meditech Holdings Ltd ($801) | 57.5% | 69.1% | 69.8% | 70.2% | |
| Microport Scientific Corp ($853) | 83.7% | 83.6% | 81.0% | 68.5% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 55.3% | 57.3% | 59.1% | 58.8% | |
| |
|---|
| Median (14 companies) | 55.3% | 50.2% | 52.9% | 48.2% | 15.9% |
|---|
| Elegance Optical International Holdings Ltd ($907) | 11.4% | 0.4% | 0.2% | 0.7% | -4.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PW Medtech Group Ltd ($1358) | 42.3% | 44.2% | 30.6% | 41.6% | |
| China Medical System Holdings Ltd ($867) | 31.6% | 34.5% | 32.4% | 39.4% | |
| Golden Meditech Holdings Ltd ($801) | 42.5% | 41.4% | 37.9% | 29.8% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 31.3% | 28.5% | 28.0% | 29.0% | |
| Hengan International Group Co Ltd ($1044) | 20.8% | 27.4% | 25.3% | 25.3% | |
| |
|---|
| Median (14 companies) | 20.8% | 22.8% | 22.2% | 13.6% | -18.6% |
|---|
| Elegance Optical International Holdings Ltd ($907) | 6.3% | -5.2% | -9.3% | -11.0% | -24.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PW Medtech Group Ltd ($1358) | 21.1% | 14.8% | 22.3% | 30.2% | |
| Golden Meditech Holdings Ltd ($801) | 9.5% | 12.7% | 51.2% | 27.3% | |
| Microport Scientific Corp ($853) | 18.5% | 31.6% | 27.9% | 15.0% | |
| Arts Optical International Hldgs ($1120) | 5.6% | 14.0% | 4.5% | 14.0% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 41.7% | 26.0% | 20.2% | 11.7% | |
| |
|---|
| Median (14 companies) | 9.5% | 8.2% | 6.6% | 5.9% | 2.3% |
|---|
| Elegance Optical International Holdings Ltd ($907) | 4.1% | 3.1% | 5.3% | 4.6% | 3.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Medical System Holdings Ltd ($867) | 19.7% | 19.4% | 20.2% | 27.4% | |
| Lifetech Scientific Corp ($1302) | 13.0% | 17.5% | 15.9% | 21.2% | |
| Hengan International Group Co Ltd ($1044) | 16.9% | 19.5% | 14.9% | 14.0% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 14.6% | 10.5% | 11.7% | 12.8% | |
| PW Medtech Group Ltd ($1358) | 30.9% | 30.7% | 9.2% | 10.0% | |
| |
|---|
| Median (14 companies) | 13.1% | 8.5% | 7.4% | 5.3% | -6.7% |
|---|
| Elegance Optical International Holdings Ltd ($907) | 0.2% | -10.0% | -13.1% | -16.6% | -22.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Fortune Investments Holdings Ltd ($8116) | 18.2x | | 2.9x | 93.0x | |
| Techcomp Holdings Ltd ($1298) | 1.7x | 4.3x | 3.6x | 2.7x | |
| Hengan International Group Co Ltd ($1044) | 0.9x | 1.4x | 1.7x | 1.8x | |
| China Medical System Holdings Ltd ($867) | -0.8x | -0.4x | -0.2x | 0.2x | |
| PW Medtech Group Ltd ($1358) | -0.8x | -1.2x | -7.5x | -0.3x | |
| |
|---|
| Median (11 companies) | -1.0x | -1.1x | -1.5x | -1.5x | -2.9x |
|---|
