Lisi Group Holdings Ltd Net Debt / EBITDA dropped on 27.2x from 36.8x to 9.6x in 2015 while Revenue surged on 47.9%
26/06/2015 • About Lisi Group Holdings Ltd (
$526) • By InTwits
Lisi Group Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Lisi Group Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is 1.8%
- EBITDA Margin is quite volatile: 10.0% in FY2015, 4.4% in FY2014, -0.3% in FY2013, 11.8% in FY2012, 11.7% in FY2011
- Lisi Group Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.1%. At the same time it's a lot of higher than industry average of 5.3%.
- CAPEX is quite volatile: 152 in FY2015, 47.9 in FY2014, 34.1 in FY2013, 27.9 in FY2012, 30.2 in FY2011
- The company has potentially unprofitable business model: ROIC is at 1.8%
- It operates with high leverage: Net Debt/EBITDA is 9.6x while industry average is -3.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Lisi Group Holdings Ltd ($526) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 384 | 394 | 301 | 783 | 1,158 | 47.9% |
| Gross Profit | 86 | 96 | 60 | 153 | 260 | 69.9% |
| SG&A | 69 | 76 | 80 | 160 | 195 | 21.8% |
| EBITDA | 45 | 46 | -1 | 35 | 115 | 233.6% |
| Net Income | 10 | 6 | -32 | 963 | 82 | -91.5% |
Balance Sheet
|
|---|
| Cash | 15 | 11 | 9 | 55 | 135 | 146.1% |
| Short Term Debt | 41 | 85 | 172 | 773 | 787 | 1.9% |
| Long Term Debt | 102 | 82 | 0 | 553 | 451 | -18.3% |
Cash flow
|
|---|
| Capex | 30 | 28 | 34 | 48 | 152 | 217.3% |
Ratios
|
|---|
| Revenue growth | 52.0% | 2.5% | -23.5% | 160.0% | 47.9% | |
| EBITDA growth | 62.6% | 3.3% | -101.8% | -4,208.0% | 233.6% | |
| Gross Margin | 22.4% | 24.5% | 20.0% | 19.6% | 22.5% | 2.9% |
| EBITDA Margin | 11.7% | 11.8% | -0.3% | 4.4% | 10.0% | 5.5% |
| Net Income Margin | 2.7% | 1.5% | -10.6% | 123.0% | 7.1% | -115.9% |
| SG&A, % of revenue | 17.9% | 19.3% | 26.5% | 20.5% | 16.9% | -3.6% |
| CAPEX, % of revenue | 7.9% | 7.1% | 11.3% | 6.1% | 13.1% | 7.0% |
| ROIC | 8.0% | 6.4% | -4.7% | 0.1% | 1.8% | 1.7% |
| ROE | 7.7% | 2.9% | -16.3% | 110.7% | 5.1% | -105.5% |
| Net Debt/EBITDA | 2.9x | 3.4x | | 36.8x | 9.6x | -27.2x |
Revenue and profitability
Lisi Group Holdings Ltd's Revenue jumped on 47.9% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 11.0 pp from 37.6% to 26.7% in 2015.
Gross Margin increased on 2.9 pp from 19.6% to 22.5% in FY2015. SG&A as a % of Revenue decreased on 3.6 pp from 20.5% to 16.9% in FY2015.
Net Income marign dropped on 116 pp from 123% to 7.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Lisi Group Holdings Ltd's CAPEX/Revenue was 13.1% in FY2015. CAPEX/Revenue increased on 6.0 pp from 7.1% in FY2012 to 13.1% in FY2015. Average CAPEX/Revenue for the last three years was 10.2%.To fuel this fast growth Lisi Group Holdings Ltd made large investments to CAPEX (132% of EBITDA).
Return on investment
The company operates at low ROIC (1.81%) and ROE (5.14%). ROIC increased slightly on 1.7 pp from 0.087% to 1.8% in FY2015. ROE dropped on 106 pp from 111% to 5.1% in FY2015.
Leverage (Debt)
Debt level is 9.6x Net Debt / EBITDA and 10.7x Debt / EBITDA. Net Debt / EBITDA dropped on 27.2x from 36.8x to 9.6x in FY2015. Debt decreased on 6.6% in FY2015 while cash jumped on 146% in FY2015.
Appendix 1: Peers in Household Products/Wares
Below we provide Lisi Group Holdings Ltd benchmarking against other companies in Household Products/Wares 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 |
|---|
| Goodbaby International Holdings Ltd ($1086) | 5.9% | 15.5% | -8.0% | 46.0% | |
| Tempus Holdings Ltd ($6880) | -27.6% | 17.3% | 5.5% | 31.1% | |
| Samsonite International SA ($1910) | 28.8% | 13.2% | 15.0% | 15.4% | |
| eForce Holdings Ltd ($943) | -3.2% | 9.1% | 11.0% | 11.3% | |
| Carpenter Tan Holdings Ltd ($837) | 28.8% | 11.5% | 3.3% | 6.2% | |
| |
|---|
| Median (8 companies) | 5.9% | 12.3% | 4.6% | 8.7% | -5.2% |
|---|
| Lisi Group Holdings Ltd ($526) | | 2.5% | -23.5% | 160.0% | 47.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Carpenter Tan Holdings Ltd ($837) | 68.4% | 66.9% | 67.0% | 65.8% | |
| Tempus Holdings Ltd ($6880) | 71.5% | 68.4% | 64.8% | 64.6% | |
| Biostime International Holdings Ltd ($1112) | 66.5% | 65.9% | 65.2% | 61.9% | |
| Samsonite International SA ($1910) | 54.8% | 53.7% | 53.4% | 52.9% | |
| eForce Holdings Ltd ($943) | 14.0% | 21.2% | 24.3% | 25.6% | |
| |
|---|
| Median (8 companies) | 37.7% | 37.7% | 38.8% | 39.3% | 13.8% |
|---|
| Lisi Group Holdings Ltd ($526) | 22.4% | 24.5% | 20.0% | 19.6% | 22.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Carpenter Tan Holdings Ltd ($837) | 52.8% | 49.0% | 48.1% | 48.6% | |
| Biostime International Holdings Ltd ($1112) | 30.0% | 30.4% | 27.6% | 24.3% | |
| Lerado Group Holding Co Ltd ($1225) | 6.6% | 8.6% | 25.2% | 20.9% | |
| Samsonite International SA ($1910) | 15.9% | 15.9% | 16.0% | 14.9% | |
| Goodbaby International Holdings Ltd ($1086) | 5.8% | 7.1% | 7.4% | 4.9% | |
| |
|---|
| Median (8 companies) | 15.2% | 12.9% | 11.7% | 9.9% | 3.7% |
|---|
| Lisi Group Holdings Ltd ($526) | 11.7% | 11.8% | -0.3% | 4.4% | 10.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lerado Group Holding Co Ltd ($1225) | 4.3% | 3.0% | 75.4% | 18.8% | |
| Samsonite International SA ($1910) | 2.4% | 2.1% | 2.8% | 3.0% | |
| Biostime International Holdings Ltd ($1112) | 1.8% | 1.2% | 3.0% | 2.8% | |
| Tempus Holdings Ltd ($6880) | 1.0% | 0.9% | 4.0% | 2.8% | |
| Goodbaby International Holdings Ltd ($1086) | 3.9% | 2.9% | 2.8% | 2.6% | |
| |
|---|
| Median (8 companies) | 2.3% | 1.8% | 2.8% | 2.7% | 1.8% |
|---|
| Lisi Group Holdings Ltd ($526) | 7.9% | 7.1% | 11.3% | 6.1% | 13.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biostime International Holdings Ltd ($1112) | 34.3% | 41.7% | 39.9% | 24.7% | |
| Samsonite International SA ($1910) | 18.5% | 20.8% | 21.8% | 21.1% | |
| Carpenter Tan Holdings Ltd ($837) | 35.2% | 30.3% | 24.6% | 20.7% | |
| Goodbaby International Holdings Ltd ($1086) | 7.3% | 10.7% | 8.8% | 3.9% | |
| Tempus Holdings Ltd ($6880) | 34.9% | 18.2% | 1.3% | 2.5% | |
| |
|---|
| Median (8 companies) | 18.7% | 14.5% | 7.7% | 3.2% | 1.1% |
|---|
| Lisi Group Holdings Ltd ($526) | 8.0% | 6.4% | -4.7% | 0.1% | 1.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goodbaby International Holdings Ltd ($1086) | -2.0x | -1.3x | -0.5x | 5.9x | |
| Biostime International Holdings Ltd ($1112) | -2.3x | -0.4x | -0.0x | -0.0x | |
| Samsonite International SA ($1910) | -0.5x | -0.4x | -0.6x | -0.2x | |
| Carpenter Tan Holdings Ltd ($837) | -1.9x | -2.5x | -2.1x | -0.9x | |
| Tempus Holdings Ltd ($6880) | -2.0x | -5.2x | -25.8x | -14.3x | |
| |
|---|
| Median (6 companies) | -1.9x | -0.8x | -0.6x | -0.5x | -2.4x |
|---|
| Lisi Group Holdings Ltd ($526) | 2.9x | 3.4x | | 36.8x | 9.6x |
