Eagle Nice International Holdings Ltd reports 381% Net Income growth and 2.2% Revenue growth
27/06/2015 • About Eagle Nice International Holdings Ltd (
$2368) • By InTwits
Eagle Nice International Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Eagle Nice International Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.7%. At the same time it's a lot of higher than industry average of 3.5%.
- CAPEX is quite volatile: 18.9 in FY2015, 20.5 in FY2014, 79.6 in FY2013, 247 in FY2012, 272 in FY2011
- The company has business model with low profitability: ROIC is at 10.0%
- It operates with high leverage: Net Debt/EBITDA is -0.1x while industry average is -0.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Eagle Nice International Holdings Ltd ($2368) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,165 | 1,446 | 1,444 | 1,484 | 1,517 | 2.2% |
| Gross Profit | 276 | 297 | 250 | 195 | 266 | 36.6% |
| SG&A | | | 153 | 157 | 138 | -11.8% |
| EBITDA | 183 | 193 | 162 | 112 | 200 | 78.8% |
| Net Income | 131 | 120 | 73 | 22 | 105 | 380.9% |
Balance Sheet
|
|---|
| Cash | 183 | 342 | 309 | 277 | 255 | -7.7% |
| Short Term Debt | 0 | 419 | 388 | 340 | 238 | -30.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 272 | 247 | 80 | 21 | 19 | -7.7% |
Ratios
|
|---|
| Revenue growth | 9.8% | 24.1% | -0.1% | 2.8% | 2.2% | |
| EBITDA growth | -15.6% | 5.6% | -16.0% | -31.1% | 78.8% | |
| Gross Margin | 23.7% | 20.5% | 17.3% | 13.1% | 17.5% | 4.4% |
| EBITDA Margin | 15.7% | 13.4% | 11.2% | 7.5% | 13.2% | 5.6% |
| Net Income Margin | 11.3% | 8.3% | 5.1% | 1.5% | 6.9% | 5.5% |
| SG&A, % of revenue | | | 10.6% | 10.6% | 9.1% | -1.4% |
| CAPEX, % of revenue | 23.4% | 17.1% | 5.5% | 1.4% | 1.2% | -0.1% |
| ROIC | 14.8% | 11.7% | 6.7% | 3.4% | 10.0% | 6.6% |
| ROE | 14.2% | 11.9% | 7.0% | 2.2% | 10.0% | 7.9% |
| Net Debt/EBITDA | -1.0x | 0.4x | 0.5x | 0.6x | -0.1x | -0.7x |
Revenue and profitability
Eagle Nice International Holdings Ltd's Revenue increased on 2.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.9 pp from 7.5% to 9.4% in 2015.
Gross Margin increased on 4.4 pp from 13.1% to 17.5% in FY2015. SG&A as a % of Revenue decreased slightly on 1.4 pp from 10.6% to 9.1% in FY2015.
Net Income marign increased on 5.5 pp from 1.5% to 6.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 1.2%. The company showed big decline in CAPEX/Revenue of 15.8 pp from 17.1% in FY2012 to 1.2% in FY2015. It's average level of CAPEX/Revenue for the last three years was 2.7%.
Return on investment
The company operates at low ROIC (10.00%) and ROE (10.02%). ROIC increased on 6.6 pp from 3.4% to 10.0% in FY2015. ROE increased on 7.9 pp from 2.2% to 10.0% in FY2015.
Leverage (Debt)
Debt level is -0.1x Net Debt / EBITDA and 1.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.7x from 0.6x to -0.1x in FY2015. Debt dropped on 30.0% in FY2015 while cash decreased on 7.7% in FY2015.
Appendix 1: Peers in Apparel
Below we provide Eagle Nice International Holdings Ltd benchmarking against other companies in Apparel 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 |
|---|
| Ares Asia Ltd ($645) | 60.9% | | | 144.2% | |
| Texhong Textile Group Ltd ($2678) | 25.6% | 6.8% | 12.1% | 27.2% | |
| Win Hanverky Holdings Ltd ($3322) | 11.5% | -7.5% | -0.3% | 21.1% | |
| Symphony Holdings Ltd/Hong Kong ($1223) | 27.3% | -94.0% | 46.8% | 20.4% | |
| L & A International Holdings Ltd/ Hong Kong ($8387) | 33.1% | 27.9% | 7.9% | 20.4% | |
| |
|---|
| Median (46 companies) | 21.7% | 5.1% | 1.0% | 5.3% | -6.9% |
|---|
| Eagle Nice International Holdings Ltd ($2368) | | 24.1% | -0.1% | 2.8% | 2.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prada SpA ($1913) | 67.8% | 71.5% | 72.1% | 73.8% | 71.8% |
| China Outfitters Holdings Ltd ($1146) | 76.1% | 74.9% | 74.3% | 70.0% | |
| C.banner International Holdings Ltd ($1028) | 63.5% | 63.3% | 62.0% | 63.4% | |
| S Culture International Holdings Ltd ($1255) | 62.8% | 64.7% | 63.7% | 62.9% | |
| Crocodile Garments ($122) | 65.5% | 64.7% | 60.7% | 60.4% | |
| |
|---|
| Median (45 companies) | 24.4% | 24.6% | 23.0% | 24.6% | 18.3% |
|---|
| Eagle Nice International Holdings Ltd ($2368) | 23.7% | 20.5% | 17.3% | 13.1% | 17.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HOSA International Ltd ($2200) | 46.3% | 44.4% | 42.2% | 37.6% | |
| Prada SpA ($1913) | 25.9% | 29.6% | 31.7% | 31.7% | 26.8% |
| China Lilang Ltd ($1234) | 26.7% | 26.3% | 26.9% | 29.4% | |
| Cabbeen Fashion Ltd ($2030) | 16.0% | 25.0% | 29.7% | 28.4% | |
| Fuguiniao Co Ltd ($1819) | 22.2% | 24.5% | 26.1% | 26.7% | |
| |
|---|
| Median (46 companies) | 10.1% | 10.0% | 8.7% | 5.5% | -1.2% |
|---|
| Eagle Nice International Holdings Ltd ($2368) | 15.7% | 13.4% | 11.2% | 7.5% | 13.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prada SpA ($1913) | 9.2% | 9.7% | 10.6% | 15.3% | 10.2% |
| Symphony Holdings Ltd/Hong Kong ($1223) | 14.9% | 136.9% | 70.3% | 13.5% | |
| Mascotte Holdings Ltd ($136) | 0.4% | 74.2% | 45.0% | 12.2% | 0.6% |
| Addchance Holdings Ltd ($3344) | 12.2% | 8.6% | 9.3% | 10.9% | |
| Active Group Holdings Ltd ($1096) | 1.3% | 17.4% | 3.5% | 10.7% | |
| |
|---|
| Median (46 companies) | 1.9% | 2.2% | 3.0% | 2.3% | 1.1% |
|---|
| Eagle Nice International Holdings Ltd ($2368) | 23.4% | 17.1% | 5.5% | 1.4% | 1.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prada SpA ($1913) | 24.6% | 32.1% | 37.4% | 34.0% | 21.9% |
| Sitoy Group Holdings Ltd ($1023) | 62.1% | 39.3% | 28.7% | 31.8% | |
| HOSA International Ltd ($2200) | 44.2% | 34.6% | 32.0% | 28.2% | |
| Miko International Holdings Ltd ($1247) | 75.1% | 60.9% | 48.8% | 27.3% | |
| Cabbeen Fashion Ltd ($2030) | 25.7% | 32.3% | 32.9% | 26.5% | |
| |
|---|
| Median (46 companies) | 11.5% | 8.6% | 6.7% | 3.0% | -3.9% |
|---|
| Eagle Nice International Holdings Ltd ($2368) | 14.8% | 11.7% | 6.7% | 3.4% | 10.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| High Fashion International Ltd ($608) | 4.9x | 16.7x | 27.7x | 11.2x | |
| Citychamp Watch & Jewellery Group Ltd ($256) | -0.9x | 0.6x | 0.4x | 2.6x | |
| S Culture International Holdings Ltd ($1255) | 0.8x | 1.4x | 0.7x | 2.4x | |
| UKF Holdings Ltd ($1468) | 0.9x | 1.2x | -3.2x | 2.4x | 0.4x |
| Texhong Textile Group Ltd ($2678) | 3.9x | 1.4x | 1.3x | 2.3x | |
| |
|---|
| Median (32 companies) | -0.9x | -0.3x | -0.7x | -0.4x | -0.2x |
|---|
| Eagle Nice International Holdings Ltd ($2368) | -1.0x | 0.4x | 0.5x | 0.6x | -0.1x |
