BEP International Holdings Ltd reports 188% revenue growth in FY2015 and 7.6 pp EBITDA Margin growth from -2.9% to 4.7%
29/06/2015 • About BEP International Holdings Ltd (
$2326) • By InTwits
BEP International Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- BEP International Holdings Ltd is a fast growth stock: FY2015 revenue growth was 188%, 5 year revenue CAGR was 74.9% at FY2015 ROIC 17.6%
- EBITDA Margin is quite volatile: 4.7% in FY2015, -2.9% in FY2014, 3.4% in FY2013, 6.6% in FY2012, 5.9% in FY2011
- BEP International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.1%.
- The company has highly profitable business model: ROIC is at 17.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
BEP International Holdings Ltd ($2326) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 177.9 | 257.5 | 150.6 | 220.2 | 634.0 | 187.9% |
| Gross Profit | 16.9 | 25.9 | 16.0 | 9.8 | 59.9 | 512.3% |
| SG&A | | | 12.3 | 15.5 | 34.5 | 123.0% |
| EBITDA | 10.6 | 17.0 | 5.2 | -6.4 | 29.8 | -563.2% |
| Net Income | 5.8 | 10.3 | 7.4 | -3.7 | 17.2 | -567.3% |
Balance Sheet
|
|---|
| Cash | 10.8 | 13.7 | 107.5 | 71.8 | 85.3 | 18.9% |
| Short Term Debt | 0.0 | 25.6 | 0.0 | 0.0 | 0.3 | |
| Long Term Debt | 24.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.3 | 0.2 | 0.1 | 0.2 | 0.5 | 146.7% |
Ratios
|
|---|
| Revenue growth | 359.9% | 44.7% | -41.5% | 46.2% | 187.9% | |
| EBITDA growth | -295.0% | 61.4% | -69.7% | -224.5% | -563.2% | |
| Gross Margin | 9.5% | 10.1% | 10.6% | 4.4% | 9.5% | 5.0% |
| EBITDA Margin | 5.9% | 6.6% | 3.4% | -2.9% | 4.7% | 7.6% |
| Net Income Margin | 3.3% | 4.0% | 4.9% | -1.7% | 2.7% | 4.4% |
| SG&A, % of revenue | | | 8.1% | 7.0% | 5.4% | -1.6% |
| CAPEX, % of revenue | 0.2% | 0.1% | 0.1% | 0.1% | 0.1% | -0.0% |
| ROIC | 218.9% | 90.3% | 4.7% | -4.5% | 17.6% | 22.1% |
| ROE | | | | -2.4% | 10.9% | 13.3% |
| Net Debt/EBITDA | 1.2x | 0.7x | -20.8x | | -2.9x | -2.9x |
Revenue and profitability
The company's Revenue jumped on 188% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.4 pp from 18.7% to 14.3% in 2015.
Gross Margin increased on 5.0 pp from 4.4% to 9.5% in FY2015. SG&A as a % of Revenue decreased slightly on 1.6 pp from 7.0% to 5.4% in FY2015.
Net Income marign increased on 4.4 pp from -1.7% to 2.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.077%. CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 0.075%.
Return on investment
The company operates at good ROIC (17.56%) while ROE is low (10.90%). ROIC surged on 22.1 pp from -4.5% to 17.6% in FY2015. ROE jumped on 13.3 pp from -2.4% to 10.9% in FY2015.
Leverage (Debt)
Debt level is -2.9x Net Debt / EBITDA and 0.0x Debt / EBITDA. Net Debt / EBITDA dropped2.9x from to -2.9x in FY2015. Debt surged while cash jumped on 18.9% in FY2015.
Appendix 1: Peers in Home Furnishings
Below we provide BEP International 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% | |
| 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% |
| Tonly Electronics Holdings Ltd ($1249) | 9.0% | -10.4% | 24.0% | 19.0% | |
| |
|---|
| Median (26 companies) | 19.1% | -0.2% | 7.8% | 1.1% | 0.1% |
|---|
| BEP International Holdings Ltd ($2326) | | 44.7% | -41.5% | 46.2% | 187.9% |
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% | 18.9% | 18.2% | 16.7% | 15.5% |
|---|
| BEP International Holdings Ltd ($2326) | 9.5% | 10.1% | 10.6% | 4.4% | 9.5% |
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) | 6.0% | 4.9% | 4.7% | 4.6% | 5.7% |
|---|
| BEP International Holdings Ltd ($2326) | 5.9% | 6.6% | 3.4% | -2.9% | 4.7% |
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% | 2.2% | 2.8% | 2.9% |
|---|
| BEP International Holdings Ltd ($2326) | 0.2% | 0.1% | 0.1% | 0.1% | 0.1% |
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% | 4.0% | 4.1% |
|---|
| BEP International Holdings Ltd ($2326) | 218.9% | 90.3% | 4.7% | -4.5% | 17.6% |
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 (20 companies) | 0.0x | -0.3x | -0.9x | -1.3x | -2.7x |
|---|
