WLS Holdings Ltd/Hong Kong reports 77.7% CAPEX growth and 22.0% Revenue growth
24/07/2015 • About WLS Holdings Ltd/Hong Kong (
$8021) • By InTwits
WLS Holdings Ltd/Hong Kong reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- WLS Holdings Ltd/Hong Kong doesn't have a profitable business model yet: FY2015 ROIC is -2.8%
- The company operates at negative EBITDA Margin: -0.7%
- WLS Holdings Ltd/Hong Kong spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -17.6%0
- WLS Holdings Ltd/Hong Kong has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.4%. At the same time it's in pair with industry average of 7.2%.
- CAPEX is quite volatile: 15.7 in FY2015, 8.8 in FY2014, 8.3 in FY2013, 6.9 in FY2012, 5.2 in FY2011
- The company has unprofitable business model: ROIC is at -2.8%
- It operates with high leverage: Net Debt/EBITDA is 83.1x while industry average is 1.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
WLS Holdings Ltd/Hong Kong ($8021) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 105.7 | 115.1 | 125.9 | 112.0 | 136.6 | 22.0% |
| Gross Profit | 19.5 | 20.8 | 19.2 | 9.7 | 17.8 | 82.9% |
| SG&A | | | | | 28.1 | |
| EBITDA | -25.2 | -9.1 | -8.9 | -60.5 | -0.9 | -98.4% |
| Net Income | -26.7 | 7.1 | -14.2 | -61.3 | -9.7 | -84.2% |
Balance Sheet
|
|---|
| Cash | 1.4 | 7.2 | 7.2 | 7.4 | 129.0 | 1,642.2% |
| Short Term Debt | 57.0 | 41.6 | 55.2 | 63.2 | 48.2 | -23.8% |
| Long Term Debt | 0.6 | 0.6 | 1.0 | 0.4 | 0.0 | -98.2% |
Cash flow
|
|---|
| Capex | 5.2 | 6.9 | 8.3 | 8.8 | 15.7 | 77.7% |
Ratios
|
|---|
| Revenue growth | -20.7% | 8.9% | 9.4% | -11.1% | 22.0% | |
| EBITDA growth | 259.2% | -64.0% | -1.5% | 577.5% | -98.4% | |
| Gross Margin | 18.4% | 18.0% | 15.3% | 8.7% | 13.0% | 4.3% |
| EBITDA Margin | -23.8% | -7.9% | -7.1% | -54.0% | -0.7% | 53.3% |
| Net Income Margin | -25.3% | 6.2% | -11.3% | -54.7% | -7.1% | 47.7% |
| SG&A, % of revenue | | | | | 20.6% | 20.6% |
| CAPEX, % of revenue | 4.9% | 6.0% | 6.6% | 7.9% | 11.5% | 3.6% |
| ROIC | -15.4% | -6.8% | -6.4% | -36.2% | -2.8% | 33.5% |
| ROE | -22.7% | 5.4% | -10.1% | -52.4% | -5.1% | 47.3% |
Revenue and profitability
The company's Revenue surged on 22.0% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.61 pp from 14.4% to 15.0% in 2015.
Gross Margin increased on 4.3 pp from 8.7% to 13.0% in FY2015.
Net Income marign surged on 47.7 pp from -54.7% to -7.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 11.5%. WLS Holdings Ltd/Hong Kong showed CAPEX/Revenue growth of 5.6 pp from 6.0% in FY2012 to 11.5% in FY2015. It's average level of CAPEX/Revenue for the last three years was 8.7%.
Return on investment
The company operates at negative ROIC (-2.76%) and ROE (-5.06%). ROIC surged on 33.5 pp from -36.2% to -2.8% in FY2015. ROE jumped on 47.3 pp from -52.4% to -5.1% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 83.1x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt dropped on 24.3% in FY2015 while cash surged on 1,642% in FY2015.
Appendix 1: Peers in Building Materials
Below you can find WLS Holdings Ltd/Hong Kong benchmarking vs. other companies in Building Materials 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 |
|---|
| Summit Ascent Holdings Ltd ($102) | -18.8% | -86.4% | -19.6% | 177.1% | |
| Pacific Plywood Hldg Ltd ($767) | | -34.9% | -14.5% | 119.5% | |
| Luoyang Glass Co Ltd ($1108) | -21.4% | -40.3% | -32.3% | 76.2% | |
| Prosperity International Holdings HK Ltd ($803) | | -23.9% | -43.3% | 55.2% | -34.4% |
| China Singyes Solar Technologies Holdings Ltd ($750) | 35.0% | 28.7% | 34.0% | 20.7% | |
| |
|---|
| Median (23 companies) | 33.2% | -4.2% | 9.7% | 6.0% | -62.0% |
|---|
| WLS Holdings Ltd/Hong Kong ($8021) | | 8.9% | 9.4% | -11.1% | 22.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 95.0% | 91.4% | 82.0% | 97.2% | |
| Dongpeng Holdings Co Ltd ($3386) | 28.7% | 35.6% | 37.1% | 38.5% | |
| Luks Group Vietnam Holdings Co Ltd ($366) | 37.6% | 37.2% | 36.9% | 37.0% | |
| Anhui Conch Cement Co Ltd ($914) | 39.4% | 27.3% | 32.5% | 33.2% | |
| China Resources Cement Holdings Ltd ($1313) | 31.1% | 24.1% | 28.5% | 31.3% | |
| |
|---|
| Median (23 companies) | 26.3% | 20.6% | 22.1% | 20.9% | 30.2% |
|---|
| WLS Holdings Ltd/Hong Kong ($8021) | 18.4% | 18.0% | 15.3% | 8.7% | 13.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 53.6% | 12.6% | -19.8% | 50.5% | |
| Anhui Conch Cement Co Ltd ($914) | 38.8% | 27.1% | 31.1% | 32.1% | |
| TCC International Holdings Ltd ($1136) | 26.5% | 19.2% | 26.1% | 29.0% | |
| Asia Cement China Holdings Corp ($743) | 30.3% | 20.6% | 24.9% | 27.0% | |
| China Tianrui Group Cement Co Ltd ($1252) | 32.4% | 28.5% | 23.7% | 26.7% | |
| |
|---|
| Median (23 companies) | 18.6% | 15.8% | 17.2% | 18.2% | -658.6% |
|---|
| WLS Holdings Ltd/Hong Kong ($8021) | -23.8% | -7.9% | -7.1% | -54.0% | -0.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Singyes Solar Technologies Holdings Ltd ($750) | 40.4% | 11.9% | 32.1% | 23.6% | |
| West China Cement Ltd ($2233) | 54.8% | 17.2% | 13.9% | 15.9% | |
| China Glass Holdings Ltd ($3300) | 37.2% | 19.6% | 12.5% | 12.4% | |
| China Shanshui Cement Group Ltd ($691) | 13.5% | 18.9% | 21.1% | 12.1% | |
| China Lesso Group Holdings Ltd ($2128) | 12.0% | 13.6% | 9.1% | 11.8% | |
| |
|---|
| Median (23 companies) | 6.9% | 9.8% | 8.6% | 5.5% | 0.2% |
|---|
| WLS Holdings Ltd/Hong Kong ($8021) | 4.9% | 6.0% | 6.6% | 7.9% | 11.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dongpeng Holdings Co Ltd ($3386) | 49.7% | 37.1% | 35.8% | 27.2% | |
| Anhui Conch Cement Co Ltd ($914) | 27.2% | 12.7% | 17.5% | 18.4% | |
| China Lesso Group Holdings Ltd ($2128) | 26.8% | 20.5% | 19.4% | 18.2% | |
| China Singyes Solar Technologies Holdings Ltd ($750) | 21.1% | 18.6% | 19.9% | 16.0% | |
| China Resources Cement Holdings Ltd ($1313) | 14.0% | 8.0% | 9.6% | 13.0% | |
| |
|---|
| Median (23 companies) | 13.3% | 5.8% | 6.9% | 5.6% | -25.1% |
|---|
| WLS Holdings Ltd/Hong Kong ($8021) | -15.4% | -6.8% | -6.4% | -36.2% | -2.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sustainable Forest Holdings Ltd ($723) | 0.9x | | | 9.6x | |
| China National Building Material Co Ltd ($3323) | 3.9x | 6.7x | 6.8x | 6.3x | |
| BBMG Corp ($2009) | 4.4x | 4.6x | 5.0x | 6.1x | |
| China Tianrui Group Cement Co Ltd ($1252) | 3.0x | 4.2x | 5.1x | 5.2x | |
| China Shanshui Cement Group Ltd ($691) | 1.8x | 3.0x | 4.1x | 4.8x | |
| |
|---|
| Median (20 companies) | 0.9x | 3.0x | 2.7x | 2.0x | |
|---|
