Top Form International Ltd EBITDA jumped on 78.7% in 2015 and EBITDA Margin increased on 2.3 pp from 3.1% to 5.4%
27/08/2015 • About Top Form International Ltd (
$333) • By InTwits
Top Form International Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 5.4% in FY2015, 3.1% in FY2014, 1.8% in FY2013, -2.5% in FY2012, 7.0% in FY2011
- Top Form International Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.3%. At the same time it's in pair with industry average of 6.2%.
- CAPEX is quite volatile: 17.9 in FY2015, 16.6 in FY2014, 20.3 in FY2013, 39.1 in FY2012, 39.4 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Top Form International Ltd ($333) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,340 | 1,132 | 1,054 | 1,132 | 1,170 | 3.4% |
| Gross Profit | 259 | 168 | 175 | 203 | 219 | 7.7% |
| SG&A | | | 165 | 163 | 167 | 2.1% |
| EBITDA | 94 | -28 | 19 | 36 | 64 | 78.7% |
| Net Income | 55 | -60 | -5 | 37 | 34 | -7.7% |
Balance Sheet
|
|---|
| Cash | 223 | 146 | 136 | 129 | 169 | 31.0% |
| Short Term Debt | 3 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 39 | 39 | 20 | 17 | 18 | 7.9% |
Ratios
|
|---|
| Revenue growth | -0.2% | -15.5% | -6.9% | 7.3% | 3.4% | |
| EBITDA growth | -22.4% | -129.8% | -168.9% | 83.2% | 78.7% | |
| Gross Margin | 19.3% | 14.9% | 16.6% | 18.0% | 18.7% | 0.8% |
| EBITDA Margin | 7.0% | -2.5% | 1.8% | 3.1% | 5.4% | 2.3% |
| Net Income Margin | 4.1% | -5.3% | -0.4% | 3.3% | 2.9% | -0.4% |
| SG&A, % of revenue | | | 15.6% | 14.4% | 14.2% | -0.2% |
| CAPEX, % of revenue | 2.9% | 3.5% | 1.9% | 1.5% | 1.5% | 0.1% |
| ROIC | 9.9% | -10.2% | -1.8% | 1.4% | 6.5% | 5.1% |
| ROE | 9.9% | -11.3% | -0.9% | 7.0% | 6.1% | -0.9% |
| Net Debt/EBITDA | -2.3x | | -7.0x | -3.6x | -2.7x | 1.0x |
Revenue and profitability
Top Form International Ltd's Revenue increased on 3.4% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.3 pp from 3.1% to 5.4% in FY2015.
Gross Margin increased slightly on 0.75 pp from 18.0% to 18.7% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
Top Form International Ltd's CAPEX/Revenue was 1.5% in FY2015. Top Form International Ltd's CAPEX/Revenue decreased slightly on 1.9 pp from 3.5% in FY2012 to 1.5% in FY2015. It's average CAPEX/Revenue for the last three years was 1.6%.
Return on investment
The company operates at low ROIC (6.49%) and ROE (6.13%). ROIC increased on 5.1 pp from 1.4% to 6.5% in FY2015. ROE decreased slightly on 0.88 pp from 7.0% to 6.1% in FY2015.
Leverage (Debt)
The company has no debt. Cash surged on 31.0% in FY2015.
Appendix 1: Peers in Apparel
Below we provide Top Form International 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) | | | | 144.2% | 14.7% |
| 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) | 25.6% | 5.3% | 1.0% | 4.2% | -0.5% |
|---|
| Top Form International Ltd ($333) | | -15.5% | -6.9% | 7.3% | 3.4% |
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% | 15.5% |
|---|
| Top Form International Ltd ($333) | 19.3% | 14.9% | 16.6% | 18.0% | 18.7% |
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) | 10.7% | 11.0% | 9.3% | 6.1% | 0.6% |
|---|
| Top Form International Ltd ($333) | 7.0% | -2.5% | 1.8% | 3.1% | 5.4% |
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% | 3.3% | 2.3% | 1.3% |
|---|
| Top Form International Ltd ($333) | 2.9% | 3.5% | 1.9% | 1.5% | 1.5% |
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) | 12.7% | 9.0% | 6.7% | 3.4% | -0.7% |
|---|
| Top Form International Ltd ($333) | 9.9% | -10.2% | -1.8% | 1.4% | 6.5% |
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 | -0.2x | -0.8x |
|---|
| Top Form International Ltd ($333) | -2.3x | | -7.0x | -3.6x | -2.7x |
