Sitoy Group Holdings Ltd EBITDA dropped on 20.8% in 2015 and Revenue dropped on 12.4%
14/09/2015 • About Sitoy Group Holdings Ltd (
$1023) • By InTwits
Sitoy Group Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sitoy Group Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.5%. At the same time it's in pair with industry average of 3.5%.
- CAPEX is quite volatile: 317 in FY2015, 439 in FY2014, 961 in FY2013, 364 in FY2012, 1,151 in FY2011
- The company has highly profitable business model: ROIC is at 22.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sitoy Group Holdings Ltd ($1023) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,493 | 3,338 | 3,360 | 3,857 | 3,380 | -12.4% |
| Gross Profit | 553 | 741 | 785 | 1,004 | 883 | -12.0% |
| SG&A | | 298 | 330 | 389 | 426 | 9.6% |
| EBITDA | 375 | 486 | 527 | 666 | 528 | -20.8% |
| Net Income | 302 | 381 | 400 | 504 | 412 | -18.3% |
Balance Sheet
|
|---|
| Cash | 80 | 747 | 835 | 1,362 | 1,323 | -2.9% |
| Short Term Debt | 106 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 96 | 70 | 104 | 75 | 50 | -32.7% |
Ratios
|
|---|
| Revenue growth | 44.4% | 33.9% | 0.7% | 14.8% | -12.4% | |
| EBITDA growth | 75.1% | 29.7% | 8.4% | 26.3% | -20.8% | |
| Gross Margin | 22.2% | 22.2% | 23.3% | 26.0% | 26.1% | 0.1% |
| EBITDA Margin | 15.0% | 14.6% | 15.7% | 17.3% | 15.6% | -1.7% |
| Net Income Margin | 12.1% | 11.4% | 11.9% | 13.1% | 12.2% | -0.9% |
| SG&A, % of revenue | | 8.9% | 9.8% | 10.1% | 12.6% | 2.5% |
| CAPEX, % of revenue | 3.9% | 2.1% | 3.1% | 1.9% | 1.5% | -0.4% |
| ROIC | 62.1% | 39.3% | 28.7% | 31.8% | 22.0% | -9.8% |
| ROE | 85.1% | 36.8% | 24.1% | 27.1% | 20.1% | -7.0% |
| Net Debt/EBITDA | 0.1x | -1.5x | -1.6x | -2.0x | -2.5x | -0.5x |
Revenue and profitability
The company's Revenue dropped on 12.4% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.1 pp from 42.3% to 45.4% in FY2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue increased on 2.5 pp from 10.1% to 12.6% in FY2015.
Net Income marign decreased slightly on 0.89 pp from 13.1% to 12.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Sitoy Group Holdings Ltd's CAPEX/Revenue was 1.5% in FY2015. The company's CAPEX/Revenue decreased slightly on 0.60 pp from 2.1% in FY2012 to 1.5% in FY2015. For the last three years the average CAPEX/Revenue was 2.2%.
Return on investment
The company operates at high and attractive ROIC (22.03%) and ROE (20.09%). ROIC decreased on 9.8 pp from 31.8% to 22.0% in FY2015. ROE decreased on 7.0 pp from 27.1% to 20.1% in FY2015.
Leverage (Debt)
The company has no debt. Cash decreased on 2.9% in FY2015.
Appendix 1: Peers in Apparel
Below we provide Sitoy Group 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) | | | | 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) | 23.7% | 5.1% | 1.0% | 4.2% | -0.0% |
|---|
| Sitoy Group Holdings Ltd ($1023) | | 33.9% | 0.7% | 14.8% | -12.4% |
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% | 22.9% | 22.1% | 16.5% |
|---|
| Sitoy Group Holdings Ltd ($1023) | 22.2% | 22.2% | 23.3% | 26.0% | 26.1% |
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% | 1.8% |
|---|
| Sitoy Group Holdings Ltd ($1023) | 15.0% | 14.6% | 15.7% | 17.3% | 15.6% |
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% | 3.2% | 2.3% | 1.3% |
|---|
| Sitoy Group Holdings Ltd ($1023) | 3.9% | 2.1% | 3.1% | 1.9% | 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% |
| 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% | |
| Fuguiniao Co Ltd ($1819) | 27.8% | 34.1% | 31.6% | 22.9% | |
| |
|---|
| Median (46 companies) | 11.5% | 8.6% | 6.7% | 3.0% | -0.1% |
|---|
| Sitoy Group Holdings Ltd ($1023) | 62.1% | 39.3% | 28.7% | 31.8% | 22.0% |
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 | -0.2x | -0.7x | -0.2x | -1.3x |
|---|
| Sitoy Group Holdings Ltd ($1023) | 0.1x | -1.5x | -1.6x | -2.0x | -2.5x |
