See Corp Ltd EBITDA dropped on 353% in 2015 and EBITDA Margin dropped on 67.6 pp from 32.0% to -35.6%
23/09/2015 • About See Corp Ltd (
$491) • By InTwits
See Corp Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- See Corp Ltd doesn't have a profitable business model yet: FY2015 ROIC is -9.3%
- The company operates at negative EBITDA Margin: -35.6%
- See Corp Ltd 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 -26.8%0
- See Corp Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's a lot of higher than industry average of 11.2%.
- CAPEX is quite volatile: 3.5 in FY2015, 0.14 in FY2014, 0.090 in FY2013, 1.0 in FY2012, 0.43 in FY2011
- The company has unprofitable business model: ROIC is at -9.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
See Corp Ltd ($491) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 30.0 | 34.1 | 23.3 | 54.4 | 123.5 | 126.9% |
| Gross Profit | 10.9 | 12.0 | 9.4 | 12.1 | 25.6 | 112.4% |
| SG&A | | | 29.7 | 36.5 | 39.4 | 7.9% |
| EBITDA | -17.6 | -13.1 | -13.8 | 17.4 | -44.0 | -352.6% |
| Net Income | -52.4 | 30.9 | -52.8 | -66.8 | -75.1 | 12.4% |
Balance Sheet
|
|---|
| Cash | 103.0 | 87.7 | 33.2 | 398.2 | 411.5 | 3.3% |
| Short Term Debt | 10.0 | 9.9 | 10.0 | 10.0 | 3.0 | -69.8% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.4 | 1.0 | 0.1 | 0.1 | 3.5 | 2,385.7% |
Ratios
|
|---|
| Revenue growth | -58.7% | 13.7% | -31.9% | 134.1% | 126.9% | |
| EBITDA growth | -212.2% | -25.6% | 5.7% | -225.7% | -352.6% | |
| Gross Margin | 36.2% | 35.0% | 40.4% | 22.2% | 20.8% | -1.4% |
| EBITDA Margin | -58.7% | -38.4% | -59.5% | 32.0% | -35.6% | -67.6% |
| Net Income Margin | -174.5% | 90.4% | -227.2% | -122.8% | -60.8% | 61.9% |
| SG&A, % of revenue | | | 127.9% | 67.1% | 31.9% | -35.2% |
| CAPEX, % of revenue | 1.4% | 3.0% | 0.4% | 0.3% | 2.8% | 2.6% |
| ROIC | -7.6% | -9.5% | -8.4% | -5.9% | -9.3% | -3.4% |
| ROE | -18.2% | 10.5% | -18.6% | -17.6% | -10.8% | 6.8% |
| Net Debt/EBITDA | | | | -22.3x | | 22.3x |
Revenue and profitability
The company's Revenue surged on 127% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 370 pp from -32.5% to -402% in 2015.
Gross Margin decreased slightly on 1.4 pp from 22.2% to 20.8% in FY2015. SG&A as a % of Revenue dropped on 35.2 pp from 67.1% to 31.9% in FY2015.
Net Income marign surged on 61.9 pp from -123% to -60.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 2.8%. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 1.2%.
Return on investment
The company operates at negative ROIC (-9.28%) and ROE (-10.85%). ROIC decreased on 3.4 pp from -5.9% to -9.3% in FY2015. ROE increased on 6.8 pp from -17.6% to -10.8% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.7x and Debt / EBITDA is . Net Debt / EBITDA jumped on 22.3x from -22.3x to in FY2015. Debt dropped on 69.8% in FY2015 while cash increased on 3.3% in FY2015.
Appendix 1: Peers in Home Furnishings
Below we provide See Corp 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% | |
| BEP International Holdings Ltd ($2326) | | 44.7% | -41.5% | 46.2% | 187.9% |
| 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) | 21.6% | -0.2% | 7.8% | 1.1% | 0.9% |
|---|
| See Corp Ltd ($491) | | 13.7% | -31.9% | 134.1% | 126.9% |
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) | 16.4% | 17.3% | 16.8% | 15.9% | 14.9% |
|---|
| See Corp Ltd ($491) | 36.2% | 35.0% | 40.4% | 22.2% | 20.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | |
| Mastercraft International Holdings Ltd ($8146) | 7.6% | 7.4% | 8.2% | 8.5% | |
| |
|---|
| Median (26 companies) | 6.0% | 5.5% | 4.7% | 4.5% | 5.2% |
|---|
| See Corp Ltd ($491) | -58.7% | -38.4% | -59.5% | 32.0% | -35.6% |
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% | 2.6% |
|---|
| See Corp Ltd ($491) | 1.4% | 3.0% | 0.4% | 0.3% | 2.8% |
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) | 7.0% | 4.2% | 4.7% | 4.0% | 4.1% |
|---|
| See Corp Ltd ($491) | -7.6% | -9.5% | -8.4% | -5.9% | -9.3% |
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 (19 companies) | 0.0x | -0.3x | -0.9x | -0.8x | -2.8x |
|---|
| See Corp Ltd ($491) | | | | -22.3x | |
