Art Textile Technology International Co Ltd reports 112% EBITDA decline and 95.6% Revenue decline
25/09/2015 • About Art Textile Technology International Co Ltd (
$565) • By InTwits
Art Textile Technology International Co Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Art Textile Technology International Co Ltd is a company in decline: FY2015 revenue growth was -95.6%, 5 years revenue CAGR was -51.5%
- EBITDA Margin is quite volatile: -32.0% in FY2015, 11.7% in FY2014, 10.4% in FY2013, 9.0% in FY2012, 14.5% in FY2011
- Art Textile Technology International Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 22.9%. At the same time it's a lot of higher than industry average of 13.9%.
- CAPEX is quite volatile: 0.66 in FY2015, 1.9 in FY2014, 0.44 in FY2013, 0.52 in FY2012, 0.14 in FY2011
- The company has unprofitable business model: ROIC is at -1.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Art Textile Technology International Co Ltd ($565) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 903 | 2,106 | 1,430 | 493 | 21 | -95.6% |
| Gross Profit | 126 | 198 | 169 | 89 | 18 | -80.2% |
| SG&A | | | 64 | 52 | 43 | -17.1% |
| EBITDA | 131 | 189 | 149 | 58 | -7 | -111.9% |
| Net Income | 7 | 5 | 122 | 15 | -12 | -180.8% |
Balance Sheet
|
|---|
| Cash | 847 | 990 | 1,091 | 741 | 301 | -59.4% |
| Short Term Debt | 1,449 | 1,681 | 234 | 108 | 365 | 239.4% |
| Long Term Debt | 26 | 4 | 0 | 10 | 1,009 | 10,231.5% |
Cash flow
|
|---|
| Capex | 24 | 20 | 28 | 19 | 23 | 17.9% |
Ratios
|
|---|
| Revenue growth | 12.6% | 133.3% | -32.1% | -65.5% | -95.6% | |
| EBITDA growth | 26.9% | 44.0% | -21.1% | -61.4% | -111.9% | |
| Gross Margin | 13.9% | 9.4% | 11.8% | 18.0% | 81.8% | 63.7% |
| EBITDA Margin | 14.5% | 9.0% | 10.4% | 11.7% | -32.0% | -43.7% |
| Net Income Margin | 0.8% | 0.2% | 8.5% | 3.1% | -57.9% | -61.0% |
| SG&A, % of revenue | | | 4.5% | 10.6% | 201.4% | 190.8% |
| CAPEX, % of revenue | 2.6% | 1.0% | 1.9% | 3.9% | 105.3% | 101.4% |
| ROIC | 3.3% | 4.8% | 5.3% | 2.7% | -1.2% | -3.9% |
| ROE | 0.9% | 0.5% | 12.4% | 1.5% | -1.1% | -2.6% |
| Net Debt/EBITDA | 4.8x | 3.7x | -5.8x | -10.8x | | 10.8x |
Revenue and profitability
Art Textile Technology International Co Ltd's Revenue dropped on 95.6% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 43.7 pp from 11.7% to -32.0% in FY2015.
Gross Margin surged on 63.7 pp from 18.0% to 81.8% in FY2015. SG&A as a % of Revenue surged on 191 pp from 10.6% to 201% in FY2015.
Net Income marign dropped on 61.0 pp from 3.1% to -57.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Art Textile Technology International Co Ltd's CAPEX/Revenue was 105% in FY2015. The company showed fast CAPEX/Revenue growth of 104 pp from 0.95% in FY2012 to 105% in FY2015. Average CAPEX/Revenue for the last three years was 37.0%.
Return on investment
The company operates at negative ROIC (-1.18%) and ROE (-1.12%). ROIC decreased on 3.9 pp from 2.7% to -1.2% in FY2015. ROE decreased on 2.6 pp from 1.5% to -1.1% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.0x and Debt / EBITDA is . Net Debt / EBITDA jumped on 10.8x from -10.8x to in FY2015. Debt jumped on 1,071% in FY2015 while cash dropped on 59.4% in FY2015.
Appendix 1: Peers in Textiles
Below we provide Art Textile Technology International Co Ltd benchmarking against other companies in Textiles 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 |
|---|
| Victory City International Holdings Ltd ($539) | | -5.2% | 6.5% | 31.5% | -4.4% |
| Guangdong Tannery Ltd ($1058) | 12.7% | 6.1% | -4.5% | 29.0% | |
| Kingdom Holding Co Ltd ($528) | 13.1% | 1.1% | 6.0% | 20.0% | |
| Pacific Textiles Holdings Ltd ($1382) | | -10.6% | 3.6% | 11.6% | -7.0% |
| Kam Hing International Holdings Ltd ($2307) | 24.4% | 0.9% | -4.3% | 1.6% | |
| |
|---|
| Median (19 companies) | 17.9% | -5.2% | -4.3% | -8.6% | -4.9% |
|---|
| Art Textile Technology International Co Ltd ($565) | | 133.3% | -32.1% | -65.5% | -95.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TAI Ping Carpet International Ltd ($146) | 40.4% | 41.0% | 45.4% | 46.7% | |
| Ping Shan Tea Group Ltd ($364) | 15.3% | 11.2% | 20.8% | 42.9% | |
| Texwinca Holdings Ltd ($321) | 33.7% | 29.6% | 30.9% | 33.3% | 34.1% |
| CECEP COSTIN New Materials Group Ltd ($2228) | 30.3% | 31.1% | 32.5% | 32.5% | |
| Kingdom Holding Co Ltd ($528) | 32.1% | 29.1% | 27.2% | 26.8% | |
| |
|---|
| Median (19 companies) | 18.0% | 17.1% | 16.6% | 13.6% | 18.2% |
|---|
| Art Textile Technology International Co Ltd ($565) | 13.9% | 9.4% | 11.8% | 18.0% | 81.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ping Shan Tea Group Ltd ($364) | 14.9% | 11.2% | | 39.3% | |
| CECEP COSTIN New Materials Group Ltd ($2228) | 26.2% | 28.1% | 28.7% | 30.2% | |
| Kingdom Holding Co Ltd ($528) | 29.3% | 26.3% | 25.3% | 24.8% | |
| Weiqiao Textile Co ($2698) | 10.2% | 17.5% | 20.2% | 21.4% | |
| Pacific Textiles Holdings Ltd ($1382) | 19.5% | 19.1% | 19.0% | 19.5% | 18.4% |
| |
|---|
| Median (19 companies) | 13.3% | 11.2% | 8.8% | 11.7% | 12.1% |
|---|
| Art Textile Technology International Co Ltd ($565) | 14.5% | 9.0% | 10.4% | 11.7% | -32.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hua Lien International Holding Co Ltd ($969) | 0.0% | 19.7% | 40.5% | 79.6% | |
| Ping Shan Tea Group Ltd ($364) | 18.1% | 32.0% | | 14.0% | |
| Kingdom Holding Co Ltd ($528) | 6.2% | 8.4% | 18.8% | 10.9% | |
| Victory City International Holdings Ltd ($539) | 2.3% | 4.2% | 10.1% | 8.6% | 6.8% |
| Silverman Holdings Ltd ($1616) | 8.7% | 6.5% | 18.0% | 8.4% | |
| |
|---|
| Median (19 companies) | 2.7% | 4.2% | 1.9% | 5.6% | 3.7% |
|---|
| Art Textile Technology International Co Ltd ($565) | 2.6% | 1.0% | 1.9% | 3.9% | 105.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Textiles Holdings Ltd ($1382) | 28.8% | 23.7% | 26.4% | 31.6% | 25.9% |
| CECEP COSTIN New Materials Group Ltd ($2228) | 24.2% | 22.3% | 20.1% | 17.6% | |
| Yongsheng Advanced Materials Co Ltd ($3608) | 7.9% | 6.2% | 13.2% | 15.4% | |
| Kingdom Holding Co Ltd ($528) | 16.3% | 13.8% | 12.7% | 13.8% | |
| TAI Ping Carpet International Ltd ($146) | | | 2.6% | 5.7% | |
| |
|---|
| Median (19 companies) | 7.7% | 5.2% | 3.8% | 4.0% | 6.5% |
|---|
| Art Textile Technology International Co Ltd ($565) | 3.3% | 4.8% | 5.3% | 2.7% | -1.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Guangdong Tannery Ltd ($1058) | 8.9x | 6.5x | 5.8x | 11.6x | |
| Sijia Group Co ($1863) | -0.1x | 1.6x | 5.3x | 6.4x | |
| China Weaving Materials Holdings Ltd ($3778) | 1.3x | 3.6x | 3.0x | 5.3x | |
| Co-Prosperity Holdings Ltd ($707) | 8.3x | 34.8x | | 4.5x | |
| Victory City International Holdings Ltd ($539) | 1.8x | 1.5x | 2.0x | 3.2x | 2.5x |
| |
|---|
| Median (17 companies) | 1.3x | 1.5x | 2.0x | 1.0x | 0.5x |
|---|
| Art Textile Technology International Co Ltd ($565) | 4.8x | 3.7x | -5.8x | -10.8x | |
