Brilliance Worldwide Holdings Ltd revenue dropped on 14.3% in 2015 and EBITDA Margin decreased on 3.5 pp from -4.8% to -8.3%
18/12/2015 • About Brilliance Worldwide Holdings Ltd (
$8312) • By InTwits
Brilliance Worldwide Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Brilliance Worldwide Holdings Ltd is a company in decline: FY2015 revenue growth was -14.3%, 5 years revenue CAGR was -16.4%
- The company operates at negative EBITDA Margin: -8.3%
- Brilliance Worldwide Holdings 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 -1.8%0
- Brilliance Worldwide Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has unprofitable business model: ROIC is at -18.4%
- It operates with high leverage: Net Debt/EBITDA is 4.4x while industry average is -0.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Brilliance Worldwide Holdings Ltd ($8312) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 145.6 | 105.8 | 66.7 | 63.4 | 54.4 | -14.3% |
| Gross Profit | 19.8 | 7.3 | 6.7 | 5.0 | 3.4 | -31.9% |
| SG&A | 15.8 | 14.9 | 23.8 | 8.4 | 8.2 | -2.2% |
| EBITDA | 9.6 | -5.3 | -4.5 | -3.0 | -4.5 | 48.0% |
| Net Income | 3.3 | -7.7 | -14.3 | -2.9 | -5.3 | 81.4% |
Balance Sheet
|
|---|
| Cash | 19.5 | 14.4 | 9.4 | 2.6 | 6.8 | 161.8% |
| Short Term Debt | 5.7 | 7.3 | 2.8 | 4.4 | 3.0 | -31.8% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 1.7 | 0.3 | 0.0 | 0.1 | 0.0 | -100.0% |
Ratios
|
|---|
| Revenue growth | 9.3% | -27.3% | -37.0% | -4.9% | -14.3% | |
| EBITDA growth | -28.7% | -155.5% | -16.3% | -32.2% | 48.0% | |
| Gross Margin | 13.6% | 6.9% | 10.1% | 7.9% | 6.3% | -1.6% |
| EBITDA Margin | 6.6% | -5.0% | -6.7% | -4.8% | -8.3% | -3.5% |
| Net Income Margin | 2.2% | -7.3% | -21.4% | -4.6% | -9.7% | -5.1% |
| SG&A, % of revenue | 10.8% | 14.1% | 35.7% | 13.3% | 15.2% | 1.9% |
| CAPEX, % of revenue | 1.2% | 0.2% | 0.0% | 0.1% | 0.0% | -0.1% |
| ROIC | 8.7% | -15.3% | -13.7% | -10.6% | -18.4% | -7.8% |
| ROE | 7.2% | -17.8% | -43.1% | -11.7% | -24.2% | -12.6% |
| Net Debt/EBITDA | -1.4x | | | | | 0.0x |
Revenue and profitability
Brilliance Worldwide Holdings Ltd's Revenue dropped on 14.3% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.5 pp from -4.8% to -8.3% in FY2015.
Gross Margin decreased slightly on 1.6 pp from 7.9% to 6.3% in FY2015. SG&A as a % of Revenue increased slightly on 1.9 pp from 13.3% to 15.2% in FY2015.
Net Income marign decreased on 5.1 pp from -4.6% to -9.7% in FY2015.
Return on investment
The company operates at negative ROIC (-18.38%) and ROE (-24.24%). ROIC decreased on 7.8 pp from -10.6% to -18.4% in FY2015. ROE dropped on 12.6 pp from -11.7% to -24.2% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.4x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt dropped on 31.8% in FY2015 while cash jumped on 162% in FY2015.
Appendix 1: Peers in Apparel
Below we provide Brilliance Worldwide 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) | 26.4% | 5.3% | 1.0% | 5.3% | -1.0% |
|---|
| Brilliance Worldwide Holdings Ltd ($8312) | | -27.3% | -37.0% | -4.9% | -14.3% |
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% | 62.1% |
| |
|---|
| Median (45 companies) | 24.4% | 24.6% | 23.0% | 24.6% | 17.5% |
|---|
| Brilliance Worldwide Holdings Ltd ($8312) | 13.6% | 6.9% | 10.1% | 7.9% | 6.3% |
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% | 1.8% |
|---|
| Brilliance Worldwide Holdings Ltd ($8312) | 6.6% | -5.0% | -6.7% | -4.8% | -8.3% |
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) | 2.2% | 2.2% | 3.3% | 2.3% | 1.5% |
|---|
| Brilliance Worldwide Holdings Ltd ($8312) | 1.2% | 0.2% | 0.0% | 0.1% | 0.0% |
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% | 22.0% |
| 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% | -0.1% |
|---|
| Brilliance Worldwide Holdings Ltd ($8312) | 8.7% | -15.3% | -13.7% | -10.6% | -18.4% |
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 (33 companies) | -0.9x | -0.3x | -0.7x | -0.3x | -1.9x |
|---|
