Carry Wealth Holdings Ltd revenue dropped on 21.2% in 2015 and EBITDA Margin dropped on 18.6 pp from -6.3% to -24.9%
29/02/2016 • About Carry Wealth Holdings Ltd (
$643) • By InTwits
Carry Wealth Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Carry Wealth Holdings Ltd is a company in decline: 2015 revenue growth was -21.2%, 5 years revenue CAGR was -30.3%
- The company operates at negative EBITDA Margin: -24.9%
- Carry Wealth Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -10.3% for the sames years0
- Carry Wealth Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has unprofitable business model: ROIC is at -11.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Carry Wealth Holdings Ltd ($643) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 601.8 | 122.7 | 145.8 | 153.2 | 120.7 | -21.2% |
| Gross Profit | 78.5 | 15.8 | 14.7 | 33.4 | 9.1 | -72.7% |
| SG&A | | 60.8 | 46.5 | 48.2 | 44.4 | -7.9% |
| EBITDA | -19.8 | -30.5 | -27.6 | -9.7 | -30.1 | 210.3% |
| Net Income | -47.4 | -71.5 | -30.2 | -14.7 | -38.0 | 158.0% |
Balance Sheet
|
|---|
| Cash | 111.7 | 81.3 | 101.4 | 110.6 | 88.4 | -20.1% |
| Short Term Debt | 35.2 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 2.6 | 0.4 | 1.3 | 1.1 | 1.9 | 70.2% |
Ratios
|
|---|
| Revenue growth | -18.1% | -79.6% | 18.8% | 5.0% | -21.2% | |
| EBITDA growth | -29.3% | 53.8% | -9.5% | -64.9% | 210.3% | |
| Gross Margin | 13.0% | 12.9% | 10.1% | 21.8% | 7.6% | -14.2% |
| EBITDA Margin | -3.3% | -24.8% | -18.9% | -6.3% | -24.9% | -18.6% |
| Net Income Margin | -7.9% | -58.3% | -20.7% | -9.6% | -31.5% | -21.9% |
| SG&A, % of revenue | | 49.6% | 31.9% | 31.5% | 36.8% | 5.3% |
| CAPEX, % of revenue | 0.4% | 0.4% | 0.9% | 0.7% | 1.6% | 0.8% |
| ROIC | -12.0% | -18.0% | -16.5% | -5.7% | -11.5% | -5.8% |
| ROE | -19.8% | -33.1% | -15.8% | -5.8% | -12.8% | -7.0% |
Revenue and profitability
The company's Revenue dropped on 21.2% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.9 pp from 12.3% to 20.3% in 2015.
Gross Margin dropped on 14.2 pp from 21.8% to 7.6% in 2015. SG&A as a % of Revenue increased on 5.3 pp from 31.5% to 36.8% in 2015.
Net Income marign dropped on 21.9 pp from -9.6% to -31.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
Carry Wealth Holdings Ltd's CAPEX/Revenue was 1.6% in 2015. CAPEX/Revenue increased slightly on 1.2 pp from 0.36% in 2012 to 1.6% in 2015. It's average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at negative ROIC (-11.51%) and ROE (-12.77%). ROIC decreased on 5.8 pp from -5.7% to -11.5% in 2015. ROE decreased on 7.0 pp from -5.8% to -12.8% in 2015.
Leverage (Debt)
The company has no debt. Cash dropped on 20.1% in 2015.
Appendix 1: Peers in Apparel
Below we provide Carry Wealth 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 (47 companies) | 26.4% | 5.4% | 0.8% | 5.0% | -0.9% |
|---|
| Carry Wealth Holdings Ltd ($643) | | -79.6% | 18.8% | 5.0% | -21.2% |
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 (46 companies) | 24.6% | 24.8% | 23.2% | 24.7% | 18.1% |
|---|
| Carry Wealth Holdings Ltd ($643) | 13.0% | 12.9% | 10.1% | 21.8% | 7.6% |
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% | 29.0% |
| Fuguiniao Co Ltd ($1819) | 22.2% | 24.5% | 26.1% | 26.7% | |
| |
|---|
| Median (47 companies) | 10.4% | 10.4% | 9.7% | 6.7% | 2.0% |
|---|
| Carry Wealth Holdings Ltd ($643) | -3.3% | -24.8% | -18.9% | -6.3% | -24.9% |
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 (47 companies) | 1.9% | 2.2% | 3.1% | 2.1% | 1.5% |
|---|
| Carry Wealth Holdings Ltd ($643) | 0.4% | 0.4% | 0.9% | 0.7% | 1.6% |
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% | 27.0% |
| |
|---|
| Median (47 companies) | 12.7% | 8.7% | 6.9% | 3.6% | 0.4% |
|---|
| Carry Wealth Holdings Ltd ($643) | -12.0% | -18.0% | -16.5% | -5.7% | -11.5% |
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 (34 companies) | -0.9x | -0.3x | -0.7x | -0.2x | -0.8x |
|---|
