Tonly Electronics Holdings Ltd revenue dropped on 10.4% in 2015 and EBITDA Margin showed almost no change
29/02/2016 • About Tonly Electronics Holdings Ltd (
$1249) • By InTwits
Tonly Electronics Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 4.0% in 2015, 3.6% in 2014, 2.1% in 2013, 1.7% in 2012, 2.5% in 2011
- Tonly Electronics Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's in pair with industry average of 3.3%.
- CAPEX is quite volatile: 137 in 2015, 117 in 2014, 286 in 2013, 103 in 2012, 20.6 in 2011
- The company has business model with average profitability: ROIC is at 11.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tonly Electronics Holdings Ltd ($1249) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,099 | 3,673 | 4,554 | 5,421 | 4,857 | -10.4% |
| Gross Profit | 388 | 433 | 492 | 666 | 605 | -9.3% |
| SG&A | 239 | 267 | 289 | 370 | 347 | -6.1% |
| EBITDA | 104 | 64 | 96 | 195 | 193 | -1.2% |
| Net Income | 94 | 95 | 107 | 150 | 166 | 11.1% |
Balance Sheet
|
|---|
| Cash | 493 | 997 | 410 | 938 | 890 | -5.2% |
| Short Term Debt | 492 | 872 | 220 | 20 | 10 | -52.2% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 21 | 103 | 286 | 117 | 137 | 17.3% |
Ratios
|
|---|
| Revenue growth | 9.0% | -10.4% | 24.0% | 19.0% | -10.4% | |
| EBITDA growth | -45.5% | -38.5% | 51.1% | 102.8% | -1.2% | |
| Gross Margin | 9.5% | 11.8% | 10.8% | 12.3% | 12.4% | 0.2% |
| EBITDA Margin | 2.5% | 1.7% | 2.1% | 3.6% | 4.0% | 0.4% |
| Net Income Margin | 2.3% | 2.6% | 2.3% | 2.8% | 3.4% | 0.7% |
| SG&A, % of revenue | 5.8% | 7.3% | 6.3% | 6.8% | 7.1% | 0.3% |
| CAPEX, % of revenue | 0.5% | 2.8% | 6.3% | 2.2% | 2.8% | 0.7% |
| ROIC | 7.0% | 4.2% | 7.1% | 15.9% | 11.7% | -4.2% |
| ROE | 16.3% | 20.5% | 29.8% | 20.1% | 15.3% | -4.8% |
| Net Debt/EBITDA | -0.0x | -2.0x | -2.0x | -4.7x | -4.6x | 0.1x |
Revenue and profitability
The company's Revenue dropped on 10.4% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.5 pp from -3.2% to -9.7% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 0.66 pp from 2.8% to 3.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.8% in 2015. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. Average CAPEX/Revenue for the last three years was 3.8%.Battling declining revenue Tonly Electronics Holdings Ltd invested a large share of EBITDA (71.3%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at good ROE (15.34%) while ROIC is low (11.67%). ROIC decreased on 4.2 pp from 15.9% to 11.7% in 2015. ROE decreased on 4.8 pp from 20.1% to 15.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -4.6x and Debt / EBITDA is 0.0x. Net Debt / EBITDA jumped on 0.1x from -4.7x to -4.6x in 2015. Debt dropped on 52.2% in 2015 while cash decreased on 5.2% in 2015.
Appendix 1: Peers in Home Furnishings
Below we provide Tonly Electronics Holdings 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% | |
| See Corp Ltd ($491) | | 13.7% | -31.9% | 134.1% | 126.9% |
| 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% |
| |
|---|
| Median (26 companies) | 21.9% | 2.3% | 5.4% | 1.1% | 1.7% |
|---|
| Tonly Electronics Holdings Ltd ($1249) | | -10.4% | 24.0% | 19.0% | -10.4% |
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) | 16.5% | 18.9% | 18.2% | 16.7% | 15.5% |
|---|
| Tonly Electronics Holdings Ltd ($1249) | 9.5% | 11.8% | 10.8% | 12.3% | 12.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| See Corp Ltd ($491) | -58.7% | -38.4% | -59.5% | 32.0% | -35.6% |
| 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% | |
| |
|---|
| Median (26 companies) | 6.0% | 5.5% | 4.7% | 4.6% | 4.7% |
|---|
| Tonly Electronics Holdings Ltd ($1249) | 2.5% | 1.7% | 2.1% | 3.6% | 4.0% |
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% | 1.9% | 2.8% | 2.8% |
|---|
| Tonly Electronics Holdings Ltd ($1249) | 0.5% | 2.8% | 6.3% | 2.2% | 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% | |
| Skyworth Digital Holdings Ltd ($751) | 11.7% | 11.6% | 13.4% | 10.9% | 23.0% |
| |
|---|
| Median (26 companies) | 5.0% | 3.7% | 4.4% | 3.9% | 4.1% |
|---|
| Tonly Electronics Holdings Ltd ($1249) | 7.0% | 4.2% | 7.1% | 15.9% | 11.7% |
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) | 0.2x | -0.2x | -0.9x | -0.8x | -2.8x |
|---|
| Tonly Electronics Holdings Ltd ($1249) | -0.0x | -2.0x | -2.0x | -4.7x | -4.6x |
