Unlimited Creativity Holdings Ltd EBITDA surged on 173% in 2015 and EBITDA Margin increased on 6.9 pp from 7.3% to 14.2%
18/03/2016 • About Unlimited Creativity Holdings Ltd (
$8079) • By InTwits
Unlimited Creativity Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 14.2% in 2015 vs. 7.3% in 2014 vs. 6.6% in 2011
- EBITDA Margin is quite volatile: 14.2% in 2015, 7.3% in 2014, 3.9% in 2013, 2.8% in 2012, 6.6% in 2011
- Unlimited Creativity Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's a lot of higher than industry average of 15.1%.
- CAPEX is quite volatile: 2.7 in 2015, 8.9 in 2014, 2.9 in 2013, 1.4 in 2012, 3.3 in 2011
- The company has highly profitable business model: ROIC is at 27.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Unlimited Creativity Holdings Ltd ($8079) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 240.2 | 197.7 | 127.8 | 158.1 | 222.6 | 40.8% |
| Gross Profit | 56.4 | 48.1 | 28.3 | 39.1 | 86.5 | 121.3% |
| SG&A | | 44.4 | 24.6 | 29.8 | 56.4 | 89.5% |
| EBITDA | 15.8 | 5.5 | 5.0 | 11.6 | 31.6 | 172.7% |
| Net Income | 10.4 | 2.3 | 15.6 | 6.8 | -1.7 | -124.5% |
Balance Sheet
|
|---|
| Cash | 41.2 | 45.2 | 37.3 | 36.7 | 145.7 | 296.9% |
| Short Term Debt | 9.2 | 6.6 | 0.0 | 4.4 | 15.0 | 243.5% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 3.3 | 1.4 | 2.9 | 8.9 | 2.7 | -70.0% |
Ratios
|
|---|
| Revenue growth | 15.4% | -17.7% | -35.3% | 23.7% | 40.8% | |
| EBITDA growth | -1.2% | -65.1% | -9.4% | 132.5% | 172.7% | |
| Gross Margin | 23.5% | 24.3% | 22.1% | 24.7% | 38.9% | 14.1% |
| EBITDA Margin | 6.6% | 2.8% | 3.9% | 7.3% | 14.2% | 6.9% |
| Net Income Margin | 4.3% | 1.2% | 12.2% | 4.3% | -0.7% | -5.0% |
| SG&A, % of revenue | | 22.5% | 19.3% | 18.8% | 25.4% | 6.5% |
| CAPEX, % of revenue | 1.4% | 0.7% | 2.2% | 5.6% | 1.2% | -4.4% |
| ROIC | 27.8% | 6.4% | 6.4% | 23.6% | 27.1% | 3.5% |
| ROE | 23.4% | 4.0% | 27.9% | 17.4% | -2.0% | -19.4% |
| Net Debt/EBITDA | -2.0x | -7.0x | -7.5x | -2.8x | -4.1x | -1.3x |
Revenue and profitability
Unlimited Creativity Holdings Ltd's Revenue jumped on 40.8% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.0 pp from 33.1% to 31.1% in 2015.
Gross Margin surged on 14.1 pp from 24.7% to 38.9% in 2015. SG&A as a % of Revenue increased on 6.5 pp from 18.8% to 25.4% in 2015.
Net Income marign decreased on 5.0 pp from 4.3% to -0.75% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.2%. Unlimited Creativity Holdings Ltd showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 3.0%.
Return on investment
The company operates at low but positive ROIC (27.10%) and negative ROE (-2.00%). ROIC increased on 3.5 pp from 23.6% to 27.1% in 2015. ROE dropped on 19.4 pp from 17.4% to -2.0% in 2015.
Leverage (Debt)
Debt level is -4.1x Net Debt / EBITDA and 0.5x Debt / EBITDA. Net Debt / EBITDA dropped on 1.3x from -2.8x to -4.1x in 2015. Debt jumped on 243% in 2015 while cash jumped on 297% in 2015.
Appendix 1: Peers in Retail
Below you can find Unlimited Creativity Holdings Ltd benchmarking vs. other companies in Retail industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Household Holdings Ltd ($692) | -87.0% | -32.8% | 5,357.9% | 76.2% | |
| Ming Fung Jewellery Group Ltd ($860) | | 3.3% | -14.9% | 54.3% | -70.8% |
| Merry Garden Holdings Ltd ($1237) | 53.9% | 37.1% | 12.8% | 47.6% | |
| Luk Fook Holdings International Ltd ($590) | | 47.2% | 12.6% | 43.3% | -17.1% |
| NewOcean Energy Holdings Ltd ($342) | | 23.1% | 15.9% | 36.0% | -21.0% |
| |
|---|
| Median (112 companies) | 25.6% | 10.7% | 6.3% | 3.1% | -1.0% |
|---|
| Unlimited Creativity Holdings Ltd ($8377) | | -17.7% | -35.3% | 23.7% | 40.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Culture Landmark Investment Ltd ($674) | 77.5% | 91.1% | 99.4% | 99.5% | |
| Modern Beauty Salon Holdings Ltd ($919) | 97.3% | 97.4% | 95.9% | 96.8% | 96.7% |
| Vongroup Ltd ($318) | | | | 95.1% | 99.1% |
| Nanjing Sinolife United Co Ltd ($3332) | 80.6% | 86.5% | 89.3% | 90.9% | |
| Embry Holdings Ltd ($1388) | 82.3% | 81.2% | 80.4% | 82.3% | |
| |
|---|
| Median (101 companies) | 40.0% | 37.7% | 38.0% | 35.6% | 42.0% |
|---|
| Unlimited Creativity Holdings Ltd ($8377) | 23.5% | 24.3% | 22.1% | 24.7% | 38.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Maoye International Holdings Ltd ($848) | 45.5% | 47.4% | 46.3% | 73.2% | 39.6% |
| China Dongxiang Group Co Ltd ($3818) | 5.6% | 6.0% | 5.6% | 58.3% | |
| Nanjing Sinolife United Co Ltd ($3332) | 47.8% | 51.6% | 56.9% | 54.4% | |
| Lifestyle International Holdings Ltd ($1212) | 49.6% | 47.5% | 47.0% | 44.7% | 43.4% |
| Golden Eagle Retail Group Ltd ($3308) | 52.1% | 48.5% | 47.3% | 42.8% | |
| |
|---|
| Median (111 companies) | 13.2% | 9.9% | 7.3% | 8.8% | 7.7% |
|---|
| Unlimited Creativity Holdings Ltd ($8377) | 6.6% | 2.8% | 3.9% | 7.3% | 14.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Intime Retail Group Co Ltd ($1833) | 58.4% | 28.3% | 55.4% | 37.0% | |
| Future Bright Holdings Ltd ($703) | 6.2% | 2.6% | 3.7% | 36.8% | 24.9% |
| Sage International Group Ltd ($8082) | 20.4% | 236.6% | 28.2% | 35.4% | |
| Maoye International Holdings Ltd ($848) | 30.9% | 32.8% | 24.1% | 31.5% | 17.7% |
| Tsui Wah Holdings Ltd ($1314) | 5.2% | 8.3% | 9.3% | 30.5% | 10.6% |
| |
|---|
| Median (112 companies) | 3.9% | 4.0% | 3.6% | 3.4% | 2.7% |
|---|
| Unlimited Creativity Holdings Ltd ($8377) | 1.4% | 0.7% | 2.2% | 5.6% | 1.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Modern Beauty Salon Holdings Ltd ($919) | 48.1% | 50.7% | -4.6% | 81.3% | 71.8% |
| Starbucks Corp ($4337) | 36.4% | 36.4% | -6.0% | 52.8% | 51.4% |
| Sa Sa International Holdings Ltd ($178) | 45.7% | 53.5% | 52.7% | 49.0% | 39.8% |
| Coach Inc ($6388) | 82.0% | 82.3% | 68.7% | 45.0% | 20.8% |
| Nanjing Sinolife United Co Ltd ($3332) | 57.4% | 67.3% | 68.1% | 32.2% | |
| |
|---|
| Median (112 companies) | 16.6% | 12.3% | 8.4% | 8.4% | 6.0% |
|---|
| Unlimited Creativity Holdings Ltd ($8377) | 27.8% | 6.4% | 6.4% | 23.6% | 27.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sparkle Roll Group Ltd ($970) | -0.8x | 0.6x | 4.0x | 9.3x | 23.5x |
| China Yongda Automobiles Services Holdings Ltd ($3669) | 3.3x | 3.4x | 4.7x | 5.5x | |
| Zhongsheng Group Holdings Ltd ($881) | 2.2x | 4.6x | 4.5x | 5.3x | |
| NewOcean Energy Holdings Ltd ($342) | 35.2x | 6.2x | 6.1x | 5.3x | 2.6x |
| Century Ginwa Retail Holdings Ltd ($162) | 6.5x | 2.0x | 2.5x | 4.8x | 7.3x |
| |
|---|
| Median (87 companies) | -0.8x | -0.5x | -0.8x | -0.2x | -0.5x |
|---|
| Unlimited Creativity Holdings Ltd ($8377) | -2.0x | -7.0x | -7.5x | -2.8x | -4.1x |
