World Houseware Holdings Ltd reports 79.1% EBITDA growth and almost no change in Revenue of 994
18/03/2016 • About World Houseware Holdings Ltd (
$713) • By InTwits
World Houseware Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- World Houseware Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -1.8%
- EBITDA Margin is quite volatile: 4.2% in 2015, 2.4% in 2014, 3.4% in 2013, 7.1% in 2012, 2.1% in 2011
- World Houseware Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.9%. At the same time it's a lot of higher than industry average of 20.9%.
- CAPEX is quite volatile: 50.7 in 2015, 123 in 2014, 61.7 in 2013, 38.8 in 2012, 25.4 in 2011
- The company has unprofitable business model: ROIC is at -1.8%
- It operates with high leverage: Net Debt/EBITDA is 7.4x while industry average is 0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
World Houseware Holdings Ltd ($713) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,129 | 1,075 | 995 | 992 | 994 | 0.2% |
| Gross Profit | 100 | 140 | 102 | 107 | 145 | 35.4% |
| SG&A | 122 | 130 | 129 | 137 | 166 | 21.0% |
| EBITDA | 24 | 76 | 34 | 23 | 42 | 79.1% |
| Net Income | -35 | 11 | -47 | -49 | -42 | -15.0% |
Balance Sheet
|
|---|
| Cash | 73 | 85 | 83 | 49 | 40 | -17.9% |
| Short Term Debt | 188 | 167 | 227 | 322 | 347 | 7.7% |
| Long Term Debt | 0 | 24 | 16 | 0 | 2 | |
Cash flow
|
|---|
| Capex | 25 | 39 | 62 | 123 | 51 | -58.8% |
Ratios
|
|---|
| Revenue growth | 11.7% | -4.8% | -7.4% | -0.4% | 0.2% | |
| EBITDA growth | -68.9% | 222.9% | -55.5% | -30.9% | 79.1% | |
| Gross Margin | 8.8% | 13.1% | 10.3% | 10.8% | 14.6% | 3.8% |
| EBITDA Margin | 2.1% | 7.1% | 3.4% | 2.4% | 4.2% | 1.9% |
| Net Income Margin | -3.1% | 1.0% | -4.7% | -4.9% | -4.2% | 0.7% |
| SG&A, % of revenue | 10.8% | 12.1% | 13.0% | 13.9% | 16.7% | 2.9% |
| CAPEX, % of revenue | 2.2% | 3.6% | 6.2% | 12.4% | 5.1% | -7.3% |
| ROIC | -3.0% | 1.6% | -1.9% | -2.8% | -1.8% | 1.0% |
| ROE | -3.7% | 1.1% | -4.8% | -5.3% | -4.9% | 0.4% |
| Net Debt/EBITDA | 4.9x | 1.4x | 4.7x | 11.7x | 7.4x | -4.3x |
Revenue and profitability
World Houseware Holdings Ltd's Revenue showed almost no change in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 97.9 pp from 104% to 202% in 2015.
Gross Margin increased on 3.8 pp from 10.8% to 14.6% in 2015. SG&A as a % of Revenue increased on 2.9 pp from 13.9% to 16.7% in 2015.
Net Income marign increased slightly on 0.75 pp from -4.9% to -4.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 5.1%. CAPEX/Revenue increased slightly on 1.5 pp from 3.6% in 2012 to 5.1% in 2015. Average CAPEX/Revenue for the last three years was 7.9%.The company maintained rich investment policy and has spent a lot to CAPEX (121% of EBITDA).
Return on investment
The company operates at negative ROIC (-1.82%) and ROE (-4.87%). ROIC increased slightly on 0.95 pp from -2.8% to -1.8% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt level is 7.4x Net Debt / EBITDA and 8.3x Debt / EBITDA. Net Debt / EBITDA dropped on 4.3x from 11.7x to 7.4x in 2015. Debt increased on 8.3% in 2015 while cash dropped on 17.9% in 2015.
Appendix 1: Peers in Housewares
Below we provide World Houseware Holdings Ltd benchmarking against other companies in Housewares 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 |
|---|
| China Strategic Holdings Ltd ($235) | -24.1% | -39.2% | 1,832.6% | 281.4% | |
| China Creative Home Group Ltd ($1678) | 7.0% | 20.5% | 23.4% | 17.9% | |
| International Housewares Retail Co Ltd ($1373) | | 19.0% | 23.7% | 16.6% | 11.7% |
| Bolina Holding Co Ltd ($1190) | 76.5% | 24.6% | 11.8% | -5.2% | |
| Perfectech International Holdings Ltd ($765) | -13.7% | -21.9% | -3.5% | -9.3% | |
| |
|---|
| Median (5 companies) | -3.4% | 19.0% | 23.4% | 16.6% | 11.7% |
|---|
| World Houseware Holdings Ltd ($713) | | -4.8% | -7.4% | -0.4% | 0.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| International Housewares Retail Co Ltd ($1373) | 42.4% | 44.5% | 46.1% | 46.5% | 46.3% |
| Bolina Holding Co Ltd ($1190) | 46.3% | 47.7% | 46.8% | 43.5% | |
| China Creative Home Group Ltd ($1678) | 41.2% | 44.2% | 44.3% | 40.4% | |
| Perfectech International Holdings Ltd ($765) | 16.7% | 23.9% | 26.6% | 25.1% | |
| China Strategic Holdings Ltd ($235) | 43.3% | 11.4% | 11.7% | 7.4% | |
| |
|---|
| Median (5 companies) | 42.4% | 44.2% | 44.3% | 40.4% | 46.3% |
|---|
| World Houseware Holdings Ltd ($713) | 8.8% | 13.1% | 10.3% | 10.8% | 14.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Creative Home Group Ltd ($1678) | 33.1% | 36.0% | 33.8% | 32.6% | |
| Bolina Holding Co Ltd ($1190) | 36.5% | 37.8% | 34.0% | 28.7% | |
| Perfectech International Holdings Ltd ($765) | 7.3% | 14.6% | 14.9% | 11.7% | |
| International Housewares Retail Co Ltd ($1373) | 8.8% | 9.8% | 9.6% | 8.5% | 6.7% |
| China Strategic Holdings Ltd ($235) | -727.1% | -1,603.6% | -25.0% | -2.8% | |
| |
|---|
| Median (5 companies) | 8.8% | 14.6% | 14.9% | 11.7% | 6.7% |
|---|
| World Houseware Holdings Ltd ($713) | 2.1% | 7.1% | 3.4% | 2.4% | 4.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Creative Home Group Ltd ($1678) | 3.3% | 1.2% | 2.4% | 42.0% | |
| Perfectech International Holdings Ltd ($765) | 5.5% | 2.3% | 16.2% | 19.8% | |
| International Housewares Retail Co Ltd ($1373) | 1.6% | 2.7% | 3.0% | 2.0% | 3.9% |
| Bolina Holding Co Ltd ($1190) | 12.3% | 5.2% | 4.4% | 1.8% | |
| China Strategic Holdings Ltd ($235) | 0.0% | 0.0% | 0.0% | 0.6% | |
| |
|---|
| Median (5 companies) | 3.3% | 2.3% | 3.0% | 2.0% | 3.9% |
|---|
| World Houseware Holdings Ltd ($713) | 2.2% | 3.6% | 6.2% | 12.4% | 5.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Creative Home Group Ltd ($1678) | 37.6% | 38.8% | 28.1% | 23.6% | |
| International Housewares Retail Co Ltd ($1373) | | 44.7% | 38.4% | 20.3% | 11.8% |
| Bolina Holding Co Ltd ($1190) | 51.7% | 38.8% | 24.7% | 16.8% | |
| Perfectech International Holdings Ltd ($765) | 5.4% | 11.7% | 11.8% | 7.6% | |
| China Strategic Holdings Ltd ($235) | -8.3% | -12.0% | -4.0% | -1.3% | |
| |
|---|
| Median (5 companies) | 21.5% | 38.8% | 24.7% | 16.8% | 11.8% |
|---|
| World Houseware Holdings Ltd ($713) | -3.0% | 1.6% | -1.9% | -2.8% | -1.8% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Perfectech International Holdings Ltd ($765) | -1.4x | -1.8x | -1.7x | -0.7x | |
| China Creative Home Group Ltd ($1678) | 0.2x | -0.4x | -2.3x | -1.4x | |
| Bolina Holding Co Ltd ($1190) | 0.2x | -1.7x | -1.1x | -1.9x | |
| International Housewares Retail Co Ltd ($1373) | -0.7x | -0.2x | -0.3x | -2.7x | -2.8x |
| |
|---|
| Median (4 companies) | -0.3x | -1.0x | -1.4x | -1.7x | -2.8x |
|---|
| World Houseware Holdings Ltd ($713) | 4.9x | 1.4x | 4.7x | 11.7x | 7.4x |
