Symphony Holdings Ltd/Hong Kong reports 847% Net Income growth and 33.1% Revenue growth
20/03/2016 • About Symphony Holdings Ltd/Hong Kong (
$1223) • By InTwits
Symphony Holdings Ltd/Hong Kong reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Symphony Holdings Ltd/Hong Kong doesn't have a profitable business model yet: 2015 ROIC is -2.9%
- The company operates at negative EBITDA Margin: -12.7%
- Symphony Holdings Ltd/Hong Kong spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -7.7%0
- Symphony Holdings Ltd/Hong Kong has high CAPEX intensity: 5 year average CAPEX/Revenue was 52.8%. At the same time it's a lot of higher than industry average of 4.2%.
- CAPEX is quite volatile: 100.0 in 2015, 35.7 in 2014, 154 in 2013, 204 in 2012, 370 in 2011
- The company has unprofitable business model: ROIC is at -2.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 4.5x while industry average is 4.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Symphony Holdings Ltd/Hong Kong ($1223) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,478 | 149 | 219 | 264 | 351 | 33.1% |
| Gross Profit | 382 | 58 | 93 | 157 | 265 | 68.8% |
| SG&A | 386 | 221 | 269 | 275 | 296 | 7.4% |
| EBITDA | 46 | -79 | -137 | -51 | -44 | -13.4% |
| Net Income | 24 | -214 | 15 | 19 | 181 | 847.0% |
Balance Sheet
|
|---|
| Cash | 278 | 480 | 823 | 585 | 495 | -15.4% |
| Short Term Debt | 120 | 437 | 379 | 465 | 173 | -62.8% |
| Long Term Debt | 0 | 0 | 0 | 0 | 564 | |
Cash flow
|
|---|
| Capex | 370 | 204 | 154 | 36 | 100 | 179.6% |
Ratios
|
|---|
| Revenue growth | 27.3% | -94.0% | 46.8% | 20.4% | 33.1% | |
| EBITDA growth | 19.7% | -272.3% | 72.2% | -62.4% | -13.4% | |
| Gross Margin | 15.4% | 38.5% | 42.3% | 59.6% | 75.6% | 16.0% |
| EBITDA Margin | 1.9% | -53.2% | -62.4% | -19.5% | -12.7% | 6.8% |
| Net Income Margin | 1.0% | -143.5% | 7.1% | 7.2% | 51.5% | 44.3% |
| SG&A, % of revenue | 15.6% | 147.7% | 122.9% | 104.4% | 84.2% | -20.1% |
| CAPEX, % of revenue | 14.9% | 136.9% | 70.3% | 13.5% | 28.5% | 14.9% |
| ROIC | 0.3% | -5.5% | -7.7% | -3.4% | -2.9% | 0.5% |
| ROE | 1.5% | -13.5% | 0.9% | 1.0% | 8.0% | 7.1% |
| Net Debt/EBITDA | -3.4x | | | | | 0.0x |
Revenue and profitability
The company's Revenue jumped on 33.1% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 70.8 pp from -81.7% to -11.0% in FY2015.
Gross Margin surged on 16.0 pp from 59.6% to 75.6% in 2015. SG&A as a % of Revenue dropped on 20.1 pp from 104% to 84.2% in 2015.
Net Income marign jumped on 44.3 pp from 7.2% to 51.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 28.5%. The company showed big decline in CAPEX/Revenue of 108 pp from 137% in 2012 to 28.5% in 2015. It's average CAPEX/Revenue for the last three years was 37.4%.
Return on investment
The company operates at negative ROIC (-2.94%) and low but positive ROE (8.02%). ROIC showed almost no change in 2015. ROE increased on 7.1 pp from 0.96% to 8.0% in 2015.
Leverage (Debt)
Debt level is 4.5x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt surged on 58.4% in 2015 while cash dropped on 15.4% in 2015.
Appendix 1: Peers in Apparel
Below you can find Symphony Holdings Ltd/Hong Kong benchmarking vs. other companies in Apparel 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 |
|---|
| Ares Asia Ltd ($645) | | | | 144.2% | 14.7% |
| Texhong Textile Group Ltd ($2678) | | 6.8% | 12.1% | 27.2% | 1.0% |
| Win Hanverky Holdings Ltd ($3322) | 11.5% | -7.5% | -0.3% | 21.1% | |
| L & A International Holdings Ltd/ Hong Kong ($8387) | 33.1% | 27.9% | 7.9% | 20.4% | |
| Miko International Holdings Ltd ($1247) | 20.0% | 32.5% | 27.2% | 20.3% | |
| |
|---|
| Median (47 companies) | 20.5% | 5.4% | 0.8% | 5.0% | -1.0% |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | | -94.0% | 46.8% | 20.4% | 33.1% |
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% | 61.1% |
| S Culture International Holdings Ltd ($1255) | 62.8% | 64.7% | 63.7% | 62.9% | 61.9% |
| Crocodile Garments ($122) | 65.5% | 64.7% | 60.7% | 60.4% | 62.1% |
| |
|---|
| Median (46 companies) | 24.6% | 24.4% | 23.0% | 23.4% | 26.1% |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 15.4% | 38.5% | 42.3% | 59.6% | 75.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HOSA International Ltd ($2200) | 46.3% | 44.4% | 42.2% | 37.6% | 26.7% |
| 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% | 30.6% |
| 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% | 27.9% |
| |
|---|
| Median (47 companies) | 10.4% | 10.4% | 9.7% | 6.7% | 5.4% |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 1.9% | -53.2% | -62.4% | -19.5% | -12.7% |
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% |
| 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% | |
| Tack Fiori International Group Ltd ($928) | 3.5% | 23.1% | 134.4% | 10.7% | 0.4% |
| |
|---|
| Median (47 companies) | 1.9% | 2.2% | 3.0% | 2.0% | 1.4% |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 14.9% | 136.9% | 70.3% | 13.5% | 28.5% |
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% | 16.5% |
| 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% | 5.4% |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 0.3% | -5.5% | -7.7% | -3.4% | -2.9% |
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 | 158.1x |
| 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 | 1.4x |
| |
|---|
| Median (34 companies) | -0.7x | -0.3x | -0.7x | -0.2x | -0.1x |
|---|
