Tristate Holdings Ltd CAPEX jumped on 247% in 2015 while Revenue dropped on 29.7%
21/03/2016 • About Tristate Holdings Ltd (
$458) • By InTwits
Tristate Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tristate Holdings Ltd is a company in decline: 2015 revenue growth was -29.7%, 5 years revenue CAGR was -3.7%
- EBITDA Margin is quite volatile: 6.1% in 2015, 2.6% in 2014, 5.5% in 2013, 6.9% in 2012, 10.4% in 2011
- Tristate Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's a lot of higher than industry average of 4.2%.
- CAPEX is quite volatile: 188 in 2015, 54.2 in 2014, 75.3 in 2013, 72.6 in 2012, 44.4 in 2011
- The company has unprofitable business model: ROIC is at -0.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tristate Holdings Ltd ($458) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,273 | 3,388 | 3,600 | 3,580 | 2,516 | -29.7% |
| Gross Profit | 982 | 1,014 | 1,107 | 1,091 | 581 | -46.7% |
| SG&A | 451 | 520 | 574 | 1,004 | 769 | -23.5% |
| EBITDA | 342 | 233 | 200 | 92 | 155 | 67.9% |
| Net Income | 250 | 109 | 43 | 148 | -46 | -130.8% |
Balance Sheet
|
|---|
| Cash | 596 | 495 | 624 | 658 | 637 | -3.2% |
| Short Term Debt | 219 | 294 | 404 | 444 | 325 | -26.7% |
| Long Term Debt | 184 | 146 | 94 | 24 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 44 | 73 | 75 | 54 | 188 | 247.2% |
Ratios
|
|---|
| Revenue growth | 7.8% | 3.5% | 6.3% | -0.6% | -29.7% | |
| EBITDA growth | 29.6% | -32.0% | -14.2% | -53.8% | 67.9% | |
| Gross Margin | 30.0% | 29.9% | 30.8% | 30.5% | 23.1% | -7.4% |
| EBITDA Margin | 10.4% | 6.9% | 5.5% | 2.6% | 6.1% | 3.6% |
| Net Income Margin | 7.6% | 3.2% | 1.2% | 4.1% | -1.8% | -6.0% |
| SG&A, % of revenue | 13.8% | 15.3% | 15.9% | 28.1% | 30.6% | 2.5% |
| CAPEX, % of revenue | 1.4% | 2.1% | 2.1% | 1.5% | 7.5% | 6.0% |
| ROIC | 15.0% | 7.6% | 3.6% | -2.6% | -0.0% | 2.5% |
| ROE | 19.6% | 7.9% | 3.0% | 9.9% | -3.1% | -13.0% |
| Net Debt/EBITDA | -0.6x | -0.2x | -0.6x | -2.1x | -2.0x | 0.0x |
Revenue and profitability
The company's Revenue dropped on 29.7% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.6 pp from 2.6% to 6.1% in 2015.
Gross Margin decreased on 7.4 pp from 30.5% to 23.1% in 2015. SG&A as a % of Revenue increased on 2.5 pp from 28.1% to 30.6% in 2015.
Net Income marign decreased on 6.0 pp from 4.1% to -1.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 7.5% in 2015. Tristate Holdings Ltd showed CAPEX/Revenue growth of 5.3 pp from 2.1% in 2012 to 7.5% in 2015. It's average level of CAPEX/Revenue for the last three years was 3.7%.Battling declining revenue the company made large investments to CAPEX (122% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-0.05%) and ROE (-3.11%). ROIC increased on 2.5 pp from -2.6% to -0.048% in 2015. ROE dropped on 13.0 pp from 9.9% to -3.1% in 2015.
Leverage (Debt)
Debt level is -2.0x Net Debt / EBITDA and 2.1x Debt / EBITDA. Net Debt / EBITDA increased on 0.048x from -2.1x to -2.0x in 2015. Debt dropped on 30.5% in 2015 while cash decreased on 3.2% in 2015.
Appendix 1: Peers in Apparel
Below you can find Tristate Holdings Ltd 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% | |
| Symphony Holdings Ltd/Hong Kong ($1223) | | -94.0% | 46.8% | 20.4% | 33.1% |
| L & A International Holdings Ltd/ Hong Kong ($8387) | 33.1% | 27.9% | 7.9% | 20.4% | |
| |
|---|
| Median (47 companies) | 20.2% | 5.4% | 0.8% | 5.0% | -0.9% |
|---|
| Tristate Holdings Ltd ($458) | | 3.5% | 6.3% | -0.6% | -29.7% |
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% | 65.7% |
| 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) | 24.0% | 24.4% | 23.0% | 23.4% | 28.5% |
|---|
| Tristate Holdings Ltd ($458) | 30.0% | 29.9% | 30.8% | 30.5% | 23.1% |
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% | 6.1% |
|---|
| Tristate Holdings Ltd ($458) | 10.4% | 6.9% | 5.5% | 2.6% | 6.1% |
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% | 28.5% |
| 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% |
|---|
| Tristate Holdings Ltd ($458) | 1.4% | 2.1% | 2.1% | 1.5% | 7.5% |
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) | 11.5% | 8.7% | 6.9% | 3.6% | 5.7% |
|---|
| Tristate Holdings Ltd ($458) | 15.0% | 7.6% | 3.6% | -2.6% | -0.0% |
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 (33 companies) | -0.9x | -0.4x | -0.7x | -0.1x | 0.1x |
|---|
| Tristate Holdings Ltd ($458) | -0.6x | -0.2x | -0.6x | -2.1x | -2.0x |
