Win Hanverky Holdings Ltd Net Income jumped on 666% in 2015 and Revenue increased on 7.5%
22/03/2016 • About Win Hanverky Holdings Ltd (
$3322) • By InTwits
Win Hanverky Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Win Hanverky Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.0%. At the same time it's in pair with industry average of 4.3%.
- CAPEX is quite volatile: 226 in 2015, 182 in 2014, 225 in 2013, 124 in 2012, 78.8 in 2011
- The company has business model with average profitability: ROIC is at 11.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Win Hanverky Holdings Ltd ($3322) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,200 | 2,961 | 2,951 | 3,575 | 3,842 | 7.5% |
| Gross Profit | 695 | 644 | 743 | 1,007 | 1,160 | 15.2% |
| SG&A | | 372 | 452 | 496 | 438 | -11.7% |
| EBITDA | 203 | 243 | 262 | 240 | 469 | 95.7% |
| Net Income | 230 | 150 | 151 | 32 | 243 | 666.2% |
Balance Sheet
|
|---|
| Cash | 791 | 947 | 872 | 711 | 676 | -4.9% |
| Short Term Debt | 35 | 23 | 161 | 120 | 113 | -5.4% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 79 | 124 | 225 | 182 | 226 | 24.0% |
Ratios
|
|---|
| Revenue growth | 11.5% | -7.5% | -0.3% | 21.1% | 7.5% | |
| EBITDA growth | -32.4% | 19.8% | 8.0% | -8.6% | 95.7% | |
| Gross Margin | 21.7% | 21.7% | 25.2% | 28.2% | 30.2% | 2.0% |
| EBITDA Margin | 6.3% | 8.2% | 8.9% | 6.7% | 12.2% | 5.5% |
| Net Income Margin | 7.2% | 5.1% | 5.1% | 0.9% | 6.3% | 5.4% |
| SG&A, % of revenue | | 12.6% | 15.3% | 13.9% | 11.4% | -2.5% |
| CAPEX, % of revenue | 2.5% | 4.2% | 7.6% | 5.1% | 5.9% | 0.8% |
| ROIC | 4.5% | 6.6% | 6.6% | 2.5% | 11.4% | 8.9% |
| ROE | 11.5% | 7.1% | 6.9% | 1.4% | 11.0% | 9.6% |
| Net Debt/EBITDA | -3.7x | -3.8x | -2.7x | -2.5x | -1.2x | 1.3x |
Revenue and profitability
Win Hanverky Holdings Ltd's Revenue increased on 7.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 24.5 pp from 33.5% to 58.0% in 2015.
Gross Margin increased on 2.0 pp from 28.2% to 30.2% in 2015. SG&A as a % of Revenue decreased on 2.5 pp from 13.9% to 11.4% in 2015.
Net Income marign increased on 5.4 pp from 0.89% to 6.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
Win Hanverky Holdings Ltd's CAPEX/Revenue was 5.9% in 2015. The company showed small growth in CAPEX/Revenue of 1.7 pp from 4.2% in 2012 to 5.9% in 2015. It's average level of CAPEX/Revenue for the last three years was 6.2%.
Return on investment
The company operates at low ROIC (11.38%) and ROE (11.02%). ROIC increased on 8.9 pp from 2.5% to 11.4% in 2015. ROE increased on 9.6 pp from 1.4% to 11.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.2x and Debt / EBITDA is 0.2x. Net Debt / EBITDA surged on 1.3x from -2.5x to -1.2x in 2015. Debt decreased on 5.4% in 2015 while cash decreased on 4.9% in 2015.
Appendix 1: Peers in Apparel
Below you can find Win Hanverky 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% |
| 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% | |
| Miko International Holdings Ltd ($1247) | 20.0% | 32.5% | 27.2% | 20.3% | |
| |
|---|
| Median (49 companies) | 20.5% | 5.4% | 4.8% | 5.0% | -1.0% |
|---|
| Win Hanverky Holdings Ltd ($3322) | | -7.5% | -0.3% | 21.1% | 7.5% |
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 (48 companies) | 24.6% | 24.8% | 23.2% | 24.7% | 27.7% |
|---|
| Win Hanverky Holdings Ltd ($3322) | 21.7% | 21.7% | 25.2% | 28.2% | 30.2% |
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 (49 companies) | 10.4% | 10.4% | 9.7% | 6.8% | 6.4% |
|---|
| Win Hanverky Holdings Ltd ($3322) | 6.3% | 8.2% | 8.9% | 6.7% | 12.2% |
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 (49 companies) | 1.9% | 2.2% | 3.0% | 2.0% | 1.5% |
|---|
| Win Hanverky Holdings Ltd ($3322) | 2.5% | 4.2% | 7.6% | 5.1% | 5.9% |
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 (49 companies) | 12.7% | 9.4% | 7.1% | 4.1% | 6.0% |
|---|
| Win Hanverky Holdings Ltd ($3322) | 4.5% | 6.6% | 6.6% | 2.5% | 11.4% |
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 (35 companies) | -0.5x | -0.3x | -0.7x | -0.1x | -0.1x |
|---|
| Win Hanverky Holdings Ltd ($3322) | -3.7x | -3.8x | -2.7x | -2.5x | -1.2x |
