Raymond Industrial Ltd reports 22.2% EBITDA decline and 1.4 pp EBITDA Margin decline from 7.8% to 6.3%
23/03/2016 • About Raymond Industrial Ltd (
$229) • By InTwits
Raymond Industrial Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Raymond Industrial Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.7%. At the same time it's in pair with industry average of 3.4%.
- CAPEX is quite volatile: 18.8 in 2015, 40.5 in 2014, 18.6 in 2013, 24.1 in 2012, 48.6 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Raymond Industrial Ltd ($229) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,176 | 1,278 | 1,183 | 1,035 | 988 | -4.5% |
| Gross Profit | 103 | 151 | 140 | 123 | 102 | -17.2% |
| SG&A | | 73 | 73 | 67 | 63 | -5.9% |
| EBITDA | 53 | 97 | 91 | 80 | 62 | -22.2% |
| Net Income | 18 | 47 | 33 | 28 | 36 | 28.4% |
Balance Sheet
|
|---|
| Cash | 169 | 149 | 224 | 213 | 244 | 14.8% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 49 | 24 | 19 | 41 | 19 | -53.6% |
Ratios
|
|---|
| Revenue growth | 21.6% | 8.7% | -7.5% | -12.5% | -4.5% | |
| EBITDA growth | -17.6% | 82.4% | -5.9% | -12.1% | -22.2% | |
| Gross Margin | 8.8% | 11.8% | 11.8% | 11.9% | 10.3% | -1.6% |
| EBITDA Margin | 4.5% | 7.6% | 7.7% | 7.8% | 6.3% | -1.4% |
| Net Income Margin | 1.5% | 3.7% | 2.8% | 2.7% | 3.7% | 0.9% |
| SG&A, % of revenue | | 5.7% | 6.1% | 6.5% | 6.4% | -0.1% |
| CAPEX, % of revenue | 4.1% | 1.9% | 1.6% | 3.9% | 1.9% | -2.0% |
| ROIC | 3.9% | 11.2% | 9.1% | 7.2% | 4.7% | -2.6% |
| ROE | 3.5% | 8.6% | 5.7% | 4.7% | 6.3% | 1.5% |
| Net Debt/EBITDA | -3.2x | -1.5x | -2.5x | -2.7x | -3.9x | -1.3x |
Revenue and profitability
The company's Revenue decreased on 4.5% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.4 pp from 7.8% to 6.3% in 2015.
Gross Margin decreased slightly on 1.6 pp from 11.9% to 10.3% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 0.94 pp from 2.7% to 3.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
Raymond Industrial Ltd's CAPEX/Revenue was 1.9% in 2015. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. Average CAPEX/Revenue for the last three years was 2.5%.
Return on investment
The company operates at low ROIC (4.69%) and ROE (6.26%). ROIC decreased on 2.6 pp from 7.2% to 4.7% in 2015. ROE increased slightly on 1.5 pp from 4.7% to 6.3% in 2015.
Leverage (Debt)
The company has no debt. Cash surged on 14.8% in 2015.
Appendix 1: Peers in Home Furnishings
Below we provide Raymond Industrial Ltd benchmarking against other companies in Home Furnishings 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 |
|---|
| Jiu Rong Holdings Ltd ($2358) | | | 136.9% | 438.7% | |
| See Corp Ltd ($491) | | 13.7% | -31.9% | 134.1% | 126.9% |
| BEP International Holdings Ltd ($2326) | | 44.7% | -41.5% | 46.2% | 187.9% |
| Aupu Group Holding Co Ltd ($477) | | 5.7% | 9.0% | 26.4% | 18.5% |
| Alco Holdings Ltd ($328) | | -10.2% | -32.6% | 22.8% | 11.8% |
| |
|---|
| Median (26 companies) | 13.4% | -0.2% | 7.8% | 3.0% | 1.7% |
|---|
| Raymond Industrial Ltd ($229) | | 8.7% | -7.5% | -12.5% | -4.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Aupu Group Holding Co Ltd ($477) | 47.1% | 48.6% | 45.0% | 47.8% | 48.7% |
| South East Group Ltd ($726) | 36.2% | 25.5% | 51.6% | 38.8% | 82.4% |
| Grande Holdings Ltd/The ($186) | 19.9% | 23.7% | 25.4% | 29.0% | |
| Samson Holding Ltd ($531) | 24.9% | 25.6% | 25.4% | 27.3% | 27.3% |
| Gold Peak Industries Holding Ltd ($40) | 26.8% | 25.8% | 23.6% | 24.9% | 25.6% |
| |
|---|
| Median (26 companies) | 16.5% | 18.9% | 18.2% | 16.7% | 15.9% |
|---|
| Raymond Industrial Ltd ($229) | 8.8% | 11.8% | 11.8% | 11.9% | 10.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| See Corp Ltd ($491) | -58.7% | -38.4% | -59.5% | 32.0% | -35.6% |
| Aupu Group Holding Co Ltd ($477) | 18.1% | 15.3% | 17.6% | 30.1% | 27.0% |
| Welling Holding Ltd ($382) | 8.6% | 11.9% | 12.8% | 10.8% | 8.6% |
| Hing Lee HK Holdings Ltd ($396) | 9.3% | -3.0% | 4.3% | 9.4% | |
| Samson Holding Ltd ($531) | 6.2% | 7.5% | 6.6% | 9.4% | 5.1% |
| |
|---|
| Median (26 companies) | 6.0% | 4.9% | 4.5% | 4.5% | 4.7% |
|---|
| Raymond Industrial Ltd ($229) | 4.5% | 7.6% | 7.7% | 7.8% | 6.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Royale Furniture Holdings Ltd ($1198) | 35.8% | | 14.1% | 16.5% | |
| Sunrise China Technology Group Ltd ($8226) | 7.9% | 126.4% | 69.3% | 7.4% | 14.1% |
| Aupu Group Holding Co Ltd ($477) | 1.9% | 1.5% | 6.3% | 5.3% | 5.7% |
| Alco Holdings Ltd ($328) | 5.1% | 0.8% | 1.4% | 5.2% | 1.3% |
| Skyworth Digital Holdings Ltd ($751) | 2.2% | 3.0% | 2.9% | 4.9% | 2.9% |
| |
|---|
| Median (26 companies) | 1.8% | 1.5% | 2.2% | 2.7% | 2.7% |
|---|
| Raymond Industrial Ltd ($229) | 4.1% | 1.9% | 1.6% | 3.9% | 1.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mastercraft International Holdings Ltd ($8146) | 76.2% | 54.4% | 38.6% | 36.4% | |
| Aupu Group Holding Co Ltd ($477) | 18.0% | 14.8% | 17.0% | 32.2% | 32.2% |
| Haier Electronics Group Co Ltd ($1169) | 45.3% | 37.5% | 32.8% | 20.8% | 5.9% |
| Welling Holding Ltd ($382) | 29.4% | 23.5% | 24.3% | 18.7% | 10.7% |
| Tonly Electronics Holdings Ltd ($1249) | 7.0% | 4.2% | 7.1% | 15.9% | 11.7% |
| |
|---|
| Median (26 companies) | 7.0% | 3.7% | 4.4% | 3.9% | 4.1% |
|---|
| Raymond Industrial Ltd ($229) | 3.9% | 11.2% | 9.1% | 7.2% | 4.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kasen International Holdings Ltd ($496) | 9.6x | 2.2x | 3.7x | 44.9x | |
| Chigo Holding Ltd ($449) | 27.0x | 12.3x | 11.8x | 14.5x | |
| Gold Peak Industries Holding Ltd ($40) | 5.6x | 10.2x | 3.4x | 3.6x | 2.8x |
| Skyworth Digital Holdings Ltd ($751) | 1.1x | 1.2x | 1.5x | 1.2x | -0.2x |
| Hisense Kelon Electrical Holdings Co Ltd ($921) | 3.3x | 1.2x | 0.9x | 1.0x | |
| |
|---|
| Median (19 companies) | 0.2x | -0.2x | -0.9x | -0.8x | -2.2x |
|---|
| Raymond Industrial Ltd ($229) | -3.2x | -1.5x | -2.5x | -2.7x | -3.9x |
