TCL Multimedia Technology Holdings Ltd EBITDA dropped on 14.6% in 2015 while Revenue increased slightly on 1.5%
23/03/2016 • About TCL Multimedia Technology Holdings Ltd (
$1070) • By InTwits
TCL Multimedia Technology Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 2.3% in 2015, 2.7% in 2014, 0.7% in 2013, 3.7% in 2012, 3.0% in 2011
- TCL Multimedia Technology Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has potentially unprofitable business model: ROIC is at 6.4%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.5x while industry average is 0.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
TCL Multimedia Technology Holdings Ltd ($1070) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 32,932 | 36,025 | 39,495 | 33,526 | 34,017 | 1.5% |
| Gross Profit | 5,289 | 6,145 | 5,414 | 5,503 | 5,753 | 4.5% |
| SG&A | 4,652 | 5,172 | 5,600 | 5,081 | 5,392 | 6.1% |
| EBITDA | 989 | 1,344 | 270 | 903 | 771 | -14.6% |
| Net Income | 453 | 911 | -48 | 234 | 26 | -89.0% |
Balance Sheet
|
|---|
| Cash | 4,452 | 3,431 | 3,048 | 3,379 | 2,215 | -34.5% |
| Short Term Debt | 3,727 | 2,608 | 1,283 | 3,104 | 1,468 | -52.7% |
| Long Term Debt | 711 | 402 | 1,132 | 925 | 1,137 | 22.9% |
Cash flow
|
|---|
| Capex | 76 | 598 | 578 | 319 | 142 | -55.4% |
Ratios
|
|---|
| Revenue growth | 22.2% | 9.4% | 9.6% | -15.1% | 1.5% | |
| EBITDA growth | -321.7% | 35.9% | -79.9% | 234.9% | -14.6% | |
| Gross Margin | 16.1% | 17.1% | 13.7% | 16.4% | 16.9% | 0.5% |
| EBITDA Margin | 3.0% | 3.7% | 0.7% | 2.7% | 2.3% | -0.4% |
| Net Income Margin | 1.4% | 2.5% | -0.1% | 0.7% | 0.1% | -0.6% |
| SG&A, % of revenue | 14.1% | 14.4% | 14.2% | 15.2% | 15.9% | 0.7% |
| CAPEX, % of revenue | 0.2% | 1.7% | 1.5% | 1.0% | 0.4% | -0.5% |
| ROIC | 9.0% | 12.7% | -0.5% | 7.6% | 6.4% | -1.2% |
| ROE | 13.6% | 22.0% | -1.1% | 5.3% | 0.6% | -4.7% |
| Net Debt/EBITDA | -0.0x | -0.3x | -2.3x | 0.7x | 0.5x | -0.2x |
Revenue and profitability
The company's Revenue increased slightly on 1.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.9 pp from 12.2% to 14.1% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased slightly on 0.70 pp from 15.2% to 15.9% in 2015.
Net Income marign decreased slightly on 0.62 pp from 0.70% to 0.076% in 2015.
Capital expenditures (CAPEX) and working capital investments
TCL Multimedia Technology Holdings Ltd's CAPEX/Revenue was 0.42% in 2015. TCL Multimedia Technology Holdings Ltd's CAPEX/Revenue decreased slightly on 1.2 pp from 1.7% in 2012 to 0.42% in 2015. It's average CAPEX/Revenue for the last three years was 0.94%.
Return on investment
The company operates at low ROIC (6.42%) and ROE (0.59%). ROIC decreased slightly on 1.2 pp from 7.6% to 6.4% in 2015. ROE decreased on 4.7 pp from 5.3% to 0.59% in 2015.
Leverage (Debt)
Debt level is 0.5x Net Debt / EBITDA and 3.4x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 0.7x to 0.5x in 2015. Debt dropped on 35.3% in 2015 while cash dropped on 34.5% in 2015.
Appendix 1: Peers in Home Furnishings
Below you can find TCL Multimedia Technology Holdings Ltd benchmarking vs. other companies in Home Furnishings 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 |
|---|
| 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% | 5.4% | 3.0% | 1.7% |
|---|
| TCL Multimedia Technology Holdings Ltd ($1070) | | 9.4% | 9.6% | -15.1% | 1.5% |
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% | 16.2% | 15.5% |
|---|
| TCL Multimedia Technology Holdings Ltd ($1070) | 16.1% | 17.1% | 13.7% | 16.4% | 16.9% |
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% | 5.5% | 4.7% | 4.6% | 5.1% |
|---|
| TCL Multimedia Technology Holdings Ltd ($1070) | 3.0% | 3.7% | 0.7% | 2.7% | 2.3% |
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% | 2.8% | 2.7% |
|---|
| TCL Multimedia Technology Holdings Ltd ($1070) | 0.2% | 1.7% | 1.5% | 1.0% | 0.4% |
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) | 5.0% | 3.7% | 4.7% | 3.9% | 4.1% |
|---|
| TCL Multimedia Technology Holdings Ltd ($1070) | 9.0% | 12.7% | -0.5% | 7.6% | 6.4% |
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 | -1.9x | -2.7x |
|---|
| TCL Multimedia Technology Holdings Ltd ($1070) | -0.0x | -0.3x | -2.3x | 0.7x | 0.5x |
