Yue Yuen Industrial Holdings Ltd reports 20.4% EBITDA growth and 0.99 pp EBITDA Margin growth from 6.8% to 7.8%
23/03/2016 • About Yue Yuen Industrial Holdings Ltd (
$551) • By InTwits
Yue Yuen Industrial Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has business model with low profitability: ROIC is at 7.1%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Yue Yuen Industrial Holdings Ltd ($551) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7,045 | 7,281 | 7,582 | 8,013 | 8,435 | 5.3% |
| Gross Profit | 1,556 | 1,660 | 1,647 | 1,774 | 1,972 | 11.2% |
| SG&A | 1,056 | 1,172 | 1,187 | 1,282 | 1,460 | 13.8% |
| EBITDA | 654 | | 652 | 548 | 661 | 20.4% |
| Net Income | 450 | 468 | 435 | 331 | 390 | 17.9% |
Balance Sheet
|
|---|
| Cash | 704 | 809 | 928 | 969 | 1,047 | 8.0% |
| Short Term Debt | 737 | 734 | 540 | 229 | 448 | 95.5% |
| Long Term Debt | 415 | 365 | 400 | 720 | 370 | -48.6% |
Cash flow
|
|---|
| Capex | 498 | | 180 | 315 | 409 | 29.5% |
Ratios
|
|---|
| Revenue growth | 21.7% | 3.3% | 4.1% | 5.7% | 5.3% | |
| EBITDA growth | 3.7% | | | -15.8% | 20.4% | |
| Gross Margin | 22.1% | 22.8% | 21.7% | 22.1% | 23.4% | 1.2% |
| EBITDA Margin | 9.3% | 0.0% | 8.6% | 6.8% | 7.8% | 1.0% |
| Net Income Margin | 6.4% | 6.4% | 5.7% | 4.1% | 4.6% | 0.5% |
| SG&A, % of revenue | 15.0% | 16.1% | 15.7% | 16.0% | 17.3% | 1.3% |
| CAPEX, % of revenue | 7.1% | | 2.4% | 3.9% | 4.8% | 0.9% |
| ROIC | 8.6% | 7.7% | 7.0% | 5.3% | 7.1% | 1.7% |
| ROE | 12.8% | 12.2% | 10.4% | 7.6% | 8.8% | 1.2% |
| Net Debt/EBITDA | 0.7x | | 0.0x | -0.0x | -0.3x | -0.3x |
Revenue and profitability
Yue Yuen Industrial Holdings Ltd's Revenue increased on 5.3% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.3 pp from 59.3% to 61.5% in 2015.
Gross Margin increased slightly on 1.2 pp from 22.1% to 23.4% in 2015. SG&A as a % of Revenue increased slightly on 1.3 pp from 16.0% to 17.3% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.8% in 2015. CAPEX/Revenue increased4.8 pp from in 2012 to 4.8% in 2015. For the last three years the average CAPEX/Revenue was 3.7%.Yue Yuen Industrial Holdings Ltd invested a large share of EBITDA (61.8%) to CAPEX.
Return on investment
The company operates at low ROIC (7.07%) and ROE (8.77%). ROIC increased slightly on 1.7 pp from 5.3% to 7.1% in 2015. ROE increased slightly on 1.2 pp from 7.6% to 8.8% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.3x and Debt / EBITDA is 1.2x. Net Debt / EBITDA dropped on 0.3x from -0.037x to -0.3x in 2015. Debt dropped on 13.8% in 2015 while cash increased on 8.0% in 2015.
Appendix 1: Peers in Apparel
Below you can find Yue Yuen Industrial 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) | | -7.5% | -0.3% | 21.1% | 7.5% |
| 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 (49 companies) | 20.5% | 5.4% | 3.2% | 5.0% | -1.0% |
|---|
| Yue Yuen Industrial Holdings Ltd ($551) | | 3.3% | 4.1% | 5.7% | 5.3% |
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% | 23.4% | 24.8% | 27.7% |
|---|
| Yue Yuen Industrial Holdings Ltd ($551) | 22.1% | 22.8% | 21.7% | 22.1% | 23.4% |
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% | 10.0% | 9.7% | 6.7% | 6.8% |
|---|
| Yue Yuen Industrial Holdings Ltd ($551) | 9.3% | | 8.6% | 6.8% | 7.8% |
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% | 3.1% | 2.0% | 1.8% |
|---|
| Yue Yuen Industrial Holdings Ltd ($551) | 7.1% | | 2.4% | 3.9% | 4.8% |
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% | 6.9% | 3.6% | 6.5% |
|---|
| Yue Yuen Industrial Holdings Ltd ($551) | 8.6% | 7.7% | 7.0% | 5.3% | 7.1% |
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) | -0.7x | -0.3x | -0.7x | -0.3x | -0.8x |
|---|
| Yue Yuen Industrial Holdings Ltd ($551) | 0.7x | | 0.0x | -0.0x | -0.3x |
