Huiyin Household Appliances Holdings Co Ltd EBITDA dropped on 283% in 2015 and Revenue dropped on 33.6%
24/03/2016 • About Huiyin Household Appliances Holdings Co Ltd (
$1280) • By InTwits
Huiyin Household Appliances Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Huiyin Household Appliances Holdings Co Ltd doesn't have a profitable business model yet: 2015 ROIC is -14.3%
- The company operates at negative EBITDA Margin: -15.8%
- Huiyin Household Appliances Holdings Co Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -2.3% for the sames years0
- Huiyin Household Appliances Holdings Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.3%. At the same time it's a lot of higher than industry average of 8.2%.
- CAPEX is quite volatile: 41.0 in 2015, 27.9 in 2014, 31.2 in 2013, 19.0 in 2012, 187 in 2011
- The company has unprofitable business model: ROIC is at -14.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Huiyin Household Appliances Holdings Co Ltd ($1280) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,835 | 2,458 | 2,849 | 3,093 | 2,054 | -33.6% |
| Gross Profit | 361 | 310 | 309 | 375 | 121 | -67.8% |
| SG&A | | 540 | 452 | 239 | 494 | 106.6% |
| EBITDA | 98 | -172 | -86 | 177 | -324 | -283.1% |
| Net Income | 16 | -227 | -150 | 50 | -399 | -897.1% |
Balance Sheet
|
|---|
| Cash | 124 | 75 | 152 | 25 | 72 | 182.5% |
| Short Term Debt | 1,111 | 1,348 | 1,416 | 1,963 | 1,328 | -32.4% |
| Long Term Debt | 0 | 479 | 608 | 0 | 7 | |
Cash flow
|
|---|
| Capex | 187 | 19 | 31 | 28 | 41 | 47.1% |
Ratios
|
|---|
| Revenue growth | 58.9% | -13.3% | 15.9% | 8.6% | -33.6% | |
| EBITDA growth | -38.0% | -276.8% | -50.1% | -305.6% | -283.1% | |
| Gross Margin | 12.7% | 12.6% | 10.8% | 12.1% | 5.9% | -6.2% |
| EBITDA Margin | 3.4% | -7.0% | -3.0% | 5.7% | -15.8% | -21.5% |
| Net Income Margin | 0.5% | -9.2% | -5.3% | 1.6% | -19.4% | -21.0% |
| SG&A, % of revenue | | 22.0% | 15.9% | 7.7% | 24.0% | 16.3% |
| CAPEX, % of revenue | 6.6% | 0.8% | 1.1% | 0.9% | 2.0% | 1.1% |
| ROIC | 3.5% | -8.0% | -4.4% | 5.6% | -14.3% | -19.9% |
| ROE | 1.5% | -23.8% | -19.5% | 6.7% | -50.9% | -57.6% |
| Net Debt/EBITDA | 10.1x | | | 10.9x | | -10.9x |
Revenue and profitability
The company's Revenue dropped on 33.6% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 21.5 pp from 5.7% to -15.8% in 2015.
Gross Margin decreased on 6.2 pp from 12.1% to 5.9% in 2015. SG&A as a % of Revenue jumped on 16.3 pp from 7.7% to 24.0% in 2015.
Net Income marign dropped on 21.0 pp from 1.6% to -19.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.0% in 2015. CAPEX/Revenue increased slightly on 1.2 pp from 0.77% in 2012 to 2.0% in 2015. For the last three years the average CAPEX/Revenue was 1.3%.
Return on investment
The company operates at negative ROIC (-14.31%) and ROE (-50.90%). ROIC dropped on 19.9 pp from 5.6% to -14.3% in 2015. ROE dropped on 57.6 pp from 6.7% to -50.9% in 2015.
Leverage (Debt)
Debt level is -3.3x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 10.9x from 10.9x to in 2015. Debt dropped on 32.0% in 2015 while cash jumped on 182% in 2015.
Appendix 1: Peers in Distribution/Wholesale
Below you can find Huiyin Household Appliances Holdings Co Ltd benchmarking vs. other companies in Distribution/Wholesale 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 |
|---|
| Forefront Group Ltd ($885) | | | 504.6% | 3,871.0% | 72.0% |
| China LNG Group Ltd ($931) | -84.5% | 694.8% | 13.6% | 1,341.3% | |
| Sheng Yuan Holdings Ltd ($851) | | -86.1% | 756.9% | 567.2% | -2.1% |
| China Infrastructure Investment Ltd ($600) | 346.9% | 412.1% | -50.9% | 557.9% | |
| China-Hongkong Photo Products Holdings Ltd ($1123) | | 24.9% | 9.0% | 81.2% | 12.2% |
| |
|---|
| Median (37 companies) | 13.2% | 3.1% | 0.0% | 0.8% | -2.0% |
|---|
| Huiyin Household Appliances Holdings Co Ltd ($1280) | | -13.3% | 15.9% | 8.6% | -33.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Yunnan Tin Minerals Group Co Ltd ($263) | 32.6% | 79.6% | 66.3% | | 98.7% |
| Goldin Financial Holdings Ltd ($530) | 67.0% | 75.3% | 71.7% | 74.8% | 73.8% |
| YGM Trading Ltd ($375) | 67.1% | 66.5% | 67.4% | 64.0% | 62.5% |
| Goldlion Holdings Ltd ($533) | 57.3% | 56.4% | 54.1% | 55.7% | 60.0% |
| E.Bon Holdings Ltd ($599) | 36.6% | 40.3% | 37.4% | 35.8% | 39.6% |
| |
|---|
| Median (27 companies) | 16.4% | 17.5% | 18.2% | 19.3% | 22.3% |
|---|
| Huiyin Household Appliances Holdings Co Ltd ($1280) | 12.7% | 12.6% | 10.8% | 12.1% | 5.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goldin Financial Holdings Ltd ($530) | -134.6% | 163.7% | 613.4% | 285.7% | 364.1% |
| China LNG Group Ltd ($931) | 195.2% | 95.1% | 76.4% | 97.9% | |
| Forefront Group Ltd ($885) | | -2,113.8% | -803.1% | 57.7% | 4.9% |
| China Infrastructure Investment Ltd ($600) | -1,171.2% | -274.9% | 120.0% | 52.0% | |
| GA Holdings Ltd ($8126) | -4.5% | 8.0% | 19.7% | 22.9% | |
| |
|---|
| Median (37 companies) | 2.2% | 2.6% | 2.5% | 4.5% | 3.3% |
|---|
| Huiyin Household Appliances Holdings Co Ltd ($1280) | 3.4% | -7.0% | -3.0% | 5.7% | -15.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| C Y Foundation Group Ltd ($1182) | 9.8% | 2.5% | 5.2% | 82.2% | 9.3% |
| Inspur International Ltd ($596) | 0.9% | 8.4% | 12.2% | 33.6% | |
| SIS International Holdings ($529) | 0.2% | 13.4% | 31.8% | 14.8% | 49.8% |
| HKC International Holdings Ltd ($248) | 0.9% | 5.5% | 0.8% | 11.4% | 0.5% |
| Tan Chong International Ltd ($693) | 7.6% | 6.0% | 7.6% | 7.0% | |
| |
|---|
| Median (36 companies) | 1.3% | 1.4% | 1.8% | 1.7% | 1.1% |
|---|
| Huiyin Household Appliances Holdings Co Ltd ($1280) | 6.6% | 0.8% | 1.1% | 0.9% | 2.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China LNG Group Ltd ($931) | 2.2% | 8.4% | 7.4% | 87.0% | |
| Yestar International Holdings Co Ltd ($2393) | 29.4% | 28.8% | 24.1% | 26.2% | 25.4% |
| Powerwell Pacific Holdings Ltd ($8265) | 27.8% | 6.4% | 6.4% | 23.6% | 27.1% |
| Forefront Group Ltd ($885) | -37.7% | -4.9% | -11.0% | 19.5% | 1.3% |
| Sincere Watch Hong Kong Ltd ($444) | 46.4% | 51.7% | 27.7% | 14.6% | 5.5% |
| |
|---|
| Median (38 companies) | 2.2% | 2.7% | 1.7% | 3.1% | 2.5% |
|---|
| Huiyin Household Appliances Holdings Co Ltd ($1280) | 3.5% | -8.0% | -4.4% | 5.6% | -14.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sheng Yuan Holdings Ltd ($851) | | | | 19.3x | 15.4x |
| Takson Holdings Ltd ($918) | | | 11.5x | 11.7x | 15.7x |
| Pacific Andes International Holdings Ltd ($1174) | 4.9x | 5.1x | 9.1x | 7.8x | |
| SIS International Holdings ($529) | -62.1x | -1.8x | 7.0x | 7.2x | 16.8x |
| Futong Technology Development Holdings Ltd ($465) | 2.2x | 5.6x | 8.6x | 6.9x | 5.0x |
| |
|---|
| Median (26 companies) | -0.4x | -0.2x | -0.6x | -0.1x | -0.2x |
|---|
| Huiyin Household Appliances Holdings Co Ltd ($1280) | 10.1x | | | 10.9x | |
