Luks Group Vietnam Holdings Co Ltd reports 240% CAPEX growth while 2.1% Revenue decline
24/03/2016 • About Luks Group Vietnam Holdings Co Ltd (
$366) • By InTwits
Luks Group Vietnam Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Luks Group Vietnam Holdings Co Ltd is a company in decline: 2015 revenue growth was -2.1%, 5 years revenue CAGR was -6.2%
- Luks Group Vietnam Holdings Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.2%. At the same time it's in pair with industry average of 2.1%.
- CAPEX is quite volatile: 86.7 in 2015, 25.5 in 2014, 2.8 in 2013, 4.3 in 2012, 14.0 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Luks Group Vietnam Holdings Co Ltd ($366) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 815.5 | 669.3 | 597.8 | 623.2 | 610.3 | -2.1% |
| Gross Profit | 306.5 | 249.2 | 220.7 | 230.7 | 222.2 | -3.7% |
| SG&A | | 96.0 | 98.3 | 119.0 | 118.0 | -0.9% |
| EBITDA | 250.8 | 203.1 | 178.5 | 148.3 | 160.0 | 7.8% |
| Net Income | 64.0 | 129.4 | 132.7 | 92.5 | 89.6 | -3.2% |
Balance Sheet
|
|---|
| Cash | 170.2 | 215.3 | 328.8 | 380.0 | 294.4 | -22.5% |
| Short Term Debt | 197.9 | 179.1 | 131.3 | 77.4 | 24.9 | -67.8% |
| Long Term Debt | 91.4 | 37.5 | 0.0 | 0.0 | 1.3 | |
Cash flow
|
|---|
| Capex | 14.0 | 4.3 | 2.8 | 25.5 | 86.7 | 240.1% |
Ratios
|
|---|
| Revenue growth | -2.7% | -17.9% | -10.7% | 4.3% | -2.1% | |
| EBITDA growth | 49.7% | -19.0% | -12.1% | -16.9% | 7.8% | |
| Gross Margin | 37.6% | 37.2% | 36.9% | 37.0% | 36.4% | -0.6% |
| EBITDA Margin | 30.8% | 30.4% | 29.9% | 23.8% | 26.2% | 2.4% |
| Net Income Margin | 7.8% | 19.3% | 22.2% | 14.8% | 14.7% | -0.2% |
| SG&A, % of revenue | | 14.3% | 16.4% | 19.1% | 19.3% | 0.2% |
| CAPEX, % of revenue | 1.7% | 0.6% | 0.5% | 4.1% | 14.2% | 10.1% |
| ROIC | 7.2% | 5.8% | 4.9% | 3.6% | 4.4% | 0.8% |
| ROE | 3.0% | 6.1% | 6.0% | 4.0% | 4.0% | -0.1% |
| Net Debt/EBITDA | 0.5x | 0.0x | -1.1x | -2.0x | -1.7x | 0.4x |
Revenue and profitability
Luks Group Vietnam Holdings Co Ltd's Revenue decreased on 2.1% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.4 pp from 23.8% to 26.2% in 2015.
Gross Margin decreased slightly on 0.61 pp from 37.0% to 36.4% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 14.2% in 2015. Luks Group Vietnam Holdings Co Ltd's CAPEX/Revenue surged on 13.6 pp from 0.64% in 2012 to 14.2% in 2015. Average CAPEX/Revenue for the last three years was 6.3%.Battling declining revenue Luks Group Vietnam Holdings Co Ltd invested a large share of EBITDA (54.2%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low ROIC (4.40%) and ROE (3.96%). ROIC increased slightly on 0.83 pp from 3.6% to 4.4% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.7x and Debt / EBITDA is 0.2x. Net Debt / EBITDA jumped on 0.4x from -2.0x to -1.7x in 2015. Debt dropped on 66.1% in 2015 while cash dropped on 22.5% in 2015.
Appendix 1: Peers in Building Materials
Below we provide Luks Group Vietnam Holdings Co Ltd benchmarking against other companies in Building Materials 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 |
|---|
| Summit Ascent Holdings Ltd ($102) | | -86.4% | -19.6% | 177.1% | -14.1% |
| Pacific Plywood Hldg Ltd ($767) | | -34.9% | -14.5% | 119.5% | |
| Luoyang Glass Co Ltd ($1108) | | -40.3% | -32.3% | 76.2% | 0.7% |
| Prosperity International Holdings HK Ltd ($803) | | -23.9% | -43.3% | 55.2% | -34.4% |
| China Singyes Solar Technologies Holdings Ltd ($750) | 35.0% | 28.7% | 34.0% | 20.7% | |
| |
|---|
| Median (24 companies) | 38.6% | -1.3% | 10.7% | 6.3% | -14.1% |
|---|
| Luks Group Vietnam Holdings Co Ltd ($366) | | -17.9% | -10.7% | 4.3% | -2.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 95.0% | 91.4% | 82.0% | 97.2% | |
| Dongpeng Holdings Co Ltd ($3386) | 28.7% | 35.6% | 37.1% | 38.5% | |
| Anhui Conch Cement Co Ltd ($914) | 39.4% | 27.3% | 32.5% | 33.2% | 26.9% |
| China Resources Cement Holdings Ltd ($1313) | 31.1% | 24.1% | 28.5% | 31.3% | 24.0% |
| TCC International Holdings Ltd ($1136) | 25.6% | 18.6% | 27.5% | 30.8% | 15.4% |
| |
|---|
| Median (24 companies) | 26.0% | 20.0% | 22.0% | 20.8% | 15.4% |
|---|
| Luks Group Vietnam Holdings Co Ltd ($366) | 37.6% | 37.2% | 36.9% | 37.0% | 36.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 53.6% | 12.6% | -19.8% | 50.5% | |
| Anhui Conch Cement Co Ltd ($914) | 38.8% | 27.1% | 31.1% | 32.1% | 29.7% |
| TCC International Holdings Ltd ($1136) | 26.5% | 19.2% | 26.1% | 29.0% | 14.0% |
| Asia Cement China Holdings Corp ($743) | 30.3% | 20.6% | 24.9% | 27.0% | 18.1% |
| China Tianrui Group Cement Co Ltd ($1252) | 32.4% | 28.5% | 23.7% | 26.7% | 32.8% |
| |
|---|
| Median (24 companies) | 18.3% | 15.1% | 16.9% | 17.4% | 14.0% |
|---|
| Luks Group Vietnam Holdings Co Ltd ($366) | 30.8% | 30.4% | 29.9% | 23.8% | 26.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Singyes Solar Technologies Holdings Ltd ($750) | 40.4% | 11.9% | 32.1% | 23.6% | |
| West China Cement Ltd ($2233) | 54.8% | 17.2% | 13.9% | 15.9% | 10.1% |
| China Glass Holdings Ltd ($3300) | 37.2% | 19.6% | 12.5% | 12.4% | |
| China Shanshui Cement Group Ltd ($691) | 13.5% | 18.9% | 21.1% | 12.1% | |
| China Lesso Group Holdings Ltd ($2128) | 12.0% | 13.6% | 9.1% | 11.8% | 8.1% |
| |
|---|
| Median (24 companies) | 8.2% | 10.1% | 8.9% | 6.5% | 6.4% |
|---|
| Luks Group Vietnam Holdings Co Ltd ($366) | 1.7% | 0.6% | 0.5% | 4.1% | 14.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dongpeng Holdings Co Ltd ($3386) | 49.7% | 37.1% | 35.8% | 27.2% | |
| Anhui Conch Cement Co Ltd ($914) | 27.2% | 12.7% | 17.5% | 18.4% | 11.7% |
| China Lesso Group Holdings Ltd ($2128) | 26.8% | 20.5% | 19.4% | 18.2% | 17.2% |
| China Wood Optimization Holding Ltd ($8099) | | 33.5% | 27.3% | 17.7% | 17.7% |
| China Singyes Solar Technologies Holdings Ltd ($750) | 21.1% | 18.6% | 19.9% | 16.0% | |
| |
|---|
| Median (24 companies) | 13.3% | 5.7% | 7.0% | 5.7% | 1.4% |
|---|
| Luks Group Vietnam Holdings Co Ltd ($366) | 7.2% | 5.8% | 4.9% | 3.6% | 4.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sustainable Forest Holdings Ltd ($723) | 0.9x | | | 9.6x | |
| China National Building Material Co Ltd ($3323) | 3.9x | 6.7x | 6.8x | 6.3x | |
| BBMG Corp ($2009) | 4.4x | 4.6x | 5.0x | 6.1x | 6.6x |
| China Tianrui Group Cement Co Ltd ($1252) | 3.0x | 4.2x | 5.1x | 5.2x | 7.9x |
| China Shanshui Cement Group Ltd ($691) | 1.8x | 3.0x | 4.1x | 4.8x | |
| |
|---|
| Median (20 companies) | 1.4x | 3.0x | 2.7x | 2.0x | 4.0x |
|---|
| Luks Group Vietnam Holdings Co Ltd ($366) | 0.5x | 0.0x | -1.1x | -2.0x | -1.7x |
