Playmates Holdings Ltd reports 468% CAPEX growth while 25.3% Revenue decline
24/03/2016 • About Playmates Holdings Ltd (
$635) • By InTwits
Playmates 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: 32.8% in 2015, 33.5% in 2014, 36.7% in 2013, 22.0% in 2012, -14.7% in 2011
- Playmates Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.6%. At the same time it's a lot of higher than industry average of 4.7%.
- CAPEX is quite volatile: 275 in 2015, 48.5 in 2014, 84.0 in 2013, 56.3 in 2012, 73.2 in 2011
- The company has business model with low profitability: ROIC is at 7.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Playmates Holdings Ltd ($635) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 163 | 490 | 1,881 | 2,398 | 1,791 | -25.3% |
| Gross Profit | 111 | 322 | 1,243 | 1,552 | 1,175 | -24.3% |
| SG&A | 147 | 212 | 572 | 760 | 614 | -19.3% |
| EBITDA | -24 | 108 | 690 | 804 | 587 | -27.0% |
| Net Income | 733 | 1,170 | 1,178 | 758 | 414 | -45.4% |
Balance Sheet
|
|---|
| Cash | 467 | 466 | 739 | 1,234 | 1,161 | -5.9% |
| Short Term Debt | 346 | 364 | 364 | 364 | 495 | 36.0% |
| Long Term Debt | 219 | 163 | 107 | 66 | 35 | -47.9% |
Cash flow
|
|---|
| Capex | 73 | 56 | 84 | 48 | 275 | 467.8% |
Ratios
|
|---|
| Revenue growth | -38.2% | 200.7% | 283.5% | 27.5% | -25.3% | |
| EBITDA growth | -19.3% | -550.9% | 538.1% | 16.5% | -27.0% | |
| Gross Margin | 68.1% | 65.7% | 66.1% | 64.7% | 65.6% | 0.9% |
| EBITDA Margin | -14.7% | 22.0% | 36.7% | 33.5% | 32.8% | -0.8% |
| Net Income Margin | 449.2% | 238.6% | 62.6% | 31.6% | 23.1% | -8.5% |
| SG&A, % of revenue | 90.0% | 43.1% | 30.4% | 31.7% | 34.3% | 2.6% |
| CAPEX, % of revenue | 44.9% | 11.5% | 4.5% | 2.0% | 15.4% | 13.3% |
| ROIC | -1.0% | 2.4% | 12.6% | 12.0% | 7.9% | -4.2% |
| ROE | 27.1% | 32.7% | 25.2% | 13.4% | 6.6% | -6.7% |
| Net Debt/EBITDA | | 0.6x | -0.4x | -1.0x | -1.1x | -0.1x |
Revenue and profitability
The company's Revenue dropped on 25.3% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.76 pp from 33.5% to 32.8% in 2015.
Gross Margin increased slightly on 0.86 pp from 64.7% to 65.6% in 2015. SG&A as a % of Revenue increased on 2.6 pp from 31.7% to 34.3% in 2015.
Net Income marign decreased on 8.5 pp from 31.6% to 23.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 15.4% in 2015. CAPEX/Revenue increased on 3.9 pp from 11.5% in 2012 to 15.4% in 2015. It's average level of CAPEX/Revenue for the last three years was 7.3%.
Return on investment
The company operates at low ROIC (7.86%) and ROE (6.64%). ROIC decreased on 4.2 pp from 12.0% to 7.9% in 2015. ROE decreased on 6.7 pp from 13.4% to 6.6% in 2015.
Leverage (Debt)
Debt level is -1.1x Net Debt / EBITDA and 0.9x Debt / EBITDA. Net Debt / EBITDA decreased on 0.1x from -1.0x to -1.1x in 2015. Debt surged on 23.0% in 2015 while cash decreased on 5.9% in 2015.
Appendix 1: Peers in Toys/Games/Hobbies
Below we provide Playmates Holdings Ltd benchmarking against other companies in Toys/Games/Hobbies 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 |
|---|
| Kiu Hung International Holdings Ltd ($381) | -0.8% | 4.5% | -11.9% | 34.8% | |
| Playmates Toys Ltd ($869) | | 726.8% | 346.3% | 30.2% | -28.2% |
| Dream International Ltd ($1126) | | 24.9% | -0.1% | 21.0% | 10.8% |
| Leyou Technologies Holdings Ltd ($1089) | 4.7% | 18.8% | 32.3% | 17.7% | |
| Matrix Holdings Ltd ($1005) | | -0.2% | 17.5% | 12.2% | 10.1% |
| |
|---|
| Median (9 companies) | 1.9% | 4.5% | 8.8% | 12.2% | 10.1% |
|---|
| Playmates Holdings Ltd ($635) | | 200.7% | 283.5% | 27.5% | -25.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Playmates Toys Ltd ($869) | 28.6% | 60.3% | 62.8% | 61.9% | 61.6% |
| Matrix Holdings Ltd ($1005) | 35.2% | 34.3% | 37.1% | 38.4% | 36.9% |
| Kiu Hung International Holdings Ltd ($381) | 20.8% | 30.9% | 29.0% | 32.1% | |
| Dream International Ltd ($1126) | 24.3% | 25.6% | 29.1% | 22.4% | 23.5% |
| Kin Yat Holdings Ltd ($638) | 16.4% | 9.9% | 12.8% | 12.6% | 12.4% |
| |
|---|
| Median (8 companies) | 19.6% | 21.7% | 20.9% | 17.5% | 23.5% |
|---|
| Playmates Holdings Ltd ($635) | 68.1% | 65.7% | 66.1% | 64.7% | 65.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Playmates Toys Ltd ($869) | -186.4% | 15.1% | 33.0% | 30.2% | 25.8% |
| Matrix Holdings Ltd ($1005) | 11.0% | 10.2% | 13.2% | 15.0% | 17.4% |
| Dream International Ltd ($1126) | 10.3% | 13.2% | 14.8% | 9.8% | 12.9% |
| Kin Yat Holdings Ltd ($638) | 12.3% | 4.8% | 8.4% | 8.8% | 8.6% |
| Kader Holdings Co Ltd ($180) | -6.7% | -4.2% | -3.0% | 5.8% | |
| |
|---|
| Median (9 companies) | 8.9% | 6.6% | 5.6% | 5.8% | 12.9% |
|---|
| Playmates Holdings Ltd ($635) | -14.7% | 22.0% | 36.7% | 33.5% | 32.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Quali-Smart Holdings Ltd ($1348) | 1.7% | 1.5% | 2.2% | 12.7% | 3.0% |
| Dream International Ltd ($1126) | 2.6% | 2.9% | 3.8% | 11.2% | 7.3% |
| Kin Yat Holdings Ltd ($638) | 7.9% | 9.8% | 4.6% | 7.5% | 4.8% |
| Green International Holdings Ltd ($2700) | 0.1% | 0.2% | 3.2% | 6.5% | |
| Kader Holdings Co Ltd ($180) | 4.0% | 3.5% | 3.7% | 2.8% | |
| |
|---|
| Median (9 companies) | 4.0% | 3.5% | 3.2% | 2.8% | 3.0% |
|---|
| Playmates Holdings Ltd ($635) | 44.9% | 11.5% | 4.5% | 2.0% | 15.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Playmates Toys Ltd ($869) | -48.9% | 30.7% | 121.1% | 73.0% | 36.6% |
| Matrix Holdings Ltd ($1005) | 5.8% | 5.9% | 13.1% | 18.6% | 21.2% |
| Dream International Ltd ($1126) | 12.4% | 19.3% | 19.4% | 13.3% | 19.4% |
| Quali-Smart Holdings Ltd ($1348) | 24.2% | 31.3% | 16.2% | 9.1% | -0.3% |
| Kin Yat Holdings Ltd ($638) | 11.4% | -0.7% | 4.5% | 4.9% | 6.2% |
| |
|---|
| Median (9 companies) | 8.6% | 5.9% | 4.5% | 4.9% | 19.4% |
|---|
| Playmates Holdings Ltd ($635) | -1.0% | 2.4% | 12.6% | 12.0% | 7.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kader Holdings Co Ltd ($180) | | | | 9.6x | |
| Leyou Technologies Holdings Ltd ($1089) | -1.4x | 1.1x | 4.4x | 3.8x | |
| Quali-Smart Holdings Ltd ($1348) | 1.2x | 0.6x | -0.7x | 0.9x | 4.5x |
| Kin Yat Holdings Ltd ($638) | 0.0x | 1.6x | 0.3x | 0.4x | -0.0x |
| Matrix Holdings Ltd ($1005) | 0.5x | 0.6x | 0.0x | -0.2x | -0.6x |
| |
|---|
| Median (7 companies) | 0.2x | 0.6x | -0.3x | 0.4x | -0.6x |
|---|
| Playmates Holdings Ltd ($635) | | 0.6x | -0.4x | -1.0x | -1.1x |
