Goodbaby International Holdings Ltd EBITDA surged on 57.3% in 2015 and EBITDA Margin increased slightly on 1.9 pp from 4.9% to 6.8%
29/03/2016 • About Goodbaby International Holdings Ltd (
$1086) • By InTwits
Goodbaby International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Goodbaby International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.0%. At the same time it's in pair with industry average of 17.7%.
- CAPEX is quite volatile: 268 in 2015, 111 in 2014, 285 in 2013, 267 in 2012, 928 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.1%
- It operates with high leverage: Net Debt/EBITDA is 2.1x while industry average is -3.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Goodbaby International Holdings Ltd ($1086) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,942 | 4,554 | 4,189 | 6,116 | 6,951 | 13.7% |
| Gross Profit | 674 | 872 | 961 | 1,528 | 2,050 | 34.2% |
| SG&A | 454 | 587 | 692 | 1,236 | 1,512 | 22.3% |
| EBITDA | 228 | 321 | 312 | 301 | 474 | 57.3% |
| Net Income | 177 | 181 | 171 | 57 | 197 | 243.5% |
Balance Sheet
|
|---|
| Cash | 788 | 633 | 608 | 485 | 708 | 45.9% |
| Short Term Debt | 326 | 221 | 447 | 1,496 | 692 | -53.8% |
| Long Term Debt | 0 | 0 | 0 | 762 | 1,006 | 32.0% |
Cash flow
|
|---|
| Capex | 152 | 130 | 118 | 160 | 184 | 15.2% |
Ratios
|
|---|
| Revenue growth | 5.9% | 15.5% | -8.0% | 46.0% | 13.7% | |
| EBITDA growth | -38.3% | 40.8% | -3.1% | -3.4% | 57.3% | |
| Gross Margin | 17.1% | 19.1% | 22.9% | 25.0% | 29.5% | 4.5% |
| EBITDA Margin | 5.8% | 7.1% | 7.4% | 4.9% | 6.8% | 1.9% |
| Net Income Margin | 4.5% | 4.0% | 4.1% | 0.9% | 2.8% | 1.9% |
| SG&A, % of revenue | 11.5% | 12.9% | 16.5% | 20.2% | 21.8% | 1.5% |
| CAPEX, % of revenue | 3.9% | 2.9% | 2.8% | 2.6% | 2.6% | 0.0% |
| ROIC | 7.3% | 10.7% | 8.8% | 3.9% | 6.1% | 2.1% |
| ROE | 11.1% | 10.3% | 9.0% | 2.7% | 8.5% | 5.8% |
| Net Debt/EBITDA | -2.0x | -1.3x | -0.5x | 5.9x | 2.1x | -3.8x |
Revenue and profitability
Goodbaby International Holdings Ltd's Revenue jumped on 13.7% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 14.2 pp from -1.4% to -15.6% in 2015.
Gross Margin increased on 4.5 pp from 25.0% to 29.5% in 2015. SG&A as a % of Revenue increased slightly on 1.5 pp from 20.2% to 21.8% in 2015.
Net Income marign increased slightly on 1.9 pp from 0.94% to 2.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 2.6%. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 2.7%.
Return on investment
The company operates at low ROIC (6.08%) and ROE (8.47%). ROIC increased on 2.1 pp from 3.9% to 6.1% in 2015. ROE increased on 5.8 pp from 2.7% to 8.5% in 2015.
Leverage (Debt)
Debt level is 2.1x Net Debt / EBITDA and 3.6x Debt / EBITDA. Net Debt / EBITDA dropped on 3.8x from 5.9x to 2.1x in 2015. Debt dropped on 24.8% in 2015 while cash surged on 45.9% in 2015.
Appendix 1: Peers in Household Products/Wares
Below we provide Goodbaby International Holdings Ltd benchmarking against other companies in Household Products/Wares 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 |
|---|
| Lisi Group Holdings Ltd ($526) | | 2.5% | -23.5% | 160.0% | 47.9% |
| Tempus Holdings Ltd ($6880) | | 17.3% | 5.5% | 31.1% | 14.7% |
| Samsonite International SA ($1910) | | 13.2% | 15.0% | 15.4% | 3.5% |
| eForce Holdings Ltd ($943) | -3.2% | 9.1% | 11.0% | 11.3% | |
| Carpenter Tan Holdings Ltd ($837) | | 11.5% | 3.3% | 6.2% | -7.4% |
| |
|---|
| Median (8 companies) | -3.2% | 10.3% | 4.6% | 8.7% | 3.5% |
|---|
| Goodbaby International Holdings Ltd ($1086) | | 15.5% | -8.0% | 46.0% | 13.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Carpenter Tan Holdings Ltd ($837) | 68.4% | 66.9% | 67.0% | 65.8% | 64.5% |
| Tempus Holdings Ltd ($6880) | 71.5% | 68.4% | 64.8% | 64.6% | 65.5% |
| Biostime International Holdings Ltd ($1112) | 66.5% | 65.9% | 65.2% | 61.9% | |
| Samsonite International SA ($1910) | 54.8% | 53.7% | 53.4% | 52.9% | 52.6% |
| eForce Holdings Ltd ($943) | 14.0% | 21.2% | 24.3% | 25.6% | |
| |
|---|
| Median (8 companies) | 38.6% | 39.1% | 38.8% | 39.3% | 52.6% |
|---|
| Goodbaby International Holdings Ltd ($1086) | 17.1% | 19.1% | 22.9% | 25.0% | 29.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Carpenter Tan Holdings Ltd ($837) | 52.8% | 49.0% | 48.1% | 48.6% | 46.7% |
| Biostime International Holdings Ltd ($1112) | 30.0% | 30.4% | 27.6% | 24.3% | |
| Lerado Group Holding Co Ltd ($1225) | 6.6% | 8.6% | 25.2% | 20.9% | |
| Samsonite International SA ($1910) | 15.9% | 15.9% | 16.0% | 14.9% | 15.1% |
| Lisi Group Holdings Ltd ($526) | 11.7% | 11.8% | -0.3% | 4.4% | 10.0% |
| |
|---|
| Median (8 companies) | 15.2% | 13.8% | 11.6% | 9.7% | 10.0% |
|---|
| Goodbaby International Holdings Ltd ($1086) | 5.8% | 7.1% | 7.4% | 4.9% | 6.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lerado Group Holding Co Ltd ($1225) | 4.3% | 3.0% | 75.4% | 18.8% | |
| Lisi Group Holdings Ltd ($526) | 7.9% | 7.1% | 11.3% | 6.1% | 13.1% |
| Samsonite International SA ($1910) | 2.4% | 2.1% | 2.8% | 3.0% | 2.8% |
| Biostime International Holdings Ltd ($1112) | 1.8% | 1.2% | 3.0% | 2.8% | |
| Tempus Holdings Ltd ($6880) | 1.0% | 0.9% | 4.0% | 2.8% | 2.4% |
| |
|---|
| Median (8 companies) | 2.3% | 1.8% | 2.9% | 2.8% | 2.4% |
|---|
| Goodbaby International Holdings Ltd ($1086) | 3.9% | 2.9% | 2.8% | 2.6% | 2.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biostime International Holdings Ltd ($1112) | 34.3% | 41.7% | 39.9% | 24.7% | |
| Samsonite International SA ($1910) | 18.5% | 20.8% | 21.8% | 21.1% | 20.3% |
| Carpenter Tan Holdings Ltd ($837) | 35.2% | 30.3% | 24.6% | 20.7% | 17.6% |
| Tempus Holdings Ltd ($6880) | 34.9% | 18.2% | 1.3% | 2.5% | 4.2% |
| Lisi Group Holdings Ltd ($526) | 8.0% | 6.4% | -4.7% | 0.1% | 1.8% |
| |
|---|
| Median (8 companies) | 18.7% | 14.4% | 4.0% | 1.3% | 4.2% |
|---|
| Goodbaby International Holdings Ltd ($1086) | 7.3% | 10.7% | 8.8% | 3.9% | 6.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lisi Group Holdings Ltd ($526) | 2.9x | 3.4x | | 36.8x | 9.6x |
| Samsonite International SA ($1910) | -0.5x | -0.4x | -0.6x | -0.2x | -0.3x |
| Carpenter Tan Holdings Ltd ($837) | -1.9x | -2.5x | -2.1x | -0.9x | -1.5x |
| Kenford Group Holdings Ltd ($464) | -0.6x | -0.8x | -1.3x | | -2.4x |
| Tempus Holdings Ltd ($6880) | -2.0x | -5.2x | -25.8x | -14.3x | -9.6x |
| |
|---|
| Median (5 companies) | -0.8x | -0.4x | -1.0x | -0.5x | -1.5x |
|---|
| Goodbaby International Holdings Ltd ($1086) | -2.0x | -1.3x | -0.5x | 5.9x | 2.1x |
