Leyou Technologies Holdings Ltd EBITDA jumped on 248% in 2015 and EBITDA Margin increased on 4.8 pp from 2.9% to 7.7%
30/03/2016 • About Leyou Technologies Holdings Ltd (
$1089) • By InTwits
Leyou Technologies Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Leyou Technologies Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is 0.8%
- EBITDA Margin is quite volatile: 7.7% in 2015, 2.9% in 2014, 1.7% in 2013, 3.2% in 2012, 10.1% in 2011
- Leyou Technologies Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.5%. At the same time it's a lot of higher than industry average of 4.8%.
- CAPEX is quite volatile: 71.6 in 2015, 31.4 in 2014, 39.9 in 2013, 125 in 2012, 104 in 2011
- The company has potentially unprofitable business model: ROIC is at 0.8%
- It operates with high leverage: Net Debt/EBITDA is 1.2x while industry average is 0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Leyou Technologies Holdings Ltd ($1089) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 663 | 787 | 1,042 | 1,226 | 1,606 | 31.0% |
| Gross Profit | 122 | 70 | 60 | 110 | 244 | 121.1% |
| SG&A | | 55 | 58 | 95 | 212 | 122.5% |
| EBITDA | 67 | 25 | 18 | 36 | 124 | 247.7% |
| Net Income | 43 | 0 | -13 | -10 | -82 | 696.4% |
Balance Sheet
|
|---|
| Cash | 144 | 131 | 109 | 128 | 131 | 1.8% |
| Short Term Debt | 31 | 158 | 187 | 258 | 275 | 6.5% |
| Long Term Debt | 20 | 0 | 0 | 5 | 3 | -31.8% |
Cash flow
|
|---|
| Capex | 104 | 125 | 40 | 31 | 72 | 128.4% |
Ratios
|
|---|
| Revenue growth | 4.7% | 18.8% | 32.3% | 17.7% | 31.0% | |
| EBITDA growth | -25.3% | -62.2% | -30.6% | 101.9% | 247.7% | |
| Gross Margin | 18.4% | 8.8% | 5.7% | 9.0% | 15.2% | 6.2% |
| EBITDA Margin | 10.1% | 3.2% | 1.7% | 2.9% | 7.7% | 4.8% |
| Net Income Margin | 6.5% | 0.0% | -1.2% | -0.8% | -5.1% | -4.2% |
| SG&A, % of revenue | | 6.9% | 5.6% | 7.8% | 13.2% | 5.4% |
| CAPEX, % of revenue | 15.7% | 15.8% | 3.8% | 2.6% | 4.5% | 1.9% |
| ROIC | 11.6% | 0.3% | -1.3% | 0.8% | 0.8% | 0.1% |
| ROE | 13.2% | 0.0% | -2.8% | -2.2% | -9.8% | -7.7% |
| Net Debt/EBITDA | -1.4x | 1.1x | 4.4x | 3.8x | 1.2x | -2.6x |
Revenue and profitability
Leyou Technologies Holdings Ltd's Revenue jumped on 31.0% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.63 pp from 2.1% to 2.7% in FY2015.
Gross Margin increased on 6.2 pp from 9.0% to 15.2% in 2015. SG&A as a % of Revenue increased on 5.4 pp from 7.8% to 13.2% in 2015.
Net Income marign decreased on 4.2 pp from -0.84% to -5.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 4.5%. The company's CAPEX/Revenue dropped on 11.4 pp from 15.8% in 2012 to 4.5% in 2015. It's average level of CAPEX/Revenue for the last three years was 3.6%.To maintain this fast growth the company invested a large share of EBITDA (57.9%) to CAPEX.
Return on investment
The company operates at low but positive ROIC (0.82%) and negative ROE (-9.82%). ROIC showed almost no change in 2015. ROE decreased on 7.7 pp from -2.2% to -9.8% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.2x and Debt / EBITDA is 2.3x. Net Debt / EBITDA dropped on 2.6x from 3.8x to 1.2x in 2015. Debt increased on 5.7% in 2015 while cash increased slightly on 1.8% in 2015.
Appendix 1: Peers in Toys/Games/Hobbies
Below you can find Leyou Technologies Holdings Ltd benchmarking vs. other companies in Toys/Games/Hobbies 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 |
|---|
| Kin Yat Holdings Ltd ($638) | | -5.9% | 8.8% | 5.0% | 17.1% |
| Dream International Ltd ($1126) | | 24.9% | -0.1% | 21.0% | 10.8% |
| Matrix Holdings Ltd ($1005) | | -0.2% | 17.5% | 12.2% | 10.1% |
| Kader Holdings Co Ltd ($180) | | -3.7% | -25.8% | -11.1% | 8.3% |
| Quali-Smart Holdings Ltd ($1348) | | 20.1% | -9.4% | -2.6% | 7.2% |
| |
|---|
| Median (7 companies) | 29.4% | 4.5% | 8.8% | 12.2% | 8.3% |
|---|
| Leyou Technologies Holdings Ltd ($1089) | | 18.8% | 32.3% | 17.7% | 31.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Playmates Holdings Ltd ($635) | 68.1% | 65.7% | 66.1% | 64.7% | 65.6% |
| 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% |
| |
|---|
| Median (8 companies) | 22.5% | 28.2% | 29.1% | 27.3% | 30.2% |
|---|
| Leyou Technologies Holdings Ltd ($1089) | 18.4% | 8.8% | 5.7% | 9.0% | 15.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Playmates Holdings Ltd ($635) | -14.7% | 22.0% | 36.7% | 33.5% | 32.8% |
| Playmates Toys Ltd ($869) | -186.4% | 15.1% | 33.0% | 30.2% | 25.8% |
| Kader Holdings Co Ltd ($180) | -6.7% | -4.2% | -3.0% | 5.8% | 23.0% |
| 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% |
| |
|---|
| Median (7 companies) | 5.1% | 9.8% | 8.4% | 8.8% | 17.4% |
|---|
| Leyou Technologies Holdings Ltd ($1089) | 10.1% | 3.2% | 1.7% | 2.9% | 7.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Playmates Holdings Ltd ($635) | 44.9% | 11.5% | 4.5% | 2.0% | 15.4% |
| 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% |
| Quali-Smart Holdings Ltd ($1348) | 1.7% | 1.5% | 2.2% | 12.7% | 3.0% |
| Kader Holdings Co Ltd ($180) | 4.0% | 3.5% | 3.7% | 2.8% | 2.6% |
| |
|---|
| Median (7 companies) | 4.0% | 3.5% | 3.2% | 2.8% | 3.0% |
|---|
| Leyou Technologies Holdings Ltd ($1089) | 15.7% | 15.8% | 3.8% | 2.6% | 4.5% |
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% |
| Kader Holdings Co Ltd ($180) | -8.5% | -5.7% | -3.9% | 0.6% | 7.9% |
| Playmates Holdings Ltd ($635) | -1.0% | 2.4% | 12.6% | 12.0% | 7.9% |
| |
|---|
| Median (7 companies) | 2.4% | 5.9% | 12.6% | 9.1% | 7.9% |
|---|
| Leyou Technologies Holdings Ltd ($1089) | 11.6% | 0.3% | -1.3% | 0.8% | 0.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Quali-Smart Holdings Ltd ($1348) | 1.2x | 0.6x | -0.7x | 0.9x | 4.5x |
| Kader Holdings Co Ltd ($180) | | | | 9.6x | 1.5x |
| 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 |
| Dream International Ltd ($1126) | -1.4x | -1.5x | -1.5x | -1.3x | -1.1x |
| |
|---|
| Median (7 companies) | 0.5x | 0.6x | -0.5x | -0.2x | -0.6x |
|---|
| Leyou Technologies Holdings Ltd ($1089) | -1.4x | 1.1x | 4.4x | 3.8x | 1.2x |
