Perfectech International Holdings Ltd EBITDA dropped on 65.8% in 2015 and Revenue dropped on 12.2%
30/03/2016 • About Perfectech International Holdings Ltd (
$765) • By InTwits
Perfectech International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Perfectech International Holdings Ltd is a company in decline: 2015 revenue growth was -12.2%, 5 years revenue CAGR was -12.3%
- EBITDA Margin is quite volatile: 4.6% in 2015, 11.7% in 2014, 14.9% in 2013, 14.6% in 2012, 7.3% in 2011
- Perfectech International Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.3%. At the same time it's a lot of higher than industry average of 4.6%.
- CAPEX is quite volatile: 5.8 in 2015, 44.7 in 2014, 40.2 in 2013, 5.9 in 2012, 18.2 in 2011
- The company has potentially unprofitable business model: ROIC is at 0.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Perfectech International Holdings Ltd ($765) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 330.2 | 257.9 | 248.7 | 225.5 | 198.1 | -12.2% |
| Gross Profit | 55.2 | 61.7 | 66.1 | 56.5 | 44.9 | -20.5% |
| SG&A | 50.9 | 36.8 | 43.6 | 44.1 | 46.9 | 6.5% |
| EBITDA | 24.2 | 37.6 | 37.1 | 26.4 | 9.0 | -65.8% |
| Net Income | -5.6 | 33.9 | 12.5 | 7.7 | -16.1 | -309.6% |
Balance Sheet
|
|---|
| Cash | 60.4 | 75.3 | 86.4 | 49.1 | 66.3 | 35.1% |
| Short Term Debt | 25.7 | 9.2 | 21.9 | 30.3 | 26.1 | -13.7% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 18.2 | 5.9 | 40.2 | 44.7 | 5.8 | -87.0% |
Ratios
|
|---|
| Revenue growth | -13.7% | -21.9% | -3.5% | -9.3% | -12.2% | |
| EBITDA growth | -33.9% | 55.0% | -1.3% | -28.8% | -65.8% | |
| Gross Margin | 16.7% | 23.9% | 26.6% | 25.1% | 22.7% | -2.4% |
| EBITDA Margin | 7.3% | 14.6% | 14.9% | 11.7% | 4.6% | -7.2% |
| Net Income Margin | -1.7% | 13.1% | 5.0% | 3.4% | -8.1% | -11.5% |
| SG&A, % of revenue | 15.4% | 14.3% | 17.5% | 19.5% | 23.7% | 4.1% |
| CAPEX, % of revenue | 5.5% | 2.3% | 16.2% | 19.8% | 2.9% | -16.9% |
| ROIC | 5.4% | 11.7% | 11.8% | 7.6% | 0.5% | -7.1% |
| ROE | -2.7% | 16.8% | 6.2% | 4.0% | -8.8% | -12.8% |
| Net Debt/EBITDA | -1.4x | -1.8x | -1.7x | -0.7x | -4.4x | -3.7x |
Revenue and profitability
Perfectech International Holdings Ltd's Revenue dropped on 12.2% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.6 pp from -9.1% to -7.5% in FY2015.
Gross Margin decreased on 2.4 pp from 25.1% to 22.7% in 2015. SG&A as a % of Revenue increased on 4.1 pp from 19.5% to 23.7% in 2015.
Net Income marign dropped on 11.5 pp from 3.4% to -8.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 2.9%. Perfectech International Holdings Ltd's CAPEX/Revenue increased slightly on 0.63 pp from 2.3% in 2012 to 2.9% in 2015. It's average CAPEX/Revenue for the last three years was 13.0%.Perfectech International Holdings Ltd invested a big chunk of EBITDA (64.4%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low but positive ROIC (0.53%) and negative ROE (-8.81%). ROIC decreased on 7.1 pp from 7.6% to 0.53% in 2015. ROE dropped on 12.8 pp from 4.0% to -8.8% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -4.4x and Debt / EBITDA is 2.9x. Net Debt / EBITDA dropped on 3.7x from -0.7x to -4.4x in 2015. Debt dropped on 13.7% in 2015 while cash surged on 35.1% in 2015.
Appendix 1: Peers in Housewares
Below you can find Perfectech International Holdings Ltd benchmarking vs. other companies in Housewares 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 |
|---|
| China Strategic Holdings Ltd ($235) | -24.1% | -39.2% | 1,832.6% | 281.4% | |
| China Creative Home Group Ltd ($1678) | | 20.5% | 23.4% | 17.9% | -9.0% |
| International Housewares Retail Co Ltd ($1373) | | 19.0% | 23.7% | 16.6% | 11.7% |
| World Houseware Holdings Ltd ($713) | | -4.8% | -7.4% | -0.4% | 0.2% |
| Bolina Holding Co Ltd ($1190) | 76.5% | 24.6% | 11.8% | -5.2% | |
| |
|---|
| Median (5 companies) | 26.2% | 19.0% | 23.4% | 16.6% | 0.2% |
|---|
| Perfectech International Holdings Ltd ($765) | | -21.9% | -3.5% | -9.3% | -12.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| International Housewares Retail Co Ltd ($1373) | 42.4% | 44.5% | 46.1% | 46.5% | 46.3% |
| Bolina Holding Co Ltd ($1190) | 46.3% | 47.7% | 46.8% | 43.5% | |
| China Creative Home Group Ltd ($1678) | 41.2% | 44.2% | 44.3% | 40.4% | 36.9% |
| World Houseware Holdings Ltd ($713) | 8.8% | 13.1% | 10.3% | 10.8% | 14.6% |
| China Strategic Holdings Ltd ($235) | 43.3% | 11.4% | 11.7% | 7.4% | |
| |
|---|
| Median (5 companies) | 42.4% | 44.2% | 44.3% | 40.4% | 36.9% |
|---|
| Perfectech International Holdings Ltd ($765) | 16.7% | 23.9% | 26.6% | 25.1% | 22.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Creative Home Group Ltd ($1678) | 33.1% | 36.0% | 33.8% | 32.6% | 28.5% |
| Bolina Holding Co Ltd ($1190) | 36.5% | 37.8% | 34.0% | 28.7% | |
| International Housewares Retail Co Ltd ($1373) | 8.8% | 9.8% | 9.6% | 8.5% | 6.7% |
| World Houseware Holdings Ltd ($713) | 2.1% | 7.1% | 3.4% | 2.4% | 4.2% |
| China Strategic Holdings Ltd ($235) | -727.1% | -1,603.6% | -25.0% | -2.8% | |
| |
|---|
| Median (5 companies) | 8.8% | 9.8% | 9.6% | 8.5% | 6.7% |
|---|
| Perfectech International Holdings Ltd ($765) | 7.3% | 14.6% | 14.9% | 11.7% | 4.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Creative Home Group Ltd ($1678) | 3.3% | 1.2% | 2.4% | 42.0% | 13.1% |
| World Houseware Holdings Ltd ($713) | 2.2% | 3.6% | 6.2% | 12.4% | 5.1% |
| International Housewares Retail Co Ltd ($1373) | 1.6% | 2.7% | 3.0% | 2.0% | 3.9% |
| Bolina Holding Co Ltd ($1190) | 12.3% | 5.2% | 4.4% | 1.8% | |
| China Strategic Holdings Ltd ($235) | 0.0% | 0.0% | 0.0% | 0.6% | |
| |
|---|
| Median (5 companies) | 2.2% | 2.7% | 3.0% | 2.0% | 5.1% |
|---|
| Perfectech International Holdings Ltd ($765) | 5.5% | 2.3% | 16.2% | 19.8% | 2.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Creative Home Group Ltd ($1678) | 37.6% | 38.8% | 28.1% | 23.6% | 15.3% |
| International Housewares Retail Co Ltd ($1373) | | 44.7% | 38.4% | 20.3% | 11.8% |
| Bolina Holding Co Ltd ($1190) | 51.7% | 38.8% | 24.7% | 16.8% | |
| China Strategic Holdings Ltd ($235) | -8.3% | -12.0% | -4.0% | -1.3% | |
| World Houseware Holdings Ltd ($713) | -3.0% | 1.6% | -1.9% | -2.8% | -1.8% |
| |
|---|
| Median (5 companies) | 17.3% | 38.8% | 24.7% | 16.8% | 11.8% |
|---|
| Perfectech International Holdings Ltd ($765) | 5.4% | 11.7% | 11.8% | 7.6% | 0.5% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| World Houseware Holdings Ltd ($713) | 4.9x | 1.4x | 4.7x | 11.7x | 7.4x |
| China Creative Home Group Ltd ($1678) | 0.2x | -0.4x | -2.3x | -1.4x | -1.8x |
| International Housewares Retail Co Ltd ($1373) | -0.7x | -0.2x | -0.3x | -2.7x | -2.8x |
| |
|---|
| Median (3 companies) | 0.2x | -0.3x | -0.7x | -1.7x | -1.8x |
|---|
| Perfectech International Holdings Ltd ($765) | -1.4x | -1.8x | -1.7x | -0.7x | -4.4x |
