JF Household Furnishings Ltd reports 1,796% CAPEX growth while 2.4% Revenue decline
31/03/2016 • About JF Household Furnishings Ltd (
$776) • By InTwits
JF Household Furnishings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- JF Household Furnishings Ltd is a company in decline: 2015 revenue growth was -2.4%, 5 years revenue CAGR was -11.8%
- The company operates at negative EBITDA Margin: -2.6%
- JF Household Furnishings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -2.3% for the sames years0
- JF Household Furnishings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.4%. At the same time it's a lot of higher than industry average of 4.9%.
- CAPEX is quite volatile: 90.6 in 2015, 4.8 in 2014, 7.1 in 2013, 1.8 in 2012, 15.9 in 2011
- The company has unprofitable business model: ROIC is at -3.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
JF Household Furnishings Ltd ($776) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 341.3 | 243.1 | 159.5 | 170.4 | 166.3 | -2.4% |
| Gross Profit | 44.9 | 6.1 | 6.9 | 16.4 | 15.2 | -7.3% |
| SG&A | | 33.1 | 23.1 | 19.8 | 26.1 | 31.9% |
| EBITDA | 29.1 | -32.6 | -16.7 | -0.4 | -4.3 | 1,086.5% |
| Net Income | 18.3 | -28.3 | -27.0 | -8.1 | -10.4 | 28.4% |
Balance Sheet
|
|---|
| Cash | 19.5 | 36.3 | 23.4 | 125.3 | 42.5 | -66.1% |
| Short Term Debt | 81.8 | 82.9 | 58.0 | 37.0 | 31.3 | -15.4% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 15.9 | 1.8 | 7.1 | 4.8 | 90.6 | 1,796.4% |
Ratios
|
|---|
| Revenue growth | 9.9% | -28.8% | -34.4% | 6.8% | -2.4% | |
| EBITDA growth | -30.7% | -211.9% | -48.6% | -97.8% | 1,086.5% | |
| Gross Margin | 13.2% | 2.5% | 4.3% | 9.7% | 9.2% | -0.5% |
| EBITDA Margin | 8.5% | -13.4% | -10.5% | -0.2% | -2.6% | -2.4% |
| Net Income Margin | 5.3% | -11.6% | -16.9% | -4.7% | -6.2% | -1.5% |
| SG&A, % of revenue | | 13.6% | 14.5% | 11.6% | 15.7% | 4.1% |
| CAPEX, % of revenue | 4.7% | 0.7% | 4.5% | 2.8% | 54.5% | 51.7% |
| ROIC | 8.9% | -25.9% | -17.6% | -2.5% | -3.8% | -1.3% |
| ROE | 14.0% | -57.2% | -71.5% | -8.4% | -6.5% | 1.9% |
| Net Debt/EBITDA | 2.1x | | | | | 0.0x |
Revenue and profitability
JF Household Furnishings Ltd's Revenue decreased on 2.4% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 11.1 pp from -5.0% to 6.1% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased on 4.1 pp from 11.6% to 15.7% in 2015.
Net Income marign decreased slightly on 1.5 pp from -4.7% to -6.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 54.5% in 2015. The company showed fast CAPEX/Revenue growth of 53.7 pp from 0.73% in 2012 to 54.5% in 2015. Average CAPEX/Revenue for the last three years was 20.6%.
Return on investment
The company operates at negative ROIC (-3.75%) and ROE (-6.52%). ROIC decreased slightly on 1.3 pp from -2.5% to -3.8% in 2015. ROE increased slightly on 1.9 pp from -8.4% to -6.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.5x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt dropped on 15.4% in 2015 while cash dropped on 66.1% in 2015.
Appendix 1: Peers in Home Furnishings
Below you can find JF Household Furnishings Ltd benchmarking vs. other companies in Home Furnishings 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 |
|---|
| BEP International Holdings Ltd ($2326) | | 44.7% | -41.5% | 46.2% | 187.9% |
| See Corp Ltd ($491) | | 13.7% | -31.9% | 134.1% | 126.9% |
| Sunrise China Technology Group Ltd ($8226) | | -93.0% | 21.9% | -20.4% | 77.5% |
| Yuxing InfoTech Investment Holdings Ltd ($8005) | | 29.6% | -21.2% | -16.5% | 21.3% |
| Aupu Group Holding Co Ltd ($477) | | 5.7% | 9.0% | 26.4% | 18.5% |
| |
|---|
| Median (25 companies) | -15.9% | 2.3% | 7.8% | 1.1% | 0.1% |
|---|
| JF Household Furnishings Ltd ($776) | | -28.8% | -34.4% | 6.8% | -2.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| South East Group Ltd ($726) | 36.2% | 25.5% | 51.6% | 38.8% | 82.4% |
| Aupu Group Holding Co Ltd ($477) | 47.1% | 48.6% | 45.0% | 47.8% | 48.7% |
| Samson Holding Ltd ($531) | 24.9% | 25.6% | 25.4% | 27.3% | 27.3% |
| Gold Peak Industries Holding Ltd ($40) | 26.8% | 25.8% | 23.6% | 24.9% | 25.6% |
| Hing Lee HK Holdings Ltd ($396) | 23.1% | 16.3% | 18.7% | 22.7% | 22.9% |
| |
|---|
| Median (25 companies) | 16.5% | 18.9% | 18.2% | 16.7% | 15.9% |
|---|
| JF Household Furnishings Ltd ($776) | 13.2% | 2.5% | 4.3% | 9.7% | 9.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Aupu Group Holding Co Ltd ($477) | 18.1% | 15.3% | 17.6% | 30.1% | 27.0% |
| Skyworth Digital Holdings Ltd ($751) | 7.0% | 6.0% | 6.1% | 5.7% | 11.3% |
| Welling Holding Ltd ($382) | 8.6% | 11.9% | 12.8% | 10.8% | 8.6% |
| Hing Lee HK Holdings Ltd ($396) | 9.3% | -3.0% | 4.3% | 9.4% | 8.2% |
| Raymond Industrial Ltd ($229) | 4.5% | 7.6% | 7.7% | 7.8% | 6.3% |
| |
|---|
| Median (25 companies) | 5.9% | 5.5% | 4.7% | 4.6% | 4.0% |
|---|
| JF Household Furnishings Ltd ($776) | 8.5% | -13.4% | -10.5% | -0.2% | -2.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sunrise China Technology Group Ltd ($8226) | 7.9% | 126.4% | 69.3% | 7.4% | 14.1% |
| Royale Furniture Holdings Ltd ($1198) | 35.8% | | 14.1% | 16.5% | 10.5% |
| South East Group Ltd ($726) | 0.0% | 0.0% | 0.0% | 0.0% | 7.9% |
| Aupu Group Holding Co Ltd ($477) | 1.9% | 1.5% | 6.3% | 5.3% | 5.7% |
| Kasen International Holdings Ltd ($496) | 2.6% | 5.0% | 2.6% | 4.7% | 3.9% |
| |
|---|
| Median (25 companies) | 1.8% | 1.5% | 1.9% | 2.7% | 2.2% |
|---|
| JF Household Furnishings Ltd ($776) | 4.7% | 0.7% | 4.5% | 2.8% | 54.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Aupu Group Holding Co Ltd ($477) | 18.0% | 14.8% | 17.0% | 32.2% | 32.2% |
| Mastercraft International Holdings Ltd ($8146) | 76.2% | 54.4% | 38.6% | 36.4% | 23.2% |
| Skyworth Digital Holdings Ltd ($751) | 11.7% | 11.6% | 13.4% | 10.9% | 23.0% |
| BEP International Holdings Ltd ($2326) | 218.9% | 90.3% | 4.7% | -4.5% | 17.6% |
| Tonly Electronics Holdings Ltd ($1249) | 7.0% | 4.2% | 7.1% | 15.9% | 11.7% |
| |
|---|
| Median (25 companies) | 5.0% | 4.2% | 4.7% | 4.0% | 4.1% |
|---|
| JF Household Furnishings Ltd ($776) | 8.9% | -25.9% | -17.6% | -2.5% | -3.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kasen International Holdings Ltd ($496) | 9.6x | 2.2x | 3.7x | 44.9x | 20.1x |
| Hisense Kelon Electrical Holdings Co Ltd ($921) | 3.3x | 1.2x | 0.9x | 1.0x | 6.4x |
| Gold Peak Industries Holding Ltd ($40) | 5.6x | 10.2x | 3.4x | 3.6x | 2.8x |
| TCL Multimedia Technology Holdings Ltd ($1070) | -0.0x | -0.3x | -2.3x | 0.7x | 0.5x |
| Skyworth Digital Holdings Ltd ($751) | 1.1x | 1.2x | 1.5x | 1.2x | -0.2x |
| |
|---|
| Median (17 companies) | 0.0x | -0.3x | -0.9x | -1.3x | -0.9x |
|---|
