Lerado Group Holding Co Ltd Net Income surged on 502% in 2015 while EBITDA Margin dropped on 26.3 pp from 20.9% to -5.4%
31/03/2016 • About Lerado Group Holding Co Ltd (
$1225) • By InTwits
Lerado Group Holding Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Lerado Group Holding Co Ltd doesn't have a profitable business model yet: 2015 ROIC is -1.2%
- EBITDA Margin is quite volatile: -5.4% in 2015, 20.9% in 2014, 25.2% in 2013, 8.6% in 2012, 6.6% in 2011
- Lerado Group Holding Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 32.3%. At the same time it's a lot of higher than industry average of 9.0%.
- CAPEX is quite volatile: 106 in 2015, 29.1 in 2014, 111 in 2013, 49.5 in 2012, 68.3 in 2011
- The company has unprofitable business model: ROIC is at -1.2%
- It operates with high leverage: Net Debt/EBITDA is 1.5x while industry average is 0.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Lerado Group Holding Co Ltd ($1225) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,589 | 1,655 | 148 | 155 | 177 | 14.3% |
| Gross Profit | 320 | 359 | 24 | 24 | 49 | 102.7% |
| SG&A | 217 | 219 | 44 | 41 | 83 | 101.9% |
| EBITDA | 105 | 141 | 37 | 32 | -9 | -129.3% |
| Net Income | 27 | 41 | -20 | -146 | 587 | -501.9% |
Balance Sheet
|
|---|
| Cash | 372 | 333 | 219 | 797 | 930 | 16.7% |
| Short Term Debt | 286 | 322 | 205 | 0 | 12 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 68 | 49 | 111 | 29 | 106 | 264.5% |
Ratios
|
|---|
| Revenue growth | -5.3% | 4.1% | -91.1% | 4.8% | 14.3% | |
| EBITDA growth | -37.3% | 34.3% | -73.7% | -13.0% | -129.3% | |
| Gross Margin | 20.1% | 21.7% | 16.0% | 15.5% | 27.5% | 12.0% |
| EBITDA Margin | 6.6% | 8.6% | 25.2% | 20.9% | -5.4% | -26.3% |
| Net Income Margin | 1.7% | 2.5% | -13.4% | -94.4% | 332.0% | 426.4% |
| SG&A, % of revenue | 13.6% | 13.3% | 30.1% | 26.5% | 46.8% | 20.3% |
| CAPEX, % of revenue | 4.3% | 3.0% | 75.4% | 18.8% | 60.0% | 41.2% |
| ROIC | 4.2% | 5.9% | -1.6% | -1.6% | -1.2% | 0.4% |
| ROE | 2.6% | 3.7% | -1.8% | -16.5% | 48.7% | 65.2% |
| Net Debt/EBITDA | -0.8x | -0.1x | -0.4x | -24.6x | | 24.6x |
Revenue and profitability
The company's Revenue surged on 14.3% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 7.6 pp from 22.8% to 15.2% in FY2015.
Gross Margin jumped on 12.0 pp from 15.5% to 27.5% in 2015. SG&A as a % of Revenue surged on 20.3 pp from 26.5% to 46.8% in 2015.
Net Income marign jumped on 426 pp from -94.4% to 332% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 60.0%. The company showed fast CAPEX/Revenue growth of 57.0 pp from 3.0% in 2012 to 60.0% in 2015. It's average level of CAPEX/Revenue for the last three years was 51.4%.
Return on investment
The company operates at negative ROIC (-1.20%) and low but positive ROE (48.75%). ROIC showed almost no change in 2015. ROE jumped on 65.2 pp from -16.5% to 48.7% in 2015.
Leverage (Debt)
Debt level is 1.5x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA surged on 24.6x from -24.6x to in 2015. Debt jumped while cash jumped on 16.7% in 2015.
Appendix 1: Peers in Household Products/Wares
Below you can find Lerado Group Holding Co Ltd benchmarking vs. other companies in Household Products/Wares 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 |
|---|
| 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% |
| Goodbaby International Holdings Ltd ($1086) | | 15.5% | -8.0% | 46.0% | 13.7% |
| Samsonite International SA ($1910) | | 13.2% | 15.0% | 15.4% | 3.5% |
| King's Flair International Holdings Ltd ($6822) | | 11.2% | 14.8% | 10.0% | 2.6% |
| |
|---|
| Median (9 companies) | | 11.5% | 5.5% | 11.3% | 2.6% |
|---|
| Lerado Group Holding Co Ltd ($1225) | | 4.1% | -91.1% | 4.8% | 14.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tempus Holdings Ltd ($6880) | 71.5% | 68.4% | 64.8% | 64.6% | 65.5% |
| Carpenter Tan Holdings Ltd ($837) | 68.4% | 66.9% | 67.0% | 65.8% | 64.5% |
| Biostime International Holdings Ltd ($1112) | 66.5% | 65.9% | 65.2% | 61.9% | 61.9% |
| Samsonite International SA ($1910) | 54.8% | 53.7% | 53.4% | 52.9% | 52.6% |
| Goodbaby International Holdings Ltd ($1086) | 17.1% | 19.1% | 22.9% | 25.0% | 29.5% |
| |
|---|
| Median (9 companies) | 22.4% | 24.5% | 24.3% | 25.6% | 29.5% |
|---|
| Lerado Group Holding Co Ltd ($1225) | 20.1% | 21.7% | 16.0% | 15.5% | 27.5% |
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% |
| eForce Holdings Ltd ($943) | -22.9% | -16.9% | -13.0% | -5.8% | 21.9% |
| Samsonite International SA ($1910) | 15.9% | 15.9% | 16.0% | 14.9% | 15.1% |
| Biostime International Holdings Ltd ($1112) | 30.0% | 30.4% | 27.6% | 24.3% | 14.8% |
| King's Flair International Holdings Ltd ($6822) | 7.0% | 8.3% | 7.9% | 9.7% | 14.6% |
| |
|---|
| Median (9 companies) | 14.5% | 11.8% | 7.4% | 4.9% | 14.6% |
|---|
| Lerado Group Holding Co Ltd ($1225) | 6.6% | 8.6% | 25.2% | 20.9% | -5.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% |
| Goodbaby International Holdings Ltd ($1086) | 3.9% | 2.9% | 2.8% | 2.6% | 2.6% |
| Tempus Holdings Ltd ($6880) | 1.0% | 0.9% | 4.0% | 2.8% | 2.4% |
| Biostime International Holdings Ltd ($1112) | 1.8% | 1.2% | 3.0% | 2.8% | 2.3% |
| |
|---|
| Median (9 companies) | 2.2% | 1.4% | 2.8% | 2.6% | 2.3% |
|---|
| Lerado Group Holding Co Ltd ($1225) | 4.3% | 3.0% | 75.4% | 18.8% | 60.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| King's Flair International Holdings Ltd ($6822) | | 39.4% | 41.9% | 49.5% | 46.7% |
| 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% |
| Biostime International Holdings Ltd ($1112) | 34.3% | 41.7% | 39.9% | 24.7% | 7.3% |
| eForce Holdings Ltd ($943) | -10.1% | -6.4% | -7.0% | -5.1% | 7.0% |
| |
|---|
| Median (9 companies) | 18.7% | 18.2% | 8.8% | 3.9% | 7.0% |
|---|
| Lerado Group Holding Co Ltd ($1225) | 4.2% | 5.9% | -1.6% | -1.6% | -1.2% |
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 |
| Biostime International Holdings Ltd ($1112) | -2.3x | -0.4x | -0.0x | -0.0x | 8.8x |
| Goodbaby International Holdings Ltd ($1086) | -2.0x | -1.3x | -0.5x | 5.9x | 2.1x |
| Samsonite International SA ($1910) | -0.5x | -0.4x | -0.6x | -0.2x | -0.3x |
| eForce Holdings Ltd ($943) | | | | | -1.2x |
| |
|---|
| Median (9 companies) | -1.2x | -1.0x | -1.2x | -0.2x | -1.2x |
|---|
