TC Orient Lighting Holdings Ltd revenue dropped on 24.4% in 2015 and EBITDA Margin showed almost no change
15/04/2016 • About TC Orient Lighting Holdings Ltd (
$515) • By InTwits
TC Orient Lighting Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- TC Orient Lighting Holdings Ltd is a company in decline: 2015 revenue growth was -24.4%, 5 years revenue CAGR was -11.8%
- The company operates at negative EBITDA Margin: -10.3%
- TC Orient Lighting Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -2.6% for the sames years0
- TC Orient Lighting Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's a lot of higher than industry average of 8.2%.
- CAPEX is quite volatile: 1.8 in 2015, 9.3 in 2014, 11.5 in 2013, 18.7 in 2012, 30.0 in 2011
- The company has unprofitable business model: ROIC is at -10.2%
- It operates with high leverage: Net Debt/EBITDA is -1.2x while industry average is -2.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
TC Orient Lighting Holdings Ltd ($515) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,195 | 836 | 676 | 706 | 534 | -24.4% |
| Gross Profit | 218 | 57 | -140 | 52 | 40 | -23.1% |
| SG&A | | 121 | 115 | 155 | 137 | -11.3% |
| EBITDA | 183 | 28 | -184 | -75 | -55 | -27.1% |
| Net Income | 51 | -233 | -307 | -112 | -81 | -27.4% |
Balance Sheet
|
|---|
| Cash | 194 | 119 | 109 | 167 | 44 | -73.8% |
| Short Term Debt | 478 | 297 | 281 | 348 | 392 | 12.7% |
| Long Term Debt | 12 | 5 | 1 | 1 | 0 | -57.0% |
Cash flow
|
|---|
| Capex | 30 | 19 | 11 | 9 | 2 | -80.4% |
Ratios
|
|---|
| Revenue growth | 19.8% | -30.1% | -19.1% | 4.4% | -24.4% | |
| EBITDA growth | 29.3% | -84.8% | -762.4% | -59.2% | -27.1% | |
| Gross Margin | 18.3% | 6.8% | -20.7% | 7.4% | 7.5% | 0.1% |
| EBITDA Margin | 15.3% | 3.3% | -27.3% | -10.6% | -10.3% | 0.4% |
| Net Income Margin | 4.3% | -27.9% | -45.4% | -15.8% | -15.2% | 0.6% |
| SG&A, % of revenue | | 14.5% | 17.0% | 21.9% | 25.7% | 3.8% |
| CAPEX, % of revenue | 2.5% | 2.2% | 1.7% | 1.3% | 0.3% | -1.0% |
| ROIC | 8.0% | -3.1% | -24.5% | -12.8% | -10.2% | 2.6% |
| ROE | 6.8% | -29.6% | -57.5% | -29.2% | -24.8% | 4.4% |
| Net Debt/EBITDA | 1.6x | 6.6x | | | | 0.0x |
Revenue and profitability
TC Orient Lighting Holdings Ltd's Revenue dropped on 24.4% in 2015. EBITDA Margin showed almost no change in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased on 3.8 pp from 21.9% to 25.7% in 2015.
Net Income marign increased slightly on 0.63 pp from -15.8% to -15.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
TC Orient Lighting Holdings Ltd's CAPEX/Revenue was 0.34% in 2015. CAPEX/Revenue decreased slightly on 1.9 pp from 2.2% in 2012 to 0.34% in 2015. It's average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at negative ROIC (-10.25%) and ROE (-24.85%). ROIC increased on 2.6 pp from -12.8% to -10.2% in 2015. ROE increased on 4.4 pp from -29.2% to -24.8% in 2015.
Leverage (Debt)
Debt level is -1.2x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt jumped on 12.6% in 2015 while cash dropped on 73.8% in 2015.
Appendix 1: Peers in Electrical Compo&Equip
Below we provide TC Orient Lighting Holdings Ltd benchmarking against other companies in Electrical Compo&Equip 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 |
|---|
| Applied Development Holdings Ltd ($519) | | -29.1% | | | 850.5% |
| Jimei International Entertainment Group Ltd ($1159) | | 100.6% | 652.0% | -31.2% | 273.5% |
| FDG Electric Vehicles Ltd ($729) | | -23.1% | -7.0% | 54.0% | 270.8% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | | -12.0% | 8.7% | 44.1% | 69.8% |
| Sun King Power Electronics Group ($580) | | -6.0% | 29.0% | -30.1% | 51.2% |
| |
|---|
| Median (33 companies) | | 0.2% | 8.9% | 16.2% | 6.1% |
|---|
| TC Orient Lighting Holdings Ltd ($515) | | -30.1% | -19.1% | 4.4% | -24.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Titans Energy Technology Group Co Ltd ($2188) | 45.4% | 41.4% | 27.3% | 33.7% | 36.6% |
| Boer Power Holdings Ltd ($1685) | 37.1% | 36.8% | 36.0% | 35.3% | 35.7% |
| Sun King Power Electronics Group ($580) | 16.2% | 25.4% | 30.0% | 30.8% | 34.1% |
| China High Speed Transmission Equipment Group Co Ltd ($658) | 25.5% | 24.4% | 24.9% | 24.8% | 32.5% |
| CEC International Holdings Ltd ($759) | 18.5% | 23.6% | 27.9% | 29.9% | 31.8% |
| |
|---|
| Median (31 companies) | 20.7% | 19.6% | 17.9% | 16.6% | 17.8% |
|---|
| TC Orient Lighting Holdings Ltd ($515) | 18.3% | 6.8% | -20.7% | 7.4% | 7.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shougang Concord Technology Holdings ($521) | 22.7% | 12.3% | 28.1% | 31.9% | 45.8% |
| Boer Power Holdings Ltd ($1685) | 28.1% | 26.3% | 27.8% | 28.5% | 28.6% |
| China High Speed Transmission Equipment Group Co Ltd ($658) | 21.0% | 20.2% | 19.2% | 20.8% | 26.3% |
| China Titans Energy Technology Group Co Ltd ($2188) | 21.1% | 10.8% | -11.9% | 2.0% | 16.5% |
| Sun King Power Electronics Group ($580) | -3.1% | 8.4% | 13.8% | 2.2% | 15.8% |
| |
|---|
| Median (33 companies) | 10.7% | 8.3% | 7.3% | 5.5% | 6.6% |
|---|
| TC Orient Lighting Holdings Ltd ($515) | 15.3% | 3.3% | -27.3% | -10.6% | -10.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| FDG Electric Vehicles Ltd ($729) | 177.5% | 374.3% | 82.3% | 71.1% | 417.0% |
| Applied Development Holdings Ltd ($519) | 46.4% | 79.7% | | 1,285.3% | 89.8% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 23.7% | 23.1% | 50.7% | 13.5% | 22.8% |
| Jimei International Entertainment Group Ltd ($1159) | 0.2% | 0.1% | 15.2% | 0.6% | 7.3% |
| CEC International Holdings Ltd ($759) | 10.6% | 8.8% | 10.1% | 4.3% | 6.9% |
| |
|---|
| Median (33 companies) | 9.4% | 6.7% | 5.4% | 4.0% | 2.6% |
|---|
| TC Orient Lighting Holdings Ltd ($515) | 2.5% | 2.2% | 1.7% | 1.3% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Boer Power Holdings Ltd ($1685) | 18.2% | 18.0% | 17.0% | 21.2% | 19.5% |
| Tianneng Power International Ltd ($819) | 27.1% | 20.0% | 4.5% | -3.6% | 14.9% |
| Jiangnan Group Ltd ($1366) | 17.0% | 14.9% | 14.1% | 13.5% | 12.8% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 5.1% | 1.8% | 3.0% | 10.4% | 12.0% |
| Johnson Electric Holdings Ltd ($179) | 13.1% | 11.7% | 11.6% | 12.7% | 11.2% |
| |
|---|
| Median (33 companies) | 5.4% | 2.8% | 3.0% | 2.8% | 3.2% |
|---|
| TC Orient Lighting Holdings Ltd ($515) | 8.0% | -3.1% | -24.5% | -12.8% | -10.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wai Chi Holdings Co Ltd ($1305) | 3.1x | 3.4x | 3.1x | 2.0x | 11.8x |
| Coslight Technology International Group Co Ltd ($1043) | 11.2x | 51.9x | 8.7x | 54.7x | 7.7x |
| Guodian Technology & Environment Group Corp Ltd ($1296) | 5.4x | 6.3x | 7.6x | 6.8x | 6.9x |
| Leoch International Technology Ltd ($842) | 3.4x | 9.3x | 16.3x | 4.7x | 5.0x |
| CEC International Holdings Ltd ($759) | 2.5x | 3.9x | 6.1x | 4.1x | 4.9x |
| |
|---|
| Median (26 companies) | 0.3x | 1.5x | 1.4x | 2.2x | 1.0x |
|---|
