Gold Peak Industries Holding Ltd Debt surged on 18.4% in 2016 while Revenue decreased slightly on 1.0%
20/06/2016 • About Gold Peak Industries Holding Ltd (
$40) • By InTwits
Gold Peak Industries Holding Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gold Peak Industries Holding Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.6%. At the same time it's in pair with industry average of 10.7%.
- CAPEX is quite volatile: 209 in FY2016, 179 in FY2015, 148 in FY2014, 145 in FY2013, 24.3 in FY2012
- The company has potentially unprofitable business model: ROIC is at 3.4%
- It operates with high leverage: Net Debt/EBITDA is 3.9x 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.
Gold Peak Industries Holding Ltd ($40) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,925 | 6,021 | 5,849 | 5,856 | 5,795 | -1.0% |
| Gross Profit | 497 | 1,420 | 1,456 | 1,501 | 1,486 | -1.0% |
| SG&A | | 1,284 | 1,296 | 1,331 | 1,361 | 2.3% |
| EBITDA | 67 | 434 | 260 | 342 | 294 | -14.2% |
| Net Income | -25 | 40 | -128 | 52 | 19 | -63.7% |
Balance Sheet
|
|---|
| Cash | 389 | 820 | 994 | 846 | 978 | 15.6% |
| Short Term Debt | 681 | 1,593 | 1,421 | 1,268 | 1,290 | 1.8% |
| Long Term Debt | 395 | 711 | 504 | 526 | 833 | 58.5% |
Cash flow
|
|---|
| Capex | 24 | 145 | 148 | 179 | 209 | 16.3% |
Ratios
|
|---|
| Revenue growth | -1.6% | 212.7% | -2.8% | 0.1% | -1.0% | |
| EBITDA growth | -52.2% | 546.5% | -40.0% | 31.5% | -14.2% | |
| Gross Margin | 25.8% | 23.6% | 24.9% | 25.6% | 25.6% | -0.0% |
| EBITDA Margin | 3.5% | 7.2% | 4.5% | 5.8% | 5.1% | -0.8% |
| Net Income Margin | -1.3% | 0.7% | -2.2% | 0.9% | 0.3% | -0.6% |
| SG&A, % of revenue | | 21.3% | 22.2% | 22.7% | 23.5% | 0.8% |
| CAPEX, % of revenue | 1.3% | 2.4% | 2.5% | 3.1% | 3.6% | 0.5% |
| ROIC | 0.8% | 5.5% | 1.8% | 4.1% | 3.4% | -0.7% |
| ROE | -1.6% | 2.7% | -8.9% | 3.7% | 1.4% | -2.3% |
| Net Debt/EBITDA | 10.2x | 3.4x | 3.6x | 2.8x | 3.9x | 1.1x |
Revenue and profitability
Gold Peak Industries Holding Ltd's Revenue decreased slightly on 1.0%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 0.78 pp from 5.8% to 5.1% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue increased slightly on 0.76 pp from 22.7% to 23.5% in FY2016.
Net Income marign decreased slightly on 0.56 pp from 0.88% to 0.32% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Gold Peak Industries Holding Ltd had CAPEX/Revenue of 3.6%. The company's CAPEX/Revenue increased slightly on 1.2 pp from 2.4% in FY2013 to 3.6% in FY2016. It's average level of CAPEX/Revenue for the last three years was 3.1%.Battling declining revenue the company invested a large share of EBITDA (71.0%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low ROIC (3.35%) and ROE (1.37%). ROIC decreased slightly on 0.70 pp from 4.1% to 3.4% in FY2016. ROE decreased on 2.3 pp from 3.7% to 1.4% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.9x and Debt / EBITDA is 7.2x. Net Debt / EBITDA surged on 1.1x from 2.8x to 3.9x in FY2016. Debt jumped on 18.4% while cash surged on 15.6%.
Appendix 1: Peers in Home Furnishings
Below we provide Gold Peak Industries Holding Ltd benchmarking against other companies in Home Furnishings 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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 (26 companies) | 1.1% | 5.4% | 3.0% | -1.6% | 6.4% |
|---|
| Gold Peak Industries Holding Ltd ($40) | | 212.7% | -2.8% | 0.1% | -1.0% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| South East Group Ltd ($726) | 25.5% | 51.6% | 38.8% | 82.4% | |
| Aupu Group Holding Co Ltd ($477) | 48.6% | 45.0% | 47.8% | 48.7% | |
| Grande Holdings Ltd/The ($186) | 23.7% | 25.4% | 29.0% | 27.7% | |
| Samson Holding Ltd ($531) | 25.6% | 25.4% | 27.3% | 27.3% | |
| Hing Lee HK Holdings Ltd ($396) | 16.3% | 18.7% | 22.7% | 22.9% | |
| |
|---|
| Median (26 companies) | 17.3% | 16.8% | 15.9% | 15.7% | 21.9% |
|---|
| Gold Peak Industries Holding Ltd ($40) | 25.8% | 23.6% | 24.9% | 25.6% | 25.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Aupu Group Holding Co Ltd ($477) | 15.3% | 17.6% | 30.1% | 27.0% | |
| Skyworth Digital Holdings Ltd ($751) | 6.0% | 6.1% | 5.7% | 11.3% | 8.5% |
| Welling Holding Ltd ($382) | 11.9% | 12.8% | 10.8% | 8.6% | |
| Hing Lee HK Holdings Ltd ($396) | -3.0% | 4.3% | 9.4% | 8.2% | |
| Raymond Industrial Ltd ($229) | 7.6% | 7.7% | 7.8% | 6.3% | |
| |
|---|
| Median (25 companies) | 5.5% | 4.5% | 4.6% | 3.2% | 8.5% |
|---|
| Gold Peak Industries Holding Ltd ($40) | 3.5% | 7.2% | 4.5% | 5.8% | 5.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| JF Household Furnishings Ltd ($776) | 0.7% | 4.5% | 2.8% | 54.5% | |
| Sunrise China Technology Group Ltd ($8226) | 126.4% | 69.3% | 7.4% | 14.1% | |
| Royale Furniture Holdings Ltd ($1198) | | 14.1% | 16.5% | 10.5% | |
| South East Group Ltd ($726) | 0.0% | 0.0% | 0.0% | 7.9% | |
| Aupu Group Holding Co Ltd ($477) | 1.5% | 6.3% | 5.3% | 5.7% | |
| |
|---|
| Median (26 companies) | 1.5% | 1.9% | 2.8% | 2.1% | 3.9% |
|---|
| Gold Peak Industries Holding Ltd ($40) | 1.3% | 2.4% | 2.5% | 3.1% | 3.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Aupu Group Holding Co Ltd ($477) | 14.8% | 17.0% | 32.2% | 32.2% | |
| Mastercraft International Holdings Ltd ($8146) | 54.4% | 38.6% | 36.4% | 23.2% | |
| Skyworth Digital Holdings Ltd ($751) | 11.6% | 13.4% | 10.9% | 23.0% | 13.7% |
| BEP International Holdings Ltd ($2326) | 90.3% | 4.7% | -4.5% | 17.6% | |
| Tonly Electronics Holdings Ltd ($1249) | 4.2% | 7.1% | 15.9% | 11.7% | |
| |
|---|
| Median (26 companies) | 4.2% | 4.4% | 4.0% | 1.5% | 13.7% |
|---|
| Gold Peak Industries Holding Ltd ($40) | 0.8% | 5.5% | 1.8% | 4.1% | 3.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kasen International Holdings Ltd ($496) | 2.2x | 3.7x | 44.9x | 20.1x | |
| Hisense Kelon Electrical Holdings Co Ltd ($921) | 1.2x | 0.9x | 1.0x | 6.4x | |
| TCL Multimedia Technology Holdings Ltd ($1070) | -0.3x | -2.3x | 0.7x | 0.5x | |
| Skyworth Digital Holdings Ltd ($751) | 1.2x | 1.5x | 1.2x | -0.2x | 0.9x |
| Aupu Group Holding Co Ltd ($477) | -0.2x | 0.7x | 0.6x | -0.2x | |
| |
|---|
| Median (16 companies) | -0.3x | -1.1x | -1.9x | -1.3x | 0.9x |
|---|
| Gold Peak Industries Holding Ltd ($40) | 10.2x | 3.4x | 3.6x | 2.8x | 3.9x |
