BEP International Holdings Ltd Net Income surged on 933% and EBITDA Margin increased on 6.8 pp from 4.7% to 11.5%
22/06/2016 • About BEP International Holdings Ltd (
$2326) • By InTwits
BEP International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- BEP International Holdings Ltd is a fast growth stock: FY2016 revenue growth was 258%, 5 year revenue CAGR was 66.4% at FY2016 ROIC 29.4%
- EBITDA Margin is quite volatile: 11.5% in FY2016, 4.7% in FY2015, -2.9% in FY2014, 3.4% in FY2013, 6.6% in FY2012
- BEP International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.1%.
- The company has highly profitable business model: ROIC is at 29.4%
- It operates with high leverage: Net Debt/EBITDA is 4.3x while industry average is 0.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
BEP International Holdings Ltd ($2326) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 258 | 151 | 220 | 634 | 2,269 | 258.0% |
| Gross Profit | 26 | 16 | 10 | 60 | 357 | 496.1% |
| SG&A | | 12 | 15 | 34 | 123 | 256.8% |
| EBITDA | 17 | 5 | -6 | 30 | 261 | 773.7% |
| Net Income | 10 | 7 | -4 | 17 | 178 | 933.4% |
Balance Sheet
|
|---|
| Cash | 14 | 107 | 72 | 85 | 80 | -5.9% |
| Short Term Debt | 26 | 0 | 0 | 0 | 1,199 | 387,943.7% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 0 | 0 | 0 | 0 | 1 | 56.8% |
Ratios
|
|---|
| Revenue growth | 44.7% | -41.5% | 46.2% | 187.9% | 258.0% | |
| EBITDA growth | 61.4% | -69.7% | -224.5% | -563.2% | 773.7% | |
| Gross Margin | 10.1% | 10.6% | 4.4% | 9.5% | 15.7% | 6.3% |
| EBITDA Margin | 6.6% | 3.4% | -2.9% | 4.7% | 11.5% | 6.8% |
| Net Income Margin | 4.0% | 4.9% | -1.7% | 2.7% | 7.8% | 5.1% |
| SG&A, % of revenue | | 8.1% | 7.0% | 5.4% | 5.4% | -0.0% |
| CAPEX, % of revenue | 0.1% | 0.1% | 0.1% | 0.1% | 0.0% | -0.0% |
| ROIC | 90.3% | 4.7% | -4.5% | 17.6% | 29.4% | 11.9% |
| ROE | | | -2.4% | 10.9% | 69.5% | 58.6% |
| Net Debt/EBITDA | 0.7x | -20.8x | | -2.9x | 4.3x | 7.1x |
Revenue and profitability
The company's Revenue surged on 258%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.4 pp from -6.0% to -3.5% in FY2016.
Gross Margin increased on 6.3 pp from 9.5% to 15.7% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased on 5.1 pp from 2.7% to 7.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.034% in FY2016. CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 0.067%.
Return on investment
The company operates at high and attractive ROIC (29.41%) and ROE (69.53%). ROIC surged on 11.9 pp from 17.6% to 29.4% in FY2016. ROE surged on 58.6 pp from 10.9% to 69.5% in FY2016.
Leverage (Debt)
Debt level is 4.3x Net Debt / EBITDA and 4.6x Debt / EBITDA. Net Debt / EBITDA jumped on 7.1x from -2.9x to 4.3x in FY2016. Debt jumped on 387,944% while cash decreased on 5.9%.
Appendix 1: Peers in Home Furnishings
Below you can find BEP International Holdings 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | |
| Alco Holdings Ltd ($328) | | -32.6% | 22.8% | 11.8% | 12.4% |
| |
|---|
| Median (27 companies) | 1.1% | 6.6% | 1.7% | -2.4% | 2.7% |
|---|
| BEP International Holdings Ltd ($2326) | | -41.5% | 46.2% | 187.9% | 258.0% |
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% | |
| Gold Peak Industries Holding Ltd ($40) | 25.8% | 23.6% | 24.9% | 25.6% | 25.6% |
| |
|---|
| Median (27 companies) | 20.3% | 18.7% | 17.1% | 16.7% | 21.9% |
|---|
| BEP International Holdings Ltd ($2326) | 10.1% | 10.6% | 4.4% | 9.5% | 15.7% |
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 (26 companies) | 5.0% | 4.8% | 4.7% | 3.1% | 6.8% |
|---|
| BEP International Holdings Ltd ($2326) | 6.6% | 3.4% | -2.9% | 4.7% | 11.5% |
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 (27 companies) | 1.5% | 2.2% | 2.8% | 2.2% | 3.7% |
|---|
| BEP International Holdings Ltd ($2326) | 0.1% | 0.1% | 0.1% | 0.1% | 0.0% |
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% |
| Tonly Electronics Holdings Ltd ($1249) | 4.2% | 7.1% | 15.9% | 11.7% | |
| Welling Holding Ltd ($382) | 23.5% | 24.3% | 18.7% | 10.7% | |
| |
|---|
| Median (27 companies) | 3.7% | 5.0% | 5.0% | 0.9% | 8.5% |
|---|
| BEP International Holdings Ltd ($2326) | 90.3% | 4.7% | -4.5% | 17.6% | 29.4% |
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 | |
| Gold Peak Industries Holding Ltd ($40) | 10.2x | 3.4x | 3.6x | 2.8x | 3.9x |
| 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 |
| |
|---|
| Median (16 companies) | -0.4x | -0.9x | -1.9x | -0.9x | 0.9x |
|---|
| BEP International Holdings Ltd ($2326) | 0.7x | -20.8x | | -2.9x | 4.3x |
