China-Hongkong Photo Products Holdings Ltd reports 262% EBITDA growth in 2016 and 4.6 pp EBITDA Margin growth from 1.6% to 6.2%
23/06/2016 • About China-Hongkong Photo Products Holdings Ltd (
$1123) • By InTwits
China-Hongkong Photo Products Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 6.2% in FY2016, 1.6% in FY2015, 0.6% in FY2014, 1.4% in FY2013, 14.4% in FY2012
- China-Hongkong Photo Products Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's a lot of higher than industry average of 6.9%.
- CAPEX is quite volatile: 12.2 in FY2016, 26.3 in FY2015, 13.4 in FY2014, 7.2 in FY2013, 14.7 in FY2012
- The company has potentially unprofitable business model: ROIC is at 4.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China-Hongkong Photo Products Holdings Ltd ($1123) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 436.4 | 475.6 | 861.7 | 966.7 | 886.7 | -8.3% |
| Gross Profit | 135.5 | 142.4 | 204.4 | 220.0 | 201.1 | -8.6% |
| SG&A | | 35.5 | 34.4 | 29.9 | 21.7 | -27.2% |
| EBITDA | 62.9 | 6.7 | 5.3 | 15.1 | 54.6 | 261.8% |
| Net Income | 44.7 | 32.6 | 15.5 | -33.3 | -70.5 | |
Balance Sheet
|
|---|
| Cash | 529.1 | 529.6 | 360.1 | 270.2 | 260.7 | -3.5% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 14.7 | 7.2 | 13.4 | 26.3 | 12.2 | -53.7% |
Ratios
|
|---|
| Revenue growth | 24.9% | 9.0% | 81.2% | 12.2% | -8.3% | |
| EBITDA growth | 323.0% | -89.4% | -20.0% | 182.8% | 261.8% | |
| Gross Margin | 31.1% | 29.9% | 23.7% | 22.8% | 22.7% | -0.1% |
| EBITDA Margin | 14.4% | 1.4% | 0.6% | 1.6% | 6.2% | 4.6% |
| Net Income Margin | 10.2% | 6.8% | 1.8% | -3.4% | -7.9% | -4.5% |
| SG&A, % of revenue | | 7.5% | 4.0% | 3.1% | 2.4% | -0.6% |
| CAPEX, % of revenue | 3.4% | 1.5% | 1.6% | 2.7% | 1.4% | -1.3% |
| ROIC | 5.3% | -0.3% | -0.9% | -0.7% | 4.6% | 5.3% |
| ROE | 5.0% | 3.8% | 1.9% | -4.3% | -10.0% | -5.7% |
| Net Debt/EBITDA | -8.4x | -79.4x | -67.5x | -17.9x | -4.8x | 13.1x |
Revenue and profitability
China-Hongkong Photo Products Holdings Ltd's Revenue decreased on 8.3%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.6 pp from 1.6% to 6.2% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue decreased slightly on 0.64 pp from 3.1% to 2.4% in FY2016.
Net Income marign decreased on 4.5 pp from -3.4% to -7.9% in FY2016.
Capital expenditures (CAPEX) and working capital investments
China-Hongkong Photo Products Holdings Ltd's CAPEX/Revenue was 1.4% in FY2016. CAPEX/Revenue showed almost no change from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 1.9%.
Return on investment
The company operates at low but positive ROIC (4.62%) and negative ROE (-10.01%). ROIC increased on 5.3 pp from -0.65% to 4.6% in FY2016. ROE decreased on 5.7 pp from -4.3% to -10.0% in FY2016.
Leverage (Debt)
The company has no debt. Cash decreased on 3.5%.
Appendix 1: Peers in Distribution/Wholesale
Below we provide China-Hongkong Photo Products Holdings Ltd benchmarking against other companies in Distribution/Wholesale 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 |
|---|
| C Y Foundation Group Ltd ($1182) | | -65.6% | 5.9% | 214.6% | -14.6% |
| China Fortune Holdings Ltd ($110) | -64.7% | -68.2% | -71.0% | 174.2% | |
| Hailiang International Holdings Ltd ($2336) | 9.7% | -30.8% | -69.1% | 99.7% | |
| Forefront Group Ltd ($885) | | 504.6% | 3,871.0% | 72.0% | |
| Yestar International Holdings Co Ltd ($2393) | -2.2% | 22.8% | 30.5% | 60.3% | |
| |
|---|
| Median (35 companies) | 1.7% | 0.0% | 0.8% | -2.0% | -2.7% |
|---|
| China-Hongkong Photo Products Holdings Ltd ($1123) | | 9.0% | 81.2% | 12.2% | -8.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Yunnan Tin Minerals Group Co Ltd ($263) | 79.6% | 66.3% | | 98.7% | |
| Goldin Financial Holdings Ltd ($530) | 75.3% | 71.7% | 74.8% | 73.8% | |
| YGM Trading Ltd ($375) | 66.5% | 67.4% | 64.0% | 62.5% | |
| Goldlion Holdings Ltd ($533) | 56.4% | 54.1% | 55.7% | 60.0% | |
| E.Bon Holdings Ltd ($599) | 40.3% | 37.4% | 35.8% | 39.6% | 42.4% |
| |
|---|
| Median (33 companies) | 17.3% | 17.1% | 18.0% | 20.8% | 33.4% |
|---|
| China-Hongkong Photo Products Holdings Ltd ($1123) | 31.1% | 29.9% | 23.7% | 22.8% | 22.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China LNG Group Ltd ($931) | 95.1% | 76.4% | 97.9% | 1,277.8% | |
| Goldin Financial Holdings Ltd ($530) | 163.7% | 613.4% | 285.7% | 364.1% | |
| China Infrastructure Investment Ltd ($600) | -274.9% | 120.0% | 52.0% | 134.5% | |
| China Yunnan Tin Minerals Group Co Ltd ($263) | -1,064.4% | -252.1% | | 62.8% | |
| Goldlion Holdings Ltd ($533) | 25.8% | 23.4% | 22.5% | 22.8% | |
| |
|---|
| Median (36 companies) | 2.1% | 2.5% | 4.6% | 4.9% | 4.1% |
|---|
| China-Hongkong Photo Products Holdings Ltd ($1123) | 14.4% | 1.4% | 0.6% | 1.6% | 6.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SIS International Holdings ($529) | 13.4% | 31.8% | 14.8% | 49.8% | |
| Inspur International Ltd ($596) | 8.4% | 12.2% | 33.6% | 25.6% | |
| China LNG Group Ltd ($931) | 11.1% | 0.3% | 0.6% | 15.6% | |
| YGM Trading Ltd ($375) | 1.8% | 2.1% | 3.5% | 14.5% | |
| Victory Group Ltd ($1139) | 0.7% | 0.1% | 6.1% | 12.6% | |
| |
|---|
| Median (35 companies) | 1.3% | 1.8% | 1.7% | 1.2% | 38.2% |
|---|
| China-Hongkong Photo Products Holdings Ltd ($1123) | 3.4% | 1.5% | 1.6% | 2.7% | 1.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China LNG Group Ltd ($931) | 8.4% | 7.4% | 87.0% | 56.2% | |
| Powerwell Pacific Holdings Ltd ($8265) | 6.4% | 6.4% | 23.6% | 27.1% | |
| Yestar International Holdings Co Ltd ($2393) | 28.8% | 24.1% | 26.2% | 25.4% | |
| E.Bon Holdings Ltd ($599) | 7.0% | 7.2% | 3.3% | 16.9% | 17.4% |
| Goldin Financial Holdings Ltd ($530) | 5.9% | 20.6% | 10.4% | 16.0% | |
| |
|---|
| Median (37 companies) | 2.1% | 1.7% | 3.2% | 2.8% | -0.3% |
|---|
| China-Hongkong Photo Products Holdings Ltd ($1123) | 5.3% | -0.3% | -0.9% | -0.7% | 4.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SIS International Holdings ($529) | -1.8x | 7.0x | 7.2x | 16.8x | |
| Leeport Holdings Ltd ($387) | | | | 16.1x | |
| Takson Holdings Ltd ($918) | | 11.5x | 11.7x | 15.7x | |
| Sheng Yuan Holdings Ltd ($851) | | | 19.3x | 15.4x | |
| Forefront Group Ltd ($885) | | | -0.0x | 15.3x | |
| |
|---|
| Median (26 companies) | -0.1x | -0.5x | 0.3x | 0.0x | -0.7x |
|---|
| China-Hongkong Photo Products Holdings Ltd ($1123) | -8.4x | -79.4x | -67.5x | -17.9x | -4.8x |
