Fujikon Industrial Holdings Ltd reports 59.5% EBITDA growth in 2016 while 8.2% Revenue decline
23/06/2016 • About Fujikon Industrial Holdings Ltd (
$927) • By InTwits
Fujikon Industrial 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: 5.6% in FY2016, 3.2% in FY2015, 6.7% in FY2014, 10.5% in FY2013, 7.9% in FY2012
- Fujikon Industrial Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.3%. At the same time it's in pair with industry average of 4.2%.
- CAPEX is quite volatile: 16.9 in FY2016, 28.1 in FY2015, 57.8 in FY2014, 36.3 in FY2013, 20.1 in FY2012
- The company has potentially unprofitable business model: ROIC is at 3.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Fujikon Industrial Holdings Ltd ($927) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,306 | 1,606 | 1,525 | 1,264 | 1,160 | -8.2% |
| Gross Profit | 230 | 325 | 260 | 182 | 200 | 10.2% |
| SG&A | | 201 | 187 | 182 | 179 | -1.4% |
| EBITDA | 104 | 168 | 102 | 41 | 65 | 59.5% |
| Net Income | 56 | 116 | 62 | 13 | 11 | -10.7% |
Balance Sheet
|
|---|
| Cash | 425 | 442 | 469 | 409 | 416 | 1.6% |
| Short Term Debt | 41 | 42 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 20 | 36 | 58 | 28 | 17 | -39.9% |
Ratios
|
|---|
| Revenue growth | 6.7% | 22.9% | -5.0% | -17.1% | -8.2% | |
| EBITDA growth | 41.1% | 61.9% | -39.5% | -60.0% | 59.5% | |
| Gross Margin | 17.6% | 20.3% | 17.1% | 14.4% | 17.3% | 2.9% |
| EBITDA Margin | 7.9% | 10.5% | 6.7% | 3.2% | 5.6% | 2.4% |
| Net Income Margin | 4.3% | 7.3% | 4.1% | 1.0% | 1.0% | -0.0% |
| SG&A, % of revenue | | 12.5% | 12.3% | 14.4% | 15.4% | 1.1% |
| CAPEX, % of revenue | 1.5% | 2.3% | 3.8% | 2.2% | 1.5% | -0.8% |
| ROIC | 8.5% | 15.4% | 7.6% | 0.0% | 3.5% | 3.5% |
| ROE | 7.6% | 14.9% | 7.8% | 1.6% | 1.5% | -0.1% |
| Net Debt/EBITDA | -3.7x | -2.4x | -4.6x | -10.1x | -6.4x | 3.7x |
Revenue and profitability
The company's Revenue decreased on 8.2%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.4 pp from 3.2% to 5.6% in FY2016.
Gross Margin increased on 2.9 pp from 14.4% to 17.3% in FY2016. SG&A as a % of Revenue increased slightly on 1.1 pp from 14.4% to 15.4% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Fujikon Industrial Holdings Ltd had CAPEX/Revenue of 1.5%. The company showed small CAPEX/Revenue decline of 0.81 pp from 2.3% in FY2013 to 1.5% in FY2016. For the last three years the average CAPEX/Revenue was 2.5%.
Return on investment
The company operates at low ROIC (3.50%) and ROE (1.53%). ROIC increased on 3.5 pp from 0.0061% to 3.5% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
The company has no debt. Cash increased slightly on 1.6%.
Appendix 1: Peers in Home Furnishings
Below you can find Fujikon Industrial 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 |
|---|
| BEP International Holdings Ltd ($2326) | | -41.5% | 46.2% | 187.9% | 258.0% |
| 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 (27 companies) | -0.2% | 4.8% | 4.0% | -0.8% | 6.4% |
|---|
| Fujikon Industrial Holdings Ltd ($927) | | 22.9% | -5.0% | -17.1% | -8.2% |
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% | 17.7% | 16.4% | 16.7% | 21.9% |
|---|
| Fujikon Industrial Holdings Ltd ($927) | 17.6% | 20.3% | 17.1% | 14.4% | 17.3% |
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% | 4.5% | 4.5% | 3.4% | 8.5% |
|---|
| Fujikon Industrial Holdings Ltd ($927) | 7.9% | 10.5% | 6.7% | 3.2% | 5.6% |
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) | 1.4% | 1.6% | 2.8% | 2.0% | 3.6% |
|---|
| Fujikon Industrial Holdings Ltd ($927) | 1.5% | 2.3% | 3.8% | 2.2% | 1.5% |
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% | 29.4% |
| Tonly Electronics Holdings Ltd ($1249) | 4.2% | 7.1% | 15.9% | 11.7% | |
| |
|---|
| Median (27 companies) | 3.7% | 4.5% | 3.9% | 2.8% | 13.7% |
|---|
| Fujikon Industrial Holdings Ltd ($927) | 8.5% | 15.4% | 7.6% | 0.0% | 3.5% |
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) | -0.3x | -0.9x | -1.3x | -0.9x | 2.4x |
|---|
| Fujikon Industrial Holdings Ltd ($927) | -3.7x | -2.4x | -4.6x | -10.1x | -6.4x |
