Allan International Holdings Net Income surged on 92.5% and EBITDA Margin increased slightly on 0.52 pp from 6.3% to 6.8%
27/06/2016 • About Allan International Holdings (
$684) • By InTwits
Allan International Holdings reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Allan International Holdings is a company in decline: FY2016 revenue growth was -19.6%, 5 years revenue CAGR was -6.8%
- EBITDA Margin is relatively stable: 6.8% in FY2016 vs. 6.3% in FY2015 vs. 8.0% in FY2012
- Allan International Holdings has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.5%. At the same time it's a lot of higher than industry average of 27.5%.
- CAPEX is quite volatile: 13.4 in FY2016, 29.3 in FY2015, 16.8 in FY2014, 50.9 in FY2013, 297 in FY2012
- The company has potentially unprofitable business model: ROIC is at 3.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Allan International Holdings ($684) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,417 | 2,356 | 2,015 | 1,946 | 1,565 | -19.6% |
| Gross Profit | 312 | 284 | 245 | 221 | 189 | -14.8% |
| SG&A | 175 | 181 | 174 | 179 | 160 | -10.6% |
| EBITDA | 193 | 180 | 153 | 122 | 107 | -12.9% |
| Net Income | 127 | 109 | 83 | 70 | 136 | 92.5% |
Balance Sheet
|
|---|
| Cash | 358 | 299 | 538 | 406 | 731 | 80.1% |
| Short Term Debt | 34 | 54 | 47 | 26 | 11 | -59.6% |
| Long Term Debt | 146 | 92 | 65 | 52 | 47 | -9.9% |
Cash flow
|
|---|
| Capex | 297 | 51 | 17 | 29 | 13 | -54.3% |
Ratios
|
|---|
| Revenue growth | 8.8% | -2.5% | -14.5% | -3.4% | -19.6% | |
| EBITDA growth | -14.6% | -6.6% | -15.2% | -20.0% | -12.9% | |
| Gross Margin | 12.9% | 12.0% | 12.1% | 11.4% | 12.1% | 0.7% |
| EBITDA Margin | 8.0% | 7.6% | 7.6% | 6.3% | 6.8% | 0.5% |
| Net Income Margin | 5.3% | 4.6% | 4.1% | 3.6% | 8.7% | 5.0% |
| SG&A, % of revenue | 7.3% | 7.7% | 8.6% | 9.2% | 10.2% | 1.0% |
| CAPEX, % of revenue | 12.3% | 2.2% | 0.8% | 1.5% | 0.9% | -0.7% |
| ROIC | 13.2% | 8.8% | 6.1% | 4.1% | 3.0% | -1.1% |
| ROE | 14.2% | 11.2% | 8.1% | 6.6% | 12.1% | 5.4% |
| Net Debt/EBITDA | -0.9x | -0.8x | -2.8x | -2.7x | -6.3x | -3.6x |
Revenue and profitability
Allan International Holdings's Revenue dropped on 19.6%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.52 pp from 6.3% to 6.8% in FY2016.
Gross Margin increased slightly on 0.68 pp from 11.4% to 12.1% in FY2016. SG&A as a % of Revenue increased slightly on 1.0 pp from 9.2% to 10.2% in FY2016.
Net Income marign increased on 5.0 pp from 3.6% to 8.7% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Allan International Holdings's CAPEX/Revenue was 0.86% in FY2016. Allan International Holdings showed small CAPEX/Revenue decline of 1.3 pp from 2.2% in FY2013 to 0.86% in FY2016. Average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at good ROE (12.06%) while ROIC is low (3.03%). ROIC decreased slightly on 1.1 pp from 4.1% to 3.0% in FY2016. ROE increased on 5.4 pp from 6.6% to 12.1% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -6.3x and Debt / EBITDA is 0.5x. Net Debt / EBITDA dropped on 3.6x from -2.7x to -6.3x in FY2016. Debt dropped on 26.8% while cash surged on 80.1%.
Appendix 1: Peers in Home Furnishings
Below we provide Allan International Holdings 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) | | -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) | -0.5% | 6.6% | 4.0% | -0.8% | 2.7% |
|---|
| Allan International Holdings ($684) | | -2.5% | -14.5% | -3.4% | -19.6% |
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% | 19.6% |
|---|
| Allan International Holdings ($684) | 12.9% | 12.0% | 12.1% | 11.4% | 12.1% |
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% | 3.1% | 7.0% |
|---|
| Allan International Holdings ($684) | 8.0% | 7.6% | 7.6% | 6.3% | 6.8% |
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% | 2.2% | 3.0% |
|---|
| Allan International Holdings ($684) | 12.3% | 2.2% | 0.8% | 1.5% | 0.9% |
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% | 0.9% | 8.6% |
|---|
| Allan International Holdings ($684) | 13.2% | 8.8% | 6.1% | 4.1% | 3.0% |
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 | -1.3x | -1.3x | -0.9x | 0.9x |
|---|
| Allan International Holdings ($684) | -0.9x | -0.8x | -2.8x | -2.7x | -6.3x |
