Highlight China IoT International Ltd EBITDA dropped on 459% and Revenue dropped on 55.0%
29/06/2016 • About Highlight China IoT International Ltd (
$1682) • By InTwits
Highlight China IoT International Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Highlight China IoT International Ltd is a company in decline: FY2016 revenue growth was -55.0%, 5 years revenue CAGR was -28.9%
- EBITDA Margin is quite volatile: -14.4% in FY2016, 1.8% in FY2015, 10.4% in FY2014, 3.3% in FY2013, 2.4% in FY2012
- Highlight China IoT International Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's in pair with industry average of 6.1%.
- CAPEX is quite volatile: 0.058 in FY2016, 10.5 in FY2015, 16.1 in FY2014, 46.6 in FY2013, 33.6 in FY2012
- The company has unprofitable business model: ROIC is at -76.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Highlight China IoT International Ltd ($1682) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 910 | 1,071 | 282 | 366 | 165 | -55.0% |
| Gross Profit | 143 | 172 | 27 | 27 | 13 | -52.6% |
| SG&A | | 157 | 19 | 28 | 32 | 17.5% |
| EBITDA | 22 | 35 | 29 | 7 | -24 | -458.7% |
| Net Income | 7 | 11 | 19 | -7 | -25 | |
Balance Sheet
|
|---|
| Cash | 104 | 142 | 46 | 9 | 12 | 32.4% |
| Short Term Debt | 97 | 157 | 111 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 34 | 47 | 16 | 10 | 0 | -99.4% |
Ratios
|
|---|
| Revenue growth | 0.8% | 17.7% | -73.7% | 29.6% | -55.0% | |
| EBITDA growth | -51.5% | 61.1% | -16.4% | -77.5% | -458.7% | |
| Gross Margin | 15.7% | 16.1% | 9.6% | 7.4% | 7.8% | 0.4% |
| EBITDA Margin | 2.4% | 3.3% | 10.4% | 1.8% | -14.4% | -16.2% |
| Net Income Margin | 0.8% | 1.0% | 6.7% | -1.9% | -15.0% | -13.2% |
| SG&A, % of revenue | | 14.6% | 6.6% | 7.5% | 19.7% | 12.2% |
| CAPEX, % of revenue | 3.7% | 4.3% | 5.7% | 2.9% | 0.0% | -2.8% |
| ROIC | 1.6% | 3.4% | 1.6% | -0.1% | -76.4% | -76.3% |
| ROE | 2.2% | 3.3% | 5.2% | -3.2% | -83.4% | -80.1% |
| Net Debt/EBITDA | -0.3x | 0.4x | 2.2x | -1.3x | | 1.3x |
Revenue and profitability
The company's Revenue dropped on 55.0%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 16.2 pp from 1.8% to -14.4% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue jumped on 12.2 pp from 7.5% to 19.7% in FY2016.
Net Income marign dropped on 13.2 pp from -1.9% to -15.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Highlight China IoT International Ltd had CAPEX/Revenue of 0.035%. CAPEX/Revenue decreased on 4.3 pp from 4.3% in FY2013 to 0.035% in FY2016. Average CAPEX/Revenue for the last three years was 2.9%.
Return on investment
The company operates at negative ROIC (-76.43%) and ROE (-83.35%). ROIC dropped on 76.3 pp from -0.12% to -76.4% in FY2016. ROE dropped on 80.1 pp from -3.2% to -83.4% in FY2016.
Leverage (Debt)
The company has no debt. Cash jumped on 32.4%.
Appendix 1: Peers in Apparel
Below you can find Highlight China IoT International Ltd benchmarking vs. other companies in Apparel 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 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | -94.0% | 46.8% | 20.4% | 33.1% | |
| Koradior Holdings Ltd ($3709) | 48.3% | 44.7% | 47.7% | 23.9% | |
| Kingmaker Footwear Holdings Ltd ($1170) | 10.0% | 9.3% | 6.3% | 23.7% | |
| Cosmo Lady China Holdings Co Ltd ($2298) | 36.3% | 29.2% | 37.4% | 23.6% | |
| Cabbeen Fashion Ltd ($2030) | 5.6% | 0.4% | 16.4% | 23.5% | |
| |
|---|
| Median (51 companies) | 5.6% | 5.4% | 5.5% | -2.1% | -16.5% |
|---|
| Highlight China IoT International Ltd ($1682) | | 17.7% | -73.7% | 29.6% | -55.0% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 38.5% | 42.3% | 59.6% | 75.6% | |
| Koradior Holdings Ltd ($3709) | 62.8% | 69.3% | 73.3% | 73.7% | |
| Prada SpA ($1913) | 71.5% | 72.1% | 73.8% | 71.8% | 72.4% |
| China Outfitters Holdings Ltd ($1146) | 74.9% | 74.3% | 70.0% | 65.7% | |
| Crocodile Garments ($122) | 64.7% | 60.7% | 60.4% | 62.1% | |
| |
|---|
| Median (50 companies) | 25.0% | 24.3% | 26.0% | 25.0% | 18.8% |
|---|
| Highlight China IoT International Ltd ($1682) | 15.7% | 16.1% | 9.6% | 7.4% | 7.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Lilang Ltd ($1234) | 26.3% | 26.9% | 29.4% | 30.6% | |
| Cabbeen Fashion Ltd ($2030) | 25.0% | 29.7% | 28.4% | 29.0% | |
| Fuguiniao Co Ltd ($1819) | 24.5% | 26.1% | 26.7% | 27.9% | |
| Prada SpA ($1913) | 29.6% | 31.7% | 31.7% | 26.8% | 22.4% |
| Shenzhou International Group Holdings Ltd ($2313) | 26.4% | 26.2% | 26.1% | 26.7% | |
| |
|---|
| Median (51 companies) | 11.1% | 10.9% | 7.2% | 6.8% | -3.5% |
|---|
| Highlight China IoT International Ltd ($1682) | 2.4% | 3.3% | 10.4% | 1.8% | -14.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 136.9% | 70.3% | 13.5% | 28.5% | |
| Shenzhou International Group Holdings Ltd ($2313) | 7.3% | 7.9% | 10.2% | 16.1% | |
| Crocodile Garments ($122) | 20.1% | 22.1% | 1.8% | 13.5% | |
| Texhong Textile Group Ltd ($2678) | 8.9% | 11.8% | 5.8% | 10.5% | |
| Prada SpA ($1913) | 9.7% | 10.6% | 15.3% | 10.2% | 11.1% |
| |
|---|
| Median (50 companies) | 2.2% | 3.0% | 2.3% | 2.1% | 2.1% |
|---|
| Highlight China IoT International Ltd ($1682) | 3.7% | 4.3% | 5.7% | 2.9% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Koradior Holdings Ltd ($3709) | 45.2% | 69.5% | 36.5% | 31.0% | |
| Cosmo Lady China Holdings Co Ltd ($2298) | 41.7% | 56.0% | 38.6% | 27.8% | |
| Cabbeen Fashion Ltd ($2030) | 32.3% | 32.9% | 26.5% | 27.0% | |
| Sitoy Group Holdings Ltd ($1023) | 39.3% | 28.7% | 31.8% | 22.0% | |
| Prada SpA ($1913) | 32.1% | 37.4% | 34.0% | 21.9% | 14.0% |
| |
|---|
| Median (51 companies) | 12.4% | 7.3% | 5.3% | 5.4% | -7.0% |
|---|
| Highlight China IoT International Ltd ($1682) | 1.6% | 3.4% | 1.6% | -0.1% | -76.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| S Culture International Holdings Ltd ($1255) | 1.4x | 0.7x | 2.4x | 158.1x | |
| High Fashion International Ltd ($608) | 16.7x | 27.7x | 11.2x | 5.2x | |
| Global Brands Group Holding Ltd ($787) | -0.4x | -0.3x | 1.3x | 2.1x | |
| Fuguiniao Co Ltd ($1819) | -0.0x | -0.7x | 0.3x | 1.9x | |
| Texhong Textile Group Ltd ($2678) | 1.4x | 1.3x | 2.3x | 1.4x | |
| |
|---|
| Median (37 companies) | -0.2x | -0.7x | -0.4x | -0.8x | -0.3x |
|---|
| Highlight China IoT International Ltd ($1682) | -0.3x | 0.4x | 2.2x | -1.3x | |
