Lisi Group Holdings Ltd reports 125% EBITDA decline in 2016 and 12.6 pp EBITDA Margin decline from 10.0% to -2.7%
29/06/2016 • About Lisi Group Holdings Ltd (
$526) • By InTwits
Lisi Group Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Lisi Group Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -2.6%
- The company operates at negative EBITDA Margin: -2.7%
- EBITDA Margin is quite volatile: -2.7% in FY2016, 10.0% in FY2015, 4.4% in FY2014, -0.3% in FY2013, 11.8% in FY2012
- Lisi Group Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.3%. At the same time it's in pair with industry average of 8.1%.
- CAPEX is quite volatile: 43.5 in FY2016, 152 in FY2015, 47.9 in FY2014, 34.1 in FY2013, 27.9 in FY2012
- The company has unprofitable business model: ROIC is at -2.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Lisi Group Holdings Ltd ($526) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 394 | 301 | 783 | 1,158 | 1,086 | -6.2% |
| Gross Profit | 96 | 60 | 153 | 260 | 253 | -2.9% |
| SG&A | 76 | 80 | 160 | 195 | 356 | 82.2% |
| EBITDA | 46 | -1 | 35 | 115 | -29 | -125.1% |
| Net Income | 6 | -32 | 963 | 82 | 25 | -69.6% |
Balance Sheet
|
|---|
| Cash | 11 | 9 | 55 | 135 | 258 | 90.7% |
| Short Term Debt | 85 | 172 | 773 | 787 | 892 | 13.3% |
| Long Term Debt | 82 | 0 | 553 | 451 | 170 | -62.3% |
Cash flow
|
|---|
| Capex | 28 | 34 | 48 | 152 | 44 | -71.3% |
Ratios
|
|---|
| Revenue growth | 2.5% | -23.5% | 160.0% | 47.9% | -6.2% | |
| EBITDA growth | 3.3% | -101.8% | -4,208.0% | 233.6% | -125.1% | |
| Gross Margin | 24.5% | 20.0% | 19.6% | 22.5% | 23.3% | 0.8% |
| EBITDA Margin | 11.8% | -0.3% | 4.4% | 10.0% | -2.7% | -12.6% |
| Net Income Margin | 1.5% | -10.6% | 123.0% | 7.1% | 2.3% | -4.8% |
| SG&A, % of revenue | 19.3% | 26.5% | 20.5% | 16.9% | 32.7% | 15.9% |
| CAPEX, % of revenue | 7.1% | 11.3% | 6.1% | 13.1% | 4.0% | -9.1% |
| ROIC | 6.4% | -4.7% | 0.1% | 1.8% | -2.6% | -4.4% |
| ROE | 2.9% | -16.3% | 110.7% | 5.1% | 1.5% | -3.6% |
| Net Debt/EBITDA | 3.4x | | 36.8x | 9.6x | | -9.6x |
Revenue and profitability
Lisi Group Holdings Ltd's Revenue decreased on 6.2%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 12.6 pp from 10.0% to -2.7% in FY2016.
Gross Margin increased slightly on 0.81 pp from 22.5% to 23.3% in FY2016. SG&A as a % of Revenue jumped on 15.9 pp from 16.9% to 32.7% in FY2016.
Net Income marign decreased on 4.8 pp from 7.1% to 2.3% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.0% in FY2016. The company showed decline in CAPEX/Revenue of 7.3 pp from 11.3% in FY2013 to 4.0% in FY2016. It's average CAPEX/Revenue for the last three years was 7.7%.
Return on investment
The company operates at negative ROIC (-2.60%) and low but positive ROE (1.51%). ROIC decreased on 4.4 pp from 1.8% to -2.6% in FY2016. ROE decreased on 3.6 pp from 5.1% to 1.5% in FY2016.
Leverage (Debt)
Debt level is -3.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 9.6x from 9.6x to in FY2016. Debt dropped on 14.2% while cash jumped on 90.7%.
Appendix 1: Peers in Household Products/Wares
Below we provide Lisi Group Holdings Ltd benchmarking against other companies in Household Products/Wares 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 |
|---|
| Tempus Holdings Ltd ($6880) | 17.3% | 5.5% | 31.1% | 14.7% | |
| Lerado Group Holding Co Ltd ($1225) | 4.1% | -91.1% | 4.8% | 14.3% | |
| Goodbaby International Holdings Ltd ($1086) | 15.5% | -8.0% | 46.0% | 13.7% | |
| Samsonite International SA ($1910) | 13.2% | 15.0% | 15.4% | 3.5% | |
| King's Flair International Holdings Ltd ($6822) | 11.2% | 14.8% | 10.0% | 2.6% | |
| |
|---|
| Median (9 companies) | 12.3% | 5.5% | 10.0% | 2.6% | -10.6% |
|---|
| Lisi Group Holdings Ltd ($526) | | -23.5% | 160.0% | 47.9% | -6.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tempus Holdings Ltd ($6880) | 68.4% | 64.8% | 64.6% | 65.5% | |
| Carpenter Tan Holdings Ltd ($837) | 66.9% | 67.0% | 65.8% | 64.5% | |
| Biostime International Holdings Ltd ($1112) | 65.9% | 65.2% | 61.9% | 61.9% | |
| Samsonite International SA ($1910) | 53.7% | 53.4% | 52.9% | 52.6% | |
| Goodbaby International Holdings Ltd ($1086) | 19.1% | 22.9% | 25.0% | 29.5% | |
| |
|---|
| Median (9 companies) | 21.7% | 24.3% | 25.6% | 29.5% | 12.8% |
|---|
| Lisi Group Holdings Ltd ($526) | 24.5% | 20.0% | 19.6% | 22.5% | 23.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Carpenter Tan Holdings Ltd ($837) | 49.0% | 48.1% | 48.6% | 46.7% | |
| eForce Holdings Ltd ($943) | -16.9% | -13.0% | -5.8% | 21.9% | |
| Samsonite International SA ($1910) | 15.9% | 16.0% | 14.9% | 15.1% | |
| Biostime International Holdings Ltd ($1112) | 30.4% | 27.6% | 24.3% | 14.8% | |
| King's Flair International Holdings Ltd ($6822) | 8.3% | 7.9% | 9.7% | 14.6% | |
| |
|---|
| Median (9 companies) | 9.9% | 7.9% | 9.7% | 14.6% | 1.9% |
|---|
| Lisi Group Holdings Ltd ($526) | 11.8% | -0.3% | 4.4% | 10.0% | -2.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lerado Group Holding Co Ltd ($1225) | 3.0% | 75.4% | 18.8% | 60.0% | |
| Samsonite International SA ($1910) | 2.1% | 2.8% | 3.0% | 2.8% | |
| Goodbaby International Holdings Ltd ($1086) | 2.9% | 2.8% | 2.6% | 2.6% | |
| Tempus Holdings Ltd ($6880) | 0.9% | 4.0% | 2.8% | 2.4% | |
| Biostime International Holdings Ltd ($1112) | 1.2% | 3.0% | 2.8% | 2.3% | |
| |
|---|
| Median (9 companies) | 1.4% | 2.8% | 2.6% | 2.3% | 2.0% |
|---|
| Lisi Group Holdings Ltd ($526) | 7.1% | 11.3% | 6.1% | 13.1% | 4.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| King's Flair International Holdings Ltd ($6822) | 39.4% | 41.9% | 49.5% | 46.7% | |
| Samsonite International SA ($1910) | 20.8% | 21.8% | 21.1% | 20.3% | |
| Carpenter Tan Holdings Ltd ($837) | 30.3% | 24.6% | 20.7% | 17.6% | |
| Biostime International Holdings Ltd ($1112) | 41.7% | 39.9% | 24.7% | 7.3% | |
| eForce Holdings Ltd ($943) | -6.4% | -7.0% | -5.1% | 7.0% | |
| |
|---|
| Median (9 companies) | 18.2% | 8.8% | 3.9% | 7.0% | -1.6% |
|---|
| Lisi Group Holdings Ltd ($526) | 6.4% | -4.7% | 0.1% | 1.8% | -2.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Biostime International Holdings Ltd ($1112) | -0.4x | -0.0x | -0.0x | 8.8x | |
| Goodbaby International Holdings Ltd ($1086) | -1.3x | -0.5x | 5.9x | 2.1x | |
| Samsonite International SA ($1910) | -0.4x | -0.6x | -0.2x | -0.3x | |
| eForce Holdings Ltd ($943) | | | | -1.2x | |
| Carpenter Tan Holdings Ltd ($837) | -2.5x | -2.1x | -0.9x | -1.5x | |
| |
|---|
| Median (8 companies) | -1.0x | -0.9x | -0.9x | -1.3x | -5.8x |
|---|
| Lisi Group Holdings Ltd ($526) | 3.4x | | 36.8x | 9.6x | |
