Miko International Holdings Ltd reports 78.0% Net Income decline and 26.4% Revenue decline
29/07/2016 • About Miko International Holdings Ltd (
$1247) • By InTwits
Miko International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Miko International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's in pair with industry average of 4.9%.
- CAPEX is quite volatile: 20.8 in 2015, 63.7 in 2014, 53.5 in 2013, 0.067 in 2012, 0.56 in 2011
- The company has business model with average profitability: ROIC is at 10.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Miko International Holdings Ltd ($1247) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 392.4 | 520.0 | 661.4 | 795.7 | 585.7 | -26.4% |
| Gross Profit | 143.9 | 195.8 | 260.1 | 300.3 | 212.4 | -29.3% |
| SG&A | 54.4 | 62.8 | 79.3 | 104.9 | 130.3 | 24.3% |
| EBITDA | 93.5 | 136.5 | 185.2 | 199.8 | 111.3 | -44.3% |
| Net Income | 77.3 | 115.4 | 129.6 | 137.9 | 30.3 | -78.0% |
Balance Sheet
|
|---|
| Cash | 4.0 | 8.9 | 260.1 | 432.4 | 446.2 | 3.2% |
| Short Term Debt | 28.3 | 44.9 | 76.9 | 37.7 | 57.7 | 53.1% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.6 | 0.1 | 53.5 | 63.7 | 20.8 | -67.3% |
Ratios
|
|---|
| Revenue growth | 20.0% | 32.5% | 27.2% | 20.3% | -26.4% | |
| EBITDA growth | 1.9% | 45.9% | 35.7% | 7.9% | -44.3% | |
| Gross Margin | 36.7% | 37.7% | 39.3% | 37.7% | 36.3% | -1.5% |
| EBITDA Margin | 23.8% | 26.2% | 28.0% | 25.1% | 19.0% | -6.1% |
| Net Income Margin | 19.7% | 22.2% | 19.6% | 17.3% | 5.2% | -12.2% |
| SG&A, % of revenue | 13.9% | 12.1% | 12.0% | 13.2% | 22.3% | 9.1% |
| CAPEX, % of revenue | 0.1% | 0.0% | 8.1% | 8.0% | 3.6% | -4.5% |
| ROIC | 75.1% | 60.9% | 48.8% | 27.3% | 10.5% | -16.8% |
| ROE | 95.8% | 64.7% | 42.7% | 21.3% | 3.2% | -18.0% |
| Net Debt/EBITDA | 0.3x | 0.3x | -1.0x | -2.0x | -3.5x | -1.5x |
Revenue and profitability
The company's Revenue dropped on 26.4% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.4 pp from 23.8% to 26.2% in 2015.
Gross Margin decreased slightly on 1.5 pp from 37.7% to 36.3% in 2015. SG&A as a % of Revenue increased on 9.1 pp from 13.2% to 22.3% in 2015.
Net Income marign dropped on 12.2 pp from 17.3% to 5.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.6% in 2015. The company's CAPEX/Revenue increased on 3.5 pp from 0.013% in 2012 to 3.6% in 2015. It's average level of CAPEX/Revenue for the last three years was 6.6%.
Return on investment
The company operates at low ROIC (10.47%) and ROE (3.25%). ROIC dropped on 16.8 pp from 27.3% to 10.5% in 2015. ROE dropped on 18.0 pp from 21.3% to 3.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.5x and Debt / EBITDA is 0.5x. Net Debt / EBITDA dropped on 1.5x from -2.0x to -3.5x in 2015. Debt surged on 53.1% in 2015 while cash increased on 3.2% in 2015.
Appendix 1: Peers in Apparel
Below we provide Miko International Holdings Ltd benchmarking against other companies in Apparel 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | | -94.0% | 46.8% | 20.4% | 33.1% |
| Highlight China IoT International Ltd ($1682) | | | 17.7% | -73.7% | 29.6% |
| Koradior Holdings Ltd ($3709) | | 48.3% | 44.7% | 47.7% | 23.9% |
| Kingmaker Footwear Holdings Ltd ($1170) | | | 9.3% | 6.3% | 23.7% |
| Cosmo Lady China Holdings Co Ltd ($2298) | | 36.3% | 29.2% | 37.4% | 23.6% |
| |
|---|
| Median (52 companies) | | 5.1% | 5.4% | 5.4% | -1.5% |
|---|
| Miko International Holdings Ltd ($1247) | | 32.5% | 27.2% | 20.3% | -26.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 15.4% | 38.5% | 42.3% | 59.6% | 75.6% |
| Koradior Holdings Ltd ($3709) | 63.5% | 62.8% | 69.3% | 73.3% | 73.7% |
| Prada SpA ($1913) | | 71.5% | 72.1% | 73.8% | 71.8% |
| China Outfitters Holdings Ltd ($1146) | 76.1% | 74.9% | 74.3% | 70.0% | 65.7% |
| Crocodile Garments ($122) | 65.5% | 64.7% | 60.7% | 60.4% | 62.1% |
| |
|---|
| Median (51 companies) | 26.1% | 24.8% | 23.5% | 24.9% | 25.0% |
|---|
| Miko International Holdings Ltd ($1247) | 36.7% | 37.7% | 39.3% | 37.7% | 36.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Lilang Ltd ($1234) | 26.7% | 26.3% | 26.9% | 29.4% | 30.6% |
| Cabbeen Fashion Ltd ($2030) | 16.0% | 25.0% | 29.7% | 28.4% | 29.0% |
| Fuguiniao Co Ltd ($1819) | 22.2% | 24.5% | 26.1% | 26.7% | 27.9% |
| Prada SpA ($1913) | | 29.6% | 31.7% | 31.7% | 26.8% |
| Shenzhou International Group Holdings Ltd ($2313) | 26.8% | 26.4% | 26.2% | 26.1% | 26.7% |
| |
|---|
| Median (52 companies) | 11.9% | 10.5% | 10.2% | 7.2% | 6.6% |
|---|
| Miko International Holdings Ltd ($1247) | 23.8% | 26.2% | 28.0% | 25.1% | 19.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 14.9% | 136.9% | 70.3% | 13.5% | 28.5% |
| Shenzhou International Group Holdings Ltd ($2313) | 4.7% | 7.3% | 7.9% | 10.2% | 16.1% |
| Crocodile Garments ($122) | 12.5% | 20.1% | 22.1% | 1.8% | 13.5% |
| Texhong Textile Group Ltd ($2678) | 6.7% | 8.9% | 11.8% | 5.8% | 10.5% |
| Prada SpA ($1913) | | 9.7% | 10.6% | 15.3% | 10.2% |
| |
|---|
| Median (51 companies) | 2.9% | 2.3% | 3.0% | 2.3% | 2.3% |
|---|
| Miko International Holdings Ltd ($1247) | 0.1% | 0.0% | 8.1% | 8.0% | 3.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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) | 25.7% | 32.3% | 32.9% | 26.5% | 27.0% |
| Sitoy Group Holdings Ltd ($1023) | 62.1% | 39.3% | 28.7% | 31.8% | 22.0% |
| Prada SpA ($1913) | | 32.1% | 37.4% | 34.0% | 21.9% |
| |
|---|
| Median (52 companies) | 13.9% | 10.5% | 7.2% | 4.4% | 4.9% |
|---|
| Miko International Holdings Ltd ($1247) | 75.1% | 60.9% | 48.8% | 27.3% | 10.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| S Culture International Holdings Ltd ($1255) | 0.8x | 1.4x | 0.7x | 2.4x | 158.1x |
| High Fashion International Ltd ($608) | 4.9x | 16.7x | 27.7x | 11.2x | 5.2x |
| Global Brands Group Holding Ltd ($787) | -0.3x | -0.4x | -0.3x | 1.3x | 2.1x |
| Fuguiniao Co Ltd ($1819) | 0.9x | -0.0x | -0.7x | 0.3x | 1.9x |
| Texhong Textile Group Ltd ($2678) | 3.9x | 1.4x | 1.3x | 2.3x | 1.4x |
| |
|---|
| Median (38 companies) | -0.6x | -0.3x | -0.6x | -0.2x | -1.0x |
|---|
| Miko International Holdings Ltd ($1247) | 0.3x | 0.3x | -1.0x | -2.0x | -3.5x |
