Top Form International Ltd EBITDA dropped on 11.6% and Revenue increased slightly on 0.73%
26/08/2016 • About Top Form International Ltd (
$333) • By InTwits
Top Form International 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: 4.8% in FY2016, 5.4% in FY2015, 3.1% in FY2014, 1.8% in FY2013, -2.5% in FY2012
- Top Form International Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's a lot of higher than industry average of 9.7%.
- CAPEX is quite volatile: 13.4 in FY2016, 17.9 in FY2015, 16.6 in FY2014, 20.3 in FY2013, 39.1 in FY2012
- The company has potentially unprofitable business model: ROIC is at 5.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Top Form International Ltd ($333) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,132 | 1,054 | 1,132 | 1,170 | 1,179 | 0.7% |
| Gross Profit | 168 | 175 | 203 | 219 | 211 | -3.9% |
| SG&A | | 165 | 163 | 167 | 173 | 3.9% |
| EBITDA | -28 | 19 | 36 | 64 | 56 | -11.6% |
| Net Income | -60 | -5 | 37 | 34 | 32 | -5.5% |
Balance Sheet
|
|---|
| Cash | 146 | 136 | 129 | 169 | 167 | -1.5% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 39 | 20 | 17 | 18 | 13 | -25.1% |
Ratios
|
|---|
| Revenue growth | -15.5% | -6.9% | 7.3% | 3.4% | 0.7% | |
| EBITDA growth | -129.8% | -168.9% | 83.2% | 78.7% | -11.6% | |
| Gross Margin | 14.9% | 16.6% | 18.0% | 18.7% | 17.9% | -0.9% |
| EBITDA Margin | -2.5% | 1.8% | 3.1% | 5.4% | 4.8% | -0.7% |
| Net Income Margin | -5.3% | -0.4% | 3.3% | 2.9% | 2.7% | -0.2% |
| SG&A, % of revenue | | 15.6% | 14.4% | 14.2% | 14.7% | 0.4% |
| CAPEX, % of revenue | 3.5% | 1.9% | 1.5% | 1.5% | 1.1% | -0.4% |
| ROIC | -10.2% | -1.8% | 1.4% | 6.5% | 5.8% | -0.7% |
| ROE | -11.3% | -0.9% | 7.0% | 6.1% | 5.8% | -0.3% |
| Net Debt/EBITDA | | -7.0x | -3.6x | -2.7x | -3.0x | -0.3x |
Revenue and profitability
Top Form International Ltd's Revenue increased slightly on 0.73%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 0.66 pp from 5.4% to 4.8% in FY2016.
Gross Margin decreased slightly on 0.86 pp from 18.7% to 17.9% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Top Form International Ltd had CAPEX/Revenue of 1.1%. CAPEX/Revenue decreased slightly on 0.79 pp from 1.9% in FY2013 to 1.1% in FY2016. It's average level of CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at low ROIC (5.80%) and ROE (5.79%). ROIC decreased slightly on 0.69 pp from 6.5% to 5.8% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt level is -3.0x Net Debt / EBITDA and 0.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from -2.7x to -3.0x in FY2016. Debt jumped while cash decreased slightly on 1.5%.
Appendix 1: Peers in Apparel
Below you can find Top Form 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% | |
| Highlight China IoT International Ltd ($1682) | | 17.7% | -73.7% | 29.6% | -55.0% |
| Koradior Holdings Ltd ($3709) | 48.3% | 44.7% | 47.7% | 23.9% | |
| Kingmaker Footwear Holdings Ltd ($1170) | | 9.3% | 6.3% | 23.7% | -1.5% |
| Cosmo Lady China Holdings Co Ltd ($2298) | 36.3% | 29.2% | 37.4% | 23.6% | |
| |
|---|
| Median (52 companies) | 5.6% | 6.3% | 5.4% | -2.6% | -17.2% |
|---|
| Top Form International Ltd ($333) | | -6.9% | 7.3% | 3.4% | 0.7% |
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 (51 companies) | 25.0% | 24.3% | 26.0% | 25.0% | 16.4% |
|---|
| Top Form International Ltd ($333) | 14.9% | 16.6% | 18.0% | 18.7% | 17.9% |
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 (52 companies) | 11.1% | 10.9% | 7.5% | 7.2% | -4.3% |
|---|
| Top Form International Ltd ($333) | -2.5% | 1.8% | 3.1% | 5.4% | 4.8% |
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 (51 companies) | 2.2% | 3.0% | 2.5% | 2.6% | 1.8% |
|---|
| Top Form International Ltd ($333) | 3.5% | 1.9% | 1.5% | 1.5% | 1.1% |
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 (52 companies) | 12.4% | 7.3% | 5.3% | 4.9% | -9.4% |
|---|
| Top Form International Ltd ($333) | -10.2% | -1.8% | 1.4% | 6.5% | 5.8% |
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 (38 companies) | -0.3x | -0.6x | -0.2x | -1.0x | -1.7x |
|---|
| Top Form International Ltd ($333) | | -7.0x | -3.6x | -2.7x | -3.0x |
