Sitoy Group Holdings Ltd EBITDA dropped on 21.3% in 2016 and Revenue dropped on 16.1%
19/09/2016 • About Sitoy Group Holdings Ltd (
$1023) • By InTwits
Sitoy Group Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sitoy Group Holdings 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 4.2%.
- CAPEX is quite volatile: 25.5 in FY2016, 50.2 in FY2015, 74.6 in FY2014, 104 in FY2013, 69.7 in FY2012
- The company has highly profitable business model: ROIC is at 16.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sitoy Group Holdings Ltd ($1023) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,338 | 3,360 | 3,857 | 3,380 | 2,837 | -16.1% |
| Gross Profit | 741 | 785 | 1,004 | 883 | 767 | -13.1% |
| SG&A | 298 | 330 | 389 | 426 | 408 | -4.3% |
| EBITDA | 486 | 527 | 666 | 528 | 415 | -21.3% |
| Net Income | 381 | 400 | 504 | 412 | 370 | -10.1% |
Balance Sheet
|
|---|
| Cash | 747 | 835 | 1,362 | 1,323 | 831 | -37.2% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 70 | 104 | 75 | 50 | 25 | -49.3% |
Ratios
|
|---|
| Revenue growth | 33.9% | 0.7% | 14.8% | -12.4% | -16.1% | |
| EBITDA growth | 29.7% | 8.4% | 26.3% | -20.8% | -21.3% | |
| Gross Margin | 22.2% | 23.3% | 26.0% | 26.1% | 27.0% | 0.9% |
| EBITDA Margin | 14.6% | 15.7% | 17.3% | 15.6% | 14.6% | -1.0% |
| Net Income Margin | 11.4% | 11.9% | 13.1% | 12.2% | 13.0% | 0.9% |
| SG&A, % of revenue | 8.9% | 9.8% | 10.1% | 12.6% | 14.4% | 1.8% |
| CAPEX, % of revenue | 2.1% | 3.1% | 1.9% | 1.5% | 0.9% | -0.6% |
| ROIC | 39.3% | 28.7% | 31.8% | 22.0% | 16.4% | -5.6% |
| ROE | 36.8% | 24.1% | 27.1% | 20.1% | 17.2% | -2.9% |
| Net Debt/EBITDA | -1.5x | -1.6x | -2.0x | -2.5x | -2.0x | 0.5x |
Revenue and profitability
The company's Revenue dropped on 16.1%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.97 pp from 15.6% to 14.6% in FY2016.
Gross Margin increased slightly on 0.92 pp from 26.1% to 27.0% in FY2016. SG&A as a % of Revenue increased slightly on 1.8 pp from 12.6% to 14.4% in FY2016.
Net Income marign increased slightly on 0.86 pp from 12.2% to 13.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Sitoy Group Holdings Ltd's CAPEX/Revenue was 0.90% in FY2016. CAPEX/Revenue decreased on 2.2 pp from 3.1% in FY2013 to 0.90% in FY2016. It's average CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at good ROIC (16.44%) and ROE (17.22%). ROIC decreased on 5.6 pp from 22.0% to 16.4% in FY2016. ROE decreased on 2.9 pp from 20.1% to 17.2% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 37.2%.
Appendix 1: Peers in Apparel
Below you can find Sitoy Group Holdings 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) | 5.3% | 6.3% | 5.4% | -1.5% | -16.5% |
|---|
| Sitoy Group Holdings Ltd ($1023) | | 0.7% | 14.8% | -12.4% | -16.1% |
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% | 24.9% | 25.0% | 17.0% |
|---|
| Sitoy Group Holdings Ltd ($1023) | 22.2% | 23.3% | 26.0% | 26.1% | 27.0% |
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) | 10.5% | 10.2% | 7.2% | 6.6% | -3.5% |
|---|
| Sitoy Group Holdings Ltd ($1023) | 14.6% | 15.7% | 17.3% | 15.6% | 14.6% |
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) | 2.3% | 3.0% | 2.5% | 2.6% | 1.7% |
|---|
| Sitoy Group Holdings Ltd ($1023) | 2.1% | 3.1% | 1.9% | 1.5% | 0.9% |
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% | |
| Prada SpA ($1913) | 32.1% | 37.4% | 34.0% | 21.9% | 14.0% |
| China Lilang Ltd ($1234) | 27.3% | 19.1% | 19.7% | 20.2% | |
| |
|---|
| Median (52 companies) | 10.5% | 7.2% | 4.4% | 4.9% | -7.0% |
|---|
| Sitoy Group Holdings Ltd ($1023) | 39.3% | 28.7% | 31.8% | 22.0% | 16.4% |
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 (38 companies) | -0.2x | -0.6x | -0.2x | -1.0x | -3.0x |
|---|
| Sitoy Group Holdings Ltd ($1023) | -1.5x | -1.6x | -2.0x | -2.5x | -2.0x |
