Art Textile Technology International Co Ltd Net Income surged on 3,647% and Revenue surged on 551%
23/09/2016 • About Art Textile Technology International Co Ltd (
$565) • By InTwits
Art Textile Technology International Co 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: 67.2% in FY2016, -32.0% in FY2015, 11.7% in FY2014, 10.4% in FY2013, 9.0% in FY2012
- Art Textile Technology International Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 24.1%. At the same time it's a lot of higher than industry average of 7.2%.
- CAPEX is quite volatile: 19.1 in FY2016, 0.66 in FY2015, 1.9 in FY2014, 0.44 in FY2013, 0.52 in FY2012
- The company has potentially unprofitable business model: ROIC is at 2.7%
- It operates with high leverage: Net Debt/EBITDA is 10.7x while industry average is 1.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Art Textile Technology International Co Ltd ($565) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,106 | 1,430 | 493 | 21 | 140 | 551.4% |
| Gross Profit | 198 | 169 | 89 | 18 | 91 | 418.7% |
| SG&A | | 64 | 52 | 43 | 20 | -53.9% |
| EBITDA | 189 | 149 | 58 | -7 | 94 | |
| Net Income | 5 | 122 | 15 | -12 | 441 | |
Balance Sheet
|
|---|
| Cash | 990 | 1,091 | 741 | 301 | 62 | -79.3% |
| Short Term Debt | 1,681 | 234 | 108 | 365 | 367 | 0.6% |
| Long Term Debt | 4 | 0 | 10 | 1,009 | 701 | -30.5% |
Cash flow
|
|---|
| Capex | 20 | 28 | 19 | 23 | 12 | -48.5% |
Ratios
|
|---|
| Revenue growth | 133.3% | -32.1% | -65.5% | -95.6% | 551.4% | |
| EBITDA growth | 44.0% | -21.1% | -61.4% | -111.9% | -1,466.2% | |
| Gross Margin | 9.4% | 11.8% | 18.0% | 81.8% | 65.1% | -16.7% |
| EBITDA Margin | 9.0% | 10.4% | 11.7% | -32.0% | 67.2% | 99.2% |
| Net Income Margin | 0.2% | 8.5% | 3.1% | -57.9% | 315.1% | 373.0% |
| SG&A, % of revenue | | 4.5% | 10.6% | 201.4% | 14.3% | -187.1% |
| CAPEX, % of revenue | 1.0% | 1.9% | 3.9% | 105.3% | 8.3% | -97.0% |
| ROIC | 4.8% | 5.3% | 2.7% | -1.2% | 2.7% | 3.9% |
| ROE | 0.5% | 12.4% | 1.5% | -1.1% | 36.4% | 37.6% |
| Net Debt/EBITDA | 3.7x | -5.8x | -10.8x | | 10.7x | 10.7x |
Revenue and profitability
Art Textile Technology International Co Ltd's Revenue jumped on 551%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 7.6 pp from -14.6% to -22.2% in FY2016.
Gross Margin dropped on 16.7 pp from 81.8% to 65.1% in FY2016. SG&A as a % of Revenue dropped on 187 pp from 201% to 14.3% in FY2016.
Net Income marign jumped on 373 pp from -57.9% to 315% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 8.3% in FY2016. The company showed CAPEX/Revenue growth of 6.4 pp from 1.9% in FY2013 to 8.3% in FY2016. For the last three years the average CAPEX/Revenue was 39.2%.
Return on investment
The company operates at good ROE (36.44%) while ROIC is low (2.74%). ROIC increased on 3.9 pp from -1.2% to 2.7% in FY2016. ROE surged on 37.6 pp from -1.1% to 36.4% in FY2016.
Leverage (Debt)
Debt level is 10.7x Net Debt / EBITDA and 11.4x Debt / EBITDA. Net Debt / EBITDA jumped10.7x from to 10.7x in FY2016. Debt dropped on 22.3% while cash dropped on 79.3%.
Appendix 1: Peers in Textiles
Below we provide Art Textile Technology International Co Ltd benchmarking against other companies in Textiles 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 |
|---|
| Ping Shan Tea Group Ltd ($364) | -25.9% | 63.7% | -45.7% | 71.6% | |
| China Weaving Materials Holdings Ltd ($3778) | -15.4% | -4.2% | -3.8% | 53.9% | |
| Easyknit Enterprises Holdings Ltd ($616) | 9.6% | 10.2% | 7.3% | 22.3% | |
| Kingdom Holding Co Ltd ($528) | 1.1% | 6.0% | 20.0% | 12.2% | |
| Kam Hing International Holdings Ltd ($2307) | 0.9% | -4.3% | 1.6% | 4.2% | |
| |
|---|
| Median (21 companies) | 0.9% | -4.2% | -3.8% | -5.4% | -0.1% |
|---|
| Art Textile Technology International Co Ltd ($565) | | -32.1% | -65.5% | -95.6% | 551.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| TAI Ping Carpet International Ltd ($146) | 41.0% | 45.4% | 46.7% | 46.6% | |
| Texwinca Holdings Ltd ($321) | 29.6% | 30.9% | 33.3% | 34.1% | 34.0% |
| Yongsheng Advanced Materials Co Ltd ($3608) | 4.9% | 7.3% | 24.9% | 28.8% | |
| CECEP COSTIN New Materials Group Ltd ($2228) | 31.1% | 32.5% | 32.5% | 28.3% | |
| Easyknit Enterprises Holdings Ltd ($616) | 22.3% | 26.3% | 29.6% | 25.9% | |
| |
|---|
| Median (20 companies) | 17.3% | 17.8% | 14.4% | 16.3% | 21.7% |
|---|
| Art Textile Technology International Co Ltd ($565) | 9.4% | 11.8% | 18.0% | 81.8% | 65.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Weiqiao Textile Co ($2698) | 17.5% | 20.2% | 21.4% | 30.8% | |
| CECEP COSTIN New Materials Group Ltd ($2228) | 28.1% | 28.7% | 30.2% | 23.4% | |
| Kingdom Holding Co Ltd ($528) | 26.3% | 25.3% | 24.8% | 23.0% | |
| Yongsheng Advanced Materials Co Ltd ($3608) | 2.5% | 5.1% | 17.5% | 18.9% | |
| Pacific Textiles Holdings Ltd ($1382) | 19.1% | 19.0% | 19.5% | 18.4% | 19.0% |
| |
|---|
| Median (20 companies) | 14.9% | 10.1% | 11.8% | 11.2% | 14.8% |
|---|
| Art Textile Technology International Co Ltd ($565) | 9.0% | 10.4% | 11.7% | -32.0% | 67.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hua Lien International Holding Co Ltd ($969) | 19.7% | 40.5% | 79.6% | 58.1% | |
| Kam Hing International Holdings Ltd ($2307) | 10.6% | 10.5% | 7.6% | 8.3% | |
| TAI Ping Carpet International Ltd ($146) | 8.2% | 10.1% | 6.9% | 7.4% | |
| Wang Tai Holdings Ltd ($1400) | 34.1% | 18.8% | 7.5% | 7.3% | |
| Sijia Group Co ($1863) | 45.8% | 13.7% | 5.6% | 7.3% | |
| |
|---|
| Median (20 companies) | 4.2% | 1.9% | 5.6% | 4.1% | 3.7% |
|---|
| Art Textile Technology International Co Ltd ($565) | 1.0% | 1.9% | 3.9% | 105.3% | 8.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pacific Textiles Holdings Ltd ($1382) | 23.7% | 26.4% | 31.6% | 25.9% | 26.6% |
| Yongsheng Advanced Materials Co Ltd ($3608) | 6.2% | 13.2% | 15.4% | 19.6% | |
| Kingdom Holding Co Ltd ($528) | 13.8% | 12.7% | 13.8% | 12.7% | |
| CECEP COSTIN New Materials Group Ltd ($2228) | 22.3% | 20.1% | 17.6% | 11.0% | |
| Texwinca Holdings Ltd ($321) | 8.3% | 5.3% | 5.5% | 8.1% | 14.9% |
| |
|---|
| Median (21 companies) | 5.3% | 5.3% | 4.4% | 4.9% | 9.5% |
|---|
| Art Textile Technology International Co Ltd ($565) | 4.8% | 5.3% | 2.7% | -1.2% | 2.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Weaving Materials Holdings Ltd ($3778) | 3.6x | 3.0x | 5.3x | 5.5x | |
| Silverman Holdings Ltd ($1616) | 1.5x | 2.5x | 2.0x | 3.2x | |
| Wang Tai Holdings Ltd ($1400) | 3.2x | 1.9x | 1.8x | 2.7x | |
| Kam Hing International Holdings Ltd ($2307) | 2.5x | 2.5x | 2.8x | 2.6x | |
| Victory City International Holdings Ltd ($539) | 1.5x | 2.0x | 3.2x | 2.5x | 3.3x |
| |
|---|
| Median (15 companies) | 1.5x | 1.9x | 1.0x | 0.5x | -0.6x |
|---|
