See Corp Ltd CAPEX jumped on 232% while Revenue dropped on 80.4%
30/09/2016 • About See Corp Ltd (
$491) • By InTwits
See Corp Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- See Corp Ltd is a company in decline: FY2016 revenue growth was -80.4%, 5 years revenue CAGR was -4.2%
- The company operates at negative EBITDA Margin: -80.1%
- See Corp Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -28.1%0
- See Corp Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.8%. At the same time it's a lot of higher than industry average of 7.7%.
- CAPEX is quite volatile: 11.6 in FY2016, 3.5 in FY2015, 0.14 in FY2014, 0.090 in FY2013, 1.0 in FY2012
- The company has unprofitable business model: ROIC is at -4.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
See Corp Ltd ($491) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 34.1 | 23.3 | 54.4 | 123.5 | 24.3 | -80.4% |
| Gross Profit | 12.0 | 9.4 | 12.1 | 25.6 | 8.2 | -68.0% |
| SG&A | | 29.7 | 36.5 | 39.4 | 37.1 | -6.0% |
| EBITDA | -13.1 | -13.8 | 17.4 | -44.0 | -19.4 | |
| Net Income | 30.9 | -52.8 | -66.8 | -75.1 | -106.0 | |
Balance Sheet
|
|---|
| Cash | 87.7 | 33.2 | 398.2 | 411.5 | 398.5 | -3.1% |
| Short Term Debt | 9.9 | 10.0 | 10.0 | 3.0 | 0.0 | -100.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 1.0 | 0.1 | 0.1 | 3.5 | 11.6 | 232.4% |
Ratios
|
|---|
| Revenue growth | 13.7% | -31.9% | 134.1% | 126.9% | -80.4% | |
| EBITDA growth | -25.6% | 5.7% | -225.7% | -352.6% | -55.8% | |
| Gross Margin | 35.0% | 40.4% | 22.2% | 20.8% | 33.8% | 13.0% |
| EBITDA Margin | -38.4% | -59.5% | 32.0% | -35.6% | -80.1% | -44.6% |
| Net Income Margin | 90.4% | -227.2% | -122.8% | -60.8% | -437.2% | -376.3% |
| SG&A, % of revenue | | 127.9% | 67.1% | 31.9% | 152.8% | 120.9% |
| CAPEX, % of revenue | 3.0% | 0.4% | 0.3% | 2.8% | 47.7% | 44.9% |
| ROIC | -9.5% | -8.4% | -5.9% | -9.3% | -4.6% | 4.7% |
| ROE | 10.5% | -18.6% | -17.6% | -10.8% | -12.8% | -1.9% |
| Net Debt/EBITDA | | | -22.3x | | | 0.0x |
Revenue and profitability
See Corp Ltd's Revenue dropped on 80.4%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.4 pp from -22.6% to -15.2% in FY2016.
Gross Margin surged on 13.0 pp from 20.8% to 33.8% in FY2016. SG&A as a % of Revenue surged on 121 pp from 31.9% to 153% in FY2016.
Net Income marign dropped on 376 pp from -60.8% to -437% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 47.7% in FY2016. The company showed fast CAPEX/Revenue growth of 47.3 pp from 0.39% in FY2013 to 47.7% in FY2016. It's average CAPEX/Revenue for the last three years was 16.9%.
Return on investment
The company operates at negative ROIC (-4.57%) and ROE (-12.77%). ROIC increased on 4.7 pp from -9.3% to -4.6% in FY2016. ROE decreased slightly on 1.9 pp from -10.8% to -12.8% in FY2016.
Leverage (Debt)
The company paid down all the debt in FY2016. Cash decreased on 3.1%.
Appendix 1: Peers in Home Furnishings
Below you can find See Corp Ltd benchmarking vs. other companies in Home Furnishings 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 |
|---|
| BEP International Holdings Ltd ($2326) | | -41.5% | 46.2% | 187.9% | 258.0% |
| Sunrise China Technology Group Ltd ($8226) | -93.0% | 21.9% | -20.4% | 77.5% | |
| Yuxing InfoTech Investment Holdings Ltd ($8005) | 29.6% | -21.2% | -16.5% | 21.3% | |
| Aupu Group Holding Co Ltd ($477) | 5.7% | 9.0% | 26.4% | 18.5% | |
| Alco Holdings Ltd ($328) | | -32.6% | 22.8% | 11.8% | 12.4% |
| |
|---|
| Median (27 companies) | -2.3% | 6.6% | 1.7% | -2.4% | 2.7% |
|---|
| See Corp Ltd ($491) | | -31.9% | 134.1% | 126.9% | -80.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| South East Group Ltd ($726) | 25.5% | 51.6% | 38.8% | 82.4% | |
| Aupu Group Holding Co Ltd ($477) | 48.6% | 45.0% | 47.8% | 48.7% | |
| Grande Holdings Ltd/The ($186) | 23.7% | 25.4% | 29.0% | 27.7% | |
| Samson Holding Ltd ($531) | 25.6% | 25.4% | 27.3% | 27.3% | |
| Gold Peak Industries Holding Ltd ($40) | 25.8% | 23.6% | 24.9% | 25.6% | 25.6% |
| |
|---|
| Median (27 companies) | 17.6% | 17.7% | 16.4% | 15.9% | 19.6% |
|---|
| See Corp Ltd ($491) | 35.0% | 40.4% | 22.2% | 20.8% | 33.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Aupu Group Holding Co Ltd ($477) | 15.3% | 17.6% | 30.1% | 27.0% | |
| Skyworth Digital Holdings Ltd ($751) | 6.0% | 6.1% | 5.7% | 11.3% | 8.5% |
| Welling Holding Ltd ($382) | 11.9% | 12.8% | 10.8% | 8.6% | |
| Hing Lee HK Holdings Ltd ($396) | -3.0% | 4.3% | 9.4% | 8.2% | |
| Raymond Industrial Ltd ($229) | 7.6% | 7.7% | 7.8% | 6.3% | |
| |
|---|
| Median (26 companies) | 6.0% | 4.8% | 4.5% | 3.6% | 6.2% |
|---|
| See Corp Ltd ($491) | -38.4% | -59.5% | 32.0% | -35.6% | -80.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| JF Household Furnishings Ltd ($776) | 0.7% | 4.5% | 2.8% | 54.5% | |
| Sunrise China Technology Group Ltd ($8226) | 126.4% | 69.3% | 7.4% | 14.1% | |
| Royale Furniture Holdings Ltd ($1198) | | 14.1% | 16.5% | 10.5% | |
| South East Group Ltd ($726) | 0.0% | 0.0% | 0.0% | 7.9% | |
| Aupu Group Holding Co Ltd ($477) | 1.5% | 6.3% | 5.3% | 5.7% | |
| |
|---|
| Median (27 companies) | 1.4% | 2.2% | 2.8% | 2.0% | 3.0% |
|---|
| See Corp Ltd ($491) | 3.0% | 0.4% | 0.3% | 2.8% | 47.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Aupu Group Holding Co Ltd ($477) | 14.8% | 17.0% | 32.2% | 32.2% | |
| Mastercraft International Holdings Ltd ($8146) | 54.4% | 38.6% | 36.4% | 23.2% | |
| Skyworth Digital Holdings Ltd ($751) | 11.6% | 13.4% | 10.9% | 23.0% | 13.7% |
| BEP International Holdings Ltd ($2326) | 90.3% | 4.7% | -4.5% | 17.6% | 29.4% |
| Tonly Electronics Holdings Ltd ($1249) | 4.2% | 7.1% | 15.9% | 11.7% | |
| |
|---|
| Median (27 companies) | 4.2% | 5.1% | 5.0% | 2.8% | 3.4% |
|---|
| See Corp Ltd ($491) | -9.5% | -8.4% | -5.9% | -9.3% | -4.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kasen International Holdings Ltd ($496) | 2.2x | 3.7x | 44.9x | 20.1x | |
| Hisense Kelon Electrical Holdings Co Ltd ($921) | 1.2x | 0.9x | 1.0x | 6.4x | |
| Gold Peak Industries Holding Ltd ($40) | 10.2x | 3.4x | 3.6x | 2.8x | 3.9x |
| TCL Multimedia Technology Holdings Ltd ($1070) | -0.3x | -2.3x | 0.7x | 0.5x | |
| Skyworth Digital Holdings Ltd ($751) | 1.2x | 1.5x | 1.2x | -0.2x | 0.9x |
| |
|---|
| Median (17 companies) | -0.3x | -1.1x | -1.3x | -0.9x | -1.6x |
|---|
