Brilliance Worldwide Holdings Ltd revenue dropped on 57.5% and EBITDA Margin dropped on 37.3 pp from -8.3% to -45.5%
15/12/2016 • About Brilliance Worldwide Holdings Ltd (
$8312) • By InTwits
Brilliance Worldwide Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Brilliance Worldwide Holdings Ltd is a company in decline: FY2016 revenue growth was -57.5%, 5 years revenue CAGR was -30.8%
- The company operates at negative EBITDA Margin: -45.5%
- Brilliance Worldwide Holdings 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 -8.9%0
- Brilliance Worldwide Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has unprofitable business model: ROIC is at -34.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Brilliance Worldwide Holdings Ltd ($8312) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 105.8 | 66.7 | 63.4 | 54.4 | 23.1 | -57.5% |
| Gross Profit | 7.3 | 6.7 | 5.0 | 3.4 | 1.3 | -63.1% |
| SG&A | 14.9 | 23.8 | 8.4 | 8.2 | 11.9 | 43.8% |
| EBITDA | -5.3 | -4.5 | -3.0 | -4.5 | -10.5 | |
| Net Income | -7.7 | -14.3 | -2.9 | -5.3 | -10.6 | |
Balance Sheet
|
|---|
| Cash | 14.4 | 9.4 | 2.6 | 6.8 | 35.6 | 424.3% |
| Short Term Debt | 7.3 | 2.8 | 4.4 | 3.0 | 0.0 | -100.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.3 | 0.0 | 0.1 | 0.0 | 0.7 | |
Ratios
|
|---|
| Revenue growth | -27.3% | -37.0% | -4.9% | -14.3% | -57.5% | |
| EBITDA growth | -155.5% | -16.3% | -32.2% | 48.0% | 134.4% | |
| Gross Margin | 6.9% | 10.1% | 7.9% | 6.3% | 5.5% | -0.8% |
| EBITDA Margin | -5.0% | -6.7% | -4.8% | -8.3% | -45.5% | -37.3% |
| Net Income Margin | -7.3% | -21.4% | -4.6% | -9.7% | -45.8% | -36.1% |
| SG&A, % of revenue | 14.1% | 35.7% | 13.3% | 15.2% | 51.2% | 36.1% |
| CAPEX, % of revenue | 0.2% | 0.0% | 0.1% | 0.0% | 3.0% | 3.0% |
| ROIC | -15.3% | -13.7% | -10.6% | -18.4% | -34.2% | -15.8% |
| ROE | -17.8% | -43.1% | -11.7% | -24.2% | -36.0% | -11.8% |
Revenue and profitability
Brilliance Worldwide Holdings Ltd's Revenue dropped on 57.5%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 37.3 pp from -8.3% to -45.5% in FY2016.
Gross Margin decreased slightly on 0.83 pp from 6.3% to 5.5% in FY2016. SG&A as a % of Revenue surged on 36.1 pp from 15.2% to 51.2% in FY2016.
Net Income marign dropped on 36.1 pp from -9.7% to -45.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Brilliance Worldwide Holdings Ltd had CAPEX/Revenue of 3.0%. The company's CAPEX/Revenue increased on 3.0 pp from 0.012% in FY2013 to 3.0% in FY2016.
Return on investment
The company operates at negative ROIC (-34.23%) and ROE (-35.99%). ROIC dropped on 15.8 pp from -18.4% to -34.2% in FY2016. ROE dropped on 11.8 pp from -24.2% to -36.0% in FY2016.
Leverage (Debt)
The company paid down all the debt in FY2016. Cash surged on 424%.
Appendix 1: Peers in Apparel
Below we provide Brilliance Worldwide 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 | 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) | 6.2% | 6.3% | 5.5% | -1.5% | -16.7% |
|---|
| Brilliance Worldwide Holdings Ltd ($8312) | | -37.0% | -4.9% | -14.3% | -57.5% |
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% | 59.7% |
| |
|---|
| Median (51 companies) | 25.0% | 24.3% | 26.0% | 25.0% | 17.7% |
|---|
| Brilliance Worldwide Holdings Ltd ($8312) | 6.9% | 10.1% | 7.9% | 6.3% | 5.5% |
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% | -3.5% |
|---|
| Brilliance Worldwide Holdings Ltd ($8312) | -5.0% | -6.7% | -4.8% | -8.3% | -45.5% |
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% | 1.8% |
| 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% |
|---|
| Brilliance Worldwide Holdings Ltd ($8312) | 0.2% | 0.0% | 0.1% | 0.0% | 3.0% |
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% | 16.4% |
| Prada SpA ($1913) | 32.1% | 37.4% | 34.0% | 21.9% | 14.0% |
| |
|---|
| Median (52 companies) | 12.4% | 7.3% | 5.3% | 5.7% | -3.3% |
|---|
| Brilliance Worldwide Holdings Ltd ($8312) | -15.3% | -13.7% | -10.6% | -18.4% | -34.2% |
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 (39 companies) | -0.3x | -0.7x | -0.3x | -1.2x | -2.5x |
|---|
