Carry Wealth Holdings Ltd reports 2.0% revenue growth in FY2016 and 7.8 pp EBITDA Margin decline from -24.9% to -32.8%
06/03/2017 • About Carry Wealth Holdings Ltd (
$643) • By InTwits
Carry Wealth Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Carry Wealth Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -17.1%
- The company operates at negative EBITDA Margin: -32.8%
- Carry Wealth Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -20.8% for the sames years0
- The company has unprofitable business model: ROIC is at -17.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Carry Wealth Holdings Ltd ($643) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 122.7 | 145.8 | 153.2 | 120.7 | 123.1 | 2.0% |
| Gross Profit | 15.8 | 14.7 | 33.4 | 9.1 | -0.2 | -102.5% |
| SG&A | 60.8 | 46.5 | 48.2 | 44.4 | 45.1 | 1.6% |
| EBITDA | -30.5 | -27.6 | -9.7 | -30.1 | -40.3 | |
| Net Income | -71.5 | -30.2 | -14.7 | -38.0 | -49.7 | |
Balance Sheet
|
|---|
| Cash | 81.3 | 101.4 | 110.6 | 88.4 | 21.5 | -75.6% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.4 | 1.3 | 1.1 | 1.9 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -79.6% | 18.8% | 5.0% | -21.2% | 2.0% | |
| EBITDA growth | 53.8% | -9.5% | -64.9% | 210.3% | 34.0% | |
| Gross Margin | 12.9% | 10.1% | 21.8% | 7.6% | -0.2% | -7.7% |
| EBITDA Margin | -24.8% | -18.9% | -6.3% | -24.9% | -32.8% | -7.8% |
| Net Income Margin | -58.3% | -20.7% | -9.6% | -31.5% | -40.4% | -8.9% |
| SG&A, % of revenue | 49.6% | 31.9% | 31.5% | 36.8% | 36.6% | -0.2% |
| CAPEX, % of revenue | 0.4% | 0.9% | 0.7% | 1.6% | | -1.6% |
| ROIC | -18.0% | -16.5% | -5.7% | -11.5% | -17.1% | -5.6% |
| ROE | -33.1% | -15.8% | -5.8% | -12.8% | -19.5% | -6.8% |
Revenue and profitability
The company's Revenue increased slightly on 2.0%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 7.8 pp from -24.9% to -32.8% in FY2016.
Gross Margin decreased on 7.7 pp from 7.6% to -0.19% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign decreased on 8.9 pp from -31.5% to -40.4% in FY2016.
Return on investment
The company operates at negative ROIC (-17.14%) and ROE (-19.54%). ROIC decreased on 5.6 pp from -11.5% to -17.1% in FY2016. ROE decreased on 6.8 pp from -12.8% to -19.5% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 75.6%.
Appendix 1: Peers in Apparel
Below we provide Carry Wealth 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) | 6.9% | 5.8% | 5.5% | -1.5% | -16.1% |
|---|
| Carry Wealth Holdings Ltd ($643) | | 18.8% | 5.0% | -21.2% | 2.0% |
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) | 25.2% | 24.5% | 26.4% | 25.0% | 17.9% |
|---|
| Carry Wealth Holdings Ltd ($643) | 12.9% | 10.1% | 21.8% | 7.6% | -0.2% |
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% | 22.9% |
| 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) | 11.6% | 11.0% | 7.5% | 7.2% | -2.7% |
|---|
| Carry Wealth Holdings Ltd ($643) | -24.8% | -18.9% | -6.3% | -24.9% | -32.8% |
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% | 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) | 2.4% | 3.1% | 2.4% | 2.6% | 1.8% |
|---|
| Carry Wealth Holdings Ltd ($643) | 0.4% | 0.9% | 0.7% | 1.6% | |
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% | 16.1% |
| 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) | 13.1% | 8.2% | 4.9% | 5.7% | -1.9% |
|---|
| Carry Wealth Holdings Ltd ($643) | -18.0% | -16.5% | -5.7% | -11.5% | -17.1% |
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 | 1.7x |
| |
|---|
| Median (39 companies) | -0.2x | -0.7x | -0.2x | -1.2x | -1.1x |
|---|
