Matrix Holdings Ltd Net Income dropped on 68.4% and Revenue decreased on 2.3%
16/03/2017 • About Matrix Holdings Ltd (
$1005) • By InTwits
Matrix Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has highly profitable business model: ROIC is at 13.7%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Matrix Holdings Ltd ($1005) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 880 | 1,034 | 1,160 | 1,277 | 1,247 | -2.3% |
| Gross Profit | 302 | 384 | 446 | 471 | 449 | -4.6% |
| SG&A | 250 | 278 | 295 | 267 | 287 | 7.5% |
| EBITDA | 90 | 136 | 174 | 222 | 172 | -22.8% |
| Net Income | 31 | 98 | 118 | 388 | 123 | -68.4% |
Balance Sheet
|
|---|
| Cash | 43 | 55 | 68 | 130 | 143 | 10.6% |
| Short Term Debt | 26 | 26 | 25 | 0 | 1 | 1,875.4% |
| Long Term Debt | 71 | 34 | 0 | 0 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 42 | 33 | 32 | 22 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -0.2% | 17.5% | 12.2% | 10.1% | -2.3% | |
| EBITDA growth | -6.8% | 51.3% | 27.8% | 27.5% | -22.8% | |
| Gross Margin | 34.3% | 37.1% | 38.4% | 36.9% | 36.0% | -0.8% |
| EBITDA Margin | 10.2% | 13.2% | 15.0% | 17.4% | 13.8% | -3.6% |
| Net Income Margin | 3.5% | 9.5% | 10.2% | 30.4% | 9.8% | -20.5% |
| SG&A, % of revenue | 28.3% | 26.9% | 25.4% | 20.9% | 23.0% | 2.1% |
| CAPEX, % of revenue | 4.7% | 3.2% | 2.8% | 1.7% | | -1.7% |
| ROIC | 5.9% | 13.1% | 18.6% | 21.2% | 13.7% | -7.5% |
| ROE | 5.8% | 17.4% | 18.2% | 46.7% | 12.5% | -34.2% |
| Net Debt/EBITDA | 0.6x | 0.0x | -0.2x | -0.6x | -0.8x | -0.2x |
Revenue and profitability
The company's Revenue decreased on 2.3%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 3.6 pp from 17.4% to 13.8% in FY2016.
Gross Margin decreased slightly on 0.85 pp from 36.9% to 36.0% in FY2016. SG&A as a % of Revenue increased on 2.1 pp from 20.9% to 23.0% in FY2016.
Net Income marign dropped on 20.5 pp from 30.4% to 9.8% in FY2016.
Return on investment
The company operates at good ROIC (13.65%) and ROE (12.48%). ROIC decreased on 7.5 pp from 21.2% to 13.7% in FY2016. ROE dropped on 34.2 pp from 46.7% to 12.5% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.8x and Debt / EBITDA is 0.0x. Net Debt / EBITDA dropped on 0.2x from -0.6x to -0.8x in FY2016. Debt surged on 888% while cash jumped on 10.6%.
Appendix 1: Peers in Toys/Games/Hobbies
Below you can find Matrix Holdings Ltd benchmarking vs. other companies in Toys/Games/Hobbies 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 |
|---|
| Leyou Technologies Holdings Ltd ($1089) | 18.8% | 32.3% | 17.7% | 31.0% | |
| Kin Yat Holdings Ltd ($638) | | 8.8% | 5.0% | 17.1% | 6.8% |
| Dream International Ltd ($1126) | 24.9% | -0.1% | 21.0% | 10.8% | |
| Kader Holdings Co Ltd ($180) | -3.7% | -25.8% | -11.1% | 8.3% | |
| Quali-Smart Holdings Ltd ($1348) | | -9.4% | -2.6% | 7.2% | -7.1% |
| |
|---|
| Median (9 companies) | 18.8% | 8.8% | 17.7% | 7.2% | -0.1% |
|---|
| Matrix Holdings Ltd ($1005) | | 17.5% | 12.2% | 10.1% | -2.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Playmates Holdings Ltd ($635) | 65.7% | 66.1% | 64.7% | 65.6% | |
| Playmates Toys Ltd ($869) | 60.3% | 62.8% | 61.9% | 61.6% | |
| Green International Holdings Ltd ($2700) | 17.8% | 1.8% | 8.1% | 59.2% | |
| Kiu Hung International Holdings Ltd ($381) | 30.9% | 29.0% | 32.1% | 35.7% | |
| Dream International Ltd ($1126) | 25.6% | 29.1% | 22.4% | 23.5% | |
| |
|---|
| Median (8 companies) | 21.7% | 20.9% | 17.5% | 29.6% | 11.4% |
|---|
| Matrix Holdings Ltd ($1005) | 34.3% | 37.1% | 38.4% | 36.9% | 36.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Playmates Holdings Ltd ($635) | 22.0% | 36.7% | 33.5% | 32.8% | |
| Playmates Toys Ltd ($869) | 15.1% | 33.0% | 30.2% | 25.8% | |
| Kader Holdings Co Ltd ($180) | -4.2% | -3.0% | 5.8% | 23.0% | |
| Dream International Ltd ($1126) | 13.2% | 14.8% | 9.8% | 12.9% | |
| Kin Yat Holdings Ltd ($638) | 4.8% | 8.4% | 8.8% | 8.6% | 6.3% |
| |
|---|
| Median (9 companies) | 6.6% | 5.6% | 5.8% | 8.6% | 3.9% |
|---|
| Matrix Holdings Ltd ($1005) | 10.2% | 13.2% | 15.0% | 17.4% | 13.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Green International Holdings Ltd ($2700) | 0.2% | 3.2% | 6.5% | 29.2% | |
| Playmates Holdings Ltd ($635) | 11.5% | 4.5% | 2.0% | 15.4% | |
| Dream International Ltd ($1126) | 2.9% | 3.8% | 11.2% | 7.3% | |
| Kin Yat Holdings Ltd ($638) | 9.8% | 4.6% | 7.5% | 4.8% | 2.1% |
| Leyou Technologies Holdings Ltd ($1089) | 15.8% | 3.8% | 2.6% | 4.5% | |
| |
|---|
| Median (9 companies) | 3.5% | 3.7% | 2.8% | 4.5% | 1.5% |
|---|
| Matrix Holdings Ltd ($1005) | 4.7% | 3.2% | 2.8% | 1.7% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Playmates Toys Ltd ($869) | 30.7% | 121.1% | 73.0% | 36.6% | |
| Dream International Ltd ($1126) | 19.3% | 19.4% | 13.3% | 19.4% | |
| Kader Holdings Co Ltd ($180) | -5.7% | -3.9% | 0.6% | 7.9% | |
| Playmates Holdings Ltd ($635) | 2.4% | 12.6% | 12.0% | 7.9% | |
| Kin Yat Holdings Ltd ($638) | -0.7% | 4.5% | 4.9% | 6.2% | 3.4% |
| |
|---|
| Median (9 companies) | 2.4% | 4.5% | 4.9% | 6.2% | -0.0% |
|---|
| Matrix Holdings Ltd ($1005) | 5.9% | 13.1% | 18.6% | 21.2% | 13.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Quali-Smart Holdings Ltd ($1348) | 0.6x | -0.7x | 0.9x | 4.5x | 1.3x |
| Kader Holdings Co Ltd ($180) | | | 9.6x | 1.5x | |
| Leyou Technologies Holdings Ltd ($1089) | 1.1x | 4.4x | 3.8x | 1.2x | |
| Kin Yat Holdings Ltd ($638) | 1.6x | 0.3x | 0.4x | -0.0x | -0.1x |
| Dream International Ltd ($1126) | -1.5x | -1.5x | -1.3x | -1.1x | |
| |
|---|
| Median (7 companies) | 0.6x | -0.5x | 0.4x | -0.0x | 0.6x |
|---|
| Matrix Holdings Ltd ($1005) | 0.6x | 0.0x | -0.2x | -0.6x | -0.8x |
