Yue Yuen Industrial Holdings Ltd Net Income jumped on 37.0% in 2016 and Revenue increased slightly on 0.54%
24/03/2017 • About Yue Yuen Industrial Holdings Ltd (
$551) • By InTwits
Yue Yuen Industrial Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company has business model with average profitability: ROIC is at 10.3%
- It operates with high leverage: Net Debt/EBITDA is -0.1x while industry average is -4.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Yue Yuen Industrial Holdings Ltd ($551) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 7,281 | 7,582 | 8,013 | 8,435 | 8,481 | 0.5% |
| Gross Profit | 1,660 | 1,647 | 1,774 | 1,972 | 2,133 | 8.1% |
| SG&A | 1,172 | 1,187 | 1,282 | 1,460 | 1,446 | -1.0% |
| EBITDA | | 652 | 548 | 661 | 869 | 31.5% |
| Net Income | 468 | 435 | 331 | 390 | 535 | 37.0% |
Balance Sheet
|
|---|
| Cash | 809 | 928 | 969 | 1,047 | 1,041 | -0.5% |
| Short Term Debt | 734 | 540 | 229 | 448 | 240 | -46.5% |
| Long Term Debt | 365 | 400 | 720 | 370 | 720 | 94.6% |
Cash flow
|
|---|
| Capex | | 180 | 315 | 409 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 3.3% | 4.1% | 5.7% | 5.3% | 0.5% | |
| EBITDA growth | | | -15.8% | 20.4% | 31.5% | |
| Gross Margin | 22.8% | 21.7% | 22.1% | 23.4% | 25.1% | 1.8% |
| EBITDA Margin | 0.0% | 8.6% | 6.8% | 7.8% | 10.2% | 2.4% |
| Net Income Margin | 6.4% | 5.7% | 4.1% | 4.6% | 6.3% | 1.7% |
| SG&A, % of revenue | 16.1% | 15.7% | 16.0% | 17.3% | 17.0% | -0.3% |
| CAPEX, % of revenue | | 2.4% | 3.9% | 4.8% | | -4.8% |
| ROIC | 7.7% | 7.0% | 5.3% | 7.1% | 10.3% | 3.2% |
| ROE | 12.2% | 10.4% | 7.6% | 8.8% | 11.6% | 2.8% |
| Net Debt/EBITDA | | 0.0x | -0.0x | -0.3x | -0.1x | 0.3x |
Revenue and profitability
The company's Revenue increased slightly on 0.54%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.4 pp from 21.5% to 19.1% in FY2016.
Gross Margin increased slightly on 1.8 pp from 23.4% to 25.1% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased slightly on 1.7 pp from 4.6% to 6.3% in FY2016.
Return on investment
The company operates at low ROIC (10.28%) and ROE (11.57%). ROIC increased on 3.2 pp from 7.1% to 10.3% in FY2016. ROE increased on 2.8 pp from 8.8% to 11.6% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.1x and Debt / EBITDA is 1.1x. Net Debt / EBITDA jumped on 0.3x from -0.3x to -0.1x in FY2016. Debt surged on 17.3% while cash showed almost no change in FY2016.
Appendix 1: Peers in Apparel
Below we provide Yue Yuen Industrial 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) | | 46.8% | 20.4% | 33.1% | 3.6% |
| 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) | 12.3% | 6.3% | 5.4% | -2.6% | -6.3% |
|---|
| Yue Yuen Industrial Holdings Ltd ($551) | | 4.1% | 5.7% | 5.3% | 0.5% |
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% | 18.3% |
|---|
| Yue Yuen Industrial Holdings Ltd ($551) | 22.8% | 21.7% | 22.1% | 23.4% | 25.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Lilang Ltd ($1234) | 26.3% | 26.9% | 29.4% | 30.6% | 28.6% |
| 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) | 10.5% | 10.9% | 7.5% | 6.6% | 0.3% |
|---|
| Yue Yuen Industrial Holdings Ltd ($551) | | 8.6% | 6.8% | 7.8% | 10.2% |
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) | 2.2% | 3.0% | 2.3% | 2.3% | 2.1% |
|---|
| Yue Yuen Industrial Holdings Ltd ($551) | | 2.4% | 3.9% | 4.8% | |
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) | 12.4% | 7.3% | 4.4% | 4.9% | -0.4% |
|---|
| Yue Yuen Industrial Holdings Ltd ($551) | 7.7% | 7.0% | 5.3% | 7.1% | 10.3% |
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 (38 companies) | -0.3x | -0.7x | -0.4x | -1.2x | -1.6x |
|---|
| Yue Yuen Industrial Holdings Ltd ($551) | | 0.0x | -0.0x | -0.3x | -0.1x |
