Odella Leather Holdings Ltd revenue returned to growth in FY2020: increased 60.4% vs. 48.6% decline a year earliner
30/09/2020 • About Odella Leather Holdings Ltd (
$8093) • By InTwits
Odella Leather Holdings Ltd reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Odella Leather Holdings Ltd is a fast growth stock: FY2020 revenue growth was 60.4%, 5 year revenue CAGR was 39.6% at FY2020 ROIC -0.27%
- The company has unprofitable business model: ROIC is -0.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 60.4%.
Gross Margin dropped on 13.0 pp from 15.0% to 2.0% in FY2020. During the last 5 years Gross Margin topped in FY2018 at 48.8% and was declining since that time. SG&A as a % of Revenue decreased on 7.0 pp from 15.9% to 8.9% in FY2020.
Net Income margin surged on 12.2 pp from -13.5% to -1.3% in FY2020.
Investments (CAPEX, working capital and M&A)
Accounts receivable as a % of Revenue dropped on 33.0 pp from 41.9% to 8.9% in FY2020. Accounts payable as a % of Revenue decreased on 9.0 pp from 16.7% to 7.7% in FY2020.
Return on investment
The company operates at negative ROIC (-0.3%) and ROE (-2.8%). ROIC jumped on 14.3 pp from -14.6% to -0.27% in FY2020. ROE surged on 12.8 pp from -15.5% to -2.8% in FY2020.
Leverage (Debt)
Debt jumped on 169% while cash jumped on 155%.
Odella Leather Holdings Ltd has no short term refinancing risk: cash is higher than short term debt (138.5%).
Average interest expence charged on company's debt was 10.7% in FY2020.
Management team
The company has 60 employees. The number of employees dropped on 45.0%. Average revenue per employee in FY2020 was 7,238,567 HKD and it surged on 191%.
Financial and operational results
Odella Leather Holdings Ltd ($8093) key annual financial indicators| mln. HKD | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 55.8 | 62.2 | 526.3 | 270.7 | 434.3 | 60.4% |
| Gross Profit | 20.7 | 24.0 | 256.9 | 40.6 | 8.5 | -79.0% |
| SG&A | 16.8 | 26.0 | 40.9 | 43.2 | 38.9 | -10.0% |
| EBITDA | 4.0 | -0.7 | 212.7 | -35.1 | | |
| EBIT | | -0.9 | 211.4 | -36.8 | | |
| Interest expence | | | | 0.6 | 4.2 | 616.0% |
| Tax | | 2.0 | 7.7 | 1.8 | | |
| Net Income | 3.8 | -2.8 | 204.6 | -36.6 | -5.7 | |
Balance Sheet
|
|---|
| Cash | 49.0 | 41.6 | 113.4 | 19.6 | 49.9 | 155.0% |
| Accounts Receivable | | 8.6 | 226.4 | 113.5 | 38.6 | -66.0% |
| Inventory | | 7.6 | 8.8 | | | |
| Accounts Payable | | 2.3 | 79.7 | 38.4 | 32.7 | -14.9% |
| Short Term Debt | 0.0 | 0.0 | 0.2 | 14.5 | 36.0 | 148.0% |
| Long Term Debt | 0.0 | 0.0 | 0.3 | 0.2 | 3.6 | 1,994.7% |
Cash flow
|
|---|
| Capex | 0.3 | 0.8 | 4.6 | 1.1 | | |
Ratios
|
|---|
| Revenue growth | -31.8% | 11.4% | 746.4% | -48.6% | 60.4% | |
| EBITDA growth | 6.7% | -116.8% | -31,511.1% | -116.5% | | |
|
|---|
| Gross Margin | 37.1% | 38.7% | 48.8% | 15.0% | 2.0% | -13.0% |
| EBITDA Margin | 7.2% | -1.1% | 40.4% | -13.0% | |
| EBIT Margin | | -1.5% | 40.2% | -13.6% | |
| SG&A, % of revenue | 30.1% | 41.8% | 7.8% | 15.9% | 8.9% | -7.0% |
| Net Income Margin | 6.9% | -4.4% | 38.9% | -13.5% | -1.3% | 12.2% |
| CAPEX, % of revenue | 0.6% | 1.3% | 0.9% | 0.4% | | |
|
|---|
| ROIC | 6.2% | -1.5% | 127.8% | -14.6% | -0.3% | 14.3% |
| ROE | 6.4% | -4.5% | 127.6% | -15.5% | -2.8% | 12.8% |
| Net Debt/EBITDA | -12.1x | | -0.5x | | |
| Interest expence / Average debt | | | | 7.8% | 10.7% | 2.9% |
People
|
|---|
| Employees | | 191 | 188 | 109 | 60 | -45.0% |
| Revenue/Employee, th. HKD | | 326 | 2,800 | 2,484 | 7,239 | 191.4% |
Peers in Apparel
Below we provide Odella Leather 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Top Form International Ltd ($333) | - | -4.5% | 13.8% | -4.3% | 0.9% |
| Sitoy Group Holdings Ltd ($1023) | - | -32.4% | 20.3% | 5.9% | -25.9% |
| |
|---|
| Median (2 companies) | -3.9% | -18.5% | 17.0% | 0.8% | -12.5% |
|---|
| Odella Leather Holdings Ltd ($8093) | - | 11.4% | 746.4% | -48.6% | 60.4% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Sitoy Group Holdings Ltd ($1023) | 27.0% | 27.0% | 27.6% | 28.5% | 24.3% |
| Top Form International Ltd ($333) | 17.9% | 18.2% | 17.9% | 16.2% | 14.6% |
| |
|---|
| Median (2 companies) | 19.1% | 22.6% | 22.8% | 22.3% | 19.4% |
|---|
| Odella Leather Holdings Ltd ($8093) | 37.1% | 38.7% | 48.8% | 15.0% | 2.0% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Sitoy Group Holdings Ltd ($1023) | 14.6% | 14.1% | 14.1% | 8.9% | -0.1% |
| Top Form International Ltd ($333) | 4.8% | 2.1% | 2.7% | -3.4% | -2.2% |
| |
|---|
| Median (2 companies) | 4.0% | 8.1% | 8.4% | 2.8% | -1.2% |
|---|
| Odella Leather Holdings Ltd ($8093) | 7.2% | -1.1% | 40.4% | -13.0% | - |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Top Form International Ltd ($333) | 1.1% | 3.0% | 2.5% | 3.4% | 5.5% |
| Sitoy Group Holdings Ltd ($1023) | 0.9% | 1.2% | 1.0% | 0.6% | 1.1% |
| |
|---|
| Median (2 companies) | 2.1% | 2.1% | 1.7% | 2.0% | 3.3% |
|---|
| Odella Leather Holdings Ltd ($8093) | 0.6% | 1.3% | 0.9% | 0.4% | - |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Sitoy Group Holdings Ltd ($1023) | 16.4% | 10.5% | 13.1% | 7.6% | -4.6% |
| Top Form International Ltd ($333) | 5.8% | 0.6% | 1.9% | -12.3% | -12.3% |
| |
|---|
| Median (2 companies) | 1.4% | 5.5% | 7.5% | -2.3% | -8.5% |
|---|
| Odella Leather Holdings Ltd ($8093) | 6.2% | -1.5% | 127.8% | -14.6% | -0.3% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Sitoy Group Holdings Ltd ($1023) | -2.0x | -2.2x | -1.4x | -1.1x | - |
| |
|---|
| Median (1 company) | -0.6x | -3.9x | -2.2x | -1.1x | - |
|---|
