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Intime Retail Group Co Ltd reports 5.0% EBITDA growth and almost no change in EBITDA Margin of 36.1%

22/03/2017 • About Intime Retail Group Co Ltd ($1833) • By InTwits

Intime Retail Group Co 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 low profitability: ROIC is at 8.4%
  • It operates with high leverage: Net Debt/EBITDA is 0.9x while industry average is 0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Intime Retail Group Co Ltd ($1833) key annual financial indicators

mln. CNY201220132014201520162016/2015
P&L
Revenue3,9074,5105,2515,7555,9844.0%
EBITDA1,4362,5011,9002,0572,1595.0%
Net Income9731,5951,1211,3171,3200.2%
Balance Sheet
Cash2,1171,7392,1291,5811,7017.6%
Short Term Debt2,7962,7081,1212,5652,050-20.1%
Long Term Debt2,0093,0455,0553,4151,684-50.7%
Cash flow
Capex1,1062,4991,9411,014-100.0%
Ratios
Revenue growth25.3%15.4%16.4%9.6%4.0%
EBITDA growth28.1%74.2%-24.0%8.2%5.0%
EBITDA Margin36.7%55.4%36.2%35.7%36.1%0.4%
Net Income Margin24.9%35.4%21.4%22.9%22.1%-0.8%
CAPEX, % of revenue28.3%55.4%37.0%17.6%-17.6%
ROIC8.3%13.5%8.1%8.2%8.4%0.1%
ROE14.1%19.8%11.5%12.1%10.1%-2.0%
Net Debt/EBITDA1.9x1.6x2.1x2.1x0.9x-1.2x

Revenue and profitability


The company's Revenue increased on 4.0%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.0 pp from 43.4% to 46.3% in FY2016.

Net Income marign decreased slightly on 0.84 pp from 22.9% to 22.1% in FY2016.

Return on investment


The company operates at low ROIC (8.37%) and ROE (10.14%). ROIC showed almost no change in FY2016. ROE decreased slightly on 2.0 pp from 12.1% to 10.1% in FY2016.

Leverage (Debt)


Debt level is 0.9x Net Debt / EBITDA and 1.7x Debt / EBITDA. Net Debt / EBITDA dropped on 1.2x from 2.1x to 0.9x in FY2016. Debt dropped on 37.6% while cash increased on 7.6%.

Management team


Chen Xiaodong is a Intime Retail Group Co Ltd's CEO. Chen Xiaodong has spent 9 years at the company. The company's CFO Gary Wang has spent 4 years at the company.

Appendix 1: Peers in Retail


Below we provide Intime Retail Group Co Ltd benchmarking against other companies in Retail 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
China Nuclear Industry 23 International Corp Ltd ($611)85.6%-42.1%419.8%21.8%
Noble House China Holdings Ltd ($8246)-20.2%-24.8%117.2%129.1%
Vongroup Ltd ($318)23.7%-80.2%90.3%-7.2%
Nanjing Sinolife United Co Ltd ($3332)45.6%29.5%29.6%57.3%
Shanghai La Chapelle Fashion Co Ltd ($6116)72.8%23.0%48.3%12.5%
 
Median (117 companies)9.7%6.1%2.9%-1.0%-3.7%
Intime Retail Group Co Ltd ($1833)15.4%16.4%9.6%4.0%


Top companies by Gross margin, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Vongroup Ltd ($318)95.1%99.1%99.0%
Modern Beauty Salon Holdings Ltd ($919)97.4%95.9%96.8%96.7%96.8%
Moiselle International Holdings Ltd ($130)81.2%83.8%80.6%83.2%77.6%
Embry Holdings Ltd ($1388)81.2%80.4%82.3%81.6%
Nanjing Sinolife United Co Ltd ($3332)86.5%89.3%90.9%80.6%
 
Median (104 companies)36.7%36.3%35.3%33.6%43.8%


Top companies by EBITDA margin, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
China Energy Development Holdings Ltd ($228)-58.1%-72.3%-84.0%1,070.6%
Golden Eagle Retail Group Ltd ($3308)48.5%47.3%42.8%55.4%
Nanjing Sinolife United Co Ltd ($3332)51.6%56.9%54.4%44.8%
Lifestyle International Holdings Ltd ($1212)47.5%47.0%44.7%43.4%46.3%
China Dongxiang Group Co Ltd ($3818)6.0%5.6%58.3%41.4%61.6%
 
Median (117 companies)10.3%7.3%8.9%7.1%6.8%
Intime Retail Group Co Ltd ($1833)36.7%55.4%36.2%35.7%36.1%


Top companies by CAPEX/Revenue, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Culture Landmark Investment Ltd ($674)11.6%19.4%15.7%47.2%3.9%
Springland International Holdings Ltd ($1700)31.9%17.4%26.5%36.9%
Merry Garden Holdings Ltd ($1237)18.6%28.6%15.1%34.2%
China Energy Development Holdings Ltd ($228)1.6%0.2%0.0%27.4%
Golden Eagle Retail Group Ltd ($3308)28.5%9.4%26.7%25.4%
 
Median (117 companies)4.0%3.6%3.7%3.1%2.0%
Intime Retail Group Co Ltd ($1833)28.3%55.4%37.0%17.6%


Top companies by ROIC, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Modern Beauty Salon Holdings Ltd ($919)50.7%-4.6%81.3%71.8%13.3%
JC Group Holdings Ltd ($8326)215.6%92.8%66.3%81.7%
Starbucks Corp ($4337)36.4%-6.0%52.8%51.4%46.2%
Sa Sa International Holdings Ltd ($178)53.5%52.7%49.0%39.8%19.0%
Noble House China Holdings Ltd ($8246)17.7%-67.7%-113.8%35.6%68.8%
 
Median (117 companies)12.3%8.8%8.7%5.8%6.4%
Intime Retail Group Co Ltd ($1833)8.3%13.5%8.1%8.2%8.4%


Top companies by Net Debt / EBITDA

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Sparkle Roll Group Ltd ($970)0.6x4.0x9.3x23.5x8.5x
Trinity Ltd ($891)-0.2x0.2x0.6x18.2x
Parkson Retail Group Ltd ($3368)0.8x2.3x3.6x9.8x11.1x
Maoye International Holdings Ltd ($848)2.9x3.3x3.4x9.0x
Century Ginwa Retail Holdings Ltd ($162)2.0x2.5x4.8x7.3x
 
Median (91 companies)-0.5x-0.6x-0.2x-0.5x-0.4x
Intime Retail Group Co Ltd ($1833)1.9x1.6x2.1x2.1x0.9x