Le Saunda Holdings Ltd reports 17.4% Net Income decline while 1.9 pp EBITDA Margin growth from 15.6% to 17.5%
26/05/2015 • About Le Saunda Holdings Ltd (
$738) • By InTwits
Le Saunda Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Le Saunda Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's a lot of higher than industry average of 19.8%.
- CAPEX is quite volatile: 384 in 2015, 217 in 2014, 214 in 2013, 339 in 2012, 135 in 2011
- The company has highly profitable business model: ROIC is at 20.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Le Saunda Holdings Ltd ($738) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,320 | 1,545 | 1,762 | 2,039 | 2,108 | 3.4% |
| Gross Profit | 830 | 995 | 1,141 | 1,368 | 1,417 | 3.5% |
| SG&A | | | 190 | 238 | 256 | 7.4% |
| EBITDA | 244 | 263 | 259 | 318 | 369 | 16.2% |
| Net Income | 169 | 194 | 179 | 287 | 237 | -17.4% |
Balance Sheet
|
|---|
| Cash | 345 | 421 | 427 | 621 | 537 | -13.6% |
| Short Term Debt | 4 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 49 | 49 | 49 | 49 | 43 | -10.9% |
Ratios
|
|---|
| Revenue growth | 32.0% | 17.1% | 14.1% | 15.7% | 3.4% | |
| EBITDA growth | 41.8% | 7.9% | -1.6% | 22.9% | 16.2% | |
| Gross Margin | 62.9% | 64.4% | 64.7% | 67.1% | 67.2% | 0.1% |
| EBITDA Margin | 18.5% | 17.0% | 14.7% | 15.6% | 17.5% | 1.9% |
| Net Income Margin | 12.8% | 12.6% | 10.2% | 14.1% | 11.2% | -2.8% |
| SG&A, % of revenue | | | 10.8% | 11.7% | 12.1% | 0.5% |
| CAPEX, % of revenue | 3.7% | 3.2% | 2.8% | 2.4% | 2.1% | -0.3% |
| ROIC | 20.5% | 19.1% | 16.5% | 18.5% | 20.4% | 2.0% |
| ROE | 17.2% | 17.4% | 14.5% | 20.6% | 15.6% | -5.0% |
| Net Debt/EBITDA | -1.4x | -1.6x | -1.6x | -2.0x | -1.5x | 0.5x |
Revenue and profitability
The company's Revenue increased on 3.4% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.9 pp from 15.6% to 17.5% in FY2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign decreased on 2.8 pp from 14.1% to 11.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Le Saunda Holdings Ltd had CAPEX/Revenue of 2.1%. The company showed small CAPEX/Revenue decline of 1.1 pp from 3.2% in FY2012 to 2.1% in FY2015. Average CAPEX/Revenue for the last three years was 2.4%.
Return on investment
The company operates at high and attractive ROIC (20.43%) while ROE is a bit lower (15.57%). ROIC increased slightly on 2.0 pp from 18.5% to 20.4% in FY2015. ROE decreased on 5.0 pp from 20.6% to 15.6% in FY2015.
Leverage (Debt)
The company has no debt. Cash dropped on 13.6% in FY2015.
Appendix 1: Peers in Retail
Below we provide Le Saunda Holdings 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Household Holdings Ltd ($692) | -87.0% | -32.8% | 5,357.9% | 76.2% | |
| Ming Fung Jewellery Group Ltd ($860) | 21.9% | 3.3% | -14.9% | 54.3% | |
| Merry Garden Holdings Ltd ($1237) | 53.9% | 37.1% | 12.8% | 47.6% | |
| Luk Fook Holdings International Ltd ($590) | 50.2% | 47.2% | 12.6% | 43.3% | |
| NewOcean Energy Holdings Ltd ($342) | 19.3% | 23.1% | 15.9% | 36.0% | |
| |
|---|
| Median (108 companies) | 20.7% | 9.9% | 5.7% | 2.7% | 7.9% |
|---|
| Le Saunda Holdings Ltd ($738) | | 17.1% | 14.1% | 15.7% | 3.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Culture Landmark Investment Ltd ($674) | 77.5% | 91.1% | 99.4% | 99.5% | |
| Modern Beauty Salon Holdings Ltd ($919) | 97.3% | 97.4% | 95.9% | 96.8% | |
| Vongroup Ltd ($318) | | | | 95.1% | |
| Nanjing Sinolife United Co Ltd ($3332) | 80.6% | 86.5% | 89.3% | 90.9% | |
| Embry Holdings Ltd ($1388) | 82.3% | 81.2% | 80.4% | 82.3% | |
| |
|---|
| Median (97 companies) | 40.0% | 37.7% | 38.0% | 35.6% | 48.9% |
|---|
| Le Saunda Holdings Ltd ($738) | 62.9% | 64.4% | 64.7% | 67.1% | 67.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Maoye International Holdings Ltd ($848) | 45.5% | 47.4% | 46.3% | 73.2% | |
| China Dongxiang Group Co Ltd ($3818) | 5.6% | 6.0% | 5.6% | 58.3% | |
| Nanjing Sinolife United Co Ltd ($3332) | 47.8% | 51.6% | 56.9% | 54.4% | |
| Lifestyle International Holdings Ltd ($1212) | 49.6% | 47.5% | 47.0% | 44.7% | |
| Golden Eagle Retail Group Ltd ($3308) | 52.1% | 48.5% | 47.3% | 42.8% | |
| |
|---|
| Median (108 companies) | 13.2% | 9.7% | 7.1% | 8.3% | 15.9% |
|---|
| Le Saunda Holdings Ltd ($738) | 18.5% | 17.0% | 14.7% | 15.6% | 17.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Intime Retail Group Co Ltd ($1833) | 58.4% | 28.3% | 55.4% | 37.0% | |
| Future Bright Holdings Ltd ($703) | 6.2% | 2.6% | 3.7% | 36.8% | |
| Sage International Group Ltd ($8082) | 20.4% | 236.6% | 28.2% | 35.4% | |
| Maoye International Holdings Ltd ($848) | 30.9% | 32.8% | 24.1% | 31.5% | |
| Tsui Wah Holdings Ltd ($1314) | 5.2% | 8.3% | 9.3% | 30.5% | |
| |
|---|
| Median (108 companies) | 3.9% | 4.1% | 3.6% | 3.5% | 7.0% |
|---|
| Le Saunda Holdings Ltd ($738) | 3.7% | 3.2% | 2.8% | 2.4% | 2.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Modern Beauty Salon Holdings Ltd ($919) | 48.1% | 50.7% | -4.6% | 81.3% | |
| Starbucks Corp ($4337) | 36.4% | 36.4% | -6.0% | 52.8% | |
| Sa Sa International Holdings Ltd ($178) | 45.7% | 53.5% | 52.7% | 49.0% | |
| Coach Inc ($6388) | 82.0% | 82.3% | 68.7% | 45.0% | |
| Nanjing Sinolife United Co Ltd ($3332) | 57.4% | 67.3% | 68.1% | 32.2% | |
| |
|---|
| Median (108 companies) | 16.6% | 11.8% | 8.1% | 8.2% | 16.4% |
|---|
| Le Saunda Holdings Ltd ($738) | 20.5% | 19.1% | 16.5% | 18.5% | 20.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sparkle Roll Group Ltd ($970) | -0.8x | 0.6x | 4.0x | 9.3x | |
| China Yongda Automobiles Services Holdings Ltd ($3669) | 3.3x | 3.4x | 4.7x | 5.5x | |
| Zhongsheng Group Holdings Ltd ($881) | 2.2x | 4.6x | 4.5x | 5.3x | |
| NewOcean Energy Holdings Ltd ($342) | 35.2x | 6.2x | 6.1x | 5.3x | |
| Century Ginwa Retail Holdings Ltd ($162) | 6.5x | 2.0x | 2.5x | 4.8x | |
| |
|---|
| Median (84 companies) | -0.8x | -0.6x | -0.9x | -0.2x | -0.6x |
|---|
| Le Saunda Holdings Ltd ($738) | -1.4x | -1.6x | -1.6x | -2.0x | -1.5x |
