Dickson Concepts International Ltd EBITDA dropped on 71.5% in 2015 and Revenue decreased slightly on 0.72%
28/05/2015 • About Dickson Concepts International Ltd (
$113) • By InTwits
Dickson Concepts International Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dickson Concepts International Ltd doesn't have a profitable business model yet: FY2015 ROIC is -1.5%
- EBITDA Margin is quite volatile: 2.0% in FY2015, 6.9% in FY2014, 9.6% in FY2013, 8.8% in FY2012, 13.1% in FY2011
- Dickson Concepts International Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's a lot of higher than industry average of 12.7%.
- CAPEX is quite volatile: 127 in FY2015, 98.9 in FY2014, 145 in FY2013, 299 in FY2012, 130 in FY2011
- The company has unprofitable business model: ROIC is at -1.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dickson Concepts International Ltd ($113) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,404 | 3,985 | 4,126 | 4,353 | 4,322 | -0.7% |
| Gross Profit | 1,816 | 2,153 | 2,232 | 2,227 | 2,096 | -5.8% |
| SG&A | | 1,872 | 1,966 | 1,966 | 2,098 | 6.7% |
| EBITDA | 446 | 351 | 397 | 302 | 86 | -71.5% |
| Net Income | 347 | 187 | 229 | 155 | -110 | -171.2% |
Balance Sheet
|
|---|
| Cash | 1,093 | 938 | 1,120 | 1,107 | 1,387 | 25.3% |
| Short Term Debt | 64 | 103 | 119 | 113 | 87 | -22.4% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 130 | 299 | 145 | 99 | 127 | 28.2% |
Ratios
|
|---|
| Revenue growth | -6.3% | 17.1% | 3.5% | 5.5% | -0.7% | |
| EBITDA growth | 34.6% | -21.4% | 13.3% | -24.0% | -71.5% | |
| Gross Margin | 53.4% | 54.0% | 54.1% | 51.1% | 48.5% | -2.6% |
| EBITDA Margin | 13.1% | 8.8% | 9.6% | 6.9% | 2.0% | -4.9% |
| Net Income Margin | 10.2% | 4.7% | 5.6% | 3.6% | -2.6% | -6.1% |
| SG&A, % of revenue | | 47.0% | 47.6% | 45.2% | 48.5% | 3.4% |
| CAPEX, % of revenue | 3.8% | 7.5% | 3.5% | 2.3% | 2.9% | 0.7% |
| ROIC | 15.7% | 9.1% | 9.1% | 5.5% | -1.5% | -7.0% |
| ROE | 15.9% | 8.0% | 9.5% | 6.2% | -4.5% | -10.6% |
| Net Debt/EBITDA | -2.3x | -2.4x | -2.5x | -3.3x | -15.1x | -11.8x |
Revenue and profitability
Dickson Concepts International Ltd's Revenue decreased slightly on 0.72% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.9 pp from 6.9% to 2.0% in FY2015.
Gross Margin decreased on 2.6 pp from 51.1% to 48.5% in FY2015. SG&A as a % of Revenue increased on 3.4 pp from 45.2% to 48.5% in FY2015.
Net Income marign decreased on 6.1 pp from 3.6% to -2.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 2.9%. CAPEX/Revenue decreased on 4.6 pp from 7.5% in FY2012 to 2.9% in FY2015. Average CAPEX/Revenue for the last three years was 2.9%.Battling declining revenue Dickson Concepts International Ltd made large investments to CAPEX (147% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-1.52%) and ROE (-4.47%). ROIC decreased on 7.0 pp from 5.5% to -1.5% in FY2015. ROE dropped on 10.6 pp from 6.2% to -4.5% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -15.1x and Debt / EBITDA is 1.0x. Net Debt / EBITDA dropped on 11.8x from -3.3x to -15.1x in FY2015. Debt dropped on 22.4% in FY2015 while cash jumped on 25.3% in FY2015.
Appendix 1: Peers in Retail
Below we provide Dickson Concepts International 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) | 20.8% | 9.9% | 5.9% | 2.7% | 4.9% |
|---|
| Dickson Concepts International Ltd ($113) | | 17.1% | 3.5% | 5.5% | -0.7% |
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% | 61.3% |
|---|
| Dickson Concepts International Ltd ($113) | 53.4% | 54.0% | 54.1% | 51.1% | 48.5% |
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) | 13.4% | 10.3% | 7.1% | 8.8% | 14.6% |
|---|
| Dickson Concepts International Ltd ($113) | 13.1% | 8.8% | 9.6% | 6.9% | 2.0% |
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% | 4.0% | 3.6% | 3.5% | 2.9% |
|---|
| Dickson Concepts International Ltd ($113) | 3.8% | 7.5% | 3.5% | 2.3% | 2.9% |
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) | 17.2% | 11.9% | 8.1% | 8.3% | 15.9% |
|---|
| Dickson Concepts International Ltd ($113) | 15.7% | 9.1% | 9.1% | 5.5% | -1.5% |
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 | -0.7x |
|---|
| Dickson Concepts International Ltd ($113) | -2.3x | -2.4x | -2.5x | -3.3x | -15.1x |
