Cafe de Coral Holdings Ltd reports 28.5% CAPEX growth and 7.8% Revenue growth
23/06/2015 • About Cafe de Coral Holdings Ltd (
$341) • By InTwits
Cafe de Coral Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cafe de Coral Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.6%. At the same time it's in pair with industry average of 6.5%.
- CAPEX is quite volatile: 172 in 2015, 139 in 2014, 181 in 2013, 42.4 in 2012, 178 in 2011
- The company has highly profitable business model: ROIC is at 18.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cafe de Coral Holdings Ltd ($341) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,333 | 5,956 | 6,394 | 6,826 | 7,356 | 7.8% |
| Gross Profit | 804 | 814 | 908 | 984 | 1,023 | 3.9% |
| SG&A | 261 | 296 | 309 | 287 | 355 | 23.6% |
| EBITDA | 817 | 776 | 880 | 988 | 983 | -0.5% |
| Net Income | 514 | 477 | 540 | 581 | 587 | 1.0% |
Balance Sheet
|
|---|
| Cash | 993 | 854 | 773 | 1,004 | 1,057 | 5.3% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 310 | 574 | 491 | 306 | 393 | 28.5% |
Ratios
|
|---|
| Revenue growth | 9.2% | 11.7% | 7.3% | 6.8% | 7.8% | |
| EBITDA growth | 4.3% | -5.1% | 13.4% | 12.3% | -0.5% | |
| Gross Margin | 15.1% | 13.7% | 14.2% | 14.4% | 13.9% | -0.5% |
| EBITDA Margin | 15.3% | 13.0% | 13.8% | 14.5% | 13.4% | -1.1% |
| Net Income Margin | 9.6% | 8.0% | 8.4% | 8.5% | 8.0% | -0.5% |
| SG&A, % of revenue | 4.9% | 5.0% | 4.8% | 4.2% | 4.8% | 0.6% |
| CAPEX, % of revenue | 5.8% | 9.6% | 7.7% | 4.5% | 5.3% | 0.9% |
| ROIC | 19.5% | 16.4% | 18.0% | 19.8% | 18.6% | -1.2% |
| ROE | 17.4% | 15.0% | 15.8% | 16.0% | 15.9% | -0.1% |
| Net Debt/EBITDA | -1.2x | -1.1x | -0.9x | -1.0x | -1.1x | -0.1x |
Revenue and profitability
The company's Revenue increased on 7.8% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 10.5 pp from 45.2% to 55.7% in 2015.
Gross Margin decreased slightly on 0.51 pp from 14.4% to 13.9% in FY2015. SG&A as a % of Revenue increased slightly on 0.62 pp from 4.2% to 4.8% in FY2015.
Net Income marign decreased slightly on 0.54 pp from 8.5% to 8.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 5.3%. CAPEX/Revenue decreased on 4.3 pp from 9.6% in FY2012 to 5.3% in FY2015. For the last three years the average CAPEX/Revenue was 5.8%.
Return on investment
The company operates at good ROIC (18.59%) and ROE (15.86%). ROIC decreased slightly on 1.2 pp from 19.8% to 18.6% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
The company has no debt. Cash increased on 5.3% in FY2015.
Appendix 1: Peers in Retail
Below we provide Cafe de Coral 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) | 21.8% | 9.9% | 5.7% | 2.7% | -1.0% |
|---|
| Cafe de Coral Holdings Ltd ($341) | | 11.7% | 7.3% | 6.8% | 7.8% |
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) | 40.8% | 38.0% | 39.9% | 39.5% | 46.5% |
|---|
| Cafe de Coral Holdings Ltd ($341) | 15.1% | 13.7% | 14.2% | 14.4% | 13.9% |
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% | 4.5% |
|---|
| Cafe de Coral Holdings Ltd ($341) | 15.3% | 13.0% | 13.8% | 14.5% | 13.4% |
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) | 3.8% | 4.0% | 3.6% | 3.4% | 2.5% |
|---|
| Cafe de Coral Holdings Ltd ($341) | 5.8% | 9.6% | 7.7% | 4.5% | 5.3% |
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% | 5.3% |
|---|
| Cafe de Coral Holdings Ltd ($341) | 19.5% | 16.4% | 18.0% | 19.8% | 18.6% |
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 |
|---|
| Cafe de Coral Holdings Ltd ($341) | -1.2x | -1.1x | -0.9x | -1.0x | -1.1x |
