Bauhaus International Holdings Ltd reports 83.9% CAPEX growth and 11.5% Revenue growth
24/06/2015 • About Bauhaus International Holdings Ltd (
$483) • By InTwits
Bauhaus International Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bauhaus International Holdings Ltd is a growth stock: FY2015 revenue growth was 11.5%, 5 year revenue CAGR was 14.9% at FY2015 ROIC 20.3%
- Bauhaus International Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.5%. At the same time it's in pair with industry average of 6.5%.
- CAPEX is quite volatile: 105 in FY2015, 56.9 in FY2014, 33.8 in FY2013, 123 in FY2012, 87.7 in FY2011
- The company has highly profitable business model: ROIC is at 20.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bauhaus International Holdings Ltd ($483) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,012 | 1,160 | 1,294 | 1,427 | 1,592 | 11.5% |
| Gross Profit | 708 | 805 | 829 | 910 | 969 | 6.5% |
| SG&A | | | 723 | 757 | 821 | 8.5% |
| EBITDA | 180 | 148 | 143 | 188 | 190 | 0.7% |
| Net Income | 116 | 76 | 99 | 125 | 129 | 3.4% |
Balance Sheet
|
|---|
| Cash | 154 | 86 | 198 | 260 | 257 | -1.3% |
| Short Term Debt | 0 | 47 | 42 | 0 | 20 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 88 | 123 | 34 | 57 | 105 | 83.9% |
Ratios
|
|---|
| Revenue growth | 27.5% | 14.6% | 11.5% | 10.3% | 11.5% | |
| EBITDA growth | 38.0% | -18.0% | -3.5% | 32.1% | 0.7% | |
| Gross Margin | 70.0% | 69.4% | 64.1% | 63.7% | 60.9% | -2.9% |
| EBITDA Margin | 17.8% | 12.7% | 11.0% | 13.2% | 11.9% | -1.3% |
| Net Income Margin | 11.4% | 6.5% | 7.7% | 8.8% | 8.1% | -0.6% |
| SG&A, % of revenue | | | 55.9% | 53.0% | 51.6% | -1.5% |
| CAPEX, % of revenue | 8.7% | 10.6% | 2.6% | 4.0% | 6.6% | 2.6% |
| ROIC | 32.5% | 20.5% | 17.1% | 23.2% | 20.3% | -2.9% |
| ROE | 25.1% | 15.0% | 17.8% | 19.4% | 17.7% | -1.7% |
| Net Debt/EBITDA | -0.9x | -0.3x | -1.1x | -1.4x | -1.3x | 0.1x |
Revenue and profitability
Bauhaus International Holdings Ltd's Revenue surged on 11.5% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.63 pp from 2.1% to 2.7% in FY2015.
Gross Margin decreased on 2.9 pp from 63.7% to 60.9% in FY2015. SG&A as a % of Revenue decreased slightly on 1.5 pp from 53.0% to 51.6% in FY2015.
Net Income marign decreased slightly on 0.64 pp from 8.8% to 8.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 6.6% in FY2015. The company's CAPEX/Revenue decreased on 4.0 pp from 10.6% in FY2012 to 6.6% in FY2015. For the last three years the average CAPEX/Revenue was 4.4%.Bauhaus International Holdings Ltd invested a big chunk of EBITDA (55.2%) to CAPEX to secure its growth.
Return on investment
The company operates at high and attractive ROIC (20.28%) while ROE is a bit lower (17.72%). ROIC decreased on 2.9 pp from 23.2% to 20.3% in FY2015. ROE decreased slightly on 1.7 pp from 19.4% to 17.7% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.3x and Debt / EBITDA is 0.1x. Net Debt / EBITDA jumped on 0.1x from -1.4x to -1.3x in FY2015. Debt surged while cash decreased slightly on 1.3% in FY2015.
Appendix 1: Peers in Retail
Below we provide Bauhaus International 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) | 21.5% | 9.9% | 5.7% | 2.7% | -0.7% |
|---|
| Bauhaus International Holdings Ltd ($483) | | 14.6% | 11.5% | 10.3% | 11.5% |
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% | 44.3% |
|---|
| Bauhaus International Holdings Ltd ($483) | 70.0% | 69.4% | 64.1% | 63.7% | 60.9% |
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% | 5.9% |
|---|
| Bauhaus International Holdings Ltd ($483) | 17.8% | 12.7% | 11.0% | 13.2% | 11.9% |
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% |
|---|
| Bauhaus International Holdings Ltd ($483) | 8.7% | 10.6% | 2.6% | 4.0% | 6.6% |
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% | 6.2% |
|---|
| Bauhaus International Holdings Ltd ($483) | 32.5% | 20.5% | 17.1% | 23.2% | 20.3% |
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 |
|---|
| Bauhaus International Holdings Ltd ($483) | -0.9x | -0.3x | -1.1x | -1.4x | -1.3x |
