Sa Sa International Holdings Ltd EBITDA dropped on 10.9% in 2015 while Revenue increased on 2.7%
25/06/2015 • About Sa Sa International Holdings Ltd (
$178) • By InTwits
Sa Sa International Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sa Sa International 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 4.0%.
- CAPEX is quite volatile: 544 in 2015, 1,306 in 2014, 894 in 2013, 877 in 2012, 1,413 in 2011
- The company has highly profitable business model: ROIC is at 39.8%
- It operates with high leverage: Net Debt/EBITDA is -0.5x while industry average is -0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sa Sa International Holdings Ltd ($178) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,901 | 6,405 | 7,670 | 8,756 | 8,993 | 2.7% |
| Gross Profit | 2,212 | 2,897 | 3,558 | 4,073 | 4,039 | -0.8% |
| SG&A | 1,645 | 1,991 | 2,460 | 2,881 | 3,004 | 4.3% |
| EBITDA | 677 | 945 | 1,156 | 1,294 | 1,154 | -10.9% |
| Net Income | 509 | 690 | 826 | 935 | 839 | -10.3% |
Balance Sheet
|
|---|
| Cash | 524 | 563 | 543 | 419 | 520 | 24.1% |
| Short Term Debt | 0 | 0 | 0 | 80 | 0 | -100.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 137 | 247 | 192 | 268 | 150 | -44.0% |
Ratios
|
|---|
| Revenue growth | 19.2% | 30.7% | 19.7% | 14.2% | 2.7% | |
| EBITDA growth | 28.9% | 39.6% | 22.3% | 11.9% | -10.9% | |
| Gross Margin | 45.1% | 45.2% | 46.4% | 46.5% | 44.9% | -1.6% |
| EBITDA Margin | 13.8% | 14.8% | 15.1% | 14.8% | 12.8% | -2.0% |
| Net Income Margin | 10.4% | 10.8% | 10.8% | 10.7% | 9.3% | -1.4% |
| SG&A, % of revenue | 33.6% | 31.1% | 32.1% | 32.9% | 33.4% | 0.5% |
| CAPEX, % of revenue | 2.8% | 3.9% | 2.5% | 3.1% | 1.7% | -1.4% |
| ROIC | 45.7% | 53.5% | 52.7% | 49.0% | 39.8% | -9.2% |
| ROE | 40.1% | 46.2% | 45.8% | 43.5% | 35.0% | -8.5% |
| Net Debt/EBITDA | -0.8x | -0.6x | -0.5x | -0.3x | -0.5x | -0.2x |
Revenue and profitability
Sa Sa International Holdings Ltd's Revenue increased on 2.7% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 2.0 pp from 14.8% to 12.8% in FY2015.
Gross Margin decreased slightly on 1.6 pp from 46.5% to 44.9% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign decreased slightly on 1.4 pp from 10.7% to 9.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Sa Sa International Holdings Ltd's CAPEX/Revenue was 1.7% in FY2015. Sa Sa International Holdings Ltd's CAPEX/Revenue decreased on 2.2 pp from 3.9% in FY2012 to 1.7% in FY2015. For the last three years the average CAPEX/Revenue was 2.4%.
Return on investment
The company operates at high and attractive ROIC (39.77%) and ROE (34.95%). ROIC decreased on 9.2 pp from 49.0% to 39.8% in FY2015. ROE decreased on 8.5 pp from 43.5% to 35.0% in FY2015.
Leverage (Debt)
The company paid down all the debt in FY2015. Cash jumped on 24.1% in FY2015.
Appendix 1: Peers in Retail
Below we provide Sa Sa 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) | | 47.2% | 12.6% | 43.3% | -17.1% |
| NewOcean Energy Holdings Ltd ($342) | 19.3% | 23.1% | 15.9% | 36.0% | |
| |
|---|
| Median (108 companies) | 21.8% | 9.9% | 5.7% | 2.7% | 0.3% |
|---|
| Sa Sa International Holdings Ltd ($178) | | 30.7% | 19.7% | 14.2% | 2.7% |
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% | 45.4% |
|---|
| Sa Sa International Holdings Ltd ($178) | 45.1% | 45.2% | 46.4% | 46.5% | 44.9% |
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% | 8.7% |
|---|
| Sa Sa International Holdings Ltd ($178) | 13.8% | 14.8% | 15.1% | 14.8% | 12.8% |
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% | 10.6% |
| |
|---|
| Median (108 companies) | 3.9% | 4.1% | 3.6% | 3.5% | 2.5% |
|---|
| Sa Sa International Holdings Ltd ($178) | 2.8% | 3.9% | 2.5% | 3.1% | 1.7% |
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% | |
| 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% | |
| Bonjour Holdings Ltd ($653) | 83.7% | 69.1% | 65.5% | 30.9% | |
| |
|---|
| Median (108 companies) | 16.6% | 11.8% | 8.1% | 8.2% | 10.7% |
|---|
| Sa Sa International Holdings Ltd ($178) | 45.7% | 53.5% | 52.7% | 49.0% | 39.8% |
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 | -0.3x | -0.7x |
|---|
| Sa Sa International Holdings Ltd ($178) | -0.8x | -0.6x | -0.5x | -0.3x | -0.5x |
