Stelux Holdings International Ltd reports 9.2% EBITDA decline while 1.3% Revenue growth
25/06/2015 • About Stelux Holdings International Ltd (
$84) • By InTwits
Stelux Holdings International Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Stelux Holdings International Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's in pair with industry average of 8.9%.
- CAPEX is quite volatile: 277 in 2015, 337 in 2014, 123 in 2013, 228 in 2012, 94.2 in 2011
- The company has business model with average profitability: ROIC is at 10.0%
- It operates with high leverage: Net Debt/EBITDA is 1.5x 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.
Stelux Holdings International Ltd ($84) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,706 | 3,331 | 3,647 | 3,892 | 3,941 | 1.3% |
| Gross Profit | 1,659 | 2,055 | 2,285 | 2,379 | 2,416 | 1.6% |
| SG&A | | | 341 | 384 | 414 | 7.7% |
| EBITDA | 257 | 396 | 408 | 393 | 357 | -9.2% |
| Net Income | 131 | 250 | 233 | 172 | 92 | -46.6% |
Balance Sheet
|
|---|
| Cash | 226 | 221 | 388 | 458 | 460 | 0.5% |
| Short Term Debt | 370 | 423 | 351 | 464 | 580 | 24.9% |
| Long Term Debt | 68 | 86 | 460 | 402 | 433 | 7.7% |
Cash flow
|
|---|
| Capex | 116 | 152 | 162 | 118 | 96 | -19.1% |
Ratios
|
|---|
| Revenue growth | 14.2% | 23.1% | 9.5% | 6.7% | 1.3% | |
| EBITDA growth | 61.8% | 54.4% | 2.8% | -3.5% | -9.2% | |
| Gross Margin | 61.3% | 61.7% | 62.7% | 61.1% | 61.3% | 0.2% |
| EBITDA Margin | 9.5% | 11.9% | 11.2% | 10.1% | 9.1% | -1.0% |
| Net Income Margin | 4.8% | 7.5% | 6.4% | 4.4% | 2.3% | -2.1% |
| SG&A, % of revenue | | | 9.4% | 9.9% | 10.5% | 0.6% |
| CAPEX, % of revenue | 4.3% | 4.6% | 4.4% | 3.0% | 2.4% | -0.6% |
| ROIC | 12.0% | 19.2% | 14.7% | 11.8% | 10.0% | -1.8% |
| ROE | 14.3% | 23.2% | 18.1% | 12.0% | 6.3% | -5.7% |
| Net Debt/EBITDA | 0.8x | 0.7x | 1.0x | 1.0x | 1.5x | 0.5x |
Revenue and profitability
Stelux Holdings International Ltd's Revenue increased slightly on 1.3% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.2 pp from 11.2% to 12.4% in 2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue increased slightly on 0.63 pp from 9.9% to 10.5% in FY2015.
Net Income marign decreased on 2.1 pp from 4.4% to 2.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 2.4%. The company showed decline in CAPEX/Revenue of 2.1 pp from 4.6% in FY2012 to 2.4% in FY2015. Average CAPEX/Revenue for the last three years was 3.3%.
Return on investment
The company operates at low ROIC (10.02%) and ROE (6.32%). ROIC decreased slightly on 1.8 pp from 11.8% to 10.0% in FY2015. ROE decreased on 5.7 pp from 12.0% to 6.3% in FY2015.
Leverage (Debt)
Debt level is 1.5x Net Debt / EBITDA and 2.8x Debt / EBITDA. Net Debt / EBITDA jumped on 0.5x from 1.0x to 1.5x in FY2015. Debt jumped on 16.9% in FY2015 while cash increased slightly on 0.54% in FY2015.
Appendix 1: Peers in Retail
Below we provide Stelux Holdings 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) | | 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% | 1.0% |
|---|
| Stelux Holdings International Ltd ($84) | | 23.1% | 9.5% | 6.7% | 1.3% |
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% | 44.6% |
|---|
| Stelux Holdings International Ltd ($84) | 61.3% | 61.7% | 62.7% | 61.1% | 61.3% |
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% | 9.7% | 7.1% | 8.3% | 10.0% |
|---|
| Stelux Holdings International Ltd ($84) | 9.5% | 11.9% | 11.2% | 10.1% | 9.1% |
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) | 3.8% | 4.0% | 3.6% | 3.5% | 2.3% |
|---|
| Stelux Holdings International Ltd ($84) | 4.3% | 4.6% | 4.4% | 3.0% | 2.4% |
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% | 39.8% |
| 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% | |
| |
|---|
| Median (108 companies) | 17.2% | 11.8% | 8.1% | 8.2% | 11.3% |
|---|
| Stelux Holdings International Ltd ($84) | 12.0% | 19.2% | 14.7% | 11.8% | 10.0% |
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 |
|---|
| Stelux Holdings International Ltd ($84) | 0.8x | 0.7x | 1.0x | 1.0x | 1.5x |
