Culture Landmark Investment Ltd CAPEX surged on 89.5% in 2015 while Revenue dropped on 37.0%
26/06/2015 • About Culture Landmark Investment Ltd (
$674) • By InTwits
Culture Landmark Investment Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Culture Landmark Investment Ltd doesn't have a profitable business model yet: FY2015 ROIC is -20.9%
- The company operates at negative EBITDA Margin: -53.5%
- EBITDA Margin is quite volatile: -53.5% in FY2015, -20.6% in FY2014, 2.6% in FY2013, 90.9% in FY2012, 1.2% in FY2011
- Culture Landmark Investment Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.7%. At the same time it's a lot of higher than industry average of 6.6%.
- CAPEX is quite volatile: 66.8 in FY2015, 35.2 in FY2014, 44.7 in FY2013, 34.8 in FY2012, 8.1 in FY2011
- The company has unprofitable business model: ROIC is at -20.9%
- It operates with high leverage: Net Debt/EBITDA is -0.0x while industry average is -0.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Culture Landmark Investment Ltd ($674) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 173.8 | 299.0 | 230.3 | 224.2 | 141.4 | -37.0% |
| Gross Profit | 134.7 | 272.3 | 228.9 | 223.1 | | -100.0% |
| EBITDA | 2.1 | 271.8 | 6.0 | -46.1 | -75.7 | 64.0% |
| Net Income | -266.2 | -293.5 | -78.4 | -52.3 | -445.2 | 751.4% |
Balance Sheet
|
|---|
| Cash | 251.8 | 190.2 | 146.0 | 118.2 | 109.6 | -7.3% |
| Short Term Debt | 1.3 | 222.3 | 166.2 | 70.5 | 46.5 | -34.0% |
| Long Term Debt | 0.0 | 10.9 | 0.0 | 0.0 | 26.4 | |
Cash flow
|
|---|
| Capex | 8.1 | 34.8 | 44.7 | 35.2 | 66.8 | 89.5% |
Ratios
|
|---|
| Revenue growth | 14.8% | 72.0% | -23.0% | -2.6% | -37.0% | |
| EBITDA growth | -141.3% | 12,652.0% | -97.8% | -873.4% | 64.0% | |
| Gross Margin | 77.5% | 91.1% | 99.4% | 99.5% | | -99.5% |
| EBITDA Margin | 1.2% | 90.9% | 2.6% | -20.6% | -53.5% | -32.9% |
| Net Income Margin | -153.2% | -98.2% | -34.0% | -23.3% | -314.9% | -291.6% |
| CAPEX, % of revenue | 4.6% | 11.6% | 19.4% | 15.7% | 47.2% | 31.5% |
| ROIC | -8.9% | 15.7% | -5.6% | -10.8% | -20.9% | -10.1% |
| ROE | -27.9% | -32.8% | -9.3% | -7.2% | -94.4% | -87.2% |
| Net Debt/EBITDA | -117.5x | 0.2x | 3.4x | | | 0.0x |
Revenue and profitability
Culture Landmark Investment Ltd's Revenue dropped on 37.0% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 32.9 pp from -20.6% to -53.5% in FY2015.
Net Income marign dropped on 292 pp from -23.3% to -315% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 47.2% in FY2015. CAPEX/Revenue jumped on 35.6 pp from 11.6% in FY2012 to 47.2% in FY2015. It's average level of CAPEX/Revenue for the last three years was 27.5%.
Return on investment
The company operates at negative ROIC (-20.87%) and ROE (-94.39%). ROIC dropped on 10.1 pp from -10.8% to -20.9% in FY2015. ROE dropped on 87.2 pp from -7.2% to -94.4% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.0x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt increased on 3.4% in FY2015 while cash decreased on 7.3% in FY2015.
Appendix 1: Peers in Retail
Below you can find Culture Landmark Investment Ltd benchmarking vs. other companies in Retail industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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% | 5.9% | 2.9% | -0.0% |
|---|
| Culture Landmark Investment Ltd ($674) | | 72.0% | -23.0% | -2.6% | -37.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Modern Beauty Salon Holdings Ltd ($919) | 97.3% | 97.4% | 95.9% | 96.8% | 96.7% |
| 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% | |
| Ports Design Ltd ($589) | 82.1% | 81.9% | 81.2% | 80.8% | |
| |
|---|
| Median (97 companies) | 40.0% | 37.7% | 38.0% | 35.6% | 44.6% |
|---|
| Culture Landmark Investment Ltd ($674) | 77.5% | 91.1% | 99.4% | 99.5% | |
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% | 9.7% | 7.3% | 8.8% | 8.7% |
|---|
| Culture Landmark Investment Ltd ($674) | 1.2% | 90.9% | 2.6% | -20.6% | -53.5% |
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% | 3.4% | 2.2% |
|---|
| Culture Landmark Investment Ltd ($674) | 4.6% | 11.6% | 19.4% | 15.7% | 47.2% |
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% | 71.8% |
| 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% | 8.2% | 8.3% | 10.7% |
|---|
| Culture Landmark Investment Ltd ($674) | -8.9% | 15.7% | -5.6% | -10.8% | -20.9% |
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 | 23.5x |
| 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 (85 companies) | -0.8x | -0.6x | -0.9x | -0.3x | -0.6x |
|---|
