Modern Beauty Salon Holdings Ltd Net Income surged on 25.5% in 2015 and EBITDA Margin increased slightly on 0.54 pp from 18.7% to 19.3%
26/06/2015 • About Modern Beauty Salon Holdings Ltd (
$919) • By InTwits
Modern Beauty Salon Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 19.3% in FY2015, 18.7% in FY2014, 3.0% in FY2013, 22.7% in FY2012, 23.1% in FY2011
- Modern Beauty Salon Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.4%. At the same time it's in pair with industry average of 6.6%.
- CAPEX is quite volatile: 31.6 in FY2015, 60.1 in FY2014, 88.6 in FY2013, 42.3 in FY2012, 22.4 in FY2011
- The company has highly profitable business model: ROIC is at 71.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Modern Beauty Salon Holdings Ltd ($919) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 718.2 | 756.6 | 708.1 | 868.8 | 874.2 | 0.6% |
| Gross Profit | 698.5 | 737.3 | 679.1 | 841.2 | 845.1 | 0.5% |
| SG&A | | | | 11.0 | 8.3 | -24.4% |
| EBITDA | 165.9 | 171.4 | 21.4 | 162.5 | 168.3 | 3.5% |
| Net Income | 89.2 | 82.2 | -53.4 | 54.8 | 68.8 | 25.5% |
Balance Sheet
|
|---|
| Cash | 449.5 | 478.2 | 481.2 | 440.9 | 397.2 | -9.9% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 3.7 | | -100.0% |
| Long Term Debt | 0.0 | 4.6 | 3.3 | 1.9 | 0.5 | -76.7% |
Cash flow
|
|---|
| Capex | 22.4 | 42.3 | 88.6 | 60.1 | 31.6 | -47.4% |
Ratios
|
|---|
| Revenue growth | 66.7% | 5.3% | -6.4% | 22.7% | 0.6% | |
| EBITDA growth | -885.3% | 3.3% | -87.5% | 659.3% | 3.5% | |
| Gross Margin | 97.3% | 97.4% | 95.9% | 96.8% | 96.7% | -0.1% |
| EBITDA Margin | 23.1% | 22.7% | 3.0% | 18.7% | 19.3% | 0.5% |
| Net Income Margin | 12.4% | 10.9% | -7.5% | 6.3% | 7.9% | 1.6% |
| SG&A, % of revenue | | | | 1.3% | 1.0% | -0.3% |
| CAPEX, % of revenue | 3.1% | 5.6% | 12.5% | 6.9% | 3.6% | -3.3% |
| ROIC | 48.1% | 50.7% | -4.6% | 81.3% | 71.8% | -9.5% |
| ROE | 33.0% | 29.7% | -25.6% | 37.7% | 43.5% | 5.8% |
| Net Debt/EBITDA | -2.7x | -2.8x | -22.3x | -2.7x | -2.4x | 0.3x |
Revenue and profitability
The company's Revenue increased slightly on 0.62% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.71 pp from 9.5% to 10.2% in 2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign increased slightly on 1.6 pp from 6.3% to 7.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Modern Beauty Salon Holdings Ltd's CAPEX/Revenue was 3.6% in FY2015. CAPEX/Revenue decreased slightly on 2.0 pp from 5.6% in FY2012 to 3.6% in FY2015. It's average CAPEX/Revenue for the last three years was 7.7%.
Return on investment
The company operates at high and attractive ROIC (71.76%) and ROE (43.55%). ROIC decreased on 9.5 pp from 81.3% to 71.8% in FY2015. ROE increased on 5.8 pp from 37.7% to 43.5% in FY2015.
Appendix 1: Peers in Retail
Below we provide Modern Beauty Salon 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% | 10.2% | 5.9% | 2.7% | -0.9% |
|---|
| Modern Beauty Salon Holdings Ltd ($919) | | 5.3% | -6.4% | 22.7% | 0.6% |
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% | |
| 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% | 44.3% |
|---|
| Modern Beauty Salon Holdings Ltd ($919) | 97.3% | 97.4% | 95.9% | 96.8% | 96.7% |
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% | 7.3% | 8.3% | 7.1% |
|---|
| Modern Beauty Salon Holdings Ltd ($919) | 23.1% | 22.7% | 3.0% | 18.7% | 19.3% |
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% | 4.0% | 3.6% | 3.4% | 2.2% |
|---|
| Modern Beauty Salon Holdings Ltd ($919) | 3.1% | 5.6% | 12.5% | 6.9% | 3.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | |
| Bonjour Holdings Ltd ($653) | 83.7% | 69.1% | 65.5% | 30.9% | |
| |
|---|
| Median (108 companies) | 16.6% | 11.8% | 8.2% | 8.2% | 8.1% |
|---|
| Modern Beauty Salon Holdings Ltd ($919) | 48.1% | 50.7% | -4.6% | 81.3% | 71.8% |
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 | 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 (84 companies) | -0.8x | -0.6x | -0.9x | -0.2x | -0.5x |
|---|
| Modern Beauty Salon Holdings Ltd ($919) | -2.7x | -2.8x | -22.3x | -2.7x | -2.4x |
