Asia Commercial Holdings Ltd revenue dropped on 25.7% in 2015 while EBITDA Margin increased on 6.9 pp from -13.3% to -6.4%
30/06/2015 • About Asia Commercial Holdings Ltd (
$104) • By InTwits
Asia Commercial Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Asia Commercial Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is -9.9%
- The company operates at negative EBITDA Margin: -6.4%
- Asia Commercial Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -6.1%0
- Asia Commercial Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.0%. At the same time it's a lot of higher than industry average of 5.8%.
- CAPEX is quite volatile: 6.8 in FY2015, 7.0 in FY2014, 38.9 in FY2013, 85.8 in FY2012, 15.0 in FY2011
- The company has unprofitable business model: ROIC is at -9.9%
- It operates with high leverage: Net Debt/EBITDA is -0.6x 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.
Asia Commercial Holdings Ltd ($104) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,035 | 1,036 | 1,099 | 967 | 719 | -25.7% |
| Gross Profit | 320 | 295 | 270 | 213 | 148 | -30.5% |
| SG&A | | | 458 | 387 | 259 | -33.0% |
| EBITDA | 86 | -48 | -158 | -129 | -46 | -64.4% |
| Net Income | 92 | -61 | -209 | -153 | -31 | -79.8% |
Balance Sheet
|
|---|
| Cash | 141 | 86 | 117 | 37 | 22 | -41.6% |
| Short Term Debt | 6 | 298 | 270 | 187 | 109 | -41.8% |
| Long Term Debt | 50 | 30 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 15 | 86 | 39 | 7 | 7 | -3.2% |
Ratios
|
|---|
| Revenue growth | 33.2% | 0.1% | 6.0% | -11.9% | -25.7% | |
| EBITDA growth | 35.2% | -156.6% | 226.5% | -18.4% | -64.4% | |
| Gross Margin | 30.9% | 28.5% | 24.6% | 22.0% | 20.6% | -1.4% |
| EBITDA Margin | 8.3% | -4.7% | -14.4% | -13.3% | -6.4% | 6.9% |
| Net Income Margin | 8.9% | -5.9% | -19.0% | -15.8% | -4.3% | 11.5% |
| SG&A, % of revenue | | | 41.7% | 40.0% | 36.0% | -3.9% |
| CAPEX, % of revenue | 1.5% | 8.3% | 3.5% | 0.7% | 0.9% | 0.2% |
| ROIC | 13.6% | -8.5% | -22.2% | -22.0% | -9.9% | 12.0% |
| ROE | 19.2% | -11.1% | -38.8% | -32.8% | -7.7% | 25.2% |
| Net Debt/EBITDA | -1.0x | | | | | 0.0x |
Revenue and profitability
Asia Commercial Holdings Ltd's Revenue dropped on 25.7% in FY2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 6.9 pp from -13.3% to -6.4% in FY2015.
Gross Margin decreased slightly on 1.4 pp from 22.0% to 20.6% in FY2015. SG&A as a % of Revenue decreased on 3.9 pp from 40.0% to 36.0% in FY2015.
Net Income marign surged on 11.5 pp from -15.8% to -4.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Asia Commercial Holdings Ltd's CAPEX/Revenue was 0.94% in FY2015. The company showed decline in CAPEX/Revenue of 7.3 pp from 8.3% in FY2012 to 0.94% in FY2015. It's average level of CAPEX/Revenue for the last three years was 1.7%.
Return on investment
The company operates at negative ROIC (-9.94%) and ROE (-7.66%). ROIC surged on 12.0 pp from -22.0% to -9.9% in FY2015. ROE jumped on 25.2 pp from -32.8% to -7.7% in FY2015.
Leverage (Debt)
Debt level is -0.6x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt dropped on 41.8% in FY2015 while cash dropped on 41.6% in FY2015.
Appendix 1: Peers in Retail
Below you can find Asia Commercial Holdings 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 (109 companies) | 21.5% | 10.3% | 5.9% | 3.1% | -2.8% |
|---|
| Asia Commercial Holdings Ltd ($104) | | 0.1% | 6.0% | -11.9% | -25.7% |
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% | 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% | |
| |
|---|
| Median (98 companies) | 40.4% | 37.8% | 39.5% | 37.6% | 44.9% |
|---|
| Asia Commercial Holdings Ltd ($104) | 30.9% | 28.5% | 24.6% | 22.0% | 20.6% |
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 (109 companies) | 13.3% | 9.9% | 7.2% | 8.8% | 7.1% |
|---|
| Asia Commercial Holdings Ltd ($104) | 8.3% | -4.7% | -14.4% | -13.3% | -6.4% |
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 (109 companies) | 3.9% | 4.0% | 3.6% | 3.5% | 2.5% |
|---|
| Asia Commercial Holdings Ltd ($104) | 1.5% | 8.3% | 3.5% | 0.7% | 0.9% |
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 (109 companies) | 17.2% | 12.0% | 8.2% | 8.4% | 5.8% |
|---|
| Asia Commercial Holdings Ltd ($104) | 13.6% | -8.5% | -22.2% | -22.0% | -9.9% |
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 (86 companies) | -0.8x | -0.6x | -0.9x | -0.2x | -0.5x |
|---|
