Bossini International Hldg EBITDA dropped on 20.1% in 2015 and Revenue decreased slightly on 0.97%
16/09/2015 • About Bossini International Hldg (
$592) • By InTwits
Bossini International Hldg reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bossini International Hldg has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.6%. At the same time it's a lot of higher than industry average of 5.6%.
- CAPEX is quite volatile: 24.9 in 2015, 5.1 in 2014, 72.9 in 2013, 21.1 in 2012, 63.0 in 2011
- The company has highly profitable business model: ROIC is at 14.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bossini International Hldg ($592) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,642 | 2,744 | 2,517 | 2,548 | 2,523 | -1.0% |
| Gross Profit | 1,354 | 1,294 | 1,199 | 1,301 | 1,264 | -2.8% |
| SG&A | | | 1,123 | 1,110 | 1,119 | 0.8% |
| EBITDA | 222 | 130 | 116 | 223 | 178 | -20.1% |
| Net Income | 130 | 16 | 22 | 127 | 115 | -9.2% |
Balance Sheet
|
|---|
| Cash | 458 | 273 | 338 | 452 | 475 | 5.0% |
| Short Term Debt | 174 | 59 | 50 | 46 | 36 | -21.5% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 90 | 72 | 60 | 53 | 62 | 17.2% |
Ratios
|
|---|
| Revenue growth | 14.6% | 3.9% | -8.3% | 1.2% | -1.0% | |
| EBITDA growth | 22.1% | -41.7% | -10.4% | 92.0% | -20.1% | |
| Gross Margin | 51.3% | 47.2% | 47.7% | 51.1% | 50.1% | -1.0% |
| EBITDA Margin | 8.4% | 4.7% | 4.6% | 8.8% | 7.1% | -1.7% |
| Net Income Margin | 4.9% | 0.6% | 0.9% | 5.0% | 4.6% | -0.4% |
| SG&A, % of revenue | | | 44.6% | 43.6% | 44.3% | 0.8% |
| CAPEX, % of revenue | 3.4% | 2.6% | 2.4% | 2.1% | 2.5% | 0.4% |
| ROIC | 15.5% | 5.0% | 5.5% | 18.9% | 14.3% | -4.5% |
| ROE | 17.0% | 2.1% | 3.1% | 16.6% | 14.4% | -2.2% |
| Net Debt/EBITDA | -1.3x | -1.6x | -2.5x | -1.8x | -2.5x | -0.6x |
Revenue and profitability
Bossini International Hldg's Revenue decreased slightly on 0.97% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.4 pp from 7.1% to 8.4% in 2015.
Gross Margin decreased slightly on 0.97 pp from 51.1% to 50.1% in FY2015. SG&A as a % of Revenue increased slightly on 0.78 pp from 43.6% to 44.3% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.5% in FY2015. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 2.3%.
Return on investment
The company operates at good ROIC (14.34%) and ROE (14.38%). ROIC decreased on 4.5 pp from 18.9% to 14.3% in FY2015. ROE decreased on 2.2 pp from 16.6% to 14.4% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.5x and Debt / EBITDA is 0.2x. Net Debt / EBITDA dropped on 0.6x from -1.8x to -2.5x in FY2015. Debt dropped on 21.5% in FY2015 while cash increased on 5.0% in FY2015.
Appendix 1: Peers in Retail
Below you can find Bossini International Hldg 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) | 21.9% | 10.3% | 6.0% | 3.1% | -4.6% |
|---|
| Bossini International Hldg ($592) | | 3.9% | -8.3% | 1.2% | -1.0% |
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% | 99.1% |
| 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) | 39.4% | 37.2% | 36.4% | 35.1% | 45.3% |
|---|
| Bossini International Hldg ($592) | 51.3% | 47.2% | 47.7% | 51.1% | 50.1% |
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% | 7.9% | 6.0% |
|---|
| Bossini International Hldg ($592) | 8.4% | 4.7% | 4.6% | 8.8% | 7.1% |
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 (109 companies) | 3.9% | 4.0% | 3.6% | 3.5% | 2.4% |
|---|
| Bossini International Hldg ($592) | 3.4% | 2.6% | 2.4% | 2.1% | 2.5% |
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% | 20.8% |
| Nanjing Sinolife United Co Ltd ($3332) | 57.4% | 67.3% | 68.1% | 32.2% | |
| |
|---|
| Median (109 companies) | 17.2% | 12.0% | 8.2% | 8.2% | 5.3% |
|---|
| Bossini International Hldg ($592) | 15.5% | 5.0% | 5.5% | 18.9% | 14.3% |
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 | -0.5x | -0.8x | -0.2x | -0.5x |
|---|
| Bossini International Hldg ($592) | -1.3x | -1.6x | -2.5x | -1.8x | -2.5x |
