Combest Holdings Ltd Net Income dropped on 943% in 2015 and Revenue decreased on 8.2%
24/09/2015 • About Combest Holdings Ltd (
$8190) • By InTwits
Combest Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Combest Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is -9.5%
- The company operates at negative EBITDA Margin: -18.3%
- EBITDA Margin is quite volatile: -18.3% in FY2015, 26.5% in FY2014, 29.7% in FY2013, -2.7% in FY2012, 24.5% in FY2011
- Combest Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has unprofitable business model: ROIC is at -9.5%
- It operates with high leverage: Net Debt/EBITDA is 7.2x while industry average is -0.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Combest Holdings Ltd ($8190) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 338.8 | 113.6 | 110.5 | 103.3 | 94.8 | -8.2% |
| Gross Profit | 115.3 | 31.1 | 58.5 | 51.8 | 18.0 | -65.2% |
| SG&A | | | 35.0 | 33.4 | 43.6 | 30.6% |
| EBITDA | 82.9 | -3.1 | 32.8 | 27.3 | -17.4 | -163.6% |
| Net Income | 69.6 | -29.3 | 19.1 | 13.0 | -109.6 | -942.8% |
Balance Sheet
|
|---|
| Cash | 48.1 | 27.1 | 35.0 | 60.1 | 26.3 | -56.3% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 11.0 | 0.7 | 0.1 | 0.1 | 0.5 | 723.6% |
Ratios
|
|---|
| Revenue growth | 647.3% | -66.5% | -2.7% | -6.5% | -8.2% | |
| EBITDA growth | 47,535.6% | -103.7% | -1,174.6% | -16.8% | -163.6% | |
| Gross Margin | 34.0% | 27.4% | 52.9% | 50.2% | 19.0% | -31.1% |
| EBITDA Margin | 24.5% | -2.7% | 29.7% | 26.5% | -18.3% | -44.8% |
| Net Income Margin | 20.5% | -25.8% | 17.3% | 12.6% | -115.6% | -128.2% |
| SG&A, % of revenue | | | 31.7% | 32.3% | 46.0% | 13.7% |
| CAPEX, % of revenue | 3.2% | 0.6% | 0.1% | 0.1% | 0.5% | 0.4% |
| ROIC | 31.7% | -4.0% | 7.7% | 5.7% | -9.5% | -15.2% |
| ROE | 36.3% | -11.1% | 7.4% | 4.7% | -48.3% | -53.0% |
| Net Debt/EBITDA | -0.6x | | -1.1x | -2.2x | | 2.2x |
Revenue and profitability
Combest Holdings Ltd's Revenue decreased on 8.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 38.0 pp from 17.5% to 55.5% in FY2015.
Gross Margin dropped on 31.1 pp from 50.2% to 19.0% in FY2015. SG&A as a % of Revenue surged on 13.7 pp from 32.3% to 46.0% in FY2015.
Net Income marign dropped on 128 pp from 12.6% to -116% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.48% in FY2015. CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 0.22%.
Return on investment
The company operates at negative ROIC (-9.54%) and ROE (-48.28%). ROIC dropped on 15.2 pp from 5.7% to -9.5% in FY2015. ROE dropped on 53.0 pp from 4.7% to -48.3% in FY2015.
Leverage (Debt)
The company has no debt. Cash dropped on 56.3% in FY2015.
Appendix 1: Peers in Retail
Below we provide Combest 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 (109 companies) | 21.8% | 10.3% | 6.0% | 3.1% | -3.6% |
|---|
| Combest Holdings Ltd ($8190) | | -66.5% | -2.7% | -6.5% | -8.2% |
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) | 40.4% | 37.8% | 36.4% | 35.1% | 46.0% |
|---|
| Combest Holdings Ltd ($8190) | 34.0% | 27.4% | 52.9% | 50.2% | 19.0% |
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) | 13.1% | 9.9% | 7.1% | 7.9% | 6.5% |
|---|
| Combest Holdings Ltd ($8190) | 24.5% | -2.7% | 29.7% | 26.5% | -18.3% |
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 (109 companies) | 3.9% | 4.0% | 3.6% | 3.5% | 2.4% |
|---|
| Combest Holdings Ltd ($8190) | 3.2% | 0.6% | 0.1% | 0.1% | 0.5% |
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) | 16.6% | 12.0% | 8.2% | 8.4% | 4.4% |
|---|
| Combest Holdings Ltd ($8190) | 31.7% | -4.0% | 7.7% | 5.7% | -9.5% |
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 | -0.8x | -0.2x | -0.6x |
|---|
| Combest Holdings Ltd ($8190) | -0.6x | | -1.1x | -2.2x | |
