Ming Fung Jewellery Group Ltd revenue dropped on 70.8% in 2015 while EBITDA Margin jumped on 70.8 pp from -81.7% to -11.0%
31/12/2015 • About Ming Fung Jewellery Group Ltd (
$860) • By InTwits
Ming Fung Jewellery Group Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ming Fung Jewellery Group Ltd is a company in decline: FY2015 revenue growth was -70.8%, 5 years revenue CAGR was -13.5%
- The company operates at negative EBITDA Margin: -11.0%
- Ming Fung Jewellery Group Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -17.2% for the sames years0
- Ming Fung Jewellery Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has unprofitable business model: ROIC is at -4.8%
- It operates with high leverage: Net Debt/EBITDA is 4.5x 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.
Ming Fung Jewellery Group Ltd ($860) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 890 | 919 | 783 | 1,207 | 353 | -70.8% |
| Gross Profit | 245 | 253 | 77 | -862 | 87 | -110.1% |
| SG&A | | 107 | 110 | 96 | 73 | -24.0% |
| EBITDA | 175 | 158 | -22 | -987 | -39 | -96.1% |
| Net Income | 129 | 83 | -818 | -1,052 | -200 | -81.0% |
Balance Sheet
|
|---|
| Cash | 465 | 345 | 143 | 202 | 759 | 275.6% |
| Short Term Debt | 40 | 39 | 56 | 63 | 61 | -3.2% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 8 | 3 | 11 | 7 | 2 | -74.2% |
Ratios
|
|---|
| Revenue growth | 21.9% | 3.3% | -14.9% | 54.3% | -70.8% | |
| EBITDA growth | 35.0% | -10.0% | -113.9% | 4,404.4% | -96.1% | |
| Gross Margin | 27.5% | 27.5% | 9.8% | -71.5% | 24.6% | 96.1% |
| EBITDA Margin | 19.7% | 17.1% | -2.8% | -81.7% | -11.0% | 70.8% |
| Net Income Margin | 14.5% | 9.0% | -104.5% | -87.2% | -56.6% | 30.6% |
| SG&A, % of revenue | | 11.7% | 14.0% | 7.9% | 20.6% | 12.7% |
| CAPEX, % of revenue | 0.9% | 0.3% | 1.5% | 0.6% | 0.5% | -0.1% |
| ROIC | 7.7% | 4.6% | -1.7% | -57.7% | -4.8% | 52.9% |
| ROE | 7.0% | 3.2% | -34.3% | -68.3% | -15.4% | 52.9% |
| Net Debt/EBITDA | -2.4x | -1.9x | | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 70.8% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 70.8 pp from -81.7% to -11.0% in FY2015.
Gross Margin jumped on 96.1 pp from -71.5% to 24.6% in FY2015. SG&A as a % of Revenue jumped on 12.7 pp from 7.9% to 20.6% in FY2015.
Net Income marign surged on 30.6 pp from -87.2% to -56.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Ming Fung Jewellery Group Ltd had CAPEX/Revenue of 0.54%. Ming Fung Jewellery Group Ltd showed almost no change in CAPEX/Revenue from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 0.87%.
Return on investment
The company operates at negative ROIC (-4.76%) and ROE (-15.44%). ROIC surged on 52.9 pp from -57.7% to -4.8% in FY2015. ROE surged on 52.9 pp from -68.3% to -15.4% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.5x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt decreased on 3.2% in FY2015 while cash surged on 276% in FY2015.
Appendix 1: Peers in Retail
Below you can find Ming Fung Jewellery Group 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% | |
| 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% | |
| Tsui Wah Holdings Ltd ($1314) | | 27.5% | 42.2% | 35.9% | 22.2% |
| |
|---|
| Median (109 companies) | 22.4% | 10.3% | 6.0% | 2.8% | -3.6% |
|---|
| Ming Fung Jewellery Group Ltd ($860) | | 3.3% | -14.9% | 54.3% | -70.8% |
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% | 39.5% | 37.6% | 45.3% |
|---|
| Ming Fung Jewellery Group Ltd ($860) | 27.5% | 27.5% | 9.8% | -71.5% | 24.6% |
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) | 13.1% | 9.6% | 7.2% | 8.8% | 6.5% |
|---|
| Ming Fung Jewellery Group Ltd ($860) | 19.7% | 17.1% | -2.8% | -81.7% | -11.0% |
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% |
|---|
| Ming Fung Jewellery Group Ltd ($860) | 0.9% | 0.3% | 1.5% | 0.6% | 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% | 51.4% |
| 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% | 8.4% | 4.4% |
|---|
| Ming Fung Jewellery Group Ltd ($860) | 7.7% | 4.6% | -1.7% | -57.7% | -4.8% |
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 (86 companies) | -0.8x | -0.5x | -0.9x | -0.2x | -0.6x |
|---|
