ANTA Sports Products Ltd EBITDA jumped on 32.4% in 2015 and EBITDA Margin increased slightly on 1.5 pp from 24.4% to 25.9%
23/02/2016 • About ANTA Sports Products Ltd (
$2020) • By InTwits
ANTA Sports Products Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 25.9% in 2015 vs. 24.4% in 2014 vs. 23.6% in 2011
- ANTA Sports Products Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's a lot of higher than industry average of 7.2%.
- CAPEX is quite volatile: 458 in 2015, 254 in 2014, 175 in 2013, 214 in 2012, 181 in 2011
- The company has highly profitable business model: ROIC is at 27.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
ANTA Sports Products Ltd ($2020) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8,905 | 7,623 | 7,281 | 8,923 | 11,126 | 24.7% |
| Gross Profit | 3,762 | 2,893 | 3,039 | 4,027 | 5,185 | 28.8% |
| SG&A | 1,825 | 1,458 | 1,576 | 2,094 | 2,716 | 29.7% |
| EBITDA | 2,101 | 1,673 | 1,696 | 2,178 | 2,885 | 32.4% |
| Net Income | 1,730 | 1,359 | 1,315 | 1,700 | 2,041 | 20.0% |
Balance Sheet
|
|---|
| Cash | 3,018 | 4,008 | 4,344 | 4,934 | 5,166 | 4.7% |
| Short Term Debt | 0 | 997 | 490 | 1,348 | 1,330 | -1.4% |
| Long Term Debt | 39 | 39 | 37 | 36 | 39 | 6.5% |
Cash flow
|
|---|
| Capex | 181 | 214 | 175 | 254 | 458 | 80.8% |
Ratios
|
|---|
| Revenue growth | 20.2% | -14.4% | -4.5% | 22.5% | 24.7% | |
| EBITDA growth | 15.4% | -20.4% | 1.4% | 28.4% | 32.4% | |
| Gross Margin | 42.3% | 38.0% | 41.7% | 45.1% | 46.6% | 1.5% |
| EBITDA Margin | 23.6% | 21.9% | 23.3% | 24.4% | 25.9% | 1.5% |
| Net Income Margin | 19.4% | 17.8% | 18.1% | 19.1% | 18.3% | -0.7% |
| SG&A, % of revenue | 20.5% | 19.1% | 21.6% | 23.5% | 24.4% | 0.9% |
| CAPEX, % of revenue | 2.0% | 2.8% | 2.4% | 2.8% | 4.1% | 1.3% |
| ROIC | 31.9% | 21.1% | 19.2% | 22.8% | 27.0% | 4.2% |
| ROE | 28.7% | 20.7% | 18.9% | 22.7% | 24.9% | 2.2% |
| Net Debt/EBITDA | -1.4x | -1.8x | -2.3x | -1.6x | -1.3x | 0.3x |
Revenue and profitability
The company's Revenue surged on 24.7% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 50.7 pp from 20.0% to -30.6% in 2015.
Gross Margin increased slightly on 1.5 pp from 45.1% to 46.6% in 2015. SG&A as a % of Revenue increased slightly on 0.94 pp from 23.5% to 24.4% in 2015.
Net Income marign decreased slightly on 0.72 pp from 19.1% to 18.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 ANTA Sports Products Ltd had CAPEX/Revenue of 4.1%. ANTA Sports Products Ltd's CAPEX/Revenue increased slightly on 1.3 pp from 2.8% in 2012 to 4.1% in 2015. It's average CAPEX/Revenue for the last three years was 3.1%.
Return on investment
The company operates at high and attractive ROIC (26.99%) and ROE (24.92%). ROIC increased on 4.2 pp from 22.8% to 27.0% in 2015. ROE increased on 2.2 pp from 22.7% to 24.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.3x and Debt / EBITDA is 0.5x. Net Debt / EBITDA surged on 0.3x from -1.6x to -1.3x in 2015. Debt decreased slightly on 1.1% in 2015 while cash increased on 4.7% in 2015.
Appendix 1: Peers in Retail
Below we provide ANTA Sports Products 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) | | 3.3% | -14.9% | 54.3% | -70.8% |
| 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) | 23.5% | 10.3% | 6.0% | 2.8% | -5.5% |
|---|
| ANTA Sports Products Ltd ($2020) | | -14.4% | -4.5% | 22.5% | 24.7% |
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% | 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% | 44.9% |
|---|
| ANTA Sports Products Ltd ($2020) | 42.3% | 38.0% | 41.7% | 45.1% | 46.6% |
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% | 7.1% | 7.9% | 6.5% |
|---|
| ANTA Sports Products Ltd ($2020) | 23.6% | 21.9% | 23.3% | 24.4% | 25.9% |
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% |
|---|
| ANTA Sports Products Ltd ($2020) | 2.0% | 2.8% | 2.4% | 2.8% | 4.1% |
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) | 16.6% | 11.8% | 8.2% | 8.2% | 3.1% |
|---|
| ANTA Sports Products Ltd ($2020) | 31.9% | 21.1% | 19.2% | 22.8% | 27.0% |
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 |
|---|
| ANTA Sports Products Ltd ($2020) | -1.4x | -1.8x | -2.3x | -1.6x | -1.3x |
