Lifestyle International Holdings Ltd CAPEX jumped on 33.3% in 2015 and Revenue increased on 3.4%
29/02/2016 • About Lifestyle International Holdings Ltd (
$1212) • By InTwits
Lifestyle International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 43.4% in 2015 vs. 44.7% in 2014 vs. 49.6% in 2011
- Lifestyle International Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 21.2%. At the same time it's a lot of higher than industry average of 6.7%.
- CAPEX is quite volatile: 809 in 2015, 607 in 2014, 482 in 2013, 2,993 in 2012, 1,039 in 2011
- The company has business model with low profitability: ROIC is at 9.6%
- It operates with high leverage: Net Debt/EBITDA is 1.4x 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.
Lifestyle International Holdings Ltd ($1212) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,132 | 5,523 | 5,955 | 5,970 | 6,171 | 3.4% |
| Gross Profit | 3,000 | 3,267 | 3,561 | 3,584 | 3,707 | 3.4% |
| SG&A | 1,211 | 1,278 | 1,440 | 1,456 | 1,518 | 4.2% |
| EBITDA | 2,548 | 2,624 | 2,797 | 2,670 | 2,676 | 0.2% |
| Net Income | 1,867 | 2,057 | 2,448 | 2,144 | 1,914 | -10.7% |
Balance Sheet
|
|---|
| Cash | 7,269 | 8,292 | 8,669 | 8,312 | 8,670 | 4.3% |
| Short Term Debt | 2,693 | 1,240 | 1,858 | 2,004 | 3,165 | 57.9% |
| Long Term Debt | 3,931 | 9,702 | 8,984 | 8,519 | 9,351 | 9.8% |
Cash flow
|
|---|
| Capex | 1,039 | 2,993 | 482 | 607 | 809 | 33.3% |
Ratios
|
|---|
| Revenue growth | 18.9% | 7.6% | 7.8% | 0.2% | 3.4% | |
| EBITDA growth | 37.5% | 3.0% | 6.6% | -4.5% | 0.2% | |
| Gross Margin | 58.5% | 59.1% | 59.8% | 60.0% | 60.1% | 0.0% |
| EBITDA Margin | 49.6% | 47.5% | 47.0% | 44.7% | 43.4% | -1.4% |
| Net Income Margin | 36.4% | 37.2% | 41.1% | 35.9% | 31.0% | -4.9% |
| SG&A, % of revenue | 23.6% | 23.1% | 24.2% | 24.4% | 24.6% | 0.2% |
| CAPEX, % of revenue | 20.2% | 54.2% | 8.1% | 10.2% | 13.1% | 2.9% |
| ROIC | 16.6% | 12.5% | 11.2% | 10.0% | 9.6% | -0.4% |
| ROE | 24.1% | 23.1% | 24.5% | 19.9% | 17.2% | -2.7% |
| Net Debt/EBITDA | -0.3x | 1.0x | 0.8x | 0.8x | 1.4x | 0.6x |
Revenue and profitability
Lifestyle International Holdings Ltd's Revenue increased on 3.4% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 6.1 pp from 26.7% to 32.8% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased on 4.9 pp from 35.9% to 31.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Lifestyle International Holdings Ltd had CAPEX/Revenue of 13.1%. CAPEX/Revenue dropped on 41.1 pp from 54.2% in 2012 to 13.1% in 2015. It's average level of CAPEX/Revenue for the last three years was 10.5%.
Return on investment
The company operates at good ROE (17.23%) while ROIC is low (9.60%). ROIC showed almost no change in 2015. ROE decreased on 2.7 pp from 19.9% to 17.2% in 2015.
Leverage (Debt)
Debt level is 1.4x Net Debt / EBITDA and 4.7x Debt / EBITDA. Net Debt / EBITDA surged on 0.6x from 0.8x to 1.4x in 2015. Debt surged on 18.9% in 2015 while cash increased on 4.3% in 2015.
Appendix 1: Peers in Retail
Below we provide Lifestyle International 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) | | 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) | 24.1% | 10.3% | 5.9% | 3.1% | -3.6% |
|---|
| Lifestyle International Holdings Ltd ($1212) | | 7.6% | 7.8% | 0.2% | 3.4% |
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% |
|---|
| Lifestyle International Holdings Ltd ($1212) | 58.5% | 59.1% | 59.8% | 60.0% | 60.1% |
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% | |
| Golden Eagle Retail Group Ltd ($3308) | 52.1% | 48.5% | 47.3% | 42.8% | |
| Intime Retail Group Co Ltd ($1833) | 36.0% | 36.7% | 55.4% | 36.2% | |
| |
|---|
| Median (109 companies) | 13.1% | 9.6% | 7.1% | 7.9% | 6.8% |
|---|
| Lifestyle International Holdings Ltd ($1212) | 49.6% | 47.5% | 47.0% | 44.7% | 43.4% |
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) | 3.8% | 4.0% | 3.6% | 3.4% | 2.5% |
|---|
| Lifestyle International Holdings Ltd ($1212) | 20.2% | 54.2% | 8.1% | 10.2% | 13.1% |
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) | 17.2% | 11.8% | 8.2% | 8.2% | 4.4% |
|---|
| Lifestyle International Holdings Ltd ($1212) | 16.6% | 12.5% | 11.2% | 10.0% | 9.6% |
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 | -0.9x | -0.3x | -0.7x |
|---|
| Lifestyle International Holdings Ltd ($1212) | -0.3x | 1.0x | 0.8x | 0.8x | 1.4x |
