361 Degrees International Ltd CAPEX surged on 87.6% in 2015 and Revenue jumped on 14.1%
08/03/2016 • About 361 Degrees International Ltd (
$1361) • By InTwits
361 Degrees International Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- 361 Degrees International Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's in pair with industry average of 3.6%.
- CAPEX is quite volatile: 253 in 2015, 135 in 2014, 44.0 in 2013, 151 in 2012, 505 in 2011
- The company has business model with average profitability: ROIC is at 10.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
361 Degrees International Ltd ($1361) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,461 | 4,951 | 3,583 | 3,906 | 4,459 | 14.1% |
| Gross Profit | 2,311 | 1,972 | 1,417 | 1,597 | 1,823 | 14.2% |
| SG&A | 857 | 1,105 | 916 | 988 | 951 | -3.8% |
| EBITDA | 1,470 | 918 | 361 | 727 | 856 | 17.7% |
| Net Income | 1,196 | 707 | 211 | 398 | 518 | 30.2% |
Balance Sheet
|
|---|
| Cash | 2,229 | 2,107 | 2,494 | 2,130 | 2,286 | 7.3% |
| Short Term Debt | 227 | 533 | 229 | 799 | 422 | -47.1% |
| Long Term Debt | 0 | 753 | 768 | 1,485 | 1,489 | 0.3% |
Cash flow
|
|---|
| Capex | 505 | 151 | 44 | 135 | 253 | 87.6% |
Ratios
|
|---|
| Revenue growth | 26.1% | -9.4% | -27.6% | 9.0% | 14.1% | |
| EBITDA growth | 38.6% | -37.6% | -60.6% | 101.0% | 17.7% | |
| Gross Margin | 42.3% | 39.8% | 39.5% | 40.9% | 40.9% | 0.0% |
| EBITDA Margin | 26.9% | 18.5% | 10.1% | 18.6% | 19.2% | 0.6% |
| Net Income Margin | 21.9% | 14.3% | 5.9% | 10.2% | 11.6% | 1.4% |
| SG&A, % of revenue | 15.7% | 22.3% | 25.6% | 25.3% | 21.3% | -4.0% |
| CAPEX, % of revenue | 9.2% | 3.0% | 1.2% | 3.5% | 5.7% | 2.2% |
| ROIC | 32.9% | 15.6% | 4.9% | 9.8% | 10.5% | 0.7% |
| ROE | 31.3% | 15.9% | 4.5% | 8.2% | 10.1% | 1.9% |
| Net Debt/EBITDA | -1.4x | -0.9x | -4.1x | 0.2x | -0.4x | -0.6x |
Revenue and profitability
The company's Revenue jumped on 14.1% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.2 pp from 11.2% to 12.4% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue decreased on 4.0 pp from 25.3% to 21.3% in 2015.
Net Income marign increased slightly on 1.4 pp from 10.2% to 11.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 361 Degrees International Ltd had CAPEX/Revenue of 5.7%. 361 Degrees International Ltd's CAPEX/Revenue increased on 2.6 pp from 3.0% in 2012 to 5.7% in 2015. For the last three years the average CAPEX/Revenue was 3.5%.
Return on investment
The company operates at low ROIC (10.46%) and ROE (10.10%). ROIC increased slightly on 0.66 pp from 9.8% to 10.5% in 2015. ROE increased slightly on 1.9 pp from 8.2% to 10.1% in 2015.
Leverage (Debt)
Debt level is -0.4x Net Debt / EBITDA and 2.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from 0.2x to -0.4x in 2015. Debt dropped on 16.3% in 2015 while cash increased on 7.3% in 2015.
Appendix 1: Peers in Retail
Below we provide 361 Degrees International 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 (110 companies) | 24.1% | 10.4% | 6.0% | 2.9% | -2.6% |
|---|
| 361 Degrees International Ltd ($1361) | | -9.4% | -27.6% | 9.0% | 14.1% |
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 (99 companies) | 38.8% | 36.7% | 36.4% | 35.3% | 45.6% |
|---|
| 361 Degrees International Ltd ($1361) | 42.3% | 39.8% | 39.5% | 40.9% | 40.9% |
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% | 43.4% |
| Golden Eagle Retail Group Ltd ($3308) | 52.1% | 48.5% | 47.3% | 42.8% | |
| |
|---|
| Median (110 companies) | 13.2% | 9.7% | 7.1% | 8.3% | 7.4% |
|---|
| 361 Degrees International Ltd ($1361) | 26.9% | 18.5% | 10.1% | 18.6% | 19.2% |
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 (110 companies) | 3.8% | 4.0% | 3.6% | 3.5% | 2.7% |
|---|
| 361 Degrees International Ltd ($1361) | 9.2% | 3.0% | 1.2% | 3.5% | 5.7% |
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 (110 companies) | 16.6% | 11.9% | 8.2% | 8.3% | 5.8% |
|---|
| 361 Degrees International Ltd ($1361) | 32.9% | 15.6% | 4.9% | 9.8% | 10.5% |
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 | 7.3x |
| |
|---|
| Median (86 companies) | -0.8x | -0.5x | -0.8x | -0.2x | -0.5x |
|---|
| 361 Degrees International Ltd ($1361) | -1.4x | -0.9x | -4.1x | 0.2x | -0.4x |
