China Lilang Ltd EBITDA surged on 15.1% in 2015 and Revenue jumped on 10.5%
09/03/2016 • About China Lilang Ltd (
$1234) • By InTwits
China Lilang Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 30.6% in 2015 vs. 29.4% in 2014 vs. 26.7% in 2011
- China Lilang Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's in pair with industry average of 14.1%.
- CAPEX is quite volatile: 32.6 in 2015, 16.6 in 2014, 19.9 in 2013, 62.6 in 2012, 155 in 2011
- The company has highly profitable business model: ROIC is at 20.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Lilang Ltd ($1234) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,708 | 2,793 | 2,299 | 2,433 | 2,689 | 10.5% |
| Gross Profit | 1,055 | 1,124 | 980 | 1,036 | 1,143 | 10.4% |
| SG&A | 363 | 428 | 406 | 379 | 395 | 4.4% |
| EBITDA | 723 | 735 | 617 | 716 | 824 | 15.1% |
| Net Income | 623 | 627 | 516 | 555 | 625 | 12.7% |
Balance Sheet
|
|---|
| Cash | 1,241 | 1,243 | 1,436 | 1,845 | 2,162 | 17.2% |
| Short Term Debt | 29 | 163 | 418 | 901 | 1,004 | 11.4% |
| Long Term Debt | 0 | 293 | 145 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 155 | 63 | 20 | 17 | 33 | 96.0% |
Ratios
|
|---|
| Revenue growth | 31.9% | 3.2% | -17.7% | 5.8% | 10.5% | |
| EBITDA growth | 45.8% | 1.7% | -16.0% | 16.0% | 15.1% | |
| Gross Margin | 39.0% | 40.2% | 42.6% | 42.6% | 42.5% | -0.1% |
| EBITDA Margin | 26.7% | 26.3% | 26.9% | 29.4% | 30.6% | 1.2% |
| Net Income Margin | 23.0% | 22.4% | 22.5% | 22.8% | 23.2% | 0.4% |
| SG&A, % of revenue | 13.4% | 15.3% | 17.7% | 15.6% | 14.7% | -0.9% |
| CAPEX, % of revenue | 5.7% | 2.2% | 0.9% | 0.7% | 1.2% | 0.5% |
| ROIC | 32.6% | 27.3% | 19.1% | 19.7% | 20.2% | 0.5% |
| ROE | 30.9% | 27.5% | 21.1% | 21.3% | 22.3% | 1.0% |
| Net Debt/EBITDA | -1.7x | -1.1x | -1.4x | -1.3x | -1.4x | -0.1x |
Revenue and profitability
The company's Revenue surged on 10.5% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.2 pp from 29.4% to 30.6% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue decreased slightly on 0.87 pp from 15.6% to 14.7% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.2% in 2015. The company showed small CAPEX/Revenue decline of 1.0 pp from 2.2% in 2012 to 1.2% in 2015. Average CAPEX/Revenue for the last three years was 0.92%.
Return on investment
The company operates at high and attractive ROIC (20.16%) and ROE (22.29%). ROIC showed almost no change in 2015. ROE increased slightly on 1.00 pp from 21.3% to 22.3% in 2015.
Leverage (Debt)
Debt level is -1.4x Net Debt / EBITDA and 1.2x Debt / EBITDA. Net Debt / EBITDA decreased on 0.1x from -1.3x to -1.4x in 2015. Debt surged on 11.4% in 2015 while cash jumped on 17.2% in 2015.
Appendix 1: Peers in Apparel
Below you can find China Lilang Ltd benchmarking vs. other companies in Apparel 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 |
|---|
| Ares Asia Ltd ($645) | | | | 144.2% | 14.7% |
| Texhong Textile Group Ltd ($2678) | | 6.8% | 12.1% | 27.2% | 1.0% |
| Win Hanverky Holdings Ltd ($3322) | 11.5% | -7.5% | -0.3% | 21.1% | |
| Symphony Holdings Ltd/Hong Kong ($1223) | 27.3% | -94.0% | 46.8% | 20.4% | |
| L & A International Holdings Ltd/ Hong Kong ($8387) | 33.1% | 27.9% | 7.9% | 20.4% | |
| |
|---|
| Median (47 companies) | 21.7% | 5.4% | 2.6% | 5.0% | -1.0% |
|---|
| China Lilang Ltd ($1234) | | 3.2% | -17.7% | 5.8% | 10.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prada SpA ($1913) | 67.8% | 71.5% | 72.1% | 73.8% | 71.8% |
| China Outfitters Holdings Ltd ($1146) | 76.1% | 74.9% | 74.3% | 70.0% | |
| C.banner International Holdings Ltd ($1028) | 63.5% | 63.3% | 62.0% | 63.4% | |
| S Culture International Holdings Ltd ($1255) | 62.8% | 64.7% | 63.7% | 62.9% | |
| Crocodile Garments ($122) | 65.5% | 64.7% | 60.7% | 60.4% | 62.1% |
| |
|---|
| Median (46 companies) | 24.0% | 24.4% | 23.0% | 23.4% | 18.0% |
|---|
| China Lilang Ltd ($1234) | 39.0% | 40.2% | 42.6% | 42.6% | 42.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HOSA International Ltd ($2200) | 46.3% | 44.4% | 42.2% | 37.6% | 26.7% |
| Prada SpA ($1913) | 25.9% | 29.6% | 31.7% | 31.7% | 26.8% |
| Cabbeen Fashion Ltd ($2030) | 16.0% | 25.0% | 29.7% | 28.4% | 29.0% |
| Fuguiniao Co Ltd ($1819) | 22.2% | 24.5% | 26.1% | 26.7% | |
| China Outfitters Holdings Ltd ($1146) | 43.9% | 42.0% | 38.2% | 26.5% | |
| |
|---|
| Median (47 companies) | 10.4% | 9.5% | 8.9% | 5.6% | 2.2% |
|---|
| China Lilang Ltd ($1234) | 26.7% | 26.3% | 26.9% | 29.4% | 30.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prada SpA ($1913) | 9.2% | 9.7% | 10.6% | 15.3% | 10.2% |
| Symphony Holdings Ltd/Hong Kong ($1223) | 14.9% | 136.9% | 70.3% | 13.5% | |
| Mascotte Holdings Ltd ($136) | 0.4% | 74.2% | 45.0% | 12.2% | 0.6% |
| Addchance Holdings Ltd ($3344) | 12.2% | 8.6% | 9.3% | 10.9% | |
| Active Group Holdings Ltd ($1096) | 1.3% | 17.4% | 3.5% | 10.7% | |
| |
|---|
| Median (47 companies) | 1.9% | 2.2% | 3.1% | 2.1% | 1.5% |
|---|
| China Lilang Ltd ($1234) | 5.7% | 2.2% | 0.9% | 0.7% | 1.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prada SpA ($1913) | 24.6% | 32.1% | 37.4% | 34.0% | 21.9% |
| Sitoy Group Holdings Ltd ($1023) | 62.1% | 39.3% | 28.7% | 31.8% | 22.0% |
| HOSA International Ltd ($2200) | 44.2% | 34.6% | 32.0% | 28.2% | 16.5% |
| Miko International Holdings Ltd ($1247) | 75.1% | 60.9% | 48.8% | 27.3% | |
| Cabbeen Fashion Ltd ($2030) | 25.7% | 32.3% | 32.9% | 26.5% | 27.0% |
| |
|---|
| Median (47 companies) | 11.5% | 8.6% | 6.7% | 3.2% | 0.9% |
|---|
| China Lilang Ltd ($1234) | 32.6% | 27.3% | 19.1% | 19.7% | 20.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| High Fashion International Ltd ($608) | 4.9x | 16.7x | 27.7x | 11.2x | |
| Citychamp Watch & Jewellery Group Ltd ($256) | -0.9x | 0.6x | 0.4x | 2.6x | |
| S Culture International Holdings Ltd ($1255) | 0.8x | 1.4x | 0.7x | 2.4x | |
| UKF Holdings Ltd ($1468) | 0.9x | 1.2x | -3.2x | 2.4x | 0.4x |
| Texhong Textile Group Ltd ($2678) | 3.9x | 1.4x | 1.3x | 2.3x | 1.4x |
| |
|---|
| Median (33 companies) | -0.7x | -0.3x | -0.7x | -0.1x | -0.1x |
|---|
| China Lilang Ltd ($1234) | -1.7x | -1.1x | -1.4x | -1.3x | -1.4x |
