Maoye International Holdings Ltd Net Income dropped on 89.8% in 2015 and Revenue decreased on 7.5%
14/03/2016 • About Maoye International Holdings Ltd (
$848) • By InTwits
Maoye International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Maoye International Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 27.4%. At the same time it's a lot of higher than industry average of 6.4%.
- CAPEX is quite volatile: 15.2 in 2015, 12.7 in 2014, 1,187 in 2013, 8.6 in 2012, 0.12 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.0%
- It operates with high leverage: Net Debt/EBITDA is 9.0x while industry average is -0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Maoye International Holdings Ltd ($848) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,357 | 3,543 | 3,805 | 3,550 | 3,284 | -7.5% |
| Gross Profit | 2,022 | 2,098 | 2,380 | 2,184 | 1,923 | -12.0% |
| EBITDA | 1,527 | 1,680 | 1,764 | 2,600 | 1,300 | -50.0% |
| Net Income | 640 | 802 | 802 | 1,365 | 139 | -89.8% |
Balance Sheet
|
|---|
| Cash | 1,426 | 1,483 | 978 | 662 | 1,249 | 88.6% |
| Short Term Debt | 1,486 | 3,951 | 1,764 | 1,825 | 7,793 | 327.0% |
| Long Term Debt | 2,487 | 2,370 | 5,007 | 7,649 | 5,123 | -33.0% |
Cash flow
|
|---|
| Capex | 1,039 | 1,162 | 915 | 1,118 | 583 | -47.9% |
Ratios
|
|---|
| Revenue growth | 52.8% | 5.5% | 7.4% | -6.7% | -7.5% | |
| EBITDA growth | 36.5% | 10.1% | 5.0% | 47.4% | -50.0% | |
| Gross Margin | 60.2% | 59.2% | 62.5% | 61.5% | 58.5% | -3.0% |
| EBITDA Margin | 45.5% | 47.4% | 46.3% | 73.2% | 39.6% | -33.7% |
| Net Income Margin | 19.1% | 22.6% | 21.1% | 38.4% | 4.2% | -34.2% |
| CAPEX, % of revenue | 30.9% | 32.8% | 24.1% | 31.5% | 17.7% | -13.7% |
| ROIC | 12.0% | 10.6% | 9.9% | 13.5% | 4.0% | -9.5% |
| ROE | 13.7% | 14.4% | 13.9% | 21.0% | 1.9% | -19.1% |
| Net Debt/EBITDA | 1.7x | 2.9x | 3.3x | 3.4x | 9.0x | 5.6x |
Revenue and profitability
The company's Revenue decreased on 7.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.7 pp from -38.7% to -34.9% in 2015.
Gross Margin decreased on 3.0 pp from 61.5% to 58.5% in 2015.
Net Income marign dropped on 34.2 pp from 38.4% to 4.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Maoye International Holdings Ltd had CAPEX/Revenue of 17.7%. The company's CAPEX/Revenue dropped on 15.1 pp from 32.8% in 2012 to 17.7% in 2015. It's average CAPEX/Revenue for the last three years was 24.4%.
Return on investment
The company operates at low ROIC (4.01%) and ROE (1.91%). ROIC decreased on 9.5 pp from 13.5% to 4.0% in 2015. ROE dropped on 19.1 pp from 21.0% to 1.9% in 2015.
Leverage (Debt)
Debt level is 9.0x Net Debt / EBITDA and 9.9x Debt / EBITDA. Net Debt / EBITDA jumped on 5.6x from 3.4x to 9.0x in 2015. Debt jumped on 36.3% in 2015 while cash jumped on 88.6% in 2015.
Appendix 1: Peers in Retail
Below we provide Maoye 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 (111 companies) | 23.5% | 10.5% | 6.0% | 3.1% | -1.8% |
|---|
| Maoye International Holdings Ltd ($848) | | 5.5% | 7.4% | -6.7% | -7.5% |
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 (100 companies) | 39.4% | 37.2% | 36.4% | 35.5% | 46.0% |
|---|
| Maoye International Holdings Ltd ($848) | 60.2% | 59.2% | 62.5% | 61.5% | 58.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | |
| Intime Retail Group Co Ltd ($1833) | 36.0% | 36.7% | 55.4% | 36.2% | |
| |
|---|
| Median (110 companies) | 13.1% | 9.7% | 7.1% | 8.3% | 7.7% |
|---|
| Maoye International Holdings Ltd ($848) | 45.5% | 47.4% | 46.3% | 73.2% | 39.6% |
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% | 24.9% |
| Sage International Group Ltd ($8082) | 20.4% | 236.6% | 28.2% | 35.4% | |
| Tsui Wah Holdings Ltd ($1314) | 5.2% | 8.3% | 9.3% | 30.5% | 10.6% |
| Energy International Investments Holdings Ltd ($353) | 53.5% | 33.6% | 19.0% | 27.3% | |
| |
|---|
| Median (111 companies) | 3.9% | 4.0% | 3.6% | 3.5% | 2.7% |
|---|
| Maoye International Holdings Ltd ($848) | 30.9% | 32.8% | 24.1% | 31.5% | 17.7% |
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 (111 companies) | 17.2% | 12.3% | 8.2% | 8.4% | 6.0% |
|---|
| Maoye International Holdings Ltd ($848) | 12.0% | 10.6% | 9.9% | 13.5% | 4.0% |
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 | 7.3x |
| |
|---|
| Median (86 companies) | -0.8x | -0.6x | -0.9x | -0.2x | -0.5x |
|---|
| Maoye International Holdings Ltd ($848) | 1.7x | 2.9x | 3.3x | 3.4x | 9.0x |
