C.banner International Holdings Ltd revenue growth decelerated from 16.1% in 2014 to 8.0% in 2015
15/03/2016 • About C.banner International Holdings Ltd (
$1028) • By InTwits
C.banner International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- C.banner International Holdings Ltd is a growth stock: 2015 revenue growth was 8.0%, 5 year revenue CAGR was 14.1% at 2015 ROIC 14.7%
- C.banner International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's in pair with industry average of 3.8%.
- CAPEX is quite volatile: 36.8 in 2015, 47.4 in 2014, 92.6 in 2013, 29.6 in 2012, 39.4 in 2011
- The company has highly profitable business model: ROIC is at 14.7%
- It operates with high leverage: Net Debt/EBITDA is 1.2x while industry average is -0.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
C.banner International Holdings Ltd ($1028) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,044 | 2,432 | 2,430 | 2,821 | 3,046 | 8.0% |
| Gross Profit | 1,298 | 1,539 | 1,508 | 1,788 | 1,862 | 4.2% |
| SG&A | | 111 | 90 | 84 | 104 | 23.7% |
| EBITDA | 421 | 440 | 349 | 370 | 391 | 5.7% |
| Net Income | 290 | 314 | 231 | 242 | 257 | 6.3% |
Balance Sheet
|
|---|
| Cash | 504 | 777 | 599 | 350 | 385 | 10.0% |
| Short Term Debt | 15 | 14 | 0 | 150 | 100 | -33.1% |
| Long Term Debt | 0 | 133 | 147 | 163 | 747 | 358.6% |
Cash flow
|
|---|
| Capex | 39 | 30 | 93 | 47 | 37 | -22.4% |
Ratios
|
|---|
| Revenue growth | 29.8% | 19.0% | -0.1% | 16.1% | 8.0% | |
| EBITDA growth | 65.4% | 4.3% | -20.7% | 6.2% | 5.7% | |
| Gross Margin | 63.5% | 63.3% | 62.0% | 63.4% | 61.1% | -2.2% |
| EBITDA Margin | 20.6% | 18.1% | 14.3% | 13.1% | 12.8% | -0.3% |
| Net Income Margin | 14.2% | 12.9% | 9.5% | 8.6% | 8.5% | -0.1% |
| SG&A, % of revenue | | 4.6% | 3.7% | 3.0% | 3.4% | 0.4% |
| CAPEX, % of revenue | 1.9% | 1.2% | 3.8% | 1.7% | 1.2% | -0.5% |
| ROIC | 37.1% | 24.8% | 16.6% | 17.3% | 14.7% | -2.6% |
| ROE | 28.4% | 20.5% | 13.4% | 14.8% | 15.4% | 0.7% |
| Net Debt/EBITDA | -1.2x | -1.4x | -1.3x | -0.1x | 1.2x | 1.3x |
Revenue and profitability
The company's Revenue increased on 8.0% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.1 pp from 2.1% to 1.0% in FY2015.
Gross Margin decreased on 2.2 pp from 63.4% to 61.1% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.2%. C.banner International Holdings Ltd showed almost no change in CAPEX/Revenue from 2012 to 2015. Average CAPEX/Revenue for the last three years was 2.2%.
Return on investment
The company operates at good ROIC (14.67%) and ROE (15.42%). ROIC decreased on 2.6 pp from 17.3% to 14.7% in 2015. ROE increased slightly on 0.65 pp from 14.8% to 15.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.2x and Debt / EBITDA is 2.2x. Net Debt / EBITDA jumped on 1.3x from -0.1x to 1.2x in 2015. Debt surged on 171% in 2015 while cash surged on 10.0% in 2015.
Appendix 1: Peers in Apparel
Below we provide C.banner International Holdings Ltd benchmarking against other companies in Apparel 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 |
|---|
| 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% | 5.2% | 2.6% | 5.0% | -0.9% |
|---|
| C.banner International Holdings Ltd ($1028) | | 19.0% | -0.1% | 16.1% | 8.0% |
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% | |
| 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% |
| Symphony Holdings Ltd/Hong Kong ($1223) | 15.4% | 38.5% | 42.3% | 59.6% | |
| |
|---|
| Median (46 companies) | 24.0% | 24.4% | 23.0% | 23.4% | 18.7% |
|---|
| C.banner International Holdings Ltd ($1028) | 63.5% | 63.3% | 62.0% | 63.4% | 61.1% |
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% |
| China Lilang Ltd ($1234) | 26.7% | 26.3% | 26.9% | 29.4% | 30.6% |
| 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% | |
| |
|---|
| Median (47 companies) | 10.4% | 9.5% | 8.9% | 5.6% | 5.4% |
|---|
| C.banner International Holdings Ltd ($1028) | 20.6% | 18.1% | 14.3% | 13.1% | 12.8% |
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% | 3.0% | 2.1% | 1.4% |
|---|
| C.banner International Holdings Ltd ($1028) | 1.9% | 1.2% | 3.8% | 1.7% | 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% | 5.4% |
|---|
| C.banner International Holdings Ltd ($1028) | 37.1% | 24.8% | 16.6% | 17.3% | 14.7% |
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 | -0.3x | -0.8x |
|---|
| C.banner International Holdings Ltd ($1028) | -1.2x | -1.4x | -1.3x | -0.1x | 1.2x |
