XTEP International Holdings Ltd reports 30.3% Net Income growth and 10.8% Revenue growth
15/03/2016 • About XTEP International Holdings Ltd (
$1368) • By InTwits
XTEP International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- XTEP International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.0%. At the same time it's in pair with industry average of 6.2%.
- CAPEX is quite volatile: 78.5 in 2015, 106 in 2014, 201 in 2013, 165 in 2012, 214 in 2011
- The company has business model with average profitability: ROIC is at 12.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
XTEP International Holdings Ltd ($1368) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,540 | 5,550 | 4,343 | 4,778 | 5,295 | 10.8% |
| Gross Profit | 2,258 | 2,258 | 1,748 | 1,947 | 2,237 | 14.9% |
| SG&A | 957 | 1,021 | 848 | 1,052 | 1,308 | 24.3% |
| EBITDA | 1,248 | 1,133 | 844 | 739 | 892 | 20.7% |
| Net Income | 966 | 810 | 606 | 478 | 623 | 30.3% |
Balance Sheet
|
|---|
| Cash | 2,068 | 3,123 | 3,563 | 3,137 | 3,607 | 15.0% |
| Short Term Debt | 565 | 511 | 1,354 | 1,232 | 1,489 | 20.9% |
| Long Term Debt | 0 | 535 | 175 | 617 | 121 | -80.4% |
Cash flow
|
|---|
| Capex | 214 | 165 | 201 | 106 | 79 | -26.2% |
Ratios
|
|---|
| Revenue growth | 24.3% | 0.2% | -21.7% | 10.0% | 10.8% | |
| EBITDA growth | 24.8% | -9.2% | -25.5% | -12.5% | 20.7% | |
| Gross Margin | 40.8% | 40.7% | 40.2% | 40.8% | 42.2% | 1.5% |
| EBITDA Margin | 22.5% | 20.4% | 19.4% | 15.5% | 16.8% | 1.4% |
| Net Income Margin | 17.4% | 14.6% | 14.0% | 10.0% | 11.8% | 1.8% |
| SG&A, % of revenue | 17.3% | 18.4% | 19.5% | 22.0% | 24.7% | 2.7% |
| CAPEX, % of revenue | 3.9% | 3.0% | 4.6% | 2.2% | 1.5% | -0.7% |
| ROIC | 29.7% | 21.0% | 13.2% | 10.3% | 12.0% | 1.6% |
| ROE | 26.6% | 19.8% | 13.8% | 10.4% | 13.0% | 2.7% |
| Net Debt/EBITDA | -1.2x | -1.8x | -2.4x | -1.7x | -2.2x | -0.5x |
Revenue and profitability
XTEP International Holdings Ltd's Revenue jumped on 10.8% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.4 pp from 15.5% to 16.8% in 2015.
Gross Margin increased slightly on 1.5 pp from 40.8% to 42.2% in 2015. SG&A as a % of Revenue increased on 2.7 pp from 22.0% to 24.7% in 2015.
Net Income marign increased slightly on 1.8 pp from 10.0% to 11.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
XTEP International Holdings Ltd's CAPEX/Revenue was 1.5% in 2015. The company showed small CAPEX/Revenue decline of 1.5 pp from 3.0% in 2012 to 1.5% in 2015. Average CAPEX/Revenue for the last three years was 2.8%.
Return on investment
The company operates at good ROE (13.04%) while ROIC is low (11.98%). ROIC increased slightly on 1.6 pp from 10.3% to 12.0% in 2015. ROE increased on 2.7 pp from 10.4% to 13.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.2x and Debt / EBITDA is 1.8x. Net Debt / EBITDA dropped on 0.5x from -1.7x to -2.2x in 2015. Debt dropped on 12.9% in 2015 while cash jumped on 15.0% in 2015.
Appendix 1: Peers in Retail
Below you can find XTEP International Holdings Ltd benchmarking vs. other companies in Retail 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 |
|---|
| 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) | 23.9% | 10.5% | 6.1% | 3.1% | -1.0% |
|---|
| XTEP International Holdings Ltd ($1368) | | 0.2% | -21.7% | 10.0% | 10.8% |
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% |
|---|
| XTEP International Holdings Ltd ($1368) | 40.8% | 40.7% | 40.2% | 40.8% | 42.2% |
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% | 39.6% |
| 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) | 13.1% | 9.7% | 7.1% | 8.3% | 8.1% |
|---|
| XTEP International Holdings Ltd ($1368) | 22.5% | 20.4% | 19.4% | 15.5% | 16.8% |
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% | |
| Maoye International Holdings Ltd ($848) | 30.9% | 32.8% | 24.1% | 31.5% | 17.7% |
| Tsui Wah Holdings Ltd ($1314) | 5.2% | 8.3% | 9.3% | 30.5% | 10.6% |
| |
|---|
| Median (111 companies) | 3.9% | 4.0% | 3.6% | 3.6% | 2.7% |
|---|
| XTEP International Holdings Ltd ($1368) | 3.9% | 3.0% | 4.6% | 2.2% | 1.5% |
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) | 16.6% | 12.0% | 8.2% | 8.4% | 6.2% |
|---|
| XTEP International Holdings Ltd ($1368) | 29.7% | 21.0% | 13.2% | 10.3% | 12.0% |
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 | -0.5x | -0.8x | -0.2x | -0.5x |
|---|
| XTEP International Holdings Ltd ($1368) | -1.2x | -1.8x | -2.4x | -1.7x | -2.2x |
