Fuguiniao Co Ltd Net Income dropped on 13.1% in 2015 and Revenue dropped on 12.5%
17/03/2016 • About Fuguiniao Co Ltd (
$1819) • By InTwits
Fuguiniao Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 27.9% in 2015 vs. 26.7% in 2014 vs. 22.2% in 2011
- Fuguiniao Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has highly profitable business model: ROIC is at 16.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Fuguiniao Co Ltd ($1819) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,652 | 1,932 | 2,294 | 2,323 | 2,032 | -12.5% |
| Gross Profit | 512 | 652 | 886 | 917 | 802 | -12.6% |
| SG&A | 159 | 215 | 311 | 323 | 277 | -14.1% |
| EBITDA | 366 | 474 | 599 | 620 | 566 | -8.8% |
| Net Income | 254 | 324 | 444 | 451 | 392 | -13.1% |
Balance Sheet
|
|---|
| Cash | 475 | 363 | 843 | 402 | 266 | -33.7% |
| Short Term Debt | 794 | 359 | 418 | 565 | 554 | -1.9% |
| Long Term Debt | 0 | 0 | 0 | 0 | 794 | |
Cash flow
|
|---|
| Capex | 17 | 38 | 3 | 4 | 3 | -10.3% |
Ratios
|
|---|
| Revenue growth | 54.3% | 17.0% | 18.7% | 1.3% | -12.5% | |
| EBITDA growth | 88.6% | 29.4% | 26.4% | 3.5% | -8.8% | |
| Gross Margin | 31.0% | 33.8% | 38.6% | 39.5% | 39.5% | -0.0% |
| EBITDA Margin | 22.2% | 24.5% | 26.1% | 26.7% | 27.9% | 1.2% |
| Net Income Margin | 15.4% | 16.7% | 19.3% | 19.4% | 19.3% | -0.1% |
| SG&A, % of revenue | 9.6% | 11.1% | 13.5% | 13.9% | 13.6% | -0.3% |
| CAPEX, % of revenue | 1.0% | 2.0% | 0.1% | 0.2% | 0.2% | 0.0% |
| ROIC | 27.8% | 34.1% | 31.6% | 22.9% | 16.5% | -6.4% |
| ROE | 46.3% | 45.5% | 32.4% | 21.8% | 17.1% | -4.8% |
| Net Debt/EBITDA | 0.9x | -0.0x | -0.7x | 0.3x | 1.9x | 1.6x |
Revenue and profitability
The company's Revenue dropped on 12.5% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.2 pp from 26.7% to 27.9% in 2015.
Gross Margin showed almost no change 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 Fuguiniao Co Ltd had CAPEX/Revenue of 0.16%. CAPEX/Revenue decreased slightly on 1.8 pp from 2.0% in 2012 to 0.16% in 2015. Average CAPEX/Revenue for the last three years was 0.15%.
Return on investment
The company operates at good ROIC (16.52%) and ROE (17.08%). ROIC decreased on 6.4 pp from 22.9% to 16.5% in 2015. ROE decreased on 4.8 pp from 21.8% to 17.1% in 2015.
Leverage (Debt)
Debt level is 1.9x Net Debt / EBITDA and 2.4x Debt / EBITDA. Net Debt / EBITDA surged on 1.6x from 0.3x to 1.9x in 2015. Debt surged on 139% in 2015 while cash dropped on 33.7% in 2015.
Appendix 1: Peers in Apparel
Below you can find Fuguiniao Co 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) | 20.5% | 5.2% | 0.8% | 5.0% | -0.9% |
|---|
| Fuguiniao Co Ltd ($1819) | | 17.0% | 18.7% | 1.3% | -12.5% |
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% | 61.1% |
| S Culture International Holdings Ltd ($1255) | 62.8% | 64.7% | 63.7% | 62.9% | 61.9% |
| Crocodile Garments ($122) | 65.5% | 64.7% | 60.7% | 60.4% | 62.1% |
| |
|---|
| Median (46 companies) | 24.0% | 24.4% | 23.0% | 23.4% | 20.1% |
|---|
| Fuguiniao Co Ltd ($1819) | 31.0% | 33.8% | 38.6% | 39.5% | 39.5% |
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% |
| 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% |
| China Outfitters Holdings Ltd ($1146) | 43.9% | 42.0% | 38.2% | 26.5% | |
| |
|---|
| Median (47 companies) | 10.4% | 9.5% | 8.9% | 5.6% | 5.4% |
|---|
| Fuguiniao Co Ltd ($1819) | 22.2% | 24.5% | 26.1% | 26.7% | 27.9% |
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% | 1.4% |
|---|
| Fuguiniao Co Ltd ($1819) | 1.0% | 2.0% | 0.1% | 0.2% | 0.2% |
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% |
|---|
| Fuguiniao Co Ltd ($1819) | 27.8% | 34.1% | 31.6% | 22.9% | 16.5% |
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 | 158.1x |
| 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) | -0.9x | -0.4x | -0.7x | -0.3x | -0.1x |
|---|
| Fuguiniao Co Ltd ($1819) | 0.9x | -0.0x | -0.7x | 0.3x | 1.9x |
