Bonjour Holdings Ltd Net Income jumped on 91.7% in 2015 while Revenue dropped on 18.2%
18/03/2016 • About Bonjour Holdings Ltd (
$653) • By InTwits
Bonjour Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 3.7% in 2015, 10.0% in 2014, 12.1% in 2013, 10.8% in 2012, 12.5% in 2011
- Bonjour Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.9%. At the same time it's in pair with industry average of 6.1%.
- CAPEX is quite volatile: 94.7 in 2015, 570 in 2014, 29.1 in 2013, 55.5 in 2012, 52.2 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.1%
- It operates with high leverage: Net Debt/EBITDA is 3.8x while industry average is -0.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bonjour Holdings Ltd ($653) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,561 | 2,808 | 2,724 | 2,796 | 2,287 | -18.2% |
| Gross Profit | 1,171 | 1,325 | 1,142 | 1,168 | 955 | -18.3% |
| SG&A | | 1,106 | 909 | 986 | 897 | -9.1% |
| EBITDA | 320 | 304 | 328 | 281 | 85 | -69.6% |
| Net Income | 237 | 222 | 273 | 226 | 432 | 91.7% |
Balance Sheet
|
|---|
| Cash | 293 | 279 | 322 | 159 | 97 | -39.1% |
| Short Term Debt | 35 | 40 | 45 | 195 | 176 | -9.9% |
| Long Term Debt | 0 | 2 | 2 | 239 | 248 | 3.7% |
Cash flow
|
|---|
| Capex | 52 | 55 | 29 | 570 | 95 | -83.4% |
Ratios
|
|---|
| Revenue growth | 20.7% | 9.6% | -3.0% | 2.6% | -18.2% | |
| EBITDA growth | 25.6% | -4.9% | 7.9% | -14.4% | -69.6% | |
| Gross Margin | 45.7% | 47.2% | 41.9% | 41.8% | 41.8% | -0.0% |
| EBITDA Margin | 12.5% | 10.8% | 12.1% | 10.0% | 3.7% | -6.3% |
| Net Income Margin | 9.2% | 7.9% | 10.0% | 8.1% | 18.9% | 10.8% |
| SG&A, % of revenue | | 39.4% | 33.4% | 35.3% | 39.2% | 3.9% |
| CAPEX, % of revenue | 2.0% | 2.0% | 1.1% | 20.4% | 4.1% | -16.3% |
| ROIC | 83.7% | 69.1% | 65.5% | 30.9% | 4.1% | -26.9% |
| ROE | 94.4% | 72.5% | 75.4% | 46.2% | 52.2% | 6.0% |
| Net Debt/EBITDA | -0.8x | -0.8x | -0.8x | 1.0x | 3.8x | 2.8x |
Revenue and profitability
Bonjour Holdings Ltd's Revenue dropped on 18.2% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 6.3 pp from 10.0% to 3.7% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased on 3.9 pp from 35.3% to 39.2% in 2015.
Net Income marign surged on 10.8 pp from 8.1% to 18.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Bonjour Holdings Ltd had CAPEX/Revenue of 4.1%. Bonjour Holdings Ltd showed CAPEX/Revenue growth of 2.2 pp from 2.0% in 2012 to 4.1% in 2015. For the last three years the average CAPEX/Revenue was 8.5%.Battling declining revenue Bonjour Holdings Ltd made large investments to CAPEX (111% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at good ROE (52.22%) while ROIC is low (4.05%). ROIC dropped on 26.9 pp from 30.9% to 4.1% in 2015. ROE increased on 6.0 pp from 46.2% to 52.2% in 2015.
Leverage (Debt)
Debt level is 3.8x Net Debt / EBITDA and 5.0x Debt / EBITDA. Net Debt / EBITDA jumped on 2.8x from 1.0x to 3.8x in 2015. Debt decreased on 2.4% in 2015 while cash dropped on 39.1% in 2015.
Appendix 1: Peers in Retail
Below you can find Bonjour 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) | | 23.1% | 15.9% | 36.0% | -21.0% |
| |
|---|
| Median (112 companies) | 25.6% | 10.7% | 6.3% | 3.3% | -0.8% |
|---|
| Bonjour Holdings Ltd ($653) | | 9.6% | -3.0% | 2.6% | -18.2% |
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 (101 companies) | 38.8% | 36.7% | 36.4% | 35.3% | 41.6% |
|---|
| Bonjour Holdings Ltd ($653) | 45.7% | 47.2% | 41.9% | 41.8% | 41.8% |
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 (111 companies) | 13.2% | 9.6% | 7.2% | 8.8% | 8.2% |
|---|
| Bonjour Holdings Ltd ($653) | 12.5% | 10.8% | 12.1% | 10.0% | 3.7% |
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 (112 companies) | 3.9% | 4.0% | 3.6% | 3.4% | 2.7% |
|---|
| Bonjour Holdings Ltd ($653) | 2.0% | 2.0% | 1.1% | 20.4% | 4.1% |
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 (112 companies) | 16.6% | 12.2% | 8.2% | 8.4% | 7.0% |
|---|
| Bonjour Holdings Ltd ($653) | 83.7% | 69.1% | 65.5% | 30.9% | 4.1% |
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 | 2.6x |
| Century Ginwa Retail Holdings Ltd ($162) | 6.5x | 2.0x | 2.5x | 4.8x | 7.3x |
| |
|---|
| Median (87 companies) | -0.8x | -0.5x | -0.8x | -0.2x | -0.5x |
|---|
| Bonjour Holdings Ltd ($653) | -0.8x | -0.8x | -0.8x | 1.0x | 3.8x |
