Larry Jewelry International Co Ltd revenue dropped on 27.5% in 2015 and EBITDA Margin increased slightly on 0.58 pp from -15.6% to -15.1%
20/03/2016 • About Larry Jewelry International Co Ltd (
$8351) • By InTwits
Larry Jewelry International Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Larry Jewelry International Co Ltd doesn't have a profitable business model yet: 2015 ROIC is -9.6%
- The company operates at negative EBITDA Margin: -15.1%
- Larry Jewelry International Co Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -12.2% for the sames years0
- Larry Jewelry International Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's in pair with industry average of 17.7%.
- CAPEX is quite volatile: 5.8 in 2015, 5.2 in 2014, 4.2 in 2013, 4.6 in 2012, 1.3 in 2011
- The company has unprofitable business model: ROIC is at -9.6%
- It operates with high leverage: Net Debt/EBITDA is 1.3x 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.
Larry Jewelry International Co Ltd ($8351) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 48.7 | 351.2 | 298.3 | 264.4 | 191.8 | -27.5% |
| Gross Profit | 13.3 | 95.6 | 85.6 | 60.2 | 46.0 | -23.5% |
| SG&A | | 141.8 | 122.6 | 110.8 | 79.7 | -28.1% |
| EBITDA | -17.9 | -21.5 | -31.1 | -41.4 | -28.9 | -30.2% |
| Net Income | -19.4 | -67.9 | -103.3 | -74.1 | -50.5 | -31.9% |
Balance Sheet
|
|---|
| Cash | 64.7 | 15.1 | 13.6 | 86.2 | 37.1 | -56.9% |
| Short Term Debt | 0.0 | 107.7 | 157.8 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 65.5 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 1.3 | 4.6 | 4.2 | 5.2 | 5.8 | 12.6% |
Ratios
|
|---|
| Revenue growth | 3.0% | 621.9% | -15.1% | -11.3% | -27.5% | |
| EBITDA growth | -275.0% | 19.9% | 44.4% | 33.2% | -30.2% | |
| Gross Margin | 27.4% | 27.2% | 28.7% | 22.8% | 24.0% | 1.2% |
| EBITDA Margin | -36.9% | -6.1% | -10.4% | -15.6% | -15.1% | 0.6% |
| Net Income Margin | -39.8% | -19.3% | -34.6% | -28.0% | -26.3% | 1.7% |
| SG&A, % of revenue | | 40.4% | 41.1% | 41.9% | 41.6% | -0.3% |
| CAPEX, % of revenue | 2.7% | 1.3% | 1.4% | 2.0% | 3.0% | 1.1% |
| ROIC | -22.0% | -9.1% | -8.3% | -12.1% | -9.6% | 2.5% |
| ROE | -23.3% | -35.7% | -42.0% | -25.5% | -15.5% | 10.0% |
Revenue and profitability
Larry Jewelry International Co Ltd's Revenue dropped on 27.5% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.58 pp from -15.6% to -15.1% in 2015.
Gross Margin increased slightly on 1.2 pp from 22.8% to 24.0% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 1.7 pp from -28.0% to -26.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
Larry Jewelry International Co Ltd's CAPEX/Revenue was 3.0% in 2015. Larry Jewelry International Co Ltd's CAPEX/Revenue increased slightly on 1.7 pp from 1.3% in 2012 to 3.0% in 2015. It's average CAPEX/Revenue for the last three years was 2.1%.
Return on investment
The company operates at negative ROIC (-9.62%) and ROE (-15.49%). ROIC increased on 2.5 pp from -12.1% to -9.6% in 2015. ROE increased on 10.0 pp from -25.5% to -15.5% in 2015.
Leverage (Debt)
The company has no debt. Cash dropped on 56.9% in 2015.
Appendix 1: Peers in Retail
Below you can find Larry Jewelry International Co 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% | 10.4% | 6.3% | 3.3% | -0.8% |
|---|
| Larry Jewelry International Co Ltd ($8351) | | 621.9% | -15.1% | -11.3% | -27.5% |
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 (101 companies) | 40.0% | 37.7% | 38.0% | 35.6% | 41.3% |
|---|
| Larry Jewelry International Co Ltd ($8351) | 27.4% | 27.2% | 28.7% | 22.8% | 24.0% |
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% | 9.9% | 7.3% | 8.8% | 7.7% |
|---|
| Larry Jewelry International Co Ltd ($8351) | -36.9% | -6.1% | -10.4% | -15.6% | -15.1% |
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% | 3.5% | 2.7% |
|---|
| Larry Jewelry International Co Ltd ($8351) | 2.7% | 1.3% | 1.4% | 2.0% | 3.0% |
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) | 17.2% | 12.3% | 8.4% | 8.4% | 7.0% |
|---|
| Larry Jewelry International Co Ltd ($8351) | -22.0% | -9.1% | -8.3% | -12.1% | -9.6% |
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 | 3.4x |
| 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 (88 companies) | -0.8x | -0.5x | -0.8x | -0.2x | -0.5x |
|---|
