BaWang International Group Holding Ltd revenue decline decelerated from 38.3% in 2014 to 21.2% in 2015
21/03/2016 • About BaWang International Group Holding Ltd (
$1338) • By InTwits
BaWang International Group Holding Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- BaWang International Group Holding Ltd is a company in decline: 2015 revenue growth was -21.2%, 5 years revenue CAGR was -30.9%
- The company operates at negative EBITDA Margin: -38.8%
- BaWang International Group Holding Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -54.0% for the sames years0
- BaWang International Group Holding Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.5%. At the same time it's a lot of higher than industry average of 8.5%.
- CAPEX is quite volatile: 2.1 in 2015, 6.8 in 2014, 18.8 in 2013, 154 in 2012, 148 in 2011
- The company has unprofitable business model: ROIC is at -63.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
BaWang International Group Holding Ltd ($1338) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 888.9 | 538.4 | 477.7 | 294.6 | 232.2 | -21.2% |
| Gross Profit | 344.8 | 225.8 | 231.6 | 110.2 | 88.3 | -19.9% |
| SG&A | 974.8 | 639.2 | 353.6 | 182.4 | 142.5 | -21.9% |
| EBITDA | -609.8 | -415.7 | -109.3 | -87.3 | -90.0 | 3.1% |
| Net Income | -558.6 | -617.6 | -143.5 | -116.5 | -110.6 | -5.0% |
Balance Sheet
|
|---|
| Cash | 602.7 | 224.6 | 43.3 | 36.9 | 29.6 | -19.8% |
| Short Term Debt | 0.0 | 76.4 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 44.1 | 54.9 | 24.7% |
Cash flow
|
|---|
| Capex | 147.9 | 153.8 | 18.8 | 6.8 | 2.1 | -68.9% |
Ratios
|
|---|
| Revenue growth | -39.7% | -39.4% | -11.3% | -38.3% | -21.2% | |
| EBITDA growth | 394.5% | -31.8% | -73.7% | -20.2% | 3.1% | |
| Gross Margin | 38.8% | 41.9% | 48.5% | 37.4% | 38.0% | 0.6% |
| EBITDA Margin | -68.6% | -77.2% | -22.9% | -29.6% | -38.8% | -9.1% |
| Net Income Margin | -62.8% | -114.7% | -30.0% | -39.5% | -47.6% | -8.1% |
| SG&A, % of revenue | 109.7% | 118.7% | 74.0% | 61.9% | 61.4% | -0.5% |
| CAPEX, % of revenue | 16.6% | 28.6% | 3.9% | 2.3% | 0.9% | -1.4% |
| ROIC | -45.7% | -59.6% | -34.8% | -46.4% | -63.0% | -16.7% |
| ROE | -42.7% | -85.7% | -42.5% | -56.0% | -113.8% | -57.8% |
Revenue and profitability
BaWang International Group Holding Ltd's Revenue dropped on 21.2% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 9.1 pp from -29.6% to -38.8% in 2015.
Gross Margin increased slightly on 0.61 pp from 37.4% to 38.0% in 2015. SG&A as a % of Revenue decreased slightly on 0.53 pp from 61.9% to 61.4% in 2015.
Net Income marign decreased on 8.1 pp from -39.5% to -47.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.91% in 2015. CAPEX/Revenue dropped on 27.7 pp from 28.6% in 2012 to 0.91% in 2015. It's average level of CAPEX/Revenue for the last three years was 2.4%.
Return on investment
The company operates at negative ROIC (-63.01%) and ROE (-113.78%). ROIC dropped on 16.7 pp from -46.4% to -63.0% in 2015. ROE dropped on 57.8 pp from -56.0% to -114% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -13.9x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt surged on 24.7% in 2015 while cash dropped on 19.8% in 2015.
Appendix 1: Peers in Cosmetics/Personal Care
Below we provide BaWang International Group Holding Ltd benchmarking against other companies in Cosmetics/Personal Care 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 |
|---|
| EDS Wellness Holdings Ltd ($8176) | | -98.6% | 1,059.5% | 238.8% | 70.4% |
| Vinda International Holdings Ltd ($3331) | | 26.4% | 12.8% | 17.5% | 21.4% |
| Natural Beauty Bio-Technology Ltd ($157) | 21.8% | -18.2% | -9.1% | 15.1% | |
| L'Occitane International SA ($973) | | 18.3% | 14.2% | 1.1% | 11.7% |
| Ming Fai International Holdings Ltd ($3828) | 35.9% | 14.3% | -0.1% | -3.4% | |
| |
|---|
| Median (7 companies) | 35.9% | 14.3% | 8.9% | 1.1% | 45.9% |
|---|
| BaWang International Group Holding Ltd ($1338) | | -39.4% | -11.3% | -38.3% | -21.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| L'Occitane International SA ($973) | 82.5% | 82.7% | 82.0% | 81.1% | 81.8% |
| Natural Beauty Bio-Technology Ltd ($157) | 79.3% | 78.6% | 75.8% | 76.9% | |
| China Child Care Corp Ltd ($1259) | 42.4% | 45.9% | 47.3% | 47.5% | |
| EDS Wellness Holdings Ltd ($8176) | 23.6% | -72.8% | -43.6% | 39.8% | -1.8% |
| Vinda International Holdings Ltd ($3331) | 27.2% | 30.8% | 29.0% | 30.2% | 30.5% |
| |
|---|
| Median (6 companies) | 34.8% | 38.3% | 38.2% | 43.7% | 30.5% |
|---|
| BaWang International Group Holding Ltd ($1338) | 38.8% | 41.9% | 48.5% | 37.4% | 38.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Natural Beauty Bio-Technology Ltd ($157) | 31.4% | 38.3% | 25.3% | 29.4% | |
| L'Occitane International SA ($973) | 20.9% | 20.7% | 19.3% | 17.4% | 19.6% |
| Vinda International Holdings Ltd ($3331) | 13.9% | 16.1% | 14.2% | 15.3% | 13.7% |
| China Child Care Corp Ltd ($1259) | 18.3% | 19.4% | 18.6% | 14.2% | |
| Ming Fai International Holdings Ltd ($3828) | 8.0% | 8.0% | 7.4% | 8.6% | |
| |
|---|
| Median (7 companies) | 17.1% | 16.1% | 14.2% | 14.2% | 16.7% |
|---|
| BaWang International Group Holding Ltd ($1338) | -68.6% | -77.2% | -22.9% | -29.6% | -38.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| EDS Wellness Holdings Ltd ($8176) | 0.4% | 387.3% | 119.7% | 14.9% | 34.3% |
| Vinda International Holdings Ltd ($3331) | 16.2% | 20.5% | 20.2% | 12.9% | 12.4% |
| China Child Care Corp Ltd ($1259) | 4.6% | 2.7% | 10.1% | 7.8% | |
| L'Occitane International SA ($973) | 4.7% | 6.2% | 7.6% | 5.8% | 4.3% |
| Natural Beauty Bio-Technology Ltd ($157) | 8.6% | 10.1% | 5.1% | 3.7% | |
| |
|---|
| Median (7 companies) | 4.7% | 6.4% | 7.6% | 5.8% | 8.4% |
|---|
| BaWang International Group Holding Ltd ($1338) | 16.6% | 28.6% | 3.9% | 2.3% | 0.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| L'Occitane International SA ($973) | 31.6% | 23.2% | 21.4% | 16.9% | 19.6% |
| Natural Beauty Bio-Technology Ltd ($157) | 20.2% | 19.4% | 9.2% | 13.6% | |
| China Child Care Corp Ltd ($1259) | 38.8% | 27.2% | 23.9% | 13.4% | |
| Vinda International Holdings Ltd ($3331) | 11.4% | 13.8% | 10.4% | 10.0% | 9.0% |
| Ming Fai International Holdings Ltd ($3828) | 6.9% | 7.2% | 4.3% | 5.6% | |
| |
|---|
| Median (7 companies) | 20.2% | 17.7% | 9.2% | 10.0% | 14.3% |
|---|
| BaWang International Group Holding Ltd ($1338) | -45.7% | -59.6% | -34.8% | -46.4% | -63.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vinda International Holdings Ltd ($3331) | 1.9x | 1.4x | 2.1x | 3.1x | 3.3x |
| L'Occitane International SA ($973) | -1.5x | -1.3x | -1.2x | -1.3x | -1.2x |
| Ming Fai International Holdings Ltd ($3828) | -1.2x | -1.5x | -2.5x | -2.1x | |
| Natural Beauty Bio-Technology Ltd ($157) | -3.0x | -2.3x | -4.6x | -3.9x | |
| China Child Care Corp Ltd ($1259) | -3.0x | -2.1x | -2.7x | -4.6x | |
| |
|---|
| Median (5 companies) | -1.5x | -1.7x | -2.5x | -2.1x | -1.2x |
|---|
