Intime Retail Group Co Ltd CAPEX dropped on 47.8% in 2015 while Revenue increased on 9.6%
21/03/2016 • About Intime Retail Group Co Ltd (
$1833) • By InTwits
Intime Retail Group Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Intime Retail Group Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 39.3%. At the same time it's a lot of higher than industry average of 6.0%.
- CAPEX is quite volatile: 1,014 in 2015, 1,941 in 2014, 2,499 in 2013, 1,106 in 2012, 1,822 in 2011
- The company has business model with low profitability: ROIC is at 8.2%
- It operates with high leverage: Net Debt/EBITDA is 2.1x while industry average is -0.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Intime Retail Group Co Ltd ($1833) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,117 | 3,907 | 4,510 | 5,251 | 5,755 | 9.6% |
| EBITDA | 1,121 | 1,436 | 2,501 | 1,900 | 2,057 | 8.2% |
| Net Income | 821 | 973 | 1,595 | 1,121 | 1,317 | 17.5% |
Balance Sheet
|
|---|
| Cash | 1,779 | 2,117 | 1,739 | 2,129 | 1,581 | -25.8% |
| Short Term Debt | 282 | 2,796 | 2,708 | 1,121 | 2,565 | 128.8% |
| Long Term Debt | 3,789 | 2,009 | 3,045 | 5,055 | 3,415 | -32.4% |
Cash flow
|
|---|
| Capex | 1,822 | 1,106 | 2,499 | 1,941 | 1,014 | -47.8% |
Ratios
|
|---|
| Revenue growth | 36.2% | 25.3% | 15.4% | 16.4% | 9.6% | |
| EBITDA growth | 5.0% | 28.1% | 74.2% | -24.0% | 8.2% | |
| EBITDA Margin | 36.0% | 36.7% | 55.4% | 36.2% | 35.7% | -0.5% |
| Net Income Margin | 26.4% | 24.9% | 35.4% | 21.4% | 22.9% | 1.5% |
| CAPEX, % of revenue | 58.4% | 28.3% | 55.4% | 37.0% | 17.6% | -19.3% |
| ROIC | 8.5% | 8.3% | 13.5% | 8.1% | 8.2% | 0.1% |
| ROE | 13.8% | 14.1% | 19.8% | 11.5% | 12.1% | 0.7% |
| Net Debt/EBITDA | 2.0x | 1.9x | 1.6x | 2.1x | 2.1x | 0.0x |
Revenue and profitability
Intime Retail Group Co Ltd's Revenue increased on 9.6% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.2 pp from 9.1% to 10.3% in 2015.
Net Income marign increased slightly on 1.5 pp from 21.4% to 22.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 17.6% in 2015. The company showed big decline in CAPEX/Revenue of 10.7 pp from 28.3% in 2012 to 17.6% in 2015. It's average CAPEX/Revenue for the last three years was 36.7%.
Return on investment
The company operates at good ROE (12.12%) while ROIC is low (8.24%). ROIC showed almost no change in 2015. ROE increased slightly on 0.65 pp from 11.5% to 12.1% in 2015.
Leverage (Debt)
Debt level is 2.1x Net Debt / EBITDA and 2.9x Debt / EBITDA. Net Debt / EBITDA increased slightly on 0.0094x from 2.1x to 2.1x in 2015. Debt decreased on 3.2% in 2015 while cash dropped on 25.8% in 2015.
Management team
The company's CEO Chen Xiaodong has spent 9 years at the company. Intime Retail Group Co Ltd's CFO is Gary Wang. Gary Wang has 4 years tenure at the company.
Appendix 1: Peers in Retail
Below you can find Intime Retail Group 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) | 25.2% | 10.4% | 6.0% | 3.1% | -1.0% |
|---|
| Intime Retail Group Co Ltd ($1833) | | 25.3% | 15.4% | 16.4% | 9.6% |
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 (102 companies) | 39.4% | 37.2% | 36.4% | 35.5% | 40.9% |
|---|
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) | 13.0% | 9.6% | 7.2% | 8.8% | 7.1% |
|---|
| Intime Retail Group Co Ltd ($1833) | 36.0% | 36.7% | 55.4% | 36.2% | 35.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% |
| Energy International Investments Holdings Ltd ($353) | 53.5% | 33.6% | 19.0% | 27.3% | |
| |
|---|
| Median (112 companies) | 3.8% | 4.0% | 3.6% | 3.4% | 2.9% |
|---|
| Intime Retail Group Co Ltd ($1833) | 58.4% | 28.3% | 55.4% | 37.0% | 17.6% |
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% | 8.2% | 8.4% | 6.2% |
|---|
| Intime Retail Group Co Ltd ($1833) | 8.5% | 8.3% | 13.5% | 8.1% | 8.2% |
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 (87 companies) | -0.8x | -0.5x | -0.8x | -0.2x | -0.5x |
|---|
| Intime Retail Group Co Ltd ($1833) | 2.0x | 1.9x | 1.6x | 2.1x | 2.1x |
