China Dongxiang Group Co Ltd EBITDA dropped on 17.2% in 2015 while Revenue surged on 16.4%
22/03/2016 • About China Dongxiang Group Co Ltd (
$3818) • By InTwits
China Dongxiang Group Co 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: 41.4% in 2015, 58.3% in 2014, 5.6% in 2013, 6.0% in 2012, 5.6% in 2011
- China Dongxiang Group Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has potentially unprofitable business model: ROIC is at 5.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Dongxiang Group Co Ltd ($3818) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,742 | 1,772 | 1,414 | 1,262 | 1,469 | 16.4% |
| Gross Profit | 1,291 | 897 | 711 | 682 | 815 | 19.6% |
| SG&A | 1,016 | 762 | 626 | 578 | 556 | -3.8% |
| EBITDA | 154 | 106 | 79 | 735 | 609 | -17.2% |
| Net Income | 102 | 177 | 210 | 915 | 803 | -12.3% |
Balance Sheet
|
|---|
| Cash | 723 | 341 | 281 | 1,673 | 842 | -49.7% |
| Short Term Debt | 0 | 0 | 0 | 0 | 455 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 14 | 8 | 8 | 4 | 14 | 254.2% |
Ratios
|
|---|
| Revenue growth | -35.7% | -35.4% | -20.2% | -10.7% | 16.4% | |
| EBITDA growth | -91.6% | -30.9% | -25.6% | 831.7% | -17.2% | |
| Gross Margin | 47.1% | 50.6% | 50.3% | 54.0% | 55.5% | 1.5% |
| EBITDA Margin | 5.6% | 6.0% | 5.6% | 58.3% | 41.4% | -16.8% |
| Net Income Margin | 3.7% | 10.0% | 14.9% | 72.5% | 54.7% | -17.9% |
| SG&A, % of revenue | 37.0% | 43.0% | 44.3% | 45.8% | 37.9% | -7.9% |
| CAPEX, % of revenue | 0.5% | 0.5% | 0.6% | 0.3% | 1.0% | 0.6% |
| ROIC | 1.4% | 1.0% | 0.6% | 7.4% | 5.6% | -1.7% |
| ROE | 1.4% | 2.6% | 2.7% | 9.7% | 8.1% | -1.6% |
| Net Debt/EBITDA | -4.7x | -3.2x | -3.6x | -2.3x | -0.6x | 1.6x |
Revenue and profitability
China Dongxiang Group Co Ltd's Revenue surged on 16.4% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 11.9 pp from -16.5% to -4.7% in 2015.
Gross Margin increased slightly on 1.5 pp from 54.0% to 55.5% in 2015. SG&A as a % of Revenue decreased on 7.9 pp from 45.8% to 37.9% in 2015.
Net Income marign dropped on 17.9 pp from 72.5% to 54.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.96%. China Dongxiang Group Co Ltd's CAPEX/Revenue showed almost no change from 2012 to 2015. Average CAPEX/Revenue for the last three years was 0.62%.
Return on investment
The company operates at low ROIC (5.65%) and ROE (8.08%). ROIC decreased slightly on 1.7 pp from 7.4% to 5.6% in 2015. ROE decreased slightly on 1.6 pp from 9.7% to 8.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.6x and Debt / EBITDA is 0.7x. Net Debt / EBITDA jumped on 1.6x from -2.3x to -0.6x in 2015. Debt jumped while cash dropped on 49.7% in 2015.
Management team
Chen Yihong is a China Dongxiang Group Co Ltd's CEO. Chen Yihong has spent 7 years at the company.
Appendix 1: Peers in Retail
Below we provide China Dongxiang Group Co Ltd benchmarking against other companies in Retail 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 |
|---|
| 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% | -0.9% |
|---|
| China Dongxiang Group Co Ltd ($3818) | | -35.4% | -20.2% | -10.7% | 16.4% |
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% | 39.9% |
|---|
| China Dongxiang Group Co Ltd ($3818) | 47.1% | 50.6% | 50.3% | 54.0% | 55.5% |
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% |
| 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% | |
| Intime Retail Group Co Ltd ($1833) | 36.0% | 36.7% | 55.4% | 36.2% | 35.7% |
| |
|---|
| Median (111 companies) | 13.2% | 9.9% | 7.3% | 8.8% | 7.6% |
|---|
| China Dongxiang Group Co Ltd ($3818) | 5.6% | 6.0% | 5.6% | 58.3% | 41.4% |
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% | 17.6% |
| 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% | 2.8% |
|---|
| China Dongxiang Group Co Ltd ($3818) | 0.5% | 0.5% | 0.6% | 0.3% | 1.0% |
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% |
|---|
| China Dongxiang Group Co Ltd ($3818) | 1.4% | 1.0% | 0.6% | 7.4% | 5.6% |
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 (87 companies) | -0.8x | -0.5x | -0.8x | -0.2x | -0.5x |
|---|
| China Dongxiang Group Co Ltd ($3818) | -4.7x | -3.2x | -3.6x | -2.3x | -0.6x |
