Xiao Nan Guo Restaurants Holdings Ltd revenue growth accelerated to 31.8% in 2015 vs. 11.4% a year earliner
23/03/2016 • About Xiao Nan Guo Restaurants Holdings Ltd (
$3666) • By InTwits
Xiao Nan Guo Restaurants Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Xiao Nan Guo Restaurants Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -0.9%
- EBITDA Margin is quite volatile: 8.8% in 2015, 9.5% in 2014, 9.1% in 2013, 17.3% in 2012, 18.8% in 2011
- Xiao Nan Guo Restaurants Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 14.6%. At the same time it's a lot of higher than industry average of 5.6%.
- CAPEX is quite volatile: 322 in 2015, 1,379 in 2014, 395 in 2013, 177 in 2012, 60.5 in 2011
- The company has unprofitable business model: ROIC is at -0.9%
- It operates with high leverage: Net Debt/EBITDA is 0.9x while industry average is -0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Xiao Nan Guo Restaurants Holdings Ltd ($3666) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,089 | 1,332 | 1,386 | 1,544 | 2,035 | 31.8% |
| Gross Profit | 727 | 908 | 927 | 1,035 | 1,405 | 35.8% |
| SG&A | | 795 | 943 | 1,060 | 1,440 | 35.9% |
| EBITDA | 204 | 230 | 126 | 146 | 179 | 22.1% |
| Net Income | 107 | 119 | 1 | 1 | -93 | -16,573.9% |
Balance Sheet
|
|---|
| Cash | 180 | 417 | 324 | 269 | 169 | -37.2% |
| Short Term Debt | 130 | 157 | 203 | 236 | 291 | 23.3% |
| Long Term Debt | 38 | 0 | 0 | 0 | 43 | |
Cash flow
|
|---|
| Capex | 248 | 231 | 188 | 174 | 169 | -3.1% |
Ratios
|
|---|
| Revenue growth | 24.8% | 22.4% | 4.0% | 11.4% | 31.8% | |
| EBITDA growth | 26.3% | 12.8% | -45.5% | 16.6% | 22.1% | |
| Gross Margin | 66.8% | 68.1% | 66.9% | 67.0% | 69.1% | 2.0% |
| EBITDA Margin | 18.8% | 17.3% | 9.1% | 9.5% | 8.8% | -0.7% |
| Net Income Margin | 9.8% | 8.9% | 0.1% | 0.0% | -4.6% | -4.6% |
| SG&A, % of revenue | | 59.7% | 68.0% | 68.6% | 70.7% | 2.1% |
| CAPEX, % of revenue | 22.8% | 17.3% | 13.6% | 11.3% | 8.3% | -3.0% |
| ROIC | 40.6% | 19.8% | 1.5% | 1.9% | -0.9% | -2.8% |
| ROE | 45.1% | 20.2% | 0.1% | 0.1% | -12.6% | -12.7% |
| Net Debt/EBITDA | -0.1x | -1.1x | -1.0x | -0.2x | 0.9x | 1.2x |
Revenue and profitability
The company's Revenue jumped on 31.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 57.3 pp from 6.6% to 63.8% in 2015.
Gross Margin increased on 2.0 pp from 67.0% to 69.1% in 2015. SG&A as a % of Revenue increased on 2.1 pp from 68.6% to 70.7% in 2015.
Net Income marign decreased on 4.6 pp from 0.037% to -4.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 8.3%. Xiao Nan Guo Restaurants Holdings Ltd showed decline in CAPEX/Revenue of 9.0 pp from 17.3% in 2012 to 8.3% in 2015. It's average level of CAPEX/Revenue for the last three years was 11.0%.To secure this fast growth the company invested a large share of EBITDA (94.3%) to CAPEX.
Return on investment
The company operates at negative ROIC (-0.88%) and ROE (-12.58%). ROIC decreased on 2.8 pp from 1.9% to -0.88% in 2015. ROE dropped on 12.7 pp from 0.073% to -12.6% in 2015.
Leverage (Debt)
Debt level is 0.9x Net Debt / EBITDA and 1.9x Debt / EBITDA. Net Debt / EBITDA jumped on 1.2x from -0.2x to 0.9x in 2015. Debt jumped on 41.6% in 2015 while cash dropped on 37.2% in 2015.
Appendix 1: Peers in Retail
Below you can find Xiao Nan Guo Restaurants 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) | 29.5% | 10.4% | 6.3% | 3.1% | -0.9% |
|---|
| Xiao Nan Guo Restaurants Holdings Ltd ($3666) | | 22.4% | 4.0% | 11.4% | 31.8% |
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% | 81.6% |
| |
|---|
| Median (101 companies) | 38.8% | 36.7% | 36.4% | 35.3% | 41.8% |
|---|
| Xiao Nan Guo Restaurants Holdings Ltd ($3666) | 66.8% | 68.1% | 66.9% | 67.0% | 69.1% |
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% | 41.4% |
| 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% | 7.4% |
|---|
| Xiao Nan Guo Restaurants Holdings Ltd ($3666) | 18.8% | 17.3% | 9.1% | 9.5% | 8.8% |
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% | 9.3% |
| 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) | 3.8% | 4.0% | 3.6% | 3.4% | 2.7% |
|---|
| Xiao Nan Guo Restaurants Holdings Ltd ($3666) | 22.8% | 17.3% | 13.6% | 11.3% | 8.3% |
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% | 8.4% | 8.4% | 5.8% |
|---|
| Xiao Nan Guo Restaurants Holdings Ltd ($3666) | 40.6% | 19.8% | 1.5% | 1.9% | -0.9% |
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 |
|---|
| Xiao Nan Guo Restaurants Holdings Ltd ($3666) | -0.1x | -1.1x | -1.0x | -0.2x | 0.9x |
