Labixiaoxin Snacks Group Ltd CAPEX surged on 103% in 2015 while Revenue decreased on 7.2%
24/03/2016 • About Labixiaoxin Snacks Group Ltd (
$1262) • By InTwits
Labixiaoxin Snacks Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Labixiaoxin Snacks Group Ltd doesn't have a profitable business model yet: 2015 ROIC is 0.2%
- EBITDA Margin is quite volatile: 12.3% in 2015, 12.9% in 2014, 28.4% in 2013, 27.9% in 2012, 26.3% in 2011
- Labixiaoxin Snacks Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 18.6%. At the same time it's a lot of higher than industry average of 14.3%.
- CAPEX is quite volatile: 274 in FY2015, 296 in FY2014, 553 in FY2013, 113 in FY2012, 31.2 in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.2%
- It operates with high leverage: Net Debt/EBITDA is 1.0x while industry average is -2.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Labixiaoxin Snacks Group Ltd ($1262) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,280 | 1,546 | 1,834 | 1,129 | 1,047 | -7.2% |
| Gross Profit | 512 | 633 | 752 | 381 | 305 | -20.0% |
| SG&A | | 274 | 321 | 363 | 317 | -12.8% |
| EBITDA | 337 | 431 | 520 | 145 | 129 | -11.4% |
| Net Income | 222 | 278 | 326 | 11 | -338 | -3,143.2% |
Balance Sheet
|
|---|
| Cash | 522 | 406 | 792 | 412 | 144 | -64.9% |
| Short Term Debt | 208 | 108 | 91 | 115 | 276 | 139.4% |
| Long Term Debt | 0 | 0 | 387 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 294 | 206 | 189 | 165 | 335 | 103.4% |
Ratios
|
|---|
| Revenue growth | 37.4% | 20.8% | 18.6% | -38.4% | -7.2% | |
| EBITDA growth | 64.0% | 28.1% | 20.6% | -72.0% | -11.4% | |
| Gross Margin | 40.0% | 41.0% | 41.0% | 33.7% | 29.1% | -4.6% |
| EBITDA Margin | 26.3% | 27.9% | 28.4% | 12.9% | 12.3% | -0.6% |
| Net Income Margin | 17.3% | 18.0% | 17.8% | 1.0% | -32.3% | -33.3% |
| SG&A, % of revenue | | 17.7% | 17.5% | 32.2% | 30.3% | -1.9% |
| CAPEX, % of revenue | 23.0% | 13.3% | 10.3% | 14.6% | 32.0% | 17.4% |
| ROIC | 23.2% | 21.3% | 20.8% | 1.7% | 0.2% | -1.5% |
| ROE | 21.2% | 18.0% | 18.2% | 0.6% | -19.0% | -19.6% |
| Net Debt/EBITDA | -0.9x | -0.7x | -0.6x | -2.0x | 1.0x | 3.1x |
Revenue and profitability
Labixiaoxin Snacks Group Ltd's Revenue decreased on 7.2% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.6 pp from 10.2% to 11.8% in 2015.
Gross Margin decreased on 4.6 pp from 33.7% to 29.1% in 2015. SG&A as a % of Revenue decreased slightly on 1.9 pp from 32.2% to 30.3% in 2015.
Net Income marign dropped on 33.3 pp from 0.98% to -32.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 32.0% in 2015. CAPEX/Revenue jumped on 18.7 pp from 13.3% in 2012 to 32.0% in 2015. It's average level of CAPEX/Revenue for the last three years was 19.0%.Labixiaoxin Snacks Group Ltd has spent a lot to CAPEX (260% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at low but positive ROIC (0.18%) and negative ROE (-18.99%). ROIC decreased slightly on 1.5 pp from 1.7% to 0.18% in 2015. ROE dropped on 19.6 pp from 0.57% to -19.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.0x and Debt / EBITDA is 2.1x. Net Debt / EBITDA jumped on 3.1x from -2.0x to 1.0x in 2015. Debt surged on 139% in 2015 while cash dropped on 64.9% in 2015.
Appendix 1: Peers in Food
Below we provide Labixiaoxin Snacks Group Ltd benchmarking against other companies in Food 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 |
|---|
| Wealth Glory Holdings Ltd ($8269) | | -16.5% | -53.8% | 555.7% | -12.4% |
| Natural Dairy NZ Holdings Ltd ($462) | | -47.2% | 19.1% | 76.6% | -54.8% |
| China Modern Dairy Holdings Ltd ($1117) | | 50.7% | 96.1% | 52.8% | -4.0% |
| China Huishan Dairy Holdings Co Ltd ($6863) | | 256.3% | 91.5% | 38.3% | 11.1% |
| Asia Cassava Resources Holdings Ltd ($841) | | -3.0% | 99.6% | 32.6% | -28.4% |
| |
|---|
| Median (38 companies) | 19.9% | 9.6% | 6.0% | 3.7% | -2.9% |
|---|
| Labixiaoxin Snacks Group Ltd ($1262) | | 20.8% | 18.6% | -38.4% | -7.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hung Fook Tong Group Holdings Ltd ($1446) | 57.0% | 60.7% | 60.0% | 58.7% | 60.7% |
| Honworld Group Ltd ($2226) | 42.2% | 57.2% | 59.0% | 57.8% | |
| Shenguan Holdings Group Ltd ($829) | 61.9% | 58.2% | 58.5% | 54.9% | 44.2% |
| Yashili International Holdings Ltd ($1230) | 52.0% | 53.7% | 53.5% | 51.2% | 50.8% |
| Natural Dairy NZ Holdings Ltd ($462) | 16.3% | -13.7% | 27.5% | 48.8% | 49.6% |
| |
|---|
| Median (38 companies) | 17.7% | 16.5% | 19.6% | 19.9% | 23.7% |
|---|
| Labixiaoxin Snacks Group Ltd ($1262) | 40.0% | 41.0% | 41.0% | 33.7% | 29.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shenguan Holdings Group Ltd ($829) | 57.2% | 58.7% | 59.2% | 54.5% | 43.6% |
| YuanShengTai Dairy Farm Ltd ($1431) | 147.8% | 40.3% | 48.4% | 47.1% | 35.4% |
| China Huishan Dairy Holdings Co Ltd ($6863) | 109.2% | 45.1% | 47.9% | 47.1% | 37.2% |
| Honworld Group Ltd ($2226) | 28.4% | 44.4% | 42.1% | 42.0% | |
| China Modern Dairy Holdings Ltd ($1117) | 33.9% | 33.5% | 27.0% | 25.3% | 21.1% |
| |
|---|
| Median (38 companies) | 8.2% | 7.9% | 6.6% | 6.9% | 8.0% |
|---|
| Labixiaoxin Snacks Group Ltd ($1262) | 26.3% | 27.9% | 28.4% | 12.9% | 12.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Huishan Dairy Holdings Co Ltd ($6863) | 453.6% | 98.2% | 29.8% | 132.0% | 109.8% |
| Honworld Group Ltd ($2226) | 25.3% | 6.0% | 10.8% | 50.8% | |
| YuanShengTai Dairy Farm Ltd ($1431) | 182.5% | 26.1% | 18.3% | 43.4% | 30.1% |
| Yashili International Holdings Ltd ($1230) | 3.6% | 8.2% | 7.1% | 20.1% | 12.5% |
| Vedan International Holdings Ltd ($2317) | 2.8% | 2.5% | 2.4% | 18.8% | |
| |
|---|
| Median (38 companies) | 3.7% | 5.5% | 5.4% | 5.1% | 5.6% |
|---|
| Labixiaoxin Snacks Group Ltd ($1262) | 23.0% | 13.3% | 10.3% | 14.6% | 32.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Honworld Group Ltd ($2226) | 22.1% | 50.4% | 44.5% | 23.6% | |
| Want Want China Holdings Ltd ($151) | 24.9% | 27.9% | 29.4% | 22.8% | 21.8% |
| Shenguan Holdings Group Ltd ($829) | 40.6% | 40.0% | 33.2% | 21.4% | 10.0% |
| Huisheng International Holdings Ltd ($1340) | 63.0% | 31.9% | 23.7% | 16.3% | |
| Asia Cassava Resources Holdings Ltd ($841) | 13.8% | 4.2% | 5.9% | 13.6% | 11.6% |
| |
|---|
| Median (39 companies) | 10.4% | 7.1% | 6.0% | 5.6% | 5.8% |
|---|
| Labixiaoxin Snacks Group Ltd ($1262) | 23.2% | 21.3% | 20.8% | 1.7% | 0.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Yurun Food Group Ltd ($1068) | 0.4x | 40.7x | 6.9x | 9.4x | |
| Beijing Jingkelong Co Ltd ($814) | 3.4x | 5.0x | 4.8x | 5.3x | 9.3x |
| CP Lotus Corp ($121) | 2.3x | | 6.5x | 5.1x | 3.0x |
| DaChan Food Asia Ltd ($3999) | -0.3x | 0.1x | 1.3x | 4.8x | |
| First Pacific Co Ltd/Hong Kong ($142) | 1.3x | 1.8x | 3.8x | 4.5x | |
| |
|---|
| Median (29 companies) | 0.4x | -0.1x | 0.8x | 0.8x | 1.3x |
|---|
| Labixiaoxin Snacks Group Ltd ($1262) | -0.9x | -0.7x | -0.6x | -2.0x | 1.0x |
