Ports Design Ltd reports 70.9% EBITDA decline and 15.2% Revenue decline
24/03/2016 • About Ports Design Ltd (
$589) • By InTwits
Ports Design Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ports Design Ltd doesn't have a profitable business model yet: 2015 ROIC is -1.0%
- EBITDA Margin is declining: 5.2% in 2015 vs. 15.2% in 2014 vs. 32.9% in 2011
- EBITDA Margin is quite volatile: 5.2% in 2015, 15.2% in 2014, 25.5% in 2013, 28.1% in 2012, 32.9% in 2011
- Ports Design Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.8%. At the same time it's a lot of higher than industry average of 5.6%.
- CAPEX is quite volatile: 251 in 2015, 292 in 2014, 460 in 2013, 605 in 2012, 409 in 2011
- The company has unprofitable business model: ROIC is at -1.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ports Design Ltd ($589) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,985 | 2,098 | 2,137 | 1,879 | 1,595 | -15.2% |
| Gross Profit | 1,629 | 1,720 | 1,735 | 1,518 | 1,282 | -15.5% |
| SG&A | 995 | 1,059 | 1,155 | 1,179 | 1,097 | -7.0% |
| EBITDA | 653 | 590 | 544 | 286 | 83 | -70.9% |
| Net Income | 430 | 351 | 293 | 73 | -73 | -199.3% |
Balance Sheet
|
|---|
| Cash | 380 | 431 | 411 | 519 | 508 | -2.2% |
| Short Term Debt | 702 | 771 | 717 | 602 | 301 | -50.0% |
| Long Term Debt | 0 | 74 | 0 | 0 | 6 | |
Cash flow
|
|---|
| Capex | 183 | 130 | 155 | 90 | 107 | 19.6% |
Ratios
|
|---|
| Revenue growth | 15.5% | 5.7% | 1.8% | -12.1% | -15.2% | |
| EBITDA growth | 14.1% | -9.7% | -7.8% | -47.5% | -70.9% | |
| Gross Margin | 82.1% | 81.9% | 81.2% | 80.8% | 80.4% | -0.3% |
| EBITDA Margin | 32.9% | 28.1% | 25.5% | 15.2% | 5.2% | -10.0% |
| Net Income Margin | 21.7% | 16.7% | 13.7% | 3.9% | -4.6% | -8.5% |
| SG&A, % of revenue | 50.1% | 50.5% | 54.0% | 62.8% | 68.8% | 6.1% |
| CAPEX, % of revenue | 9.2% | 6.2% | 7.3% | 4.8% | 6.7% | 2.0% |
| ROIC | 24.6% | 18.4% | 15.5% | 6.5% | -1.0% | -7.4% |
| ROE | 24.7% | 19.1% | 15.3% | 3.6% | -3.6% | -7.2% |
| Net Debt/EBITDA | 0.5x | 0.7x | 0.6x | 0.3x | -2.4x | -2.7x |
Revenue and profitability
Ports Design Ltd's Revenue dropped on 15.2% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 10.0 pp from 15.2% to 5.2% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased on 6.1 pp from 62.8% to 68.8% in 2015.
Net Income marign decreased on 8.5 pp from 3.9% to -4.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
Ports Design Ltd's CAPEX/Revenue was 6.7% in 2015. The company showed small growth in CAPEX/Revenue of 0.53 pp from 6.2% in 2012 to 6.7% in 2015. Average CAPEX/Revenue for the last three years was 6.3%.Ports Design Ltd has spent a lot to CAPEX (129% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-0.97%) and ROE (-3.57%). ROIC decreased on 7.4 pp from 6.5% to -0.97% in 2015. ROE decreased on 7.2 pp from 3.6% to -3.6% in 2015.
Leverage (Debt)
Debt level is -2.4x Net Debt / EBITDA and 3.7x Debt / EBITDA. Net Debt / EBITDA dropped on 2.7x from 0.3x to -2.4x in 2015. Debt dropped on 49.1% in 2015 while cash decreased on 2.2% in 2015.
Appendix 1: Peers in Retail
Below you can find Ports Design 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) | 29.9% | 10.7% | 6.3% | 3.3% | -0.8% |
|---|
| Ports Design Ltd ($589) | | 5.7% | 1.8% | -12.1% | -15.2% |
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% | 42.0% |
|---|
| Ports Design Ltd ($589) | 82.1% | 81.9% | 81.2% | 80.8% | 80.4% |
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% | 6.8% |
|---|
| Ports Design Ltd ($589) | 32.9% | 28.1% | 25.5% | 15.2% | 5.2% |
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% | 3.0% |
|---|
| Ports Design Ltd ($589) | 9.2% | 6.2% | 7.3% | 4.8% | 6.7% |
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% | 8.2% | 8.4% | 5.8% |
|---|
| Ports Design Ltd ($589) | 24.6% | 18.4% | 15.5% | 6.5% | -1.0% |
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 |
|---|
| Ports Design Ltd ($589) | 0.5x | 0.7x | 0.6x | 0.3x | -2.4x |
