Baofeng Modern International Holdings Co Ltd revenue decline decelerated to 12.8% in 2015 vs. 68.5% a year earliner
25/03/2016 • About Baofeng Modern International Holdings Co Ltd (
$1121) • By InTwits
Baofeng Modern International Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Baofeng Modern International Holdings Co Ltd is a company in decline: 2015 revenue growth was -12.8%, 5 years revenue CAGR was -27.1%
- EBITDA Margin is quite volatile: 6.1% in 2015, -5.0% in 2014, 14.4% in 2013, 21.4% in 2012, 21.3% in 2011
- Baofeng Modern International Holdings Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's a lot of higher than industry average of 9.0%.
- CAPEX is quite volatile: 2.0 in 2015, 4.0 in 2014, 3.5 in 2013, 19.1 in 2012, 52.3 in 2011
- The company has unprofitable business model: ROIC is at -0.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Baofeng Modern International Holdings Co Ltd ($1121) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,118 | 1,352 | 624 | 197 | 172 | -12.8% |
| Gross Profit | 373 | 466 | 187 | 19 | 43 | 125.2% |
| SG&A | | 73 | 61 | 36 | 36 | 0.4% |
| EBITDA | 239 | 289 | 90 | -10 | 10 | -205.9% |
| Net Income | 161 | 154 | 68 | -31 | -26 | -17.6% |
Balance Sheet
|
|---|
| Cash | 695 | 1,036 | 1,173 | 1,149 | 790 | -31.3% |
| Short Term Debt | 384 | 187 | 222 | 194 | 130 | -33.2% |
| Long Term Debt | 0 | 0 | 0 | 0 | 92 | |
Cash flow
|
|---|
| Capex | 52 | 19 | 3 | 4 | 2 | -50.5% |
Ratios
|
|---|
| Revenue growth | 34.1% | 20.9% | -53.8% | -68.5% | -12.8% | |
| EBITDA growth | 16.5% | 21.0% | -68.8% | -110.9% | -205.9% | |
| Gross Margin | 33.4% | 34.5% | 30.0% | 9.7% | 25.0% | 15.3% |
| EBITDA Margin | 21.3% | 21.4% | 14.4% | -5.0% | 6.1% | 11.1% |
| Net Income Margin | 14.4% | 11.4% | 10.9% | -15.8% | -15.0% | 0.9% |
| SG&A, % of revenue | | 5.4% | 9.8% | 18.3% | 21.0% | 2.8% |
| CAPEX, % of revenue | 4.7% | 1.4% | 0.6% | 2.0% | 1.1% | -0.9% |
| ROIC | 26.3% | 21.5% | 6.1% | -1.6% | -0.4% | 1.2% |
| ROE | 26.3% | 15.6% | 6.2% | -2.8% | -2.3% | 0.5% |
| Net Debt/EBITDA | -1.3x | -2.9x | -10.6x | | -54.5x | -54.5x |
Revenue and profitability
The company's Revenue dropped on 12.8% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 11.1 pp from -5.0% to 6.1% in 2015.
Gross Margin surged on 15.3 pp from 9.7% to 25.0% in 2015. SG&A as a % of Revenue increased on 2.8 pp from 18.3% to 21.0% in 2015.
Net Income marign increased slightly on 0.88 pp from -15.8% to -15.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Baofeng Modern International Holdings Co Ltd had CAPEX/Revenue of 1.1%. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 1.2%.
Return on investment
The company operates at negative ROIC (-0.38%) and ROE (-2.31%). ROIC increased slightly on 1.2 pp from -1.6% to -0.38% in 2015. ROE increased slightly on 0.50 pp from -2.8% to -2.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -54.5x and Debt / EBITDA is 21.2x. Net Debt / EBITDA dropped54.5x from to -54.5x in 2015. Debt surged on 14.1% in 2015 while cash dropped on 31.3% in 2015.
Appendix 1: Peers in Apparel
Below we provide Baofeng Modern International Holdings Co Ltd benchmarking against other companies in Apparel 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 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | | -94.0% | 46.8% | 20.4% | 33.1% |
| Highlight China IoT International Ltd ($1682) | | 0.8% | 17.7% | -73.7% | 29.6% |
| Kingmaker Footwear Holdings Ltd ($1170) | | 10.0% | 9.3% | 6.3% | 23.7% |
| Cabbeen Fashion Ltd ($2030) | | 5.6% | 0.4% | 16.4% | 23.5% |
| Ares Asia Ltd ($645) | | | | 144.2% | 14.7% |
| |
|---|
| Median (42 companies) | 23.8% | 5.2% | 4.8% | 5.3% | -1.5% |
|---|
| Baofeng Modern International Holdings Co Ltd ($1121) | | 20.9% | -53.8% | -68.5% | -12.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 15.4% | 38.5% | 42.3% | 59.6% | 75.6% |
| Prada SpA ($1913) | 67.8% | 71.5% | 72.1% | 73.8% | 71.8% |
| China Outfitters Holdings Ltd ($1146) | 76.1% | 74.9% | 74.3% | 70.0% | 65.7% |
| Crocodile Garments ($122) | 65.5% | 64.7% | 60.7% | 60.4% | 62.1% |
| S Culture International Holdings Ltd ($1255) | 62.8% | 64.7% | 63.7% | 62.9% | 61.9% |
| |
|---|
| Median (41 companies) | 24.0% | 24.5% | 23.2% | 24.8% | 26.1% |
|---|
| Baofeng Modern International Holdings Co Ltd ($1121) | 33.4% | 34.5% | 30.0% | 9.7% | 25.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Lilang Ltd ($1234) | 26.7% | 26.3% | 26.9% | 29.4% | 30.6% |
| Cabbeen Fashion Ltd ($2030) | 16.0% | 25.0% | 29.7% | 28.4% | 29.0% |
| Fuguiniao Co Ltd ($1819) | 22.2% | 24.5% | 26.1% | 26.7% | 27.9% |
| Prada SpA ($1913) | 25.9% | 29.6% | 31.7% | 31.7% | 26.8% |
| Shenzhou International Group Holdings Ltd ($2313) | 26.8% | 26.4% | 26.2% | 26.1% | 26.7% |
| |
|---|
| Median (42 companies) | 10.4% | 9.6% | 8.9% | 6.8% | 7.2% |
|---|
| Baofeng Modern International Holdings Co Ltd ($1121) | 21.3% | 21.4% | 14.4% | -5.0% | 6.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 14.9% | 136.9% | 70.3% | 13.5% | 28.5% |
| Shenzhou International Group Holdings Ltd ($2313) | 4.7% | 7.3% | 7.9% | 10.2% | 16.1% |
| Crocodile Garments ($122) | 12.5% | 20.1% | 22.1% | 1.8% | 13.5% |
| Texhong Textile Group Ltd ($2678) | 6.7% | 8.9% | 11.8% | 5.8% | 10.5% |
| Prada SpA ($1913) | 9.2% | 9.7% | 10.6% | 15.3% | 10.2% |
| |
|---|
| Median (41 companies) | 1.9% | 2.2% | 3.1% | 2.1% | 2.3% |
|---|
| Baofeng Modern International Holdings Co Ltd ($1121) | 4.7% | 1.4% | 0.6% | 2.0% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cabbeen Fashion Ltd ($2030) | 25.7% | 32.3% | 32.9% | 26.5% | 27.0% |
| Sitoy Group Holdings Ltd ($1023) | 62.1% | 39.3% | 28.7% | 31.8% | 22.0% |
| Prada SpA ($1913) | 24.6% | 32.1% | 37.4% | 34.0% | 21.9% |
| China Lilang Ltd ($1234) | 32.6% | 27.3% | 19.1% | 19.7% | 20.2% |
| Shenzhou International Group Holdings Ltd ($2313) | 29.6% | 24.0% | 22.9% | 19.6% | 17.9% |
| |
|---|
| Median (42 companies) | 11.5% | 8.7% | 7.1% | 4.1% | 5.7% |
|---|
| Baofeng Modern International Holdings Co Ltd ($1121) | 26.3% | 21.5% | 6.1% | -1.6% | -0.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| S Culture International Holdings Ltd ($1255) | 0.8x | 1.4x | 0.7x | 2.4x | 158.1x |
| Global Brands Group Holding Ltd ($787) | -0.3x | -0.4x | -0.3x | 1.3x | 2.1x |
| Fuguiniao Co Ltd ($1819) | 0.9x | -0.0x | -0.7x | 0.3x | 1.9x |
| Texhong Textile Group Ltd ($2678) | 3.9x | 1.4x | 1.3x | 2.3x | 1.4x |
| China Outfitters Holdings Ltd ($1146) | -1.9x | -0.6x | -0.7x | 1.6x | 1.3x |
| |
|---|
| Median (32 companies) | -0.5x | -0.3x | -0.7x | -0.2x | -0.6x |
|---|
| Baofeng Modern International Holdings Co Ltd ($1121) | -1.3x | -2.9x | -10.6x | | -54.5x |
