China Child Care Corp Ltd Net Income dropped on 125% in 2015 and EBITDA Margin dropped on 16.6 pp from 14.2% to -2.4%
29/03/2016 • About China Child Care Corp Ltd (
$1259) • By InTwits
China Child Care Corp Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Child Care Corp Ltd doesn't have a profitable business model yet: 2015 ROIC is -3.6%
- EBITDA Margin is declining: -2.4% in 2015 vs. 14.2% in 2014 vs. 18.3% in 2011
- EBITDA Margin is quite volatile: -2.4% in 2015, 14.2% in 2014, 18.6% in 2013, 19.4% in 2012, 18.3% in 2011
- China Child Care Corp Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.6%. At the same time it's a lot of higher than industry average of 7.5%.
- CAPEX is quite volatile: 23.3 in 2015, 116 in 2014, 173 in 2013, 41.9 in 2012, 58.1 in 2011
- The company has unprofitable business model: ROIC is at -3.6%
- It operates with high leverage: Net Debt/EBITDA is 3.6x while industry average is -1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Child Care Corp Ltd ($1259) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,269 | 1,572 | 1,712 | 1,482 | 914 | -38.4% |
| Gross Profit | 538 | 722 | 810 | 705 | 359 | -49.0% |
| SG&A | 320 | 434 | 513 | 513 | 415 | -19.0% |
| EBITDA | 232 | 306 | 318 | 210 | -22 | -110.4% |
| Net Income | 184 | 241 | 200 | 200 | -50 | -125.1% |
Balance Sheet
|
|---|
| Cash | 736 | 643 | 859 | 967 | 969 | 0.2% |
| Short Term Debt | 30 | 0 | 0 | 0 | 50 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 58 | 42 | 173 | 116 | 23 | -79.9% |
Ratios
|
|---|
| Revenue growth | 51.5% | 23.9% | 8.9% | -13.4% | -38.4% | |
| EBITDA growth | 33.4% | 31.9% | 4.0% | -33.9% | -110.4% | |
| Gross Margin | 42.4% | 45.9% | 47.3% | 47.5% | 39.3% | -8.2% |
| EBITDA Margin | 18.3% | 19.4% | 18.6% | 14.2% | -2.4% | -16.6% |
| Net Income Margin | 14.5% | 15.3% | 11.7% | 13.5% | -5.5% | -19.0% |
| SG&A, % of revenue | 25.2% | 27.6% | 29.9% | 34.6% | 45.5% | 10.9% |
| CAPEX, % of revenue | 4.6% | 2.7% | 10.1% | 7.8% | 2.6% | -5.3% |
| ROIC | 38.8% | 27.2% | 23.9% | 13.4% | -3.6% | -17.0% |
| ROE | 33.6% | 22.9% | 16.1% | 14.3% | -3.5% | -17.7% |
| Net Debt/EBITDA | -3.0x | -2.1x | -2.7x | -4.6x | | 4.6x |
Revenue and profitability
The company's Revenue dropped on 38.4% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 16.6 pp from 14.2% to -2.4% in 2015.
Gross Margin decreased on 8.2 pp from 47.5% to 39.3% in 2015. SG&A as a % of Revenue jumped on 10.9 pp from 34.6% to 45.5% in 2015.
Net Income marign dropped on 19.0 pp from 13.5% to -5.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 2.6%. China Child Care Corp Ltd's CAPEX/Revenue showed almost no change from 2012 to 2015. For the last three years the average CAPEX/Revenue was 6.8%.
Return on investment
The company operates at negative ROIC (-3.61%) and ROE (-3.47%). ROIC dropped on 17.0 pp from 13.4% to -3.6% in 2015. ROE dropped on 17.7 pp from 14.3% to -3.5% in 2015.
Leverage (Debt)
Debt level is 3.6x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA jumped on 4.6x from -4.6x to in 2015. Debt surged while cash showed almost no change in 2015.
Appendix 1: Peers in Cosmetics/Personal Care
Below you can find China Child Care Corp Ltd benchmarking vs. other companies in Cosmetics/Personal Care 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 |
|---|
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | | -5.0% | -20.2% | -24.8% | 117.2% |
| EDS Wellness Holdings Ltd ($8176) | | -98.6% | 1,059.5% | 238.8% | 70.4% |
| Vinda International Holdings Ltd ($3331) | | 26.4% | 12.8% | 17.5% | 21.4% |
| L'Occitane International SA ($973) | | 18.3% | 14.2% | 1.1% | 11.7% |
| Ming Fai International Holdings Ltd ($3828) | | 14.3% | -0.1% | -3.4% | 5.2% |
| |
|---|
| Median (7 companies) | | -5.0% | -0.1% | 1.1% | 11.7% |
|---|
| China Child Care Corp Ltd ($1259) | | 23.9% | 8.9% | -13.4% | -38.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| L'Occitane International SA ($973) | 82.5% | 82.7% | 82.0% | 81.1% | 81.8% |
| Natural Beauty Bio-Technology Ltd ($157) | 79.3% | 78.6% | 75.8% | 76.9% | 78.4% |
| BaWang International Group Holding Ltd ($1338) | 38.8% | 41.9% | 48.5% | 37.4% | 38.0% |
| Vinda International Holdings Ltd ($3331) | 27.2% | 30.8% | 29.0% | 30.2% | 30.5% |
| Ming Fai International Holdings Ltd ($3828) | 21.9% | 21.6% | 23.9% | 24.0% | 24.4% |
| |
|---|
| Median (6 companies) | 33.0% | 36.4% | 38.7% | 38.6% | 34.3% |
|---|
| China Child Care Corp Ltd ($1259) | 42.4% | 45.9% | 47.3% | 47.5% | 39.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Natural Beauty Bio-Technology Ltd ($157) | 31.4% | 38.3% | 25.3% | 29.4% | 38.7% |
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | 17.1% | 9.5% | -23.3% | -37.4% | 20.4% |
| L'Occitane International SA ($973) | 20.9% | 20.7% | 19.3% | 17.4% | 19.6% |
| Vinda International Holdings Ltd ($3331) | 13.9% | 16.1% | 14.2% | 15.3% | 13.7% |
| Ming Fai International Holdings Ltd ($3828) | 8.0% | 8.0% | 7.4% | 8.6% | 11.5% |
| |
|---|
| Median (7 companies) | 13.9% | 9.5% | 7.4% | 8.6% | 13.7% |
|---|
| China Child Care Corp Ltd ($1259) | 18.3% | 19.4% | 18.6% | 14.2% | -2.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| EDS Wellness Holdings Ltd ($8176) | 0.4% | 387.3% | 119.7% | 14.9% | 34.3% |
| Vinda International Holdings Ltd ($3331) | 16.2% | 20.5% | 20.2% | 12.9% | 12.4% |
| Natural Beauty Bio-Technology Ltd ($157) | 8.6% | 10.1% | 5.1% | 3.7% | 12.0% |
| Ming Fai International Holdings Ltd ($3828) | 5.5% | 1.8% | 1.4% | 2.3% | 7.5% |
| L'Occitane International SA ($973) | 4.7% | 6.2% | 7.6% | 5.8% | 4.3% |
| |
|---|
| Median (7 companies) | 5.5% | 10.1% | 6.6% | 3.7% | 7.5% |
|---|
| China Child Care Corp Ltd ($1259) | 4.6% | 2.7% | 10.1% | 7.8% | 2.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | 60.3% | 17.7% | -67.7% | -113.8% | 35.6% |
| Natural Beauty Bio-Technology Ltd ($157) | 20.2% | 19.4% | 9.2% | 13.6% | 20.7% |
| L'Occitane International SA ($973) | 31.6% | 23.2% | 21.4% | 16.9% | 19.6% |
| Ming Fai International Holdings Ltd ($3828) | 6.9% | 7.2% | 4.3% | 5.6% | 12.0% |
| Vinda International Holdings Ltd ($3331) | 11.4% | 13.8% | 10.4% | 10.0% | 9.0% |
| |
|---|
| Median (7 companies) | 11.4% | 13.8% | 4.3% | 5.6% | 12.0% |
|---|
| China Child Care Corp Ltd ($1259) | 38.8% | 27.2% | 23.9% | 13.4% | -3.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vinda International Holdings Ltd ($3331) | 1.9x | 1.4x | 2.1x | 3.1x | 3.3x |
| Ming Fai International Holdings Ltd ($3828) | -1.2x | -1.5x | -2.5x | -2.1x | -1.2x |
| L'Occitane International SA ($973) | -1.5x | -1.3x | -1.2x | -1.3x | -1.2x |
| Natural Beauty Bio-Technology Ltd ($157) | -3.0x | -2.3x | -4.6x | -3.9x | -2.6x |
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | -1.5x | -1.9x | | | -3.8x |
| |
|---|
| Median (5 companies) | -1.5x | -1.5x | -1.8x | -1.7x | -1.2x |
|---|
