Christine International Holdings Ltd revenue dropped on 15.3% in 2015 and EBITDA Margin decreased slightly on 1.6 pp from -0.84% to -2.5%
29/03/2016 • About Christine International Holdings Ltd (
$1210) • By InTwits
Christine International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Christine International Holdings Ltd is a company in decline: 2015 revenue growth was -15.3%, 5 years revenue CAGR was -3.7%
- The company operates at negative EBITDA Margin: -2.5%
- EBITDA Margin is quite volatile: -2.5% in 2015, -0.8% in 2014, 4.3% in 2013, 6.5% in 2012, 15.6% in 2011
- Christine International Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.9%. At the same time it's in pair with industry average of 21.4%.
- CAPEX is quite volatile: 36.8 in 2015, 64.1 in 2014, 139 in 2013, 108 in 2012, 41.9 in 2011
- The company has unprofitable business model: ROIC is at -13.7%
- It operates with high leverage: Net Debt/EBITDA is 0.3x 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.
Christine International Holdings Ltd ($1210) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,384 | 1,388 | 1,380 | 1,253 | 1,062 | -15.3% |
| Gross Profit | 711 | 697 | 686 | 592 | 501 | -15.3% |
| SG&A | | 708 | 735 | 717 | 626 | -12.6% |
| EBITDA | 215 | 90 | 60 | -11 | -26 | 148.0% |
| Net Income | 96 | 20 | -37 | -151 | -148 | -1.6% |
Balance Sheet
|
|---|
| Cash | 798 | 1,037 | 740 | 509 | 518 | 1.9% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 42 | 108 | 139 | 64 | 37 | -42.6% |
Ratios
|
|---|
| Revenue growth | 7.8% | 0.3% | -0.6% | -9.2% | -15.3% | |
| EBITDA growth | 17.5% | -58.0% | -33.7% | -117.6% | 148.0% | |
| Gross Margin | 51.3% | 50.2% | 49.7% | 47.2% | 47.2% | -0.0% |
| EBITDA Margin | 15.6% | 6.5% | 4.3% | -0.8% | -2.5% | -1.6% |
| Net Income Margin | 6.9% | 1.4% | -2.7% | -12.0% | -14.0% | -1.9% |
| SG&A, % of revenue | | 51.0% | 53.3% | 57.2% | 59.0% | 1.8% |
| CAPEX, % of revenue | 3.0% | 7.8% | 10.1% | 5.1% | 3.5% | -1.7% |
| ROIC | 14.8% | -0.4% | -3.8% | -11.6% | -13.7% | -2.1% |
| ROE | 12.2% | 2.0% | -3.4% | -15.0% | -17.4% | -2.3% |
| Net Debt/EBITDA | -3.7x | -11.5x | -12.3x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 15.3% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.6 pp from -0.84% to -2.5% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased slightly on 1.8 pp from 57.2% to 59.0% in 2015.
Net Income marign decreased slightly on 1.9 pp from -12.0% to -14.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.5% in 2015. CAPEX/Revenue decreased on 4.3 pp from 7.8% in 2012 to 3.5% in 2015. For the last three years the average CAPEX/Revenue was 6.2%.
Return on investment
The company operates at negative ROIC (-13.73%) and ROE (-17.37%). ROIC decreased on 2.1 pp from -11.6% to -13.7% in 2015. ROE decreased on 2.3 pp from -15.0% to -17.4% in 2015.
Leverage (Debt)
The company has no debt. Cash increased slightly on 1.9% in 2015.
Appendix 1: Peers in Food
Below we provide Christine International Holdings 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 |
|---|
| Imperial Pacific International Holdings Ltd ($1076) | | -27.6% | -18.5% | 2.7% | 70.3% |
| Chinese Food and Beverage Group ($8272) | | 207.7% | 149.2% | 26.8% | 31.6% |
| Huisheng International Holdings Ltd ($1340) | | -2.4% | 5.6% | 8.7% | 25.9% |
| Honworld Group Ltd ($2226) | | 207.9% | 57.3% | 26.0% | 19.5% |
| China Huishan Dairy Holdings Co Ltd ($6863) | | 256.3% | 91.5% | 38.3% | 11.1% |
| |
|---|
| Median (32 companies) | 22.5% | 10.1% | 8.4% | 4.7% | -2.9% |
|---|
| Christine International Holdings Ltd ($1210) | | 0.3% | -0.6% | -9.2% | -15.3% |
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% | 56.4% |
| 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% |
| Shenguan Holdings Group Ltd ($829) | 61.9% | 58.2% | 58.5% | 54.9% | 44.2% |
| |
|---|
| Median (31 companies) | 17.7% | 16.5% | 18.5% | 19.8% | 23.7% |
|---|
| Christine International Holdings Ltd ($1210) | 51.3% | 50.2% | 49.7% | 47.2% | 47.2% |
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% |
| Honworld Group Ltd ($2226) | 28.4% | 44.4% | 42.1% | 42.0% | 42.9% |
| China Huishan Dairy Holdings Co Ltd ($6863) | 109.2% | 45.1% | 47.9% | 47.1% | 37.2% |
| YuanShengTai Dairy Farm Ltd ($1431) | 147.8% | 40.3% | 48.4% | 47.1% | 35.4% |
| Want Want China Holdings Ltd ($151) | 20.1% | 23.8% | 25.8% | 23.8% | 25.2% |
| |
|---|
| Median (31 companies) | 8.0% | 8.0% | 6.7% | 7.6% | 8.5% |
|---|
| Christine International Holdings Ltd ($1210) | 15.6% | 6.5% | 4.3% | -0.8% | -2.5% |
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% | 21.8% |
| 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% | 4.0% |
| |
|---|
| Median (39 companies) | 4.9% | 5.1% | 5.3% | 5.1% | 5.6% |
|---|
| Christine International Holdings Ltd ($1210) | 3.0% | 7.8% | 10.1% | 5.1% | 3.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Want Want China Holdings Ltd ($151) | 24.9% | 27.9% | 29.4% | 22.8% | 21.8% |
| Honworld Group Ltd ($2226) | 22.1% | 50.4% | 44.5% | 23.6% | 16.5% |
| WH Group Ltd ($288) | | 20.3% | 3.6% | 15.0% | 13.3% |
| Tenwow International Holdings Ltd ($1219) | 20.3% | 19.7% | 15.7% | 12.8% | 11.9% |
| Asia Cassava Resources Holdings Ltd ($841) | 13.8% | 4.2% | 5.9% | 13.6% | 11.6% |
| |
|---|
| Median (32 companies) | 10.4% | 8.0% | 6.5% | 5.6% | 5.7% |
|---|
| Christine International Holdings Ltd ($1210) | 14.8% | -0.4% | -3.8% | -11.6% | -13.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Beijing Jingkelong Co Ltd ($814) | 3.4x | 5.0x | 4.8x | 5.3x | 9.3x |
| China Kangda Food Co Ltd ($834) | 2.1x | 2.8x | 2.5x | 2.3x | 5.4x |
| China Modern Dairy Holdings Ltd ($1117) | 1.3x | 3.7x | 5.2x | 4.1x | 5.3x |
| Asia Cassava Resources Holdings Ltd ($841) | 0.6x | 4.0x | 5.6x | -0.6x | 4.7x |
| China Huishan Dairy Holdings Co Ltd ($6863) | 5.6x | 3.3x | 1.8x | 0.8x | 3.7x |
| |
|---|
| Median (27 companies) | 0.4x | -0.3x | 0.8x | 0.8x | 1.3x |
|---|
