Ming Fai International Holdings Ltd reports 249% CAPEX growth and 5.2% Revenue growth
29/03/2016 • About Ming Fai International Holdings Ltd (
$3828) • By InTwits
Ming Fai International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ming Fai International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.7%. At the same time it's a lot of higher than industry average of 23.3%.
- CAPEX is quite volatile: 129 in 2015, 37.0 in 2014, 24.4 in 2013, 29.6 in 2012, 80.9 in 2011
- The company has business model with average profitability: ROIC is at 12.0%
- It operates with high leverage: Net Debt/EBITDA is -1.2x 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.
Ming Fai International Holdings Ltd ($3828) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,475 | 1,686 | 1,684 | 1,626 | 1,711 | 5.2% |
| Gross Profit | 324 | 364 | 402 | 391 | 418 | 7.0% |
| SG&A | | 289 | 319 | 323 | 323 | 0.2% |
| EBITDA | 119 | 134 | 124 | 140 | 196 | 40.2% |
| Net Income | 72 | 75 | 40 | 63 | -222 | -450.7% |
Balance Sheet
|
|---|
| Cash | 191 | 246 | 344 | 328 | 296 | -10.0% |
| Short Term Debt | 6 | 6 | 6 | 6 | 37 | 464.5% |
| Long Term Debt | 45 | 39 | 32 | 26 | 19 | -25.2% |
Cash flow
|
|---|
| Capex | 81 | 30 | 24 | 37 | 129 | 248.8% |
Ratios
|
|---|
| Revenue growth | 35.9% | 14.3% | -0.1% | -3.4% | 5.2% | |
| EBITDA growth | -17.7% | 13.1% | -7.6% | 12.7% | 40.2% | |
| Gross Margin | 21.9% | 21.6% | 23.9% | 24.0% | 24.4% | 0.4% |
| EBITDA Margin | 8.0% | 8.0% | 7.4% | 8.6% | 11.5% | 2.9% |
| Net Income Margin | 4.9% | 4.5% | 2.4% | 3.9% | -13.0% | -16.9% |
| SG&A, % of revenue | | 17.1% | 18.9% | 19.8% | 18.9% | -0.9% |
| CAPEX, % of revenue | 5.5% | 1.8% | 1.4% | 2.3% | 7.5% | 5.3% |
| ROIC | 6.9% | 7.2% | 4.3% | 5.6% | 12.0% | 6.4% |
| ROE | 6.8% | 6.4% | 3.2% | 4.9% | -18.9% | -23.8% |
| Net Debt/EBITDA | -1.2x | -1.5x | -2.5x | -2.1x | -1.2x | 0.9x |
Revenue and profitability
Ming Fai International Holdings Ltd's Revenue increased on 5.2% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.2 pp from 18.0% to 22.2% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue decreased slightly on 0.94 pp from 19.8% to 18.9% in 2015.
Net Income marign dropped on 16.9 pp from 3.9% to -13.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Ming Fai International Holdings Ltd had CAPEX/Revenue of 7.5%. The company's CAPEX/Revenue increased on 5.8 pp from 1.8% in 2012 to 7.5% in 2015. For the last three years the average CAPEX/Revenue was 3.8%.The company maintained rich investment policy and has spent a big chunk of EBITDA (65.7%) to CAPEX.
Return on investment
The company operates at low but positive ROIC (12.00%) and negative ROE (-18.94%). ROIC increased on 6.4 pp from 5.6% to 12.0% in 2015. ROE dropped on 23.8 pp from 4.9% to -18.9% in 2015.
Leverage (Debt)
Debt level is -1.2x Net Debt / EBITDA and 0.3x Debt / EBITDA. Net Debt / EBITDA jumped on 0.9x from -2.1x to -1.2x in 2015. Debt jumped on 72.5% in 2015 while cash decreased on 10.0% in 2015.
Appendix 1: Peers in Cosmetics/Personal Care
Below you can find Ming Fai International Holdings 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% |
| Natural Beauty Bio-Technology Ltd ($157) | | -18.2% | -9.1% | 15.1% | 0.2% |
| |
|---|
| Median (7 companies) | | -5.0% | 8.9% | 1.1% | 11.7% |
|---|
| Ming Fai International Holdings Ltd ($3828) | | 14.3% | -0.1% | -3.4% | 5.2% |
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% |
| China Child Care Corp Ltd ($1259) | 42.4% | 45.9% | 47.3% | 47.5% | 39.3% |
| 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% |
| |
|---|
| Median (6 companies) | 40.6% | 43.9% | 47.9% | 43.7% | 38.7% |
|---|
| Ming Fai International Holdings Ltd ($3828) | 21.9% | 21.6% | 23.9% | 24.0% | 24.4% |
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% |
| China Child Care Corp Ltd ($1259) | 18.3% | 19.4% | 18.6% | 14.2% | -2.4% |
| |
|---|
| Median (7 companies) | 17.1% | 16.1% | 14.2% | 14.2% | 13.7% |
|---|
| Ming Fai International Holdings Ltd ($3828) | 8.0% | 8.0% | 7.4% | 8.6% | 11.5% |
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% |
| L'Occitane International SA ($973) | 4.7% | 6.2% | 7.6% | 5.8% | 4.3% |
| China Child Care Corp Ltd ($1259) | 4.6% | 2.7% | 10.1% | 7.8% | 2.6% |
| |
|---|
| Median (7 companies) | 4.7% | 10.1% | 7.6% | 5.8% | 4.3% |
|---|
| Ming Fai International Holdings Ltd ($3828) | 5.5% | 1.8% | 1.4% | 2.3% | 7.5% |
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% |
| Vinda International Holdings Ltd ($3331) | 11.4% | 13.8% | 10.4% | 10.0% | 9.0% |
| China Child Care Corp Ltd ($1259) | 38.8% | 27.2% | 23.9% | 13.4% | -3.6% |
| |
|---|
| Median (7 companies) | 20.2% | 17.7% | 9.2% | 10.0% | 9.0% |
|---|
| Ming Fai International Holdings Ltd ($3828) | 6.9% | 7.2% | 4.3% | 5.6% | 12.0% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vinda International Holdings Ltd ($3331) | 1.9x | 1.4x | 2.1x | 3.1x | 3.3x |
| 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 (4 companies) | -1.5x | -1.9x | -1.9x | -2.6x | -1.9x |
|---|
| Ming Fai International Holdings Ltd ($3828) | -1.2x | -1.5x | -2.5x | -2.1x | -1.2x |
