Nanjing Sinolife United Co Ltd revenue surged on 57.3% in 2015 while EBITDA Margin decreased on 9.6 pp from 54.4% to 44.8%
29/03/2016 • About Nanjing Sinolife United Co Ltd (
$3332) • By InTwits
Nanjing Sinolife United Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Nanjing Sinolife United Co Ltd is a fast growth stock: 2015 revenue growth was 57.3%, 5 year revenue CAGR was 42.8% at 2015 ROIC 24.8%
- Nanjing Sinolife United Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's a lot of higher than industry average of 9.7%.
- CAPEX is quite volatile: 17.9 in 2015, 10.1 in 2014, 2.9 in 2013, 2.4 in 2012, 0.25 in 2011
- The company has highly profitable business model: ROIC is at 24.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Nanjing Sinolife United Co Ltd ($3332) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 103.2 | 150.4 | 194.7 | 252.4 | 397.1 | 57.3% |
| Gross Profit | 83.2 | 130.1 | 173.8 | 229.4 | 319.9 | 39.5% |
| SG&A | 36.3 | 54.7 | 66.8 | 97.3 | 149.5 | 53.7% |
| EBITDA | 49.3 | 77.6 | 110.8 | 137.4 | 178.1 | 29.6% |
| Net Income | 34.8 | 57.2 | 70.8 | 107.9 | 136.2 | 26.3% |
Balance Sheet
|
|---|
| Cash | 55.8 | 84.2 | 144.8 | 329.3 | 312.2 | -5.2% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.2 | 2.4 | 2.9 | 10.1 | 17.9 | 76.3% |
Ratios
|
|---|
| Revenue growth | 54.4% | 45.6% | 29.5% | 29.6% | 57.3% | |
| EBITDA growth | 112.0% | 57.4% | 42.7% | 24.0% | 29.6% | |
| Gross Margin | 80.6% | 86.5% | 89.3% | 90.9% | 80.6% | -10.3% |
| EBITDA Margin | 47.8% | 51.6% | 56.9% | 54.4% | 44.8% | -9.6% |
| Net Income Margin | 33.7% | 38.1% | 36.3% | 42.7% | 34.3% | -8.4% |
| SG&A, % of revenue | 35.2% | 36.4% | 34.3% | 38.5% | 37.7% | -0.9% |
| CAPEX, % of revenue | 0.2% | 1.6% | 1.5% | 4.0% | 4.5% | 0.5% |
| ROIC | 57.4% | 67.3% | 68.1% | 32.2% | 24.8% | -7.4% |
| ROE | 44.7% | 53.3% | 46.7% | 26.6% | 21.1% | -5.5% |
| Net Debt/EBITDA | -1.1x | -1.1x | -1.3x | -2.4x | -1.8x | 0.6x |
Revenue and profitability
Nanjing Sinolife United Co Ltd's Revenue jumped on 57.3% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.9 pp from -6.8% to -11.7% in 2015.
Gross Margin dropped on 10.3 pp from 90.9% to 80.6% in 2015. SG&A as a % of Revenue decreased slightly on 0.87 pp from 38.5% to 37.7% in 2015.
Net Income marign decreased on 8.4 pp from 42.7% to 34.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
Nanjing Sinolife United Co Ltd's CAPEX/Revenue was 4.5% in 2015. Nanjing Sinolife United Co Ltd showed CAPEX/Revenue growth of 2.9 pp from 1.6% in 2012 to 4.5% in 2015. Average CAPEX/Revenue for the last three years was 3.3%.
Return on investment
The company operates at high and attractive ROIC (24.82%) and ROE (21.08%). ROIC decreased on 7.4 pp from 32.2% to 24.8% in 2015. ROE decreased on 5.5 pp from 26.6% to 21.1% in 2015.
Leverage (Debt)
The company has no debt. Cash decreased on 5.2% in 2015.
Appendix 1: Peers in Retail
Below we provide Nanjing Sinolife United Co Ltd benchmarking against other companies in Retail 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 |
|---|
| China Nuclear Industry 23 International Corp Ltd ($611) | | 1.4% | 85.6% | -42.1% | 419.8% |
| Noble House China Holdings Ltd ($8246) | | -5.0% | -20.2% | -24.8% | 117.2% |
| Vongroup Ltd ($318) | | -46.9% | 23.7% | -80.2% | 90.3% |
| Shanghai La Chapelle Fashion Co Ltd ($6116) | | 54.9% | 72.8% | 23.0% | 48.3% |
| Unlimited Creativity Holdings Ltd ($8377) | | -17.7% | -35.3% | 23.7% | 40.8% |
| |
|---|
| Median (95 companies) | 28.7% | 10.5% | 6.1% | 3.1% | -0.7% |
|---|
| Nanjing Sinolife United Co Ltd ($3332) | | 45.6% | 29.5% | 29.6% | 57.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vongroup Ltd ($318) | | | | 95.1% | 99.1% |
| Modern Beauty Salon Holdings Ltd ($919) | 97.3% | 97.4% | 95.9% | 96.8% | 96.7% |
| Moiselle International Holdings Ltd ($130) | 81.4% | 81.2% | 83.8% | 80.6% | 83.2% |
| Embry Holdings Ltd ($1388) | 82.3% | 81.2% | 80.4% | 82.3% | 81.6% |
| Ports Design Ltd ($589) | 82.1% | 81.9% | 81.2% | 80.8% | 80.4% |
| |
|---|
| Median (84 companies) | 38.8% | 36.7% | 36.4% | 35.3% | 41.3% |
|---|
| Nanjing Sinolife United Co Ltd ($3332) | 80.6% | 86.5% | 89.3% | 90.9% | 80.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lifestyle International Holdings Ltd ($1212) | 49.6% | 47.5% | 47.0% | 44.7% | 43.4% |
| China Dongxiang Group Co Ltd ($3818) | 5.6% | 6.0% | 5.6% | 58.3% | 41.4% |
| Maoye International Holdings Ltd ($848) | 45.5% | 47.4% | 46.3% | 73.2% | 39.6% |
| Intime Retail Group Co Ltd ($1833) | 36.0% | 36.7% | 55.4% | 36.2% | 35.7% |
| ANTA Sports Products Ltd ($2020) | 23.6% | 21.9% | 23.3% | 24.4% | 25.9% |
| |
|---|
| Median (95 companies) | 13.1% | 9.7% | 7.3% | 8.8% | 7.1% |
|---|
| Nanjing Sinolife United Co Ltd ($3332) | 47.8% | 51.6% | 56.9% | 54.4% | 44.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Culture Landmark Investment Ltd ($674) | 4.6% | 11.6% | 19.4% | 15.7% | 47.2% |
| Springland International Holdings Ltd ($1700) | 20.7% | 31.9% | 17.4% | 26.5% | 36.9% |
| Merry Garden Holdings Ltd ($1237) | 22.7% | 18.6% | 28.6% | 15.1% | 34.2% |
| Future Bright Holdings Ltd ($703) | 6.2% | 2.6% | 3.7% | 36.8% | 24.9% |
| Parkson Retail Group Ltd ($3368) | 8.9% | 7.5% | 9.7% | 6.7% | 20.8% |
| |
|---|
| Median (95 companies) | 3.9% | 4.0% | 3.6% | 3.5% | 3.1% |
|---|
| Nanjing Sinolife United Co Ltd ($3332) | 0.2% | 1.6% | 1.5% | 4.0% | 4.5% |
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% |
| Noble House China Holdings Ltd ($8246) | 60.3% | 17.7% | -67.7% | -113.8% | 35.6% |
| Fairwood Holdings Ltd ($52) | 27.4% | 28.0% | 29.1% | 28.6% | 32.1% |
| |
|---|
| Median (95 companies) | 16.6% | 12.3% | 8.3% | 8.4% | 5.8% |
|---|
| Nanjing Sinolife United Co Ltd ($3332) | 57.4% | 67.3% | 68.1% | 32.2% | 24.8% |
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 |
| Trinity Ltd ($891) | -0.6x | -0.2x | 0.2x | 0.6x | 18.2x |
| Parkson Retail Group Ltd ($3368) | 0.4x | 0.8x | 2.3x | 3.6x | 9.8x |
| Maoye International Holdings Ltd ($848) | 1.7x | 2.9x | 3.3x | 3.4x | 9.0x |
| Century Ginwa Retail Holdings Ltd ($162) | 6.5x | 2.0x | 2.5x | 4.8x | 7.3x |
| |
|---|
| Median (74 companies) | -0.8x | -0.5x | -0.8x | -0.2x | -0.5x |
|---|
| Nanjing Sinolife United Co Ltd ($3332) | -1.1x | -1.1x | -1.3x | -2.4x | -1.8x |
