Natural Beauty Bio-Technology Ltd reports 228% CAPEX growth and almost no change in Revenue of 507
29/03/2016 • About Natural Beauty Bio-Technology Ltd (
$157) • By InTwits
Natural Beauty Bio-Technology Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Natural Beauty Bio-Technology Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.9%. At the same time it's in pair with industry average of 9.6%.
- CAPEX is quite volatile: 60.8 in 2015, 18.5 in 2014, 22.6 in 2013, 48.9 in 2012, 50.7 in 2011
- The company has highly profitable business model: ROIC is at 20.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Natural Beauty Bio-Technology Ltd ($157) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 591.3 | 483.4 | 439.4 | 505.8 | 506.9 | 0.2% |
| Gross Profit | 469.1 | 379.8 | 333.1 | 388.8 | 397.5 | 2.2% |
| SG&A | | 234.6 | 266.7 | 262.3 | 246.8 | -5.9% |
| EBITDA | 185.5 | 185.1 | 111.3 | 148.7 | 196.0 | 31.8% |
| Net Income | 115.1 | 119.3 | 58.3 | 71.5 | 136.8 | 91.4% |
Balance Sheet
|
|---|
| Cash | 558.3 | 432.4 | 507.4 | 583.3 | 502.7 | -13.8% |
| 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 | 50.7 | 48.9 | 22.6 | 18.5 | 60.8 | 228.4% |
Ratios
|
|---|
| Revenue growth | 21.8% | -18.2% | -9.1% | 15.1% | 0.2% | |
| EBITDA growth | 100.4% | -0.2% | -39.8% | 33.6% | 31.8% | |
| Gross Margin | 79.3% | 78.6% | 75.8% | 76.9% | 78.4% | 1.5% |
| EBITDA Margin | 31.4% | 38.3% | 25.3% | 29.4% | 38.7% | 9.3% |
| Net Income Margin | 19.5% | 24.7% | 13.3% | 14.1% | 27.0% | 12.9% |
| SG&A, % of revenue | | 48.5% | 60.7% | 51.9% | 48.7% | -3.2% |
| CAPEX, % of revenue | 8.6% | 10.1% | 5.1% | 3.7% | 12.0% | 8.3% |
| ROIC | 20.2% | 19.4% | 9.2% | 13.6% | 20.7% | 7.1% |
| ROE | 14.7% | 15.5% | 7.6% | 9.2% | 18.2% | 9.0% |
| Net Debt/EBITDA | -3.0x | -2.3x | -4.6x | -3.9x | -2.6x | 1.4x |
Revenue and profitability
The company's Revenue showed almost no change in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 9.3 pp from 29.4% to 38.7% in 2015.
Gross Margin increased slightly on 1.5 pp from 76.9% to 78.4% in 2015. SG&A as a % of Revenue decreased on 3.2 pp from 51.9% to 48.7% in 2015.
Net Income marign jumped on 12.9 pp from 14.1% to 27.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 12.0%. Natural Beauty Bio-Technology Ltd's CAPEX/Revenue increased slightly on 1.9 pp from 10.1% in 2012 to 12.0% in 2015. Average CAPEX/Revenue for the last three years was 6.9%.
Return on investment
The company operates at high and attractive ROIC (20.69%) while ROE is a bit lower (18.16%). ROIC increased on 7.1 pp from 13.6% to 20.7% in 2015. ROE increased on 9.0 pp from 9.2% to 18.2% in 2015.
Leverage (Debt)
The company has no debt. Cash dropped on 13.8% in 2015.
Appendix 1: Peers in Cosmetics/Personal Care
Below we provide Natural Beauty Bio-Technology Ltd benchmarking against other companies in Cosmetics/Personal Care 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 |
|---|
| 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) | | 14.3% | 8.9% | -3.4% | 11.7% |
|---|
| Natural Beauty Bio-Technology Ltd ($157) | | -18.2% | -9.1% | 15.1% | 0.2% |
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% |
| 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% |
| Ming Fai International Holdings Ltd ($3828) | 21.9% | 21.6% | 23.9% | 24.0% | 24.4% |
| |
|---|
| Median (6 companies) | 33.0% | 36.4% | 38.2% | 38.6% | 34.3% |
|---|
| Natural Beauty Bio-Technology Ltd ($157) | 79.3% | 78.6% | 75.8% | 76.9% | 78.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% |
| China Child Care Corp Ltd ($1259) | 18.3% | 19.4% | 18.6% | 14.2% | -2.4% |
| |
|---|
| Median (7 companies) | 13.9% | 9.5% | 7.4% | 8.6% | 11.5% |
|---|
| Natural Beauty Bio-Technology Ltd ($157) | 31.4% | 38.3% | 25.3% | 29.4% | 38.7% |
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% |
| 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% |
| China Child Care Corp Ltd ($1259) | 4.6% | 2.7% | 10.1% | 7.8% | 2.6% |
| |
|---|
| Median (7 companies) | 4.7% | 6.4% | 7.6% | 5.8% | 4.3% |
|---|
| Natural Beauty Bio-Technology Ltd ($157) | 8.6% | 10.1% | 5.1% | 3.7% | 12.0% |
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% |
| 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% |
| China Child Care Corp Ltd ($1259) | 38.8% | 27.2% | 23.9% | 13.4% | -3.6% |
| |
|---|
| Median (7 companies) | 11.4% | 13.8% | 4.3% | 5.6% | 9.0% |
|---|
| Natural Beauty Bio-Technology Ltd ($157) | 20.2% | 19.4% | 9.2% | 13.6% | 20.7% |
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 |
| 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 |
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | -1.5x | -1.9x | | | -3.8x |
| |
|---|
| Median (4 companies) | -1.5x | -1.5x | -1.8x | -1.7x | -1.2x |
|---|
| Natural Beauty Bio-Technology Ltd ($157) | -3.0x | -2.3x | -4.6x | -3.9x | -2.6x |
