Nature Home Holding Co Ltd CAPEX dropped on 46.2% in 2015 while Revenue increased slightly on 1.7%
29/03/2016 • About Nature Home Holding Co Ltd (
$2083) • By InTwits
Nature Home Holding Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Nature Home Holding Co Ltd doesn't have a profitable business model yet: 2015 ROIC is 1.8%
- EBITDA Margin is quite volatile: 6.2% in 2015, 9.8% in 2014, 14.7% in 2013, 6.1% in 2012, 15.7% in 2011
- Nature Home Holding Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.1%. At the same time it's a lot of higher than industry average of 5.8%.
- CAPEX is quite volatile: 129 in 2015, 239 in 2014, 236 in 2013, 120 in 2012, 88.1 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.8%
- It operates with high leverage: Net Debt/EBITDA is 0.4x while industry average is -0.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Nature Home Holding Co Ltd ($2083) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,561 | 1,118 | 1,489 | 1,979 | 2,012 | 1.7% |
| Gross Profit | 516 | 355 | 501 | 620 | 568 | -8.3% |
| SG&A | 274 | 327 | 412 | 501 | 532 | 6.1% |
| EBITDA | 246 | 68 | 219 | 194 | 124 | -36.1% |
| Net Income | 306 | 123 | 138 | -75 | -268 | 255.3% |
Balance Sheet
|
|---|
| Cash | 866 | 816 | 399 | 473 | 603 | 27.5% |
| Short Term Debt | 201 | 190 | 135 | 442 | 615 | 39.0% |
| Long Term Debt | 57 | 16 | 0 | 9 | 35 | 289.3% |
Cash flow
|
|---|
| Capex | 88 | 120 | 236 | 239 | 129 | -46.2% |
Ratios
|
|---|
| Revenue growth | -3.9% | -28.4% | 33.2% | 32.9% | 1.7% | |
| EBITDA growth | -33.4% | -72.3% | 222.4% | -11.5% | -36.1% | |
| Gross Margin | 33.0% | 31.7% | 33.6% | 31.3% | 28.3% | -3.1% |
| EBITDA Margin | 15.7% | 6.1% | 14.7% | 9.8% | 6.2% | -3.6% |
| Net Income Margin | 19.6% | 11.0% | 9.3% | -3.8% | -13.3% | -9.5% |
| SG&A, % of revenue | 17.5% | 29.2% | 27.7% | 25.3% | 26.4% | 1.1% |
| CAPEX, % of revenue | 5.6% | 10.8% | 15.8% | 12.1% | 6.4% | -5.7% |
| ROIC | 9.2% | 1.0% | 6.1% | 4.8% | 1.8% | -3.0% |
| ROE | 15.9% | 4.8% | 5.5% | -3.1% | -11.7% | -8.7% |
| Net Debt/EBITDA | -2.5x | -9.0x | -1.2x | -0.1x | 0.4x | 0.5x |
Revenue and profitability
The company's Revenue increased slightly on 1.7% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 3.6 pp from 9.8% to 6.2% in 2015.
Gross Margin decreased on 3.1 pp from 31.3% to 28.3% in 2015. SG&A as a % of Revenue increased slightly on 1.1 pp from 25.3% to 26.4% in 2015.
Net Income marign decreased on 9.5 pp from -3.8% to -13.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 6.4% in 2015. Nature Home Holding Co Ltd showed decline in CAPEX/Revenue of 4.4 pp from 10.8% in 2012 to 6.4% in 2015. It's average level of CAPEX/Revenue for the last three years was 11.4%.Nature Home Holding Co Ltd investments to CAPEX were large: 104% of EBITDA.
Return on investment
The company operates at low but positive ROIC (1.77%) and negative ROE (-11.74%). ROIC decreased on 3.0 pp from 4.8% to 1.8% in 2015. ROE decreased on 8.7 pp from -3.1% to -11.7% in 2015.
Leverage (Debt)
Debt level is 0.4x Net Debt / EBITDA and 5.2x Debt / EBITDA. Net Debt / EBITDA jumped on 0.5x from -0.1x to 0.4x in 2015. Debt jumped on 44.0% in 2015 while cash surged on 27.5% in 2015.
Appendix 1: Peers in Retail
Below we provide Nature Home Holding 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% |
| Nanjing Sinolife United Co Ltd ($3332) | | 45.6% | 29.5% | 29.6% | 57.3% |
| Shanghai La Chapelle Fashion Co Ltd ($6116) | | 54.9% | 72.8% | 23.0% | 48.3% |
| |
|---|
| Median (95 companies) | 28.7% | 10.9% | 6.1% | 3.1% | -0.7% |
|---|
| Nature Home Holding Co Ltd ($2083) | | -28.4% | 33.2% | 32.9% | 1.7% |
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% |
| Nanjing Sinolife United Co Ltd ($3332) | 80.6% | 86.5% | 89.3% | 90.9% | 80.6% |
| |
|---|
| Median (84 companies) | 40.0% | 37.7% | 38.0% | 35.6% | 42.0% |
|---|
| Nature Home Holding Co Ltd ($2083) | 33.0% | 31.7% | 33.6% | 31.3% | 28.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nanjing Sinolife United Co Ltd ($3332) | 47.8% | 51.6% | 56.9% | 54.4% | 44.8% |
| 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% |
| |
|---|
| Median (95 companies) | 13.1% | 10.3% | 7.3% | 8.8% | 7.4% |
|---|
| Nature Home Holding Co Ltd ($2083) | 15.7% | 6.1% | 14.7% | 9.8% | 6.2% |
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% |
|---|
| Nature Home Holding Co Ltd ($2083) | 5.6% | 10.8% | 15.8% | 12.1% | 6.4% |
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) | 17.2% | 12.4% | 8.5% | 8.4% | 5.8% |
|---|
| Nature Home Holding Co Ltd ($2083) | 9.2% | 1.0% | 6.1% | 4.8% | 1.8% |
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 |
|---|
| Nature Home Holding Co Ltd ($2083) | -2.5x | -9.0x | -1.2x | -0.1x | 0.4x |
