Golden Eagle Retail Group Ltd Debt surged on 49.9% in 2015 and Revenue increased on 2.9%
30/03/2016 • About Golden Eagle Retail Group Ltd (
$3308) • By InTwits
Golden Eagle Retail Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Golden Eagle Retail Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 24.1%. At the same time it's a lot of higher than industry average of 5.7%.
- CAPEX is quite volatile: 1,041 in 2015, 1,063 in 2014, 342 in 2013, 1,034 in 2012, 985 in 2011
- The company has highly profitable business model: ROIC is at 15.2%
- It operates with high leverage: Net Debt/EBITDA is 2.7x 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.
Golden Eagle Retail Group Ltd ($3308) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,217 | 3,623 | 3,660 | 3,979 | 4,094 | 2.9% |
| EBITDA | 1,677 | 1,758 | 1,730 | 1,702 | 2,267 | 33.2% |
| Net Income | 1,212 | 1,218 | 1,235 | 1,087 | 1,040 | -4.3% |
Balance Sheet
|
|---|
| Cash | 1,953 | 2,840 | 1,666 | 1,821 | 2,232 | 22.6% |
| Short Term Debt | 1,484 | 1,079 | 0 | 3,126 | 5,269 | 68.5% |
| Long Term Debt | 0 | 2,132 | 4,494 | 2,420 | 3,043 | 25.8% |
Cash flow
|
|---|
| Capex | 985 | 1,034 | 342 | 1,063 | 1,041 | -2.1% |
Ratios
|
|---|
| Revenue growth | 31.3% | 12.6% | 1.0% | 8.7% | 2.9% | |
| EBITDA growth | 22.5% | 4.8% | -1.6% | -1.6% | 33.2% | |
| EBITDA Margin | 52.1% | 48.5% | 47.3% | 42.8% | 55.4% | 12.6% |
| Net Income Margin | 37.7% | 33.6% | 33.7% | 27.3% | 25.4% | -1.9% |
| CAPEX, % of revenue | 30.6% | 28.5% | 9.4% | 26.7% | 25.4% | -1.3% |
| ROIC | 29.1% | 20.9% | 16.3% | 13.7% | 15.2% | 1.5% |
| ROE | 29.4% | 24.7% | 23.4% | 20.3% | 19.4% | -1.0% |
| Net Debt/EBITDA | -0.3x | 0.2x | 1.6x | 2.2x | 2.7x | 0.5x |
Revenue and profitability
The company's Revenue increased on 2.9% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 12.6 pp from 42.8% to 55.4% in 2015.
Net Income marign decreased slightly on 1.9 pp from 27.3% to 25.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 25.4% in 2015. The company showed decline in CAPEX/Revenue of 3.1 pp from 28.5% in 2012 to 25.4% in 2015. It's average CAPEX/Revenue for the last three years was 20.5%.
Return on investment
The company operates at good ROIC (15.18%) and ROE (19.36%). ROIC increased slightly on 1.5 pp from 13.7% to 15.2% in 2015. ROE decreased slightly on 0.99 pp from 20.3% to 19.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.7x and Debt / EBITDA is 3.7x. Net Debt / EBITDA surged on 0.5x from 2.2x to 2.7x in 2015. Debt surged on 49.9% in 2015 while cash surged on 22.6% in 2015.
Management team
Su Kai is a the company's CEO. Su Kai has spent 4 years at the company. The company's CFO Tai Ping "Patricia" has spent 9 years at the company.
Appendix 1: Peers in Retail
Below we provide Golden Eagle Retail Group 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 (102 companies) | 55.7% | 10.9% | 6.5% | 3.1% | -0.8% |
|---|
| Golden Eagle Retail Group Ltd ($3308) | | 12.6% | 1.0% | 8.7% | 2.9% |
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 (90 companies) | 39.4% | 37.2% | 36.4% | 35.5% | 41.3% |
|---|
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 (102 companies) | 13.3% | 10.3% | 7.6% | 8.9% | 8.1% |
|---|
| Golden Eagle Retail Group Ltd ($3308) | 52.1% | 48.5% | 47.3% | 42.8% | 55.4% |
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 (102 companies) | 3.9% | 4.0% | 3.6% | 3.6% | 3.5% |
|---|
| Golden Eagle Retail Group Ltd ($3308) | 30.6% | 28.5% | 9.4% | 26.7% | 25.4% |
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 (102 companies) | 16.6% | 12.3% | 8.4% | 8.4% | 6.0% |
|---|
| Golden Eagle Retail Group Ltd ($3308) | 29.1% | 20.9% | 16.3% | 13.7% | 15.2% |
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 (81 companies) | -0.8x | -0.5x | -0.8x | -0.2x | -0.6x |
|---|
| Golden Eagle Retail Group Ltd ($3308) | -0.3x | 0.2x | 1.6x | 2.2x | 2.7x |
