JLF Investment Co Ltd revenue decreased on 5.5% in 2015 while EBITDA Margin increased on 7.1 pp from -11.1% to -4.0%
30/03/2016 • About JLF Investment Co Ltd (
$472) • By InTwits
JLF Investment Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- JLF Investment Co Ltd is a company in decline: 2015 revenue growth was -5.5%, 5 years revenue CAGR was -6.5%
- The company operates at negative EBITDA Margin: -4.0%
- EBITDA Margin is quite volatile: -4.0% in 2015, -11.1% in 2014, -2.3% in 2013, 17.3% in 2012, 24.5% in 2011
- JLF Investment Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.6%. At the same time it's in pair with industry average of 11.0%.
- CAPEX is quite volatile: 22.9 in 2015, 24.1 in 2014, 30.7 in 2013, 64.8 in 2012, 69.5 in 2011
- The company has unprofitable business model: ROIC is at -2.7%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.4x while industry average is 0.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
JLF Investment Co Ltd ($472) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 400.3 | 366.2 | 336.6 | 255.4 | 241.2 | -5.5% |
| Gross Profit | 217.7 | 186.4 | 163.9 | 108.3 | 100.7 | -7.0% |
| SG&A | | 159.7 | 162.0 | 166.1 | 157.5 | -5.2% |
| EBITDA | 98.1 | 63.2 | -7.7 | -28.2 | -9.6 | -65.9% |
| Net Income | 45.6 | 9.8 | -82.0 | -193.0 | -35.3 | -81.7% |
Balance Sheet
|
|---|
| Cash | 189.8 | 132.9 | 141.6 | 105.5 | 305.9 | 190.0% |
| Short Term Debt | 40.3 | 62.8 | 0.0 | 63.2 | 56.2 | -11.0% |
| Long Term Debt | 24.4 | | 64.4 | 0.0 | 542.0 | |
Cash flow
|
|---|
| Capex | 69.5 | 64.8 | 30.7 | 24.1 | 22.9 | -4.9% |
Ratios
|
|---|
| Revenue growth | 18.7% | -8.5% | -8.1% | -24.1% | -5.5% | |
| EBITDA growth | 22.5% | -35.5% | -112.2% | 264.9% | -65.9% | |
| Gross Margin | 54.4% | 50.9% | 48.7% | 42.4% | 41.8% | -0.7% |
| EBITDA Margin | 24.5% | 17.3% | -2.3% | -11.1% | -4.0% | 7.1% |
| Net Income Margin | 11.4% | 2.7% | -24.4% | -75.6% | -14.6% | 60.9% |
| SG&A, % of revenue | | 43.6% | 48.1% | 65.0% | 65.3% | 0.3% |
| CAPEX, % of revenue | 17.4% | 17.7% | 9.1% | 9.4% | 9.5% | 0.1% |
| ROIC | 10.3% | | | -7.8% | -2.7% | 5.1% |
| ROE | 7.4% | 1.5% | -13.0% | -38.9% | -6.2% | 32.8% |
| Net Debt/EBITDA | -1.3x | -1.1x | | | | 0.0x |
Revenue and profitability
JLF Investment Co Ltd's Revenue decreased on 5.5% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 7.1 pp from -11.1% to -4.0% in 2015.
Gross Margin decreased slightly on 0.66 pp from 42.4% to 41.8% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign jumped on 60.9 pp from -75.6% to -14.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 9.5% in 2015. The company's CAPEX/Revenue decreased on 8.2 pp from 17.7% in 2012 to 9.5% in 2015. It's average level of CAPEX/Revenue for the last three years was 9.4%.
Return on investment
The company operates at negative ROIC (-2.68%) and ROE (-6.18%). ROIC increased on 5.1 pp from -7.8% to -2.7% in 2015. ROE jumped on 32.8 pp from -38.9% to -6.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.4x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt surged on 847% in 2015 while cash surged on 190% in 2015.
Appendix 1: Peers in Beverages
Below we provide JLF Investment Co Ltd benchmarking against other companies in Beverages 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 |
|---|
| Sino Distillery Group Ltd ($39) | | -62.4% | -34.9% | -15.0% | 882.1% |
| China Huiyuan Juice Group Ltd ($1886) | | 4.1% | 13.1% | 2.0% | 23.7% |
| Besunyen Holdings Co Ltd ($926) | | -43.5% | 2.6% | 15.7% | 17.5% |
| Vitasoy International Holdings Ltd ($345) | | 11.6% | 9.0% | 10.9% | 12.4% |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | | 7.7% | 15.4% | -1.8% | 7.7% |
| |
|---|
| Median (14 companies) | 50.1% | 0.4% | -13.0% | 3.1% | -3.9% |
|---|
| JLF Investment Co Ltd ($472) | | -8.5% | -8.1% | -24.1% | -5.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Besunyen Holdings Co Ltd ($926) | 87.8% | 82.5% | 83.3% | 84.3% | 89.7% |
| Tenfu Cayman Holdings Co Ltd ($6868) | 61.6% | 64.1% | 61.2% | 62.2% | 61.4% |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 78.8% | 81.4% | 73.2% | 62.7% | 60.3% |
| Vitasoy International Holdings Ltd ($345) | 48.1% | 47.4% | 47.5% | 48.4% | 49.7% |
| San Miguel Brewery Hong Kong Ltd ($236) | 43.4% | 42.8% | 42.2% | 42.8% | 41.7% |
| |
|---|
| Median (14 companies) | 43.4% | 44.5% | 34.7% | 34.7% | 37.2% |
|---|
| JLF Investment Co Ltd ($472) | 54.4% | 50.9% | 48.7% | 42.4% | 41.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 72.2% | 73.3% | 73.2% | 69.2% | 52.8% |
| China Tianyi Holdings Ltd ($756) | 17.7% | 28.4% | 26.1% | 29.7% | 23.0% |
| Tenfu Cayman Holdings Co Ltd ($6868) | 27.4% | 27.5% | 25.3% | 26.1% | 22.5% |
| China Huiyuan Juice Group Ltd ($1886) | 9.0% | 15.2% | 21.7% | 11.3% | 18.3% |
| Yantai North Andre Juice Co ($2218) | 16.1% | 14.1% | 11.9% | 15.5% | 15.7% |
| |
|---|
| Median (14 companies) | 16.1% | 15.2% | 10.5% | 11.3% | 11.6% |
|---|
| JLF Investment Co Ltd ($472) | 24.5% | 17.3% | -2.3% | -11.1% | -4.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Culiangwang Beverages Holdings Ltd ($904) | 39.1% | 26.8% | 52.2% | 81.8% | 75.8% |
| China Huiyuan Juice Group Ltd ($1886) | 20.1% | 11.7% | 7.4% | 10.5% | 14.9% |
| Sino Distillery Group Ltd ($39) | 6.2% | 32.4% | 6.5% | 0.4% | 12.0% |
| Vitasoy International Holdings Ltd ($345) | 14.0% | 11.1% | 4.2% | 5.1% | 11.1% |
| Tenfu Cayman Holdings Co Ltd ($6868) | 11.2% | 18.3% | 8.8% | 12.0% | 9.2% |
| |
|---|
| Median (14 companies) | 6.2% | 10.1% | 6.5% | 7.3% | 5.4% |
|---|
| JLF Investment Co Ltd ($472) | 17.4% | 17.7% | 9.1% | 9.4% | 9.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitasoy International Holdings Ltd ($345) | 23.8% | 20.8% | 20.6% | 21.7% | 23.5% |
| Tenfu Cayman Holdings Co Ltd ($6868) | 26.1% | 19.4% | 17.9% | 15.7% | 11.0% |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 41.0% | 23.3% | 20.3% | 14.9% | 11.0% |
| Tsingtao Brewery Co Ltd ($168) | 16.4% | 13.4% | 12.0% | 12.2% | 6.7% |
| Besunyen Holdings Co Ltd ($926) | 0.2% | -24.2% | -8.9% | 3.2% | 4.1% |
| |
|---|
| Median (14 companies) | 14.9% | 12.0% | 3.2% | 3.2% | 3.2% |
|---|
| JLF Investment Co Ltd ($472) | 10.3% | | | -7.8% | -2.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Huiyuan Juice Group Ltd ($1886) | 8.6x | 5.4x | 4.3x | 7.9x | 4.3x |
| San Miguel Brewery Hong Kong Ltd ($236) | | | 2.0x | 1.0x | 3.8x |
| Yantai North Andre Juice Co ($2218) | 2.6x | 2.3x | 2.4x | 2.2x | 3.0x |
| China Tianyi Holdings Ltd ($756) | -3.7x | -1.0x | -0.8x | 0.9x | 1.1x |
| Tenfu Cayman Holdings Co Ltd ($6868) | -1.7x | -1.0x | -0.2x | 0.8x | 0.1x |
| |
|---|
| Median (10 companies) | -0.4x | -0.7x | 1.0x | 0.9x | -0.0x |
|---|
