Bolina Holding Co Ltd reports 55.3% Net Income decline and 17.3% Revenue decline
31/03/2016 • About Bolina Holding Co Ltd (
$1190) • By InTwits
Bolina Holding Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 20.4% in 2015 vs. 28.7% in 2014 vs. 36.5% in 2011
- Bolina Holding Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.9%. At the same time it's in pair with industry average of 4.4%.
- CAPEX is quite volatile: 4.5 in 2015, 15.4 in 2014, 40.0 in 2013, 42.3 in 2012, 80.6 in 2011
- The company has business model with low profitability: ROIC is at 8.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bolina Holding Co Ltd ($1190) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 655.5 | 816.7 | 913.3 | 865.6 | 716.0 | -17.3% |
| Gross Profit | 303.7 | 389.8 | 427.4 | 376.8 | 285.5 | -24.2% |
| SG&A | | 98.3 | 144.5 | 152.2 | 165.0 | 8.4% |
| EBITDA | 239.2 | 308.9 | 310.7 | 248.5 | 146.0 | -41.3% |
| Net Income | 160.4 | 246.2 | 211.3 | 165.9 | 74.1 | -55.3% |
Balance Sheet
|
|---|
| Cash | 176.0 | 689.8 | 657.0 | 838.2 | 793.9 | -5.3% |
| Short Term Debt | 225.0 | 170.5 | 315.9 | 276.7 | 442.4 | 59.9% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 81.2 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 80.6 | 42.3 | 40.0 | 15.4 | 4.5 | -70.5% |
Ratios
|
|---|
| Revenue growth | 76.5% | 24.6% | 11.8% | -5.2% | -17.3% | |
| EBITDA growth | 116.8% | 29.1% | 0.6% | -20.0% | -41.3% | |
| Gross Margin | 46.3% | 47.7% | 46.8% | 43.5% | 39.9% | -3.7% |
| EBITDA Margin | 36.5% | 37.8% | 34.0% | 28.7% | 20.4% | -8.3% |
| Net Income Margin | 24.5% | 30.1% | 23.1% | 19.2% | 10.3% | -8.8% |
| SG&A, % of revenue | | 12.0% | 15.8% | 17.6% | 23.0% | 5.5% |
| CAPEX, % of revenue | 12.3% | 5.2% | 4.4% | 1.8% | 0.6% | -1.1% |
| ROIC | 51.7% | 38.8% | 24.7% | 16.8% | 8.5% | -8.3% |
| ROE | 77.8% | 44.7% | 23.3% | 17.0% | 7.2% | -9.7% |
| Net Debt/EBITDA | 0.2x | -1.7x | -1.1x | -1.9x | -2.4x | -0.5x |
Revenue and profitability
The company's Revenue dropped on 17.3% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 8.3 pp from 28.7% to 20.4% in 2015.
Gross Margin decreased on 3.7 pp from 43.5% to 39.9% in 2015. SG&A as a % of Revenue increased on 5.5 pp from 17.6% to 23.0% in 2015.
Net Income marign decreased on 8.8 pp from 19.2% to 10.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.64%. CAPEX/Revenue decreased on 4.5 pp from 5.2% in 2012 to 0.64% in 2015. Average CAPEX/Revenue for the last three years was 2.3%.
Return on investment
The company operates at low ROIC (8.53%) and ROE (7.24%). ROIC decreased on 8.3 pp from 16.8% to 8.5% in 2015. ROE decreased on 9.7 pp from 17.0% to 7.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.4x and Debt / EBITDA is 3.0x. Net Debt / EBITDA dropped on 0.5x from -1.9x to -2.4x in 2015. Debt surged on 23.6% in 2015 while cash decreased on 5.3% in 2015.
Appendix 1: Peers in Housewares
Below we provide Bolina Holding Co Ltd benchmarking against other companies in Housewares 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 |
|---|
| International Housewares Retail Co Ltd ($1373) | | 19.0% | 23.7% | 16.6% | 11.7% |
| World Houseware Holdings Ltd ($713) | | -4.8% | -7.4% | -0.4% | 0.2% |
| China Creative Home Group Ltd ($1678) | | 20.5% | 23.4% | 17.9% | -9.0% |
| Perfectech International Holdings Ltd ($765) | | -21.9% | -3.5% | -9.3% | -12.2% |
| China Strategic Holdings Ltd ($235) | | -39.2% | 1,832.6% | 281.4% | -42.7% |
| |
|---|
| Median (5 companies) | | -4.8% | 23.4% | 16.6% | -9.0% |
|---|
| Bolina Holding Co Ltd ($1190) | | 24.6% | 11.8% | -5.2% | -17.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| International Housewares Retail Co Ltd ($1373) | 42.4% | 44.5% | 46.1% | 46.5% | 46.3% |
| China Creative Home Group Ltd ($1678) | 41.2% | 44.2% | 44.3% | 40.4% | 36.9% |
| Perfectech International Holdings Ltd ($765) | 16.7% | 23.9% | 26.6% | 25.1% | 22.7% |
| World Houseware Holdings Ltd ($713) | 8.8% | 13.1% | 10.3% | 10.8% | 14.6% |
| China Strategic Holdings Ltd ($235) | 43.3% | 11.4% | 11.7% | 7.4% | 14.0% |
| |
|---|
| Median (5 companies) | 41.2% | 23.9% | 26.6% | 25.1% | 22.7% |
|---|
| Bolina Holding Co Ltd ($1190) | 46.3% | 47.7% | 46.8% | 43.5% | 39.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Creative Home Group Ltd ($1678) | 33.1% | 36.0% | 33.8% | 32.6% | 28.5% |
| International Housewares Retail Co Ltd ($1373) | 8.8% | 9.8% | 9.6% | 8.5% | 6.7% |
| Perfectech International Holdings Ltd ($765) | 7.3% | 14.6% | 14.9% | 11.7% | 4.6% |
| World Houseware Holdings Ltd ($713) | 2.1% | 7.1% | 3.4% | 2.4% | 4.2% |
| China Strategic Holdings Ltd ($235) | -727.1% | -1,603.6% | -25.0% | -2.8% | -7.3% |
| |
|---|
| Median (5 companies) | 7.3% | 9.8% | 9.6% | 8.5% | 4.6% |
|---|
| Bolina Holding Co Ltd ($1190) | 36.5% | 37.8% | 34.0% | 28.7% | 20.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Creative Home Group Ltd ($1678) | 3.3% | 1.2% | 2.4% | 42.0% | 13.1% |
| World Houseware Holdings Ltd ($713) | 2.2% | 3.6% | 6.2% | 12.4% | 5.1% |
| International Housewares Retail Co Ltd ($1373) | 1.6% | 2.7% | 3.0% | 2.0% | 3.9% |
| Perfectech International Holdings Ltd ($765) | 5.5% | 2.3% | 16.2% | 19.8% | 2.9% |
| China Strategic Holdings Ltd ($235) | 0.0% | 0.0% | 0.0% | 0.6% | 0.7% |
| |
|---|
| Median (5 companies) | 2.2% | 2.3% | 3.0% | 12.4% | 3.9% |
|---|
| Bolina Holding Co Ltd ($1190) | 12.3% | 5.2% | 4.4% | 1.8% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Creative Home Group Ltd ($1678) | 37.6% | 38.8% | 28.1% | 23.6% | 15.3% |
| International Housewares Retail Co Ltd ($1373) | | 44.7% | 38.4% | 20.3% | 11.8% |
| Perfectech International Holdings Ltd ($765) | 5.4% | 11.7% | 11.8% | 7.6% | 0.5% |
| China Strategic Holdings Ltd ($235) | -8.3% | -12.0% | -4.0% | -1.3% | -0.8% |
| World Houseware Holdings Ltd ($713) | -3.0% | 1.6% | -1.9% | -2.8% | -1.8% |
| |
|---|
| Median (5 companies) | 1.2% | 11.7% | 11.8% | 7.6% | 0.5% |
|---|
| Bolina Holding Co Ltd ($1190) | 51.7% | 38.8% | 24.7% | 16.8% | 8.5% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| World Houseware Holdings Ltd ($713) | 4.9x | 1.4x | 4.7x | 11.7x | 7.4x |
| China Creative Home Group Ltd ($1678) | 0.2x | -0.4x | -2.3x | -1.4x | -1.8x |
| International Housewares Retail Co Ltd ($1373) | -0.7x | -0.2x | -0.3x | -2.7x | -2.8x |
| Perfectech International Holdings Ltd ($765) | -1.4x | -1.8x | -1.7x | -0.7x | -4.4x |
| |
|---|
| Median (4 companies) | -0.2x | -0.3x | -1.0x | -1.1x | -2.3x |
|---|
| Bolina Holding Co Ltd ($1190) | 0.2x | -1.7x | -1.1x | -1.9x | -2.4x |
