Chigo Holding Ltd EBITDA dropped on 173% in 2015 and Revenue dropped on 15.8%
31/03/2016 • About Chigo Holding Ltd (
$449) • By InTwits
Chigo Holding Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Chigo Holding Ltd doesn't have a profitable business model yet: 2015 ROIC is -6.8%
- EBITDA Margin is quite volatile: -4.1% in 2015, 4.7% in 2014, 6.2% in 2013, 5.0% in 2012, 2.1% in 2011
- Chigo Holding Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's in pair with industry average of 20.0%.
- CAPEX is quite volatile: 125 in 2015, 263 in 2014, 466 in 2013, 293 in 2012, 280 in 2011
- The company has unprofitable business model: ROIC is at -6.8%
- It operates with high leverage: Net Debt/EBITDA is 0.2x while industry average is -1.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Chigo Holding Ltd ($449) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 9,342 | 8,802 | 9,184 | 9,233 | 7,774 | -15.8% |
| Gross Profit | 1,072 | 1,293 | 1,456 | 1,603 | 1,066 | -33.5% |
| SG&A | | 1,026 | 1,153 | 1,252 | 1,261 | 0.7% |
| EBITDA | 194 | 443 | 568 | 437 | -318 | -172.7% |
| Net Income | -138 | 92 | 200 | -81 | -690 | 752.0% |
Balance Sheet
|
|---|
| Cash | 549 | 924 | 757 | 465 | 418 | -10.0% |
| Short Term Debt | 5,783 | 6,356 | 7,111 | 6,598 | 2,782 | -57.8% |
| Long Term Debt | 0 | 0 | 327 | 213 | 136 | -36.3% |
Cash flow
|
|---|
| Capex | 280 | 293 | 466 | 263 | 125 | -52.4% |
Ratios
|
|---|
| Revenue growth | 10.3% | -5.8% | 4.3% | 0.5% | -15.8% | |
| EBITDA growth | -63.7% | 129.0% | 28.1% | -23.1% | -172.7% | |
| Gross Margin | 11.5% | 14.7% | 15.9% | 17.4% | 13.7% | -3.7% |
| EBITDA Margin | 2.1% | 5.0% | 6.2% | 4.7% | -4.1% | -8.8% |
| Net Income Margin | -1.5% | 1.0% | 2.2% | -0.9% | -8.9% | -8.0% |
| SG&A, % of revenue | | 11.7% | 12.6% | 13.6% | 16.2% | 2.7% |
| CAPEX, % of revenue | 3.0% | 3.3% | 5.1% | 2.8% | 1.6% | -1.2% |
| ROIC | 1.3% | 3.7% | 4.4% | 2.6% | -6.8% | -9.4% |
| ROE | -5.5% | 3.5% | 7.1% | -2.8% | -27.5% | -24.7% |
| Net Debt/EBITDA | 27.0x | 12.3x | 11.8x | 14.5x | | -14.5x |
Revenue and profitability
The company's Revenue dropped on 15.8% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 8.8 pp from 4.7% to -4.1% in 2015.
Gross Margin decreased on 3.7 pp from 17.4% to 13.7% in 2015. SG&A as a % of Revenue increased on 2.7 pp from 13.6% to 16.2% in 2015.
Net Income marign decreased on 8.0 pp from -0.88% to -8.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
Chigo Holding Ltd's CAPEX/Revenue was 1.6% in 2015. The company showed small CAPEX/Revenue decline of 1.7 pp from 3.3% in 2012 to 1.6% in 2015. Average CAPEX/Revenue for the last three years was 3.2%.
Return on investment
The company operates at negative ROIC (-6.79%) and ROE (-27.48%). ROIC decreased on 9.4 pp from 2.6% to -6.8% in 2015. ROE dropped on 24.7 pp from -2.8% to -27.5% in 2015.
Leverage (Debt)
Debt level is 0.2x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 14.5x from 14.5x to in 2015. Debt dropped on 57.2% in 2015 while cash decreased on 10.0% in 2015.
Appendix 1: Peers in Home Furnishings
Below we provide Chigo Holding Ltd benchmarking against other companies in Home Furnishings 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 |
|---|
| BEP International Holdings Ltd ($2326) | | 44.7% | -41.5% | 46.2% | 187.9% |
| See Corp Ltd ($491) | | 13.7% | -31.9% | 134.1% | 126.9% |
| Sunrise China Technology Group Ltd ($8226) | | -93.0% | 21.9% | -20.4% | 77.5% |
| Yuxing InfoTech Investment Holdings Ltd ($8005) | | 29.6% | -21.2% | -16.5% | 21.3% |
| Aupu Group Holding Co Ltd ($477) | | 5.7% | 9.0% | 26.4% | 18.5% |
| |
|---|
| Median (25 companies) | -15.9% | 2.3% | 7.8% | 3.0% | 0.1% |
|---|
| Chigo Holding Ltd ($449) | | -5.8% | 4.3% | 0.5% | -15.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| South East Group Ltd ($726) | 36.2% | 25.5% | 51.6% | 38.8% | 82.4% |
| Aupu Group Holding Co Ltd ($477) | 47.1% | 48.6% | 45.0% | 47.8% | 48.7% |
| Samson Holding Ltd ($531) | 24.9% | 25.6% | 25.4% | 27.3% | 27.3% |
| Gold Peak Industries Holding Ltd ($40) | 26.8% | 25.8% | 23.6% | 24.9% | 25.6% |
| Hing Lee HK Holdings Ltd ($396) | 23.1% | 16.3% | 18.7% | 22.7% | 22.9% |
| |
|---|
| Median (25 companies) | 16.5% | 18.9% | 18.2% | 15.9% | 15.9% |
|---|
| Chigo Holding Ltd ($449) | 11.5% | 14.7% | 15.9% | 17.4% | 13.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Aupu Group Holding Co Ltd ($477) | 18.1% | 15.3% | 17.6% | 30.1% | 27.0% |
| Skyworth Digital Holdings Ltd ($751) | 7.0% | 6.0% | 6.1% | 5.7% | 11.3% |
| Welling Holding Ltd ($382) | 8.6% | 11.9% | 12.8% | 10.8% | 8.6% |
| Hing Lee HK Holdings Ltd ($396) | 9.3% | -3.0% | 4.3% | 9.4% | 8.2% |
| Raymond Industrial Ltd ($229) | 4.5% | 7.6% | 7.7% | 7.8% | 6.3% |
| |
|---|
| Median (25 companies) | 6.0% | 5.4% | 4.5% | 4.5% | 4.0% |
|---|
| Chigo Holding Ltd ($449) | 2.1% | 5.0% | 6.2% | 4.7% | -4.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| JF Household Furnishings Ltd ($776) | 4.7% | 0.7% | 4.5% | 2.8% | 54.5% |
| Sunrise China Technology Group Ltd ($8226) | 7.9% | 126.4% | 69.3% | 7.4% | 14.1% |
| Royale Furniture Holdings Ltd ($1198) | 35.8% | | 14.1% | 16.5% | 10.5% |
| South East Group Ltd ($726) | 0.0% | 0.0% | 0.0% | 0.0% | 7.9% |
| Aupu Group Holding Co Ltd ($477) | 1.9% | 1.5% | 6.3% | 5.3% | 5.7% |
| |
|---|
| Median (25 companies) | 1.8% | 1.5% | 1.9% | 2.7% | 2.5% |
|---|
| Chigo Holding Ltd ($449) | 3.0% | 3.3% | 5.1% | 2.8% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Aupu Group Holding Co Ltd ($477) | 18.0% | 14.8% | 17.0% | 32.2% | 32.2% |
| Mastercraft International Holdings Ltd ($8146) | 76.2% | 54.4% | 38.6% | 36.4% | 23.2% |
| Skyworth Digital Holdings Ltd ($751) | 11.7% | 11.6% | 13.4% | 10.9% | 23.0% |
| BEP International Holdings Ltd ($2326) | 218.9% | 90.3% | 4.7% | -4.5% | 17.6% |
| Tonly Electronics Holdings Ltd ($1249) | 7.0% | 4.2% | 7.1% | 15.9% | 11.7% |
| |
|---|
| Median (25 companies) | 7.0% | 4.2% | 4.7% | 4.0% | 4.1% |
|---|
| Chigo Holding Ltd ($449) | 1.3% | 3.7% | 4.4% | 2.6% | -6.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kasen International Holdings Ltd ($496) | 9.6x | 2.2x | 3.7x | 44.9x | 20.1x |
| Hisense Kelon Electrical Holdings Co Ltd ($921) | 3.3x | 1.2x | 0.9x | 1.0x | 6.4x |
| Gold Peak Industries Holding Ltd ($40) | 5.6x | 10.2x | 3.4x | 3.6x | 2.8x |
| TCL Multimedia Technology Holdings Ltd ($1070) | -0.0x | -0.3x | -2.3x | 0.7x | 0.5x |
| Skyworth Digital Holdings Ltd ($751) | 1.1x | 1.2x | 1.5x | 1.2x | -0.2x |
| |
|---|
| Median (17 companies) | 0.0x | -0.3x | -1.1x | -1.9x | -0.9x |
|---|
