Viva China Holdings Ltd CAPEX surged on 347% in 2015 and Revenue surged on 32.3%
31/03/2016 • About Viva China Holdings Ltd (
$8032) • By InTwits
Viva China Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Viva China Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -2.5%
- The company operates at negative EBITDA Margin: -63.5%
- Viva China Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -100.7% for the sames years0
- Viva China Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 16.9%. At the same time it's a lot of higher than industry average of 5.9%.
- CAPEX is quite volatile: 17.0 in 2015, 3.8 in 2014, 8.2 in 2013, 15.4 in 2012, 32.4 in 2011
- The company has unprofitable business model: ROIC is at -2.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Viva China Holdings Ltd ($8032) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 80.1 | 68.2 | 125.2 | 111.4 | 147.4 | 32.3% |
| Gross Profit | 41.1 | 36.9 | 20.5 | 11.2 | 25.3 | 125.5% |
| SG&A | | 130.3 | 169.4 | 189.4 | 147.3 | -22.2% |
| EBITDA | -99.2 | -72.2 | -117.7 | -153.4 | -93.6 | -39.0% |
| Net Income | 39.5 | -282.6 | -640.9 | -462.2 | -179.7 | -61.1% |
Balance Sheet
|
|---|
| Cash | 1,120.7 | 932.4 | 827.5 | 578.4 | 252.6 | -56.3% |
| Short Term Debt | 1.2 | 0.7 | 12.9 | 5.0 | 196.9 | 3,832.7% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 231.7 | |
Cash flow
|
|---|
| Capex | 32.4 | 15.4 | 8.2 | 3.8 | 17.0 | 347.1% |
Ratios
|
|---|
| Revenue growth | 601.7% | -14.9% | 83.5% | -11.0% | 32.3% | |
| EBITDA growth | 54.9% | -27.1% | 62.9% | 30.4% | -39.0% | |
| Gross Margin | 51.3% | 54.1% | 16.4% | 10.1% | 17.2% | 7.1% |
| EBITDA Margin | -123.7% | -105.9% | -94.0% | -137.7% | -63.5% | 74.2% |
| Net Income Margin | 49.2% | -414.4% | -512.1% | -414.8% | -121.9% | 292.9% |
| SG&A, % of revenue | | 191.1% | 135.4% | 170.0% | 99.9% | -70.0% |
| CAPEX, % of revenue | 40.5% | 22.6% | 6.5% | 3.4% | 11.5% | 8.1% |
| ROIC | -5.7% | -3.3% | -3.3% | -3.9% | -2.5% | 1.4% |
| ROE | 1.9% | -12.3% | -27.1% | -18.6% | -6.7% | 11.9% |
Revenue and profitability
The company's Revenue jumped on 32.3% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 24.1 pp from -81.2% to -57.1% in 2015.
Gross Margin increased on 7.1 pp from 10.1% to 17.2% in 2015. SG&A as a % of Revenue dropped on 70.0 pp from 170% to 99.9% in 2015.
Net Income marign surged on 293 pp from -415% to -122% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Viva China Holdings Ltd had CAPEX/Revenue of 11.5%. CAPEX/Revenue dropped on 11.1 pp from 22.6% in 2012 to 11.5% in 2015. Average CAPEX/Revenue for the last three years was 7.2%.
Return on investment
The company operates at negative ROIC (-2.48%) and ROE (-6.73%). ROIC increased slightly on 1.4 pp from -3.9% to -2.5% in 2015. ROE jumped on 11.9 pp from -18.6% to -6.7% in 2015.
Leverage (Debt)
Debt level is -3.9x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt surged on 8,460% in 2015 while cash dropped on 56.3% in 2015.
Appendix 1: Peers in Retail
Below you can find Viva China Holdings Ltd benchmarking vs. other companies in Retail industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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 (115 companies) | 421.0% | 11.6% | 6.5% | 3.7% | -1.0% |
|---|
| Viva China Holdings Ltd ($8032) | | -14.9% | 83.5% | -11.0% | 32.3% |
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 (102 companies) | 37.6% | 36.2% | 36.4% | 35.5% | 34.8% |
|---|
| Viva China Holdings Ltd ($8032) | 51.3% | 54.1% | 16.4% | 10.1% | 17.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Energy Development Holdings Ltd ($228) | -44.2% | -58.1% | -72.3% | -84.0% | 1,070.6% |
| Golden Eagle Retail Group Ltd ($3308) | 52.1% | 48.5% | 47.3% | 42.8% | 55.4% |
| 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% |
| |
|---|
| Median (115 companies) | 13.4% | 10.7% | 7.8% | 9.0% | 7.4% |
|---|
| Viva China Holdings Ltd ($8032) | -123.7% | -105.9% | -94.0% | -137.7% | -63.5% |
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% |
| China Energy Development Holdings Ltd ($228) | 1.4% | 1.6% | 0.2% | 0.0% | 27.4% |
| Golden Eagle Retail Group Ltd ($3308) | 30.6% | 28.5% | 9.4% | 26.7% | 25.4% |
| |
|---|
| Median (115 companies) | 3.9% | 4.1% | 3.6% | 3.8% | 3.1% |
|---|
| Viva China Holdings Ltd ($8032) | 40.5% | 22.6% | 6.5% | 3.4% | 11.5% |
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 (115 companies) | 17.2% | 12.4% | 8.8% | 8.5% | 5.8% |
|---|
| Viva China Holdings Ltd ($8032) | -5.7% | -3.3% | -3.3% | -3.9% | -2.5% |
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 (91 companies) | -0.8x | -0.5x | -0.8x | -0.2x | -0.5x |
|---|
