Le Saunda Holdings Ltd reports 37.0% Net Income decline in 2016 and 5.8% Revenue decline
18/05/2016 • About Le Saunda Holdings Ltd (
$738) • By InTwits
Le Saunda Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Le Saunda Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's in pair with industry average of 6.7%.
- CAPEX is quite volatile: 186 in FY2016, 120 in FY2015, 92.2 in FY2014, 82.6 in FY2013, 91.3 in FY2012
- The company has highly profitable business model: ROIC is at 14.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Le Saunda Holdings Ltd ($738) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,545 | 1,762 | 2,039 | 2,108 | 1,986 | -5.8% |
| Gross Profit | 995 | 1,141 | 1,368 | 1,417 | 1,310 | -7.5% |
| SG&A | | 190 | 238 | 256 | 243 | -5.1% |
| EBITDA | 263 | 259 | 318 | 369 | 274 | -25.7% |
| Net Income | 194 | 179 | 287 | 237 | 149 | -37.0% |
Balance Sheet
|
|---|
| Cash | 421 | 427 | 621 | 537 | 645 | 20.1% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 49 | 49 | 49 | 43 | 35 | -20.1% |
Ratios
|
|---|
| Revenue growth | 17.1% | 14.1% | 15.7% | 3.4% | -5.8% | |
| EBITDA growth | 7.9% | -1.6% | 22.9% | 16.2% | -25.7% | |
| Gross Margin | 64.4% | 64.7% | 67.1% | 67.2% | 66.0% | -1.2% |
| EBITDA Margin | 17.0% | 14.7% | 15.6% | 17.5% | 13.8% | -3.7% |
| Net Income Margin | 12.6% | 10.2% | 14.1% | 11.2% | 7.5% | -3.7% |
| SG&A, % of revenue | | 10.8% | 11.7% | 12.1% | 12.2% | 0.1% |
| CAPEX, % of revenue | 3.2% | 2.8% | 2.4% | 2.1% | 1.7% | -0.3% |
| ROIC | 19.1% | 16.5% | 18.5% | 20.4% | 14.2% | -6.2% |
| ROE | 17.4% | 14.5% | 20.6% | 15.6% | 9.6% | -6.0% |
| Net Debt/EBITDA | -1.6x | -1.6x | -2.0x | -1.5x | -2.3x | -0.9x |
Revenue and profitability
The company's Revenue decreased on 5.8%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.7 pp from 17.5% to 13.8% in FY2016.
Gross Margin decreased slightly on 1.2 pp from 67.2% to 66.0% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign decreased on 3.7 pp from 11.2% to 7.5% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.7% in FY2016. Le Saunda Holdings Ltd's CAPEX/Revenue decreased slightly on 1.0 pp from 2.8% in FY2013 to 1.7% in FY2016. It's average level of CAPEX/Revenue for the last three years was 2.1%.
Return on investment
The company operates at good ROIC (14.24%) while ROE is low (9.58%). ROIC decreased on 6.2 pp from 20.4% to 14.2% in FY2016. ROE decreased on 6.0 pp from 15.6% to 9.6% in FY2016.
Leverage (Debt)
The company has no debt. Cash surged on 20.1%.
Appendix 1: Peers in Retail
Below you can find Le Saunda 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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) | 10.5% | 6.1% | 3.1% | -1.0% | 5.2% |
|---|
| Le Saunda Holdings Ltd ($738) | | 14.1% | 15.7% | 3.4% | -5.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vongroup Ltd ($318) | | | 95.1% | 99.1% | |
| Modern Beauty Salon Holdings Ltd ($919) | 97.4% | 95.9% | 96.8% | 96.7% | |
| Moiselle International Holdings Ltd ($130) | 81.2% | 83.8% | 80.6% | 83.2% | |
| Embry Holdings Ltd ($1388) | 81.2% | 80.4% | 82.3% | 81.6% | |
| Nanjing Sinolife United Co Ltd ($3332) | 86.5% | 89.3% | 90.9% | 80.6% | |
| |
|---|
| Median (102 companies) | 36.7% | 36.3% | 35.3% | 33.6% | 36.1% |
|---|
| Le Saunda Holdings Ltd ($738) | 64.4% | 64.7% | 67.1% | 67.2% | 66.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Energy Development Holdings Ltd ($228) | -58.1% | -72.3% | -84.0% | 1,070.6% | |
| Golden Eagle Retail Group Ltd ($3308) | 48.5% | 47.3% | 42.8% | 55.4% | |
| Nanjing Sinolife United Co Ltd ($3332) | 51.6% | 56.9% | 54.4% | 44.8% | |
| Lifestyle International Holdings Ltd ($1212) | 47.5% | 47.0% | 44.7% | 43.4% | |
| China Dongxiang Group Co Ltd ($3818) | 6.0% | 5.6% | 58.3% | 41.4% | |
| |
|---|
| Median (115 companies) | 10.3% | 7.3% | 8.9% | 7.1% | 8.0% |
|---|
| Le Saunda Holdings Ltd ($738) | 17.0% | 14.7% | 15.6% | 17.5% | 13.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Culture Landmark Investment Ltd ($674) | 11.6% | 19.4% | 15.7% | 47.2% | |
| Springland International Holdings Ltd ($1700) | 31.9% | 17.4% | 26.5% | 36.9% | |
| Merry Garden Holdings Ltd ($1237) | 18.6% | 28.6% | 15.1% | 34.2% | |
| China Energy Development Holdings Ltd ($228) | 1.6% | 0.2% | 0.0% | 27.4% | |
| Golden Eagle Retail Group Ltd ($3308) | 28.5% | 9.4% | 26.7% | 25.4% | |
| |
|---|
| Median (115 companies) | 4.5% | 3.7% | 3.8% | 3.5% | 2.7% |
|---|
| Le Saunda Holdings Ltd ($738) | 3.2% | 2.8% | 2.4% | 2.1% | 1.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Modern Beauty Salon Holdings Ltd ($919) | 50.7% | -4.6% | 81.3% | 71.8% | |
| Starbucks Corp ($4337) | 36.4% | -6.0% | 52.8% | 51.4% | |
| Sa Sa International Holdings Ltd ($178) | 53.5% | 52.7% | 49.0% | 39.8% | |
| Noble House China Holdings Ltd ($8246) | 17.7% | -67.7% | -113.8% | 35.6% | |
| Fairwood Holdings Ltd ($52) | 28.0% | 29.1% | 28.6% | 32.1% | |
| |
|---|
| Median (115 companies) | 12.2% | 8.5% | 8.4% | 5.8% | 15.4% |
|---|
| Le Saunda Holdings Ltd ($738) | 19.1% | 16.5% | 18.5% | 20.4% | 14.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sparkle Roll Group Ltd ($970) | 0.6x | 4.0x | 9.3x | 23.5x | |
| Trinity Ltd ($891) | -0.2x | 0.2x | 0.6x | 18.2x | |
| Parkson Retail Group Ltd ($3368) | 0.8x | 2.3x | 3.6x | 9.8x | |
| Maoye International Holdings Ltd ($848) | 2.9x | 3.3x | 3.4x | 9.0x | |
| Century Ginwa Retail Holdings Ltd ($162) | 2.0x | 2.5x | 4.8x | 7.3x | |
| |
|---|
| Median (89 companies) | -0.5x | -0.6x | -0.2x | -0.5x | -0.9x |
|---|
| Le Saunda Holdings Ltd ($738) | -1.6x | -1.6x | -2.0x | -1.5x | -2.3x |
