Dickson Concepts International Ltd EBITDA dropped on 108% in 2016 and Revenue dropped on 16.2%
30/05/2016 • About Dickson Concepts International Ltd (
$113) • By InTwits
Dickson Concepts International Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dickson Concepts International Ltd doesn't have a profitable business model yet: FY2016 ROIC is -4.4%
- EBITDA Margin is declining: -0.2% in FY2016 vs. 2.0% in FY2015 vs. 8.8% in FY2012
- EBITDA Margin is quite volatile: -0.2% in FY2016, 2.0% in FY2015, 6.9% in FY2014, 9.6% in FY2013, 8.8% in FY2012
- Dickson Concepts International Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's in pair with industry average of 9.6%.
- CAPEX is quite volatile: 62.0 in FY2016, 127 in FY2015, 98.9 in FY2014, 145 in FY2013, 299 in FY2012
- The company has unprofitable business model: ROIC is at -4.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dickson Concepts International Ltd ($113) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,985 | 4,126 | 4,353 | 4,322 | 3,621 | -16.2% |
| Gross Profit | 2,153 | 2,232 | 2,227 | 2,096 | 1,796 | -14.3% |
| SG&A | 1,872 | 1,966 | 1,966 | 2,098 | 1,974 | -5.9% |
| EBITDA | 351 | 397 | 302 | 86 | -7 | -107.8% |
| Net Income | 187 | 229 | 155 | -110 | -288 | |
Balance Sheet
|
|---|
| Cash | 938 | 1,120 | 1,107 | 1,387 | 1,391 | 0.3% |
| Short Term Debt | 103 | 119 | 113 | 87 | 76 | -13.3% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 299 | 145 | 99 | 127 | 62 | -51.1% |
Ratios
|
|---|
| Revenue growth | 17.1% | 3.5% | 5.5% | -0.7% | -16.2% | |
| EBITDA growth | -21.4% | 13.3% | -24.0% | -71.5% | -107.8% | |
| Gross Margin | 54.0% | 54.1% | 51.1% | 48.5% | 49.6% | 1.1% |
| EBITDA Margin | 8.8% | 9.6% | 6.9% | 2.0% | -0.2% | -2.2% |
| Net Income Margin | 4.7% | 5.6% | 3.6% | -2.6% | -8.0% | -5.4% |
| SG&A, % of revenue | 47.0% | 47.6% | 45.2% | 48.5% | 54.5% | 6.0% |
| CAPEX, % of revenue | 7.5% | 3.5% | 2.3% | 2.9% | 1.7% | -1.2% |
| ROIC | 9.1% | 9.1% | 5.5% | -1.5% | -4.4% | -2.9% |
| ROE | 8.0% | 9.5% | 6.2% | -4.5% | -13.1% | -8.6% |
| Net Debt/EBITDA | -2.4x | -2.5x | -3.3x | -15.1x | | 15.1x |
Revenue and profitability
The company's Revenue dropped on 16.2%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.2 pp from 2.0% to -0.18% in FY2016.
Gross Margin increased slightly on 1.1 pp from 48.5% to 49.6% in FY2016. SG&A as a % of Revenue increased on 6.0 pp from 48.5% to 54.5% in FY2016.
Net Income marign decreased on 5.4 pp from -2.6% to -8.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.7% in FY2016. The company showed small CAPEX/Revenue decline of 1.8 pp from 3.5% in FY2013 to 1.7% in FY2016. It's average CAPEX/Revenue for the last three years was 2.3%.
Return on investment
The company operates at negative ROIC (-4.39%) and ROE (-13.08%). ROIC decreased on 2.9 pp from -1.5% to -4.4% in FY2016. ROE decreased on 8.6 pp from -4.5% to -13.1% in FY2016.
Leverage (Debt)
Debt level is -1.6x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA jumped on 15.1x from -15.1x to in FY2016. Debt dropped on 13.3% while cash showed almost no change in FY2016.
Appendix 1: Peers in Retail
Below we provide Dickson Concepts International Ltd benchmarking against other companies in Retail 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 | 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) | 9.9% | 6.5% | 3.1% | -1.0% | 4.2% |
|---|
| Dickson Concepts International Ltd ($113) | | 3.5% | 5.5% | -0.7% | -16.2% |
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% | 48.4% |
|---|
| Dickson Concepts International Ltd ($113) | 54.0% | 54.1% | 51.1% | 48.5% | 49.6% |
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) | 10.8% | 7.3% | 9.1% | 7.4% | 9.2% |
|---|
| Dickson Concepts International Ltd ($113) | 8.8% | 9.6% | 6.9% | 2.0% | -0.2% |
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) | 4.1% | 3.7% | 3.8% | 3.5% | 1.9% |
|---|
| Dickson Concepts International Ltd ($113) | 7.5% | 3.5% | 2.3% | 2.9% | 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) | 12.3% | 8.5% | 8.5% | 5.8% | 14.2% |
|---|
| Dickson Concepts International Ltd ($113) | 9.1% | 9.1% | 5.5% | -1.5% | -4.4% |
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 | -0.7x |
|---|
| Dickson Concepts International Ltd ($113) | -2.4x | -2.5x | -3.3x | -15.1x | |
