G-Vision International Holdings Ltd reports 3.0% revenue decline in FY2016 and 5.6 pp EBITDA Margin decline from -3.4% to -9.0%
13/06/2016 • About G-Vision International Holdings Ltd (
$657) • By InTwits
G-Vision International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- G-Vision International Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -7.9%
- The company operates at negative EBITDA Margin: -9.0%
- G-Vision International Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -7.6%0
- G-Vision International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.0%.
- The company has unprofitable business model: ROIC is at -7.9%
- It operates with high leverage: Net Debt/EBITDA is 37.8x while industry average is -0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
G-Vision International Holdings Ltd ($657) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 91.027 | 86.791 | 87.628 | 93.742 | 90.938 | -3.0% |
| Gross Profit | 57.619 | 55.564 | 55.930 | 61.967 | 61.383 | -0.9% |
| EBITDA | -5.410 | -7.412 | -9.860 | -3.195 | -8.184 | |
| Net Income | -7.378 | -8.434 | -7.687 | -4.713 | -9.304 | |
Balance Sheet
|
|---|
| Cash | 69.090 | 82.106 | 39.934 | 39.826 | 54.799 | 37.6% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.014 | 0.004 | 0.009 | 0.000 | 0.098 | |
Ratios
|
|---|
| Revenue growth | 14.0% | -4.7% | 1.0% | 7.0% | -3.0% | |
| EBITDA growth | -57.1% | 37.0% | 33.0% | -67.6% | 156.2% | |
| Gross Margin | 63.3% | 64.0% | 63.8% | 66.1% | 67.5% | 1.4% |
| EBITDA Margin | -5.9% | -8.5% | -11.3% | -3.4% | -9.0% | -5.6% |
| Net Income Margin | -8.1% | -9.7% | -8.8% | -5.0% | -10.2% | -5.2% |
| CAPEX, % of revenue | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.1% |
| ROIC | -5.5% | -7.6% | -9.1% | -3.9% | -7.9% | -3.9% |
| ROE | -5.3% | -6.3% | -6.1% | -4.0% | -8.3% | -4.3% |
Revenue and profitability
G-Vision International Holdings Ltd's Revenue decreased on 3.0%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 24.1 pp from -18.3% to 5.7% in FY2016.
Gross Margin increased slightly on 1.4 pp from 66.1% to 67.5% in FY2016.
Net Income marign decreased on 5.2 pp from -5.0% to -10.2% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 G-Vision International Holdings Ltd had CAPEX/Revenue of 0.11%. CAPEX/Revenue showed almost no change from FY2013 to FY2016.
Return on investment
The company operates at negative ROIC (-7.87%) and ROE (-8.31%). ROIC decreased on 3.9 pp from -3.9% to -7.9% in FY2016. ROE decreased on 4.3 pp from -4.0% to -8.3% in FY2016.
Leverage (Debt)
The company has no debt. Cash jumped on 37.6%.
Appendix 1: Peers in Retail
Below we provide G-Vision International Holdings 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) | 9.8% | 6.5% | 3.3% | -1.0% | 3.8% |
|---|
| G-Vision International Holdings Ltd ($657) | | -4.7% | 1.0% | 7.0% | -3.0% |
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% |
|---|
| G-Vision International Holdings Ltd ($657) | 63.3% | 64.0% | 63.8% | 66.1% | 67.5% |
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% | 7.8% | 9.1% | 7.4% | 9.1% |
|---|
| G-Vision International Holdings Ltd ($657) | -5.9% | -8.5% | -11.3% | -3.4% | -9.0% |
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% | 1.8% |
|---|
| G-Vision International Holdings Ltd ($657) | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% |
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% | 8.8% | 8.5% | 5.8% | 10.5% |
|---|
| G-Vision International Holdings Ltd ($657) | -5.5% | -7.6% | -9.1% | -3.9% | -7.9% |
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 (90 companies) | -0.5x | -0.7x | -0.2x | -0.5x | -0.6x |
|---|
