Bauhaus International Holdings Ltd reports 59.1% Net Income decline in 2016 and 5.0% Revenue decline
24/06/2016 • About Bauhaus International Holdings Ltd (
$483) • By InTwits
Bauhaus International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bauhaus International Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.4%. At the same time it's in pair with industry average of 5.5%.
- CAPEX is quite volatile: 51.8 in FY2016, 105 in FY2015, 56.9 in FY2014, 33.8 in FY2013, 123 in FY2012
- The company has business model with low profitability: ROIC is at 8.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bauhaus International Holdings Ltd ($483) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,160 | 1,294 | 1,427 | 1,592 | 1,513 | -5.0% |
| Gross Profit | 805 | 829 | 910 | 969 | 893 | -7.9% |
| SG&A | | 723 | 757 | 821 | 825 | 0.5% |
| EBITDA | 148 | 143 | 188 | 190 | 112 | -40.8% |
| Net Income | 76 | 99 | 125 | 129 | 53 | -59.1% |
Balance Sheet
|
|---|
| Cash | 86 | 198 | 260 | 257 | 219 | -14.6% |
| Short Term Debt | 47 | 42 | 0 | 20 | 13 | -34.6% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 123 | 34 | 57 | 105 | 52 | -50.5% |
Ratios
|
|---|
| Revenue growth | 14.6% | 11.5% | 10.3% | 11.5% | -5.0% | |
| EBITDA growth | -18.0% | -3.5% | 32.1% | 0.7% | -40.8% | |
| Gross Margin | 69.4% | 64.1% | 63.7% | 60.9% | 59.0% | -1.9% |
| EBITDA Margin | 12.7% | 11.0% | 13.2% | 11.9% | 7.4% | -4.5% |
| Net Income Margin | 6.5% | 7.7% | 8.8% | 8.1% | 3.5% | -4.6% |
| SG&A, % of revenue | | 55.9% | 53.0% | 51.6% | 54.5% | 2.9% |
| CAPEX, % of revenue | 10.6% | 2.6% | 4.0% | 6.6% | 3.4% | -3.2% |
| ROIC | 20.5% | 17.1% | 23.2% | 20.3% | 8.7% | -11.6% |
| ROE | 15.0% | 17.8% | 19.4% | 17.7% | 6.9% | -10.8% |
| Net Debt/EBITDA | -0.3x | -1.1x | -1.4x | -1.3x | -1.8x | -0.6x |
Revenue and profitability
Bauhaus International Holdings Ltd's Revenue decreased on 5.0%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.0 pp from 0.18% to 2.2% in FY2016.
Gross Margin decreased slightly on 1.9 pp from 60.9% to 59.0% in FY2016. SG&A as a % of Revenue increased on 2.9 pp from 51.6% to 54.5% in FY2016.
Net Income marign decreased on 4.6 pp from 8.1% to 3.5% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Bauhaus International Holdings Ltd's CAPEX/Revenue was 3.4% in FY2016. The company showed small growth in CAPEX/Revenue of 0.82 pp from 2.6% in FY2013 to 3.4% in FY2016. It's average level of CAPEX/Revenue for the last three years was 4.7%.
Return on investment
The company operates at low ROIC (8.71%) and ROE (6.88%). ROIC dropped on 11.6 pp from 20.3% to 8.7% in FY2016. ROE dropped on 10.8 pp from 17.7% to 6.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.8x and Debt / EBITDA is 0.1x. Net Debt / EBITDA dropped on 0.6x from -1.3x to -1.8x in FY2016. Debt dropped on 34.6% while cash dropped on 14.6%.
Appendix 1: Peers in Retail
Below you can find Bauhaus International 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 (117 companies) | 7.5% | 6.1% | 2.9% | -1.0% | -8.7% |
|---|
| Bauhaus International Holdings Ltd ($483) | | 11.5% | 10.3% | 11.5% | -5.0% |
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 (103 companies) | 36.2% | 35.8% | 35.0% | 33.3% | 33.6% |
|---|
| Bauhaus International Holdings Ltd ($483) | 69.4% | 64.1% | 63.7% | 60.9% | 59.0% |
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 (117 companies) | 10.3% | 7.3% | 8.9% | 7.1% | 3.3% |
|---|
| Bauhaus International Holdings Ltd ($483) | 12.7% | 11.0% | 13.2% | 11.9% | 7.4% |
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 (117 companies) | 4.0% | 3.6% | 3.7% | 3.1% | 1.7% |
|---|
| Bauhaus International Holdings Ltd ($483) | 10.6% | 2.6% | 4.0% | 6.6% | 3.4% |
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% | |
| JC Group Holdings Ltd ($8326) | | 215.6% | 92.8% | 66.3% | 81.7% |
| 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% | 19.0% |
| Noble House China Holdings Ltd ($8246) | 17.7% | -67.7% | -113.8% | 35.6% | |
| |
|---|
| Median (117 companies) | 12.2% | 8.8% | 8.5% | 5.8% | 3.0% |
|---|
| Bauhaus International Holdings Ltd ($483) | 20.5% | 17.1% | 23.2% | 20.3% | 8.7% |
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 | 8.5x |
| 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 (91 companies) | -0.5x | -0.5x | -0.2x | -0.5x | -0.7x |
|---|
| Bauhaus International Holdings Ltd ($483) | -0.3x | -1.1x | -1.4x | -1.3x | -1.8x |
