Culture Landmark Investment Ltd revenue dropped on 20.8% while EBITDA Margin jumped on 14.3 pp from -53.5% to -39.2%
27/06/2016 • About Culture Landmark Investment Ltd (
$674) • By InTwits
Culture Landmark Investment Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Culture Landmark Investment Ltd is a company in decline: FY2016 revenue growth was -20.8%, 5 years revenue CAGR was -8.4%
- The company operates at negative EBITDA Margin: -39.2%
- Culture Landmark Investment Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.6%. At the same time it's a lot of higher than industry average of 5.2%.
- CAPEX is quite volatile: 4.4 in FY2016, 66.8 in FY2015, 35.2 in FY2014, 44.7 in FY2013, 34.8 in FY2012
- The company has unprofitable business model: ROIC is at -23.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Culture Landmark Investment Ltd ($674) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 299.0 | 230.3 | 224.2 | 141.4 | 112.0 | -20.8% |
| Gross Profit | 272.3 | 228.9 | 223.1 | | | |
| EBITDA | 271.8 | 6.0 | -46.1 | -75.7 | -43.9 | |
| Net Income | -293.5 | -78.4 | -52.3 | -445.2 | -131.3 | |
Balance Sheet
|
|---|
| Cash | 190.2 | 146.0 | 118.2 | 109.6 | 103.0 | -6.0% |
| Short Term Debt | 222.3 | 166.2 | 70.5 | 46.5 | 58.4 | 25.4% |
| Long Term Debt | 10.9 | 0.0 | 0.0 | 26.4 | 18.0 | -31.8% |
Cash flow
|
|---|
| Capex | 34.8 | 44.7 | 35.2 | 66.8 | 4.4 | -93.4% |
Ratios
|
|---|
| Revenue growth | 72.0% | -23.0% | -2.6% | -37.0% | -20.8% | |
| EBITDA growth | 12,652.0% | -97.8% | -873.4% | 64.0% | -41.9% | |
| Gross Margin | 91.1% | 99.4% | 99.5% | | | 0.0% |
| EBITDA Margin | 90.9% | 2.6% | -20.6% | -53.5% | -39.2% | 14.3% |
| Net Income Margin | -98.2% | -34.0% | -23.3% | -314.9% | -117.3% | 197.6% |
| CAPEX, % of revenue | 11.6% | 19.4% | 15.7% | 47.2% | 3.9% | -43.3% |
| ROIC | 15.7% | -5.6% | -10.8% | -20.9% | -23.4% | -2.5% |
| ROE | -32.8% | -9.3% | -7.2% | -94.4% | -69.8% | 24.6% |
| Net Debt/EBITDA | 0.2x | 3.4x | | | | 0.0x |
Revenue and profitability
Culture Landmark Investment Ltd's Revenue dropped on 20.8%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 14.3 pp from -53.5% to -39.2% in FY2016.
Net Income marign surged on 198 pp from -315% to -117% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Culture Landmark Investment Ltd's CAPEX/Revenue was 3.9% in FY2016. The company's CAPEX/Revenue dropped on 15.5 pp from 19.4% in FY2013 to 3.9% in FY2016. It's average CAPEX/Revenue for the last three years was 22.3%.
Return on investment
The company operates at negative ROIC (-23.40%) and ROE (-69.80%). ROIC decreased on 2.5 pp from -20.9% to -23.4% in FY2016. ROE surged on 24.6 pp from -94.4% to -69.8% in FY2016.
Leverage (Debt)
Debt level is -1.4x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt increased on 4.7% while cash decreased on 6.0%.
Appendix 1: Peers in Retail
Below you can find Culture Landmark Investment 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) | 7.4% | 6.5% | 3.1% | -1.0% | -7.2% |
|---|
| Culture Landmark Investment Ltd ($674) | | -23.0% | -2.6% | -37.0% | -20.8% |
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 (104 companies) | 36.2% | 35.8% | 35.0% | 33.6% | 40.6% |
|---|
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 (117 companies) | 10.3% | 7.8% | 9.1% | 7.4% | 5.1% |
|---|
| Culture Landmark Investment Ltd ($674) | 90.9% | 2.6% | -20.6% | -53.5% | -39.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | |
| Future Bright Holdings Ltd ($703) | 2.6% | 3.7% | 36.8% | 24.9% | |
| |
|---|
| Median (117 companies) | 4.0% | 3.6% | 3.7% | 3.1% | 1.7% |
|---|
| Culture Landmark Investment Ltd ($674) | 11.6% | 19.4% | 15.7% | 47.2% | 3.9% |
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% | 8.9% | 8.7% | 5.8% | 6.6% |
|---|
| Culture Landmark Investment Ltd ($674) | 15.7% | -5.6% | -10.8% | -20.9% | -23.4% |
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 | 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 (92 companies) | -0.5x | -0.6x | -0.2x | -0.5x | -0.7x |
|---|
