Artini China Co Ltd CAPEX jumped on 1,058% while Revenue dropped on 39.6%
28/06/2016 • About Artini China Co Ltd (
$789) • By InTwits
Artini China Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Artini China Co Ltd is a company in decline: FY2016 revenue growth was -39.6%, 5 years revenue CAGR was -33.6%
- The company operates at negative EBITDA Margin: -194.1%
- Artini China Co 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 -64.0%0
- Artini China Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.8%. At the same time it's a lot of higher than industry average of 5.5%.
- CAPEX is quite volatile: 24.1 in FY2016, 2.1 in FY2015, 5.9 in FY2014, 1.2 in FY2013, 19.8 in FY2012
- The company has unprofitable business model: ROIC is at -82.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Artini China Co Ltd ($789) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 323.3 | 191.2 | 173.2 | 77.7 | 46.9 | -39.6% |
| Gross Profit | 73.7 | 43.8 | 18.2 | -18.7 | 1.6 | |
| SG&A | | 133.5 | 108.9 | 137.7 | 91.4 | -33.6% |
| EBITDA | -97.2 | -84.2 | -86.0 | -161.3 | -91.0 | |
| Net Income | -143.3 | -109.0 | -108.3 | -91.0 | -100.0 | |
Balance Sheet
|
|---|
| Cash | 96.2 | 52.5 | 11.7 | 122.8 | 10.9 | -91.2% |
| Short Term Debt | 21.2 | 21.1 | 26.4 | 0.0 | 0.2 | |
| Long Term Debt | 0.1 | 0.3 | 0.0 | 0.0 | 0.4 | |
Cash flow
|
|---|
| Capex | 19.8 | 1.2 | 5.9 | 2.1 | 24.1 | 1,057.8% |
Ratios
|
|---|
| Revenue growth | -10.9% | -40.9% | -9.4% | -55.1% | -39.6% | |
| EBITDA growth | -18.1% | -13.3% | 2.1% | 87.5% | -43.6% | |
| Gross Margin | 22.8% | 22.9% | 10.5% | -24.0% | 3.4% | 27.4% |
| EBITDA Margin | -30.1% | -44.0% | -49.7% | -207.6% | -194.1% | 13.5% |
| Net Income Margin | -44.3% | -57.0% | -62.5% | -117.1% | -213.3% | -96.2% |
| SG&A, % of revenue | | 69.8% | 62.9% | 177.2% | 194.8% | 17.6% |
| CAPEX, % of revenue | 6.1% | 0.7% | 3.4% | 2.7% | 51.3% | 48.6% |
| ROIC | -36.6% | -42.8% | -68.1% | -134.5% | -82.6% | 51.9% |
| ROE | -44.0% | -53.0% | -102.7% | -96.0% | -106.7% | -10.7% |
Revenue and profitability
Artini China Co Ltd's Revenue dropped on 39.6%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 13.5 pp from -208% to -194% in FY2016.
Gross Margin surged on 27.4 pp from -24.0% to 3.4% in FY2016. SG&A as a % of Revenue surged on 17.6 pp from 177% to 195% in FY2016.
Net Income marign dropped on 96.2 pp from -117% to -213% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 51.3% in FY2016. Artini China Co Ltd's CAPEX/Revenue jumped on 50.7 pp from 0.65% in FY2013 to 51.3% in FY2016. Average CAPEX/Revenue for the last three years was 19.1%.
Return on investment
The company operates at negative ROIC (-82.62%) and ROE (-106.74%). ROIC surged on 51.9 pp from -135% to -82.6% in FY2016. ROE dropped on 10.7 pp from -96.0% to -107% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.0x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt surged while cash dropped on 91.2%.
Appendix 1: Peers in Retail
Below we provide Artini China Co 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 (117 companies) | 7.5% | 6.5% | 3.1% | -1.0% | -8.6% |
|---|
| Artini China Co Ltd ($789) | | -40.9% | -9.4% | -55.1% | -39.6% |
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% | 77.6% |
| 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) | 37.2% | 36.4% | 35.5% | 33.9% | 42.1% |
|---|
| Artini China Co Ltd ($789) | 22.8% | 22.9% | 10.5% | -24.0% | 3.4% |
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) | 10.8% | 7.8% | 9.1% | 7.4% | 4.7% |
|---|
| Artini China Co Ltd ($789) | -30.1% | -44.0% | -49.7% | -207.6% | -194.1% |
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% | 3.9% |
| 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% | 3.8% | 3.5% | 1.8% |
|---|
| Artini China Co Ltd ($789) | 6.1% | 0.7% | 3.4% | 2.7% | 51.3% |
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) | 12.3% | 8.9% | 8.7% | 5.8% | 5.2% |
|---|
| Artini China Co Ltd ($789) | -36.6% | -42.8% | -68.1% | -134.5% | -82.6% |
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 | -0.8x |
|---|
