Bosideng International Holdings Ltd reports 27.6% EBITDA growth while 8.0% Revenue decline
29/06/2016 • About Bosideng International Holdings Ltd (
$3998) • By InTwits
Bosideng International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bosideng International Holdings Ltd is a company in decline: FY2016 revenue growth was -8.0%, 5 years revenue CAGR was -3.8%
- EBITDA Margin is quite volatile: 8.3% in FY2016, 6.0% in FY2015, 12.3% in FY2014, 15.3% in FY2013, 20.6% in FY2012
- Bosideng International Holdings 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 10.7%.
- CAPEX is quite volatile: 79.5 in FY2016, 194 in FY2015, 240 in FY2014, 281 in FY2013, 634 in FY2012
- The company has potentially unprofitable business model: ROIC is at 3.1%
- It operates with high leverage: Net Debt/EBITDA is 0.8x 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.
Bosideng International Holdings Ltd ($3998) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 8,376 | 9,325 | 8,238 | 6,293 | 5,787 | -8.0% |
| Gross Profit | 4,189 | 4,721 | 4,115 | 2,870 | 2,609 | -9.1% |
| SG&A | 2,615 | 3,220 | 3,295 | 2,637 | 2,207 | -16.3% |
| EBITDA | 1,730 | 1,430 | 1,012 | 379 | 483 | 27.6% |
| Net Income | 1,437 | 1,079 | 695 | 132 | 281 | 112.5% |
Balance Sheet
|
|---|
| Cash | 1,907 | 1,935 | 2,118 | 2,471 | 3,023 | 22.4% |
| Short Term Debt | 1,741 | 1,737 | 1,049 | 2,544 | 3,394 | 33.4% |
| Long Term Debt | 0 | 919 | 2,211 | 993 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 634 | 281 | 240 | 194 | 79 | -59.0% |
Ratios
|
|---|
| Revenue growth | 19.0% | 11.3% | -11.7% | -23.6% | -8.0% | |
| EBITDA growth | 20.7% | -17.3% | -29.2% | -62.6% | 27.6% | |
| Gross Margin | 50.0% | 50.6% | 50.0% | 45.6% | 45.1% | -0.5% |
| EBITDA Margin | 20.6% | 15.3% | 12.3% | 6.0% | 8.3% | 2.3% |
| Net Income Margin | 17.2% | 11.6% | 8.4% | 2.1% | 4.9% | 2.8% |
| SG&A, % of revenue | 31.2% | 34.5% | 40.0% | 41.9% | 38.1% | -3.8% |
| CAPEX, % of revenue | 7.6% | 3.0% | 2.9% | 3.1% | 1.4% | -1.7% |
| ROIC | 19.0% | 13.1% | 8.4% | 1.9% | 3.1% | 1.3% |
| ROE | 20.5% | 15.2% | 9.7% | 1.8% | 3.9% | 2.1% |
| Net Debt/EBITDA | -0.1x | 0.5x | 1.1x | 2.8x | 0.8x | -2.1x |
Revenue and profitability
Bosideng International Holdings Ltd's Revenue decreased on 8.0%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.3 pp from 6.0% to 8.3% in FY2016.
Gross Margin decreased slightly on 0.52 pp from 45.6% to 45.1% in FY2016. SG&A as a % of Revenue decreased on 3.8 pp from 41.9% to 38.1% in FY2016.
Net Income marign increased on 2.8 pp from 2.1% to 4.9% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Bosideng International Holdings Ltd's CAPEX/Revenue was 1.4% in FY2016. CAPEX/Revenue decreased slightly on 1.6 pp from 3.0% in FY2013 to 1.4% in FY2016. For the last three years the average CAPEX/Revenue was 2.5%.
Return on investment
The company operates at low ROIC (3.13%) and ROE (3.89%). ROIC increased slightly on 1.3 pp from 1.9% to 3.1% in FY2016. ROE increased on 2.1 pp from 1.8% to 3.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.8x and Debt / EBITDA is 7.0x. Net Debt / EBITDA dropped on 2.1x from 2.8x to 0.8x in FY2016. Debt decreased on 4.1% while cash surged on 22.4%.
Appendix 1: Peers in Retail
Below we provide Bosideng 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 (117 companies) | 7.4% | 6.1% | 3.1% | -1.0% | -8.7% |
|---|
| Bosideng International Holdings Ltd ($3998) | | 11.3% | -11.7% | -23.6% | -8.0% |
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% | 96.8% |
| 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) | 36.2% | 35.8% | 35.0% | 33.3% | 41.6% |
|---|
| Bosideng International Holdings Ltd ($3998) | 50.0% | 50.6% | 50.0% | 45.6% | 45.1% |
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% | 7.4% | 5.1% |
|---|
| Bosideng International Holdings Ltd ($3998) | 20.6% | 15.3% | 12.3% | 6.0% | 8.3% |
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% | 2.3% |
|---|
| Bosideng International Holdings Ltd ($3998) | 7.6% | 3.0% | 2.9% | 3.1% | 1.4% |
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% | 13.3% |
| 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% | 8.7% | 5.8% | 6.6% |
|---|
| Bosideng International Holdings Ltd ($3998) | 19.0% | 13.1% | 8.4% | 1.9% | 3.1% |
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 | -0.6x | -0.2x | -0.5x | -1.2x |
|---|
| Bosideng International Holdings Ltd ($3998) | -0.1x | 0.5x | 1.1x | 2.8x | 0.8x |
