Asia Commercial Holdings Ltd revenue jumped on 16.1% and EBITDA Margin increased on 2.8 pp from -6.4% to -3.6%
30/06/2016 • About Asia Commercial Holdings Ltd (
$104) • By InTwits
Asia Commercial Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Asia Commercial Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -7.0%
- The company operates at negative EBITDA Margin: -3.6%
- Asia Commercial 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 -8.8%0
- Asia Commercial Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's in pair with industry average of 12.3%.
- CAPEX is quite volatile: 5.0 in FY2016, 6.8 in FY2015, 7.0 in FY2014, 38.9 in FY2013, 85.8 in FY2012
- The company has unprofitable business model: ROIC is at -7.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Asia Commercial Holdings Ltd ($104) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,036 | 1,099 | 967 | 719 | 834 | 16.1% |
| Gross Profit | 295 | 270 | 213 | 148 | 166 | 12.0% |
| SG&A | | 458 | 387 | 259 | 232 | -10.6% |
| EBITDA | -48 | -158 | -129 | -46 | -30 | |
| Net Income | -61 | -209 | -153 | -31 | -36 | |
Balance Sheet
|
|---|
| Cash | 86 | 117 | 37 | 22 | 33 | 54.6% |
| Short Term Debt | 298 | 270 | 187 | 109 | 102 | -6.5% |
| Long Term Debt | 30 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 86 | 39 | 7 | 7 | 5 | -25.9% |
Ratios
|
|---|
| Revenue growth | 0.1% | 6.0% | -11.9% | -25.7% | 16.1% | |
| EBITDA growth | -156.6% | 226.5% | -18.4% | -64.4% | -35.0% | |
| Gross Margin | 28.5% | 24.6% | 22.0% | 20.6% | 19.9% | -0.7% |
| EBITDA Margin | -4.7% | -14.4% | -13.3% | -6.4% | -3.6% | 2.8% |
| Net Income Margin | -5.9% | -19.0% | -15.8% | -4.3% | -4.3% | 0.0% |
| SG&A, % of revenue | | 41.7% | 40.0% | 36.0% | 27.8% | -8.3% |
| CAPEX, % of revenue | 8.3% | 3.5% | 0.7% | 0.9% | 0.6% | -0.3% |
| ROIC | -8.5% | -22.2% | -22.0% | -9.9% | -7.0% | 3.0% |
| ROE | -11.1% | -38.8% | -32.8% | -7.7% | -8.7% | -1.1% |
Revenue and profitability
Asia Commercial Holdings Ltd's Revenue jumped on 16.1%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.4 pp from -6.0% to -3.5% in FY2016.
Gross Margin decreased slightly on 0.74 pp from 20.6% to 19.9% in FY2016. SG&A as a % of Revenue decreased on 8.3 pp from 36.0% to 27.8% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.60%. Asia Commercial Holdings Ltd showed decline in CAPEX/Revenue of 2.9 pp from 3.5% in FY2013 to 0.60% in FY2016. Average CAPEX/Revenue for the last three years was 0.76%.
Return on investment
The company operates at negative ROIC (-6.97%) and ROE (-8.73%). ROIC increased on 3.0 pp from -9.9% to -7.0% in FY2016. ROE decreased slightly on 1.1 pp from -7.7% to -8.7% in FY2016.
Leverage (Debt)
Debt level is -1.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt decreased on 6.5% while cash jumped on 54.6%.
Appendix 1: Peers in Retail
Below you can find Asia Commercial 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) | 7.4% | 6.5% | 3.1% | -1.0% | -8.7% |
|---|
| Asia Commercial Holdings Ltd ($104) | | 6.0% | -11.9% | -25.7% | 16.1% |
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) | 37.2% | 36.4% | 35.5% | 33.9% | 42.6% |
|---|
| Asia Commercial Holdings Ltd ($104) | 28.5% | 24.6% | 22.0% | 20.6% | 19.9% |
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% | 5.1% |
|---|
| Asia Commercial Holdings Ltd ($104) | -4.7% | -14.4% | -13.3% | -6.4% | -3.6% |
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% |
|---|
| Asia Commercial Holdings Ltd ($104) | 8.3% | 3.5% | 0.7% | 0.9% | 0.6% |
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) | 12.3% | 8.9% | 8.7% | 5.8% | 4.1% |
|---|
| Asia Commercial Holdings Ltd ($104) | -8.5% | -22.2% | -22.0% | -9.9% | -7.0% |
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 | -1.0x |
|---|
