Ming Fung Jewellery Group Ltd reports 21.6 pp EBITDA Margin growth from -11.0% to 10.7% in 2016 in 2016 and 11.3% Revenue growth
30/12/2016 • About Ming Fung Jewellery Group Ltd (
$860) • By InTwits
Ming Fung Jewellery Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ming Fung Jewellery Group Ltd doesn't have a profitable business model yet: FY2016 ROIC is 1.9%
- Ming Fung Jewellery Group 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 -23.2%0
- Ming Fung Jewellery Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has potentially unprofitable business model: ROIC is at 1.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ming Fung Jewellery Group Ltd ($860) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 919 | 783 | 1,207 | 353 | 393 | 11.3% |
| Gross Profit | 253 | 77 | -862 | 87 | 121 | 39.4% |
| SG&A | 107 | 110 | 96 | 73 | 87 | 19.6% |
| EBITDA | 158 | -22 | -987 | -39 | 42 | |
| Net Income | 83 | -818 | -1,052 | -200 | -33 | |
Balance Sheet
|
|---|
| Cash | 345 | 143 | 202 | 759 | 160 | -78.9% |
| Short Term Debt | 39 | 56 | 63 | 61 | 41 | -33.5% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 3 | 11 | 7 | 2 | 1 | -46.5% |
Ratios
|
|---|
| Revenue growth | 3.3% | -14.9% | 54.3% | -70.8% | 11.3% | |
| EBITDA growth | -10.0% | -113.9% | 4,404.4% | -96.1% | -208.1% | |
| Gross Margin | 27.5% | 9.8% | -71.5% | 24.6% | 30.8% | 6.2% |
| EBITDA Margin | 17.1% | -2.8% | -81.7% | -11.0% | 10.7% | 21.6% |
| Net Income Margin | 9.0% | -104.5% | -87.2% | -56.6% | -8.3% | 48.3% |
| SG&A, % of revenue | 11.7% | 14.0% | 7.9% | 20.6% | 22.2% | 1.5% |
| CAPEX, % of revenue | 0.3% | 1.5% | 0.6% | 0.5% | 0.3% | -0.3% |
| ROIC | 4.6% | -1.7% | -57.7% | -4.8% | 1.9% | 6.6% |
| ROE | 3.2% | -34.3% | -68.3% | -15.4% | -2.2% | 13.2% |
| Net Debt/EBITDA | -1.9x | | | | -2.9x | -2.9x |
Revenue and profitability
The company's Revenue jumped on 11.3%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 21.6 pp from -11.0% to 10.7% in FY2016.
Gross Margin increased on 6.2 pp from 24.6% to 30.8% in FY2016. SG&A as a % of Revenue increased slightly on 1.5 pp from 20.6% to 22.2% in FY2016.
Net Income marign jumped on 48.3 pp from -56.6% to -8.3% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Ming Fung Jewellery Group Ltd's CAPEX/Revenue was 0.26% in FY2016. CAPEX/Revenue decreased slightly on 1.2 pp from 1.5% in FY2013 to 0.26% in FY2016. Average CAPEX/Revenue for the last three years was 0.47%.
Return on investment
The company operates at low but positive ROIC (1.86%) and negative ROE (-2.23%). ROIC increased on 6.6 pp from -4.8% to 1.9% in FY2016. ROE surged on 13.2 pp from -15.4% to -2.2% in FY2016.
Leverage (Debt)
Debt level is -2.9x Net Debt / EBITDA and 1.0x Debt / EBITDA. Net Debt / EBITDA dropped2.9x from to -2.9x in FY2016. Debt dropped on 33.5% while cash dropped on 78.9%.
Appendix 1: Peers in Retail
Below you can find Ming Fung Jewellery Group 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) | | 23.7% | -80.2% | 90.3% | -7.2% |
| 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% | 2.9% | -1.0% | -8.1% |
|---|
| Ming Fung Jewellery Group Ltd ($860) | | -14.9% | 54.3% | -70.8% | 11.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vongroup Ltd ($318) | | | 95.1% | 99.1% | 99.0% |
| 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% | 44.4% |
|---|
| Ming Fung Jewellery Group Ltd ($860) | 27.5% | 9.8% | -71.5% | 24.6% | 30.8% |
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% | 5.5% |
|---|
| Ming Fung Jewellery Group Ltd ($860) | 17.1% | -2.8% | -81.7% | -11.0% | 10.7% |
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) | 4.1% | 3.6% | 3.8% | 3.5% | 1.9% |
|---|
| Ming Fung Jewellery Group Ltd ($860) | 0.3% | 1.5% | 0.6% | 0.5% | 0.3% |
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% | 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% | 46.2% |
| 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% | 3.1% |
|---|
| Ming Fung Jewellery Group Ltd ($860) | 4.6% | -1.7% | -57.7% | -4.8% | 1.9% |
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 | -0.6x |
|---|
