Vinda International Holdings Ltd Net Income jumped on 108% in 2016 and Revenue jumped on 24.3%
26/01/2017 • About Vinda International Holdings Ltd (
$3331) • By InTwits
Vinda International Holdings Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vinda International Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.4%. At the same time it's a lot of higher than industry average of 9.9%.
- CAPEX is quite volatile: 5,545 in FY2016, 12,107 in FY2015, 3,332 in FY2014, 3,083 in FY2013, 2,327 in FY2012
- The company has business model with low profitability: ROIC is at 9.8%
- It operates with high leverage: Net Debt/EBITDA is 2.3x while industry average is -2.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Vinda International Holdings Ltd ($3331) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6,024 | 6,798 | 7,985 | 9,696 | 12,057 | 24.3% |
| Gross Profit | 1,855 | 1,972 | 2,409 | 2,959 | 3,817 | 29.0% |
| SG&A | 1,138 | 1,319 | 1,663 | 2,138 | 2,797 | 30.8% |
| EBITDA | 972 | 968 | 1,218 | 1,331 | 1,728 | 29.9% |
| Net Income | 537 | 543 | 593 | 314 | 654 | 107.8% |
Balance Sheet
|
|---|
| Cash | 754 | 690 | 720 | 393 | 1,015 | 158.2% |
| Short Term Debt | 1,219 | 1,032 | 1,556 | 1,253 | 1,222 | -2.5% |
| Long Term Debt | 850 | 1,705 | 2,909 | 3,486 | 3,795 | 8.9% |
Cash flow
|
|---|
| Capex | 1,238 | 1,373 | 1,033 | 1,207 | 1,316 | 9.0% |
Ratios
|
|---|
| Revenue growth | 26.4% | 12.8% | 17.5% | 21.4% | 24.3% | |
| EBITDA growth | 46.9% | -0.4% | 25.8% | 9.3% | 29.9% | |
| Gross Margin | 30.8% | 29.0% | 30.2% | 30.5% | 31.7% | 1.1% |
| EBITDA Margin | 16.1% | 14.2% | 15.3% | 13.7% | 14.3% | 0.6% |
| Net Income Margin | 8.9% | 8.0% | 7.4% | 3.2% | 5.4% | 2.2% |
| SG&A, % of revenue | 18.9% | 19.4% | 20.8% | 22.0% | 23.2% | 1.1% |
| CAPEX, % of revenue | 20.5% | 20.2% | 12.9% | 12.4% | 10.9% | -1.5% |
| ROIC | 13.8% | 10.4% | 10.0% | 9.0% | 9.8% | 0.8% |
| ROE | 14.8% | 12.4% | 12.2% | 6.3% | 11.1% | 4.9% |
| Net Debt/EBITDA | 1.4x | 2.1x | 3.1x | 3.3x | 2.3x | -0.9x |
Revenue and profitability
Vinda International Holdings Ltd's Revenue jumped on 24.3%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.61 pp from 13.7% to 14.3% in 2016.
Gross Margin increased slightly on 1.1 pp from 30.5% to 31.7% in 2016. SG&A as a % of Revenue increased slightly on 1.1 pp from 22.0% to 23.2% in 2016.
Net Income marign increased on 2.2 pp from 3.2% to 5.4% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 Vinda International Holdings Ltd had CAPEX/Revenue of 10.9%. Vinda International Holdings Ltd's CAPEX/Revenue decreased on 9.3 pp from 20.2% in 2013 to 10.9% in 2016. It's average level of CAPEX/Revenue for the last three years was 12.1%.Vinda International Holdings Ltd invested a big chunk of EBITDA (76.1%) to CAPEX to fuel its growth.
Return on investment
The company operates at low ROIC (9.83%) and ROE (11.15%). ROIC increased slightly on 0.82 pp from 9.0% to 9.8% in 2016. ROE increased on 4.9 pp from 6.3% to 11.1% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.3x and Debt / EBITDA is 2.9x. Net Debt / EBITDA dropped on 0.9x from 3.3x to 2.3x in 2016. Debt increased on 5.9% while cash jumped on 158%.
Management team
Johann Christoph Michalski is a Vinda International Holdings Ltd's CEO. Johann Christoph Michalski has spent 3 years at the company. Toby James Lawton is a Vinda International Holdings Ltd's CFO. Toby James Lawton has spent 4 years at the company.
Appendix 1: Peers in Cosmetics/Personal Care
Below you can find Vinda International Holdings Ltd benchmarking vs. other companies in Cosmetics/Personal Care 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 |
|---|
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | -5.0% | -20.2% | -24.8% | 117.2% | |
| EDS Wellness Holdings Ltd ($8176) | -98.6% | 1,059.5% | 238.8% | 70.4% | |
| L'Occitane International SA ($973) | | 14.2% | 1.1% | 11.7% | 8.9% |
| Ming Fai International Holdings Ltd ($3828) | 14.3% | -0.1% | -3.4% | 5.2% | |
| Natural Beauty Bio-Technology Ltd ($157) | -18.2% | -9.1% | 15.1% | 0.2% | |
| |
|---|
| Median (8 companies) | -11.6% | -4.6% | -1.2% | 2.7% | 7.4% |
|---|
| Vinda International Holdings Ltd ($3331) | | 12.8% | 17.5% | 21.4% | 24.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| L'Occitane International SA ($973) | 82.7% | 82.0% | 81.1% | 81.8% | 82.8% |
| Natural Beauty Bio-Technology Ltd ($157) | 78.6% | 75.8% | 76.9% | 78.4% | |
| HIN Sang Group International Holding Co Ltd ($6893) | 28.2% | 41.9% | 56.2% | 57.1% | 60.8% |
| China Child Care Corp Ltd ($1259) | 45.9% | 47.3% | 47.5% | 39.3% | |
| BaWang International Group Holding Ltd ($1338) | 41.9% | 48.5% | 37.4% | 38.0% | |
| |
|---|
| Median (7 companies) | 41.9% | 47.3% | 47.5% | 39.3% | 71.8% |
|---|
| Vinda International Holdings Ltd ($3331) | 30.8% | 29.0% | 30.2% | 30.5% | 31.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Natural Beauty Bio-Technology Ltd ($157) | 38.3% | 25.3% | 29.4% | 38.7% | |
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | 9.5% | -23.3% | -37.4% | 20.4% | |
| L'Occitane International SA ($973) | 20.7% | 19.3% | 17.4% | 19.6% | 17.8% |
| HIN Sang Group International Holding Co Ltd ($6893) | 8.4% | 9.7% | 24.2% | 12.7% | 14.1% |
| Ming Fai International Holdings Ltd ($3828) | 8.0% | 7.4% | 8.6% | 11.5% | |
| |
|---|
| Median (8 companies) | 9.0% | 8.5% | 11.4% | 12.1% | 15.9% |
|---|
| Vinda International Holdings Ltd ($3331) | 16.1% | 14.2% | 15.3% | 13.7% | 14.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| EDS Wellness Holdings Ltd ($8176) | 387.3% | 119.7% | 14.9% | 34.3% | |
| Natural Beauty Bio-Technology Ltd ($157) | 10.1% | 5.1% | 3.7% | 12.0% | |
| Ming Fai International Holdings Ltd ($3828) | 1.8% | 1.4% | 2.3% | 7.5% | |
| L'Occitane International SA ($973) | 6.2% | 7.6% | 5.8% | 4.3% | 4.0% |
| China Child Care Corp Ltd ($1259) | 2.7% | 10.1% | 7.8% | 2.6% | |
| |
|---|
| Median (8 companies) | 6.3% | 5.9% | 4.7% | 3.4% | 9.2% |
|---|
| Vinda International Holdings Ltd ($3331) | 20.5% | 20.2% | 12.9% | 12.4% | 10.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | 17.7% | -67.7% | -113.8% | 35.6% | |
| Natural Beauty Bio-Technology Ltd ($157) | 19.4% | 9.2% | 13.6% | 20.7% | |
| L'Occitane International SA ($973) | 23.2% | 21.4% | 16.9% | 19.6% | 18.5% |
| Ming Fai International Holdings Ltd ($3828) | 7.2% | 4.3% | 5.6% | 12.0% | |
| HIN Sang Group International Holding Co Ltd ($6893) | | 14.3% | 42.1% | 11.0% | 7.6% |
| |
|---|
| Median (8 companies) | 17.7% | 6.8% | 9.5% | 11.5% | 13.1% |
|---|
| Vinda International Holdings Ltd ($3331) | 13.8% | 10.4% | 10.0% | 9.0% | 9.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ming Fai International Holdings Ltd ($3828) | -1.5x | -2.5x | -2.1x | -1.2x | |
| L'Occitane International SA ($973) | -1.3x | -1.2x | -1.3x | -1.2x | -1.5x |
| Natural Beauty Bio-Technology Ltd ($157) | -2.3x | -4.6x | -3.9x | -2.6x | |
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | -1.9x | | | -3.8x | |
| HIN Sang Group International Holding Co Ltd ($6893) | -0.6x | -0.8x | -1.1x | -9.7x | -7.5x |
| |
|---|
| Median (5 companies) | -1.7x | -2.5x | -2.1x | -2.6x | -4.5x |
|---|
| Vinda International Holdings Ltd ($3331) | 1.4x | 2.1x | 3.1x | 3.3x | 2.3x |
