Sun Art Retail Group Ltd EBITDA increased on 9.0% in 2016 and Revenue increased on 4.2%
19/02/2017 • About Sun Art Retail Group Ltd (
$6808) • By InTwits
Sun Art Retail Group Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 6.8% in 2016 vs. 6.5% in 2015 vs. 6.7% in 2012
- Sun Art Retail Group Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.8%. At the same time it's in pair with industry average of 5.5%.
- CAPEX is quite volatile: 9,905 in 2016, 8,485 in 2015, 4,319 in 2014, 4,881 in 2013, 3,970 in 2012
- The company has highly profitable business model: ROIC is at 16.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sun Art Retail Group Ltd ($6808) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 77,851 | 86,195 | 91,855 | 96,414 | 100,441 | 4.2% |
| Gross Profit | 16,150 | 18,613 | 20,998 | 22,463 | 23,981 | 6.8% |
| SG&A | 1,796 | 1,966 | 2,388 | 2,633 | 2,876 | 9.2% |
| EBITDA | 5,186 | 6,030 | 6,549 | 6,269 | 6,832 | 9.0% |
| Net Income | 2,409 | 2,775 | 2,899 | 2,443 | 2,571 | 5.2% |
Balance Sheet
|
|---|
| Cash | 5,757 | 6,271 | 6,269 | 6,582 | 8,100 | 23.1% |
| Short Term Debt | 402 | 391 | 905 | 638 | 23 | -96.4% |
| Long Term Debt | 0 | 0 | 5 | 2 | 3 | 50.0% |
Cash flow
|
|---|
| Capex | 5,131 | 6,839 | 5,471 | 4,837 | 3,579 | -26.0% |
Ratios
|
|---|
| Revenue growth | 14.3% | 10.7% | 6.6% | 5.0% | 4.2% | |
| EBITDA growth | 18.9% | 16.3% | 8.6% | -4.3% | 9.0% | |
| Gross Margin | 20.7% | 21.6% | 22.9% | 23.3% | 23.9% | 0.6% |
| EBITDA Margin | 6.7% | 7.0% | 7.1% | 6.5% | 6.8% | 0.3% |
| Net Income Margin | 3.1% | 3.2% | 3.2% | 2.5% | 2.6% | 0.0% |
| SG&A, % of revenue | 2.3% | 2.3% | 2.6% | 2.7% | 2.9% | 0.1% |
| CAPEX, % of revenue | 6.6% | 7.9% | 6.0% | 5.0% | 3.6% | -1.5% |
| ROIC | 19.1% | 20.0% | 18.9% | 15.0% | 16.1% | 1.1% |
| ROE | 15.1% | 15.6% | 15.1% | 12.1% | 12.1% | 0.0% |
| Net Debt/EBITDA | -1.0x | -1.0x | -0.8x | -0.9x | -1.2x | -0.2x |
Sun Art Retail Group Ltd ($6808) key quoterly financial indicators
| mln. CNY | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 31,012 | 21,931 | 24,376 | 23,122 | | | | |
| Net Income | 1,026 | 406 | 599 | 540 | | | | |
Balance Sheet
|
|---|
Ratios
|
|---|
| Net Income Margin | 3.3% | 1.9% | 2.5% | 2.3% | | | | |
Revenue and profitability
Sun Art Retail Group Ltd's Revenue increased on 4.2%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.1 pp from 31.4% to 33.5% in 2016.
Gross Margin increased slightly on 0.58 pp from 23.3% to 23.9% in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign showed almost no change in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.6% in 2016. Sun Art Retail Group Ltd's CAPEX/Revenue decreased on 4.4 pp from 7.9% in 2013 to 3.6% in 2016. Average CAPEX/Revenue for the last three years was 4.8%.Sun Art Retail Group Ltd invested a large share of EBITDA (52.4%) to CAPEX.
Return on investment
The company operates at good ROIC (16.12%) and ROE (12.09%). ROIC increased slightly on 1.1 pp from 15.0% to 16.1% in 2016. ROE showed almost no change in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.2x and Debt / EBITDA is 0.0x. Net Debt / EBITDA dropped on 0.2x from -0.9x to -1.2x in 2016. Debt dropped on 95.9% while cash jumped on 23.1%.
Appendix 1: Peers in Retail
Below you can find Sun Art Retail 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% | 6.3% | 2.9% | -1.0% | -8.1% |
|---|
| Sun Art Retail Group Ltd ($6808) | | | 6.6% | 5.0% | 4.2% |
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) | 36.7% | 36.4% | 35.5% | 33.9% | 44.4% |
|---|
| Sun Art Retail Group Ltd ($6808) | | 21.6% | 22.9% | 23.3% | 23.9% |
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) | 10.7% | 7.8% | 9.1% | 7.4% | 5.5% |
|---|
| Sun Art Retail Group Ltd ($6808) | | 7.0% | 7.1% | 6.5% | 6.8% |
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% | 3.7% | 3.1% | 1.8% |
|---|
| Sun Art Retail Group Ltd ($6808) | | 7.9% | 6.0% | 5.0% | 3.6% |
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% | 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% | 8.8% | 8.5% | 5.8% | 1.9% |
|---|
| Sun Art Retail Group Ltd ($6808) | | 20.0% | 18.9% | 15.0% | 16.1% |
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 | -0.5x | -0.2x | -0.5x | -0.6x |
|---|
| Sun Art Retail Group Ltd ($6808) | | -1.0x | -0.8x | -0.9x | -1.2x |
