Cabbeen Fashion Ltd CAPEX surged on 166% while Revenue dropped on 14.4%
20/02/2017 • About Cabbeen Fashion Ltd (
$2030) • By InTwits
Cabbeen Fashion Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cabbeen Fashion Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's a lot of higher than industry average of 12.6%.
- CAPEX is quite volatile: 69.7 in 2016, 26.2 in 2015, 8.5 in 2014, 4.9 in 2013, 2.2 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.
Cabbeen Fashion Ltd ($2030) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 940 | 943 | 1,098 | 1,356 | 1,161 | -14.4% |
| Gross Profit | 380 | 390 | 462 | 626 | 556 | -11.3% |
| SG&A | 111 | 107 | 121 | 288 | 355 | 23.0% |
| EBITDA | 235 | 280 | 312 | 393 | 266 | -32.4% |
| Net Income | 130 | 195 | 236 | 288 | 182 | -36.8% |
Balance Sheet
|
|---|
| Cash | 186 | 532 | 324 | 295 | 223 | -24.3% |
| Short Term Debt | 428 | 434 | 489 | 682 | 463 | -32.1% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 2 | 5 | 9 | 26 | 70 | 166.2% |
Ratios
|
|---|
| Revenue growth | 5.6% | 0.4% | 16.4% | 23.5% | -14.4% | |
| EBITDA growth | 64.8% | 19.0% | 11.3% | 26.0% | -32.4% | |
| Gross Margin | 40.5% | 41.3% | 42.1% | 46.2% | 47.9% | 1.7% |
| EBITDA Margin | 25.0% | 29.7% | 28.4% | 29.0% | 22.9% | -6.1% |
| Net Income Margin | 13.9% | 20.7% | 21.4% | 21.2% | 15.7% | -5.5% |
| SG&A, % of revenue | 11.8% | 11.4% | 11.0% | 21.3% | 30.5% | 9.3% |
| CAPEX, % of revenue | 0.2% | 0.5% | 0.8% | 1.9% | 6.0% | 4.1% |
| ROIC | 32.3% | 32.9% | 26.5% | 27.0% | 16.1% | -10.9% |
| ROE | 107.3% | 53.6% | 35.7% | 35.6% | 19.3% | -16.3% |
| Net Debt/EBITDA | 1.0x | -0.3x | 0.5x | 1.0x | 0.9x | -0.1x |
Revenue and profitability
Cabbeen Fashion Ltd's Revenue dropped on 14.4%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.3 pp from -9.5% to -5.2% in FY2016.
Gross Margin increased slightly on 1.7 pp from 46.2% to 47.9% in 2016. SG&A as a % of Revenue increased on 9.3 pp from 21.3% to 30.5% in 2016.
Net Income marign decreased on 5.5 pp from 21.2% to 15.7% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 Cabbeen Fashion Ltd had CAPEX/Revenue of 6.0%. The company showed CAPEX/Revenue growth of 5.5 pp from 0.52% in 2013 to 6.0% in 2016. It's average CAPEX/Revenue for the last three years was 2.9%.
Return on investment
The company operates at good ROIC (16.06%) and ROE (19.34%). ROIC dropped on 10.9 pp from 27.0% to 16.1% in 2016. ROE dropped on 16.3 pp from 35.6% to 19.3% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.9x and Debt / EBITDA is 1.7x. Net Debt / EBITDA decreased on 0.1x from 1.0x to 0.9x in 2016. Debt dropped on 32.1% while cash dropped on 24.3%.
Appendix 1: Peers in Apparel
Below we provide Cabbeen Fashion Ltd benchmarking against other companies in Apparel 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 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | -94.0% | 46.8% | 20.4% | 33.1% | |
| Highlight China IoT International Ltd ($1682) | | 17.7% | -73.7% | 29.6% | -55.0% |
| Koradior Holdings Ltd ($3709) | 48.3% | 44.7% | 47.7% | 23.9% | |
| Kingmaker Footwear Holdings Ltd ($1170) | | 9.3% | 6.3% | 23.7% | -1.5% |
| Cosmo Lady China Holdings Co Ltd ($2298) | 36.3% | 29.2% | 37.4% | 23.6% | |
| |
|---|
| Median (52 companies) | 6.8% | 6.9% | 5.3% | -2.6% | -17.2% |
|---|
| Cabbeen Fashion Ltd ($2030) | | 0.4% | 16.4% | 23.5% | -14.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 38.5% | 42.3% | 59.6% | 75.6% | |
| Koradior Holdings Ltd ($3709) | 62.8% | 69.3% | 73.3% | 73.7% | |
| Prada SpA ($1913) | 71.5% | 72.1% | 73.8% | 71.8% | 72.4% |
| China Outfitters Holdings Ltd ($1146) | 74.9% | 74.3% | 70.0% | 65.7% | |
| Crocodile Garments ($122) | 64.7% | 60.7% | 60.4% | 62.1% | 59.7% |
| |
|---|
| Median (51 companies) | 24.8% | 23.9% | 25.4% | 25.0% | 17.5% |
|---|
| Cabbeen Fashion Ltd ($2030) | 40.5% | 41.3% | 42.1% | 46.2% | 47.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Lilang Ltd ($1234) | 26.3% | 26.9% | 29.4% | 30.6% | |
| Fuguiniao Co Ltd ($1819) | 24.5% | 26.1% | 26.7% | 27.9% | |
| Prada SpA ($1913) | 29.6% | 31.7% | 31.7% | 26.8% | 22.4% |
| Shenzhou International Group Holdings Ltd ($2313) | 26.4% | 26.2% | 26.1% | 26.7% | |
| HOSA International Ltd ($2200) | 44.4% | 42.2% | 37.6% | 26.7% | |
| |
|---|
| Median (52 companies) | 10.5% | 10.7% | 6.8% | 6.6% | -4.3% |
|---|
| Cabbeen Fashion Ltd ($2030) | 25.0% | 29.7% | 28.4% | 29.0% | 22.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 136.9% | 70.3% | 13.5% | 28.5% | |
| Shenzhou International Group Holdings Ltd ($2313) | 7.3% | 7.9% | 10.2% | 16.1% | |
| Crocodile Garments ($122) | 20.1% | 22.1% | 1.8% | 13.5% | 1.8% |
| Texhong Textile Group Ltd ($2678) | 8.9% | 11.8% | 5.8% | 10.5% | |
| Prada SpA ($1913) | 9.7% | 10.6% | 15.3% | 10.2% | 11.1% |
| |
|---|
| Median (51 companies) | 2.4% | 3.1% | 2.4% | 2.6% | 1.8% |
|---|
| Cabbeen Fashion Ltd ($2030) | 0.2% | 0.5% | 0.8% | 1.9% | 6.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Koradior Holdings Ltd ($3709) | 45.2% | 69.5% | 36.5% | 31.0% | |
| Cosmo Lady China Holdings Co Ltd ($2298) | 41.7% | 56.0% | 38.6% | 27.8% | |
| Sitoy Group Holdings Ltd ($1023) | 39.3% | 28.7% | 31.8% | 22.0% | 16.4% |
| Prada SpA ($1913) | 32.1% | 37.4% | 34.0% | 21.9% | 14.0% |
| China Lilang Ltd ($1234) | 27.3% | 19.1% | 19.7% | 20.2% | |
| |
|---|
| Median (52 companies) | 11.7% | 7.3% | 4.1% | 4.9% | -4.6% |
|---|
| Cabbeen Fashion Ltd ($2030) | 32.3% | 32.9% | 26.5% | 27.0% | 16.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| S Culture International Holdings Ltd ($1255) | 1.4x | 0.7x | 2.4x | 158.1x | |
| High Fashion International Ltd ($608) | 16.7x | 27.7x | 11.2x | 5.2x | |
| Global Brands Group Holding Ltd ($787) | -0.4x | -0.3x | 1.3x | 2.1x | |
| Fuguiniao Co Ltd ($1819) | -0.0x | -0.7x | 0.3x | 1.9x | |
| Texhong Textile Group Ltd ($2678) | 1.4x | 1.3x | 2.3x | 1.4x | |
| |
|---|
| Median (38 companies) | -0.3x | -0.7x | -0.3x | -1.2x | -2.5x |
|---|
| Cabbeen Fashion Ltd ($2030) | 1.0x | -0.3x | 0.5x | 1.0x | 0.9x |
