Parkson Retail Group Ltd Net Debt / EBITDA surged on 1.3x from 9.8x to 11.1x in 2016 while Debt decreased slightly on 1.3%
20/02/2017 • About Parkson Retail Group Ltd (
$3368) • By InTwits
Parkson Retail Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Parkson Retail Group Ltd doesn't have a profitable business model yet: FY2016 ROIC is -2.2%
- EBITDA Margin is quite volatile: 6.8% in FY2016, 7.4% in FY2015, 16.1% in FY2014, 20.5% in FY2013, 30.8% in FY2012
- The company has unprofitable business model: ROIC is at -2.2%
- It operates with high leverage: Net Debt/EBITDA is 11.1x while industry average is 0.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Parkson Retail Group Ltd ($3368) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,450 | 4,537 | 4,524 | 4,233 | 4,134 | -2.3% |
| EBITDA | 1,371 | 931 | 729 | 311 | 280 | -9.9% |
| Net Income | 851 | 354 | 235 | -186 | 147 | |
Balance Sheet
|
|---|
| Cash | 1,424 | 1,036 | 1,124 | 981 | 864 | -11.9% |
| Short Term Debt | 2,491 | 0 | 700 | 644 | 539 | -16.3% |
| Long Term Debt | 0 | 3,196 | 3,035 | 3,373 | 3,425 | 1.5% |
Cash flow
|
|---|
| Capex | 333 | 442 | 302 | 882 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 2.0% | 2.0% | -0.3% | -6.4% | -2.3% | |
| EBITDA growth | -21.3% | -32.1% | -21.7% | -57.3% | -9.9% | |
| EBITDA Margin | 30.8% | 20.5% | 16.1% | 7.4% | 6.8% | -0.6% |
| Net Income Margin | 19.1% | 7.8% | 5.2% | -4.4% | 3.6% | 8.0% |
| CAPEX, % of revenue | 7.5% | 9.7% | 6.7% | 20.8% | | -20.8% |
| ROIC | 13.3% | 6.3% | 3.5% | -1.0% | -2.2% | -1.2% |
| ROE | 15.7% | 6.3% | 4.2% | -3.5% | 3.0% | 6.5% |
| Net Debt/EBITDA | 0.8x | 2.3x | 3.6x | 9.8x | 11.1x | 1.3x |
Revenue and profitability
The company's Revenue decreased on 2.3%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.57 pp from 7.4% to 6.8% in FY2016.
Net Income marign increased on 8.0 pp from -4.4% to 3.6% in FY2016.
Return on investment
The company operates at negative ROIC (-2.24%) and low but positive ROE (3.01%). ROIC decreased slightly on 1.2 pp from -1.0% to -2.2% in FY2016. ROE increased on 6.5 pp from -3.5% to 3.0% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 11.1x and Debt / EBITDA is 14.1x. Net Debt / EBITDA surged on 1.3x from 9.8x to 11.1x in FY2016. Debt decreased slightly on 1.3% while cash dropped on 11.9%.
Management team
The company's CEO is Chong Sui Hiong "Shaun". Chong Sui Hiong "Shaun" has 4 years tenure at the company. The company's CFO Au Chen Sum has spent 5 years at the company.
Appendix 1: Peers in Retail
Below we provide Parkson Retail Group Ltd benchmarking against other companies in Retail 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 |
|---|
| 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% | 3.1% | -1.0% | -8.1% |
|---|
| Parkson Retail Group Ltd ($3368) | | 2.0% | -0.3% | -6.4% | -2.3% |
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 (104 companies) | 36.7% | 36.3% | 35.3% | 33.6% | 43.5% |
|---|
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% | 7.3% | 8.9% | 7.1% | 5.6% |
|---|
| Parkson Retail Group Ltd ($3368) | 30.8% | 20.5% | 16.1% | 7.4% | 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) | 4.0% | 3.6% | 3.7% | 3.1% | 1.9% |
|---|
| Parkson Retail Group Ltd ($3368) | 7.5% | 9.7% | 6.7% | 20.8% | |
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) | 12.2% | 8.9% | 8.7% | 5.8% | 2.5% |
|---|
| Parkson Retail Group Ltd ($3368) | 13.3% | 6.3% | 3.5% | -1.0% | -2.2% |
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 | |
| 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 | |
| China Rundong Auto Group Ltd ($1365) | 13.0x | 7.3x | 6.3x | 6.6x | |
| |
|---|
| Median (91 companies) | -0.5x | -0.6x | -0.2x | -0.5x | -0.7x |
|---|
| Parkson Retail Group Ltd ($3368) | 0.8x | 2.3x | 3.6x | 9.8x | 11.1x |
