ANTA Sports Products Ltd revenue growth decelerated to 20.0% in 2016 vs. 24.7% a year earliner
22/02/2017 • About ANTA Sports Products Ltd (
$2020) • By InTwits
ANTA Sports Products Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- ANTA Sports Products Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 573 in 2016, 458 in 2015, 254 in 2014, 175 in 2013, 214 in 2012
- The company has highly profitable business model: ROIC is at 30.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
ANTA Sports Products Ltd ($2020) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 7,623 | 7,281 | 8,923 | 11,126 | 13,346 | 20.0% |
| Gross Profit | 2,893 | 3,039 | 4,027 | 5,185 | 6,459 | 24.6% |
| SG&A | 1,458 | 1,576 | 2,094 | 2,716 | 3,515 | 29.4% |
| EBITDA | 1,673 | 1,696 | 2,178 | 2,885 | 3,429 | 18.9% |
| Net Income | 1,359 | 1,315 | 1,700 | 2,041 | 2,386 | 16.9% |
Balance Sheet
|
|---|
| Cash | 4,008 | 4,344 | 4,934 | 5,166 | 5,830 | 12.9% |
| Short Term Debt | 997 | 490 | 1,348 | 1,330 | 938 | -29.5% |
| Long Term Debt | 39 | 37 | 36 | 39 | 40 | 4.1% |
Cash flow
|
|---|
| Capex | 214 | 175 | 254 | 458 | 573 | 24.9% |
Ratios
|
|---|
| Revenue growth | -14.4% | -4.5% | 22.5% | 24.7% | 20.0% | |
| EBITDA growth | -20.4% | 1.4% | 28.4% | 32.4% | 18.9% | |
| Gross Margin | 38.0% | 41.7% | 45.1% | 46.6% | 48.4% | 1.8% |
| EBITDA Margin | 21.9% | 23.3% | 24.4% | 25.9% | 25.7% | -0.2% |
| Net Income Margin | 17.8% | 18.1% | 19.1% | 18.3% | 17.9% | -0.5% |
| SG&A, % of revenue | 19.1% | 21.6% | 23.5% | 24.4% | 26.3% | 1.9% |
| CAPEX, % of revenue | 2.8% | 2.4% | 2.8% | 4.1% | 4.3% | 0.2% |
| ROIC | 21.1% | 19.2% | 22.8% | 27.0% | 30.0% | 3.0% |
| ROE | 20.7% | 18.9% | 22.7% | 24.9% | 26.3% | 1.4% |
| Net Debt/EBITDA | -1.8x | -2.3x | -1.6x | -1.3x | -1.4x | -0.1x |
Revenue and profitability
The company's Revenue jumped on 20.0%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 8.4 pp from 82.1% to 73.7% in 2016.
Gross Margin increased slightly on 1.8 pp from 46.6% to 48.4% in 2016. SG&A as a % of Revenue increased slightly on 1.9 pp from 24.4% to 26.3% in 2016.
Net Income marign showed almost no change in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.3% in 2016. CAPEX/Revenue increased slightly on 1.9 pp from 2.4% in 2013 to 4.3% in 2016. It's average level of CAPEX/Revenue for the last three years was 3.8%.
Return on investment
The company operates at high and attractive ROIC (29.97%) and ROE (26.32%). ROIC increased on 3.0 pp from 27.0% to 30.0% in 2016. ROE increased slightly on 1.4 pp from 24.9% to 26.3% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.4x and Debt / EBITDA is 0.3x. Net Debt / EBITDA decreased on 0.1x from -1.3x to -1.4x in 2016. Debt dropped on 28.5% while cash surged on 12.9%.
Appendix 1: Peers in Retail
Below we provide ANTA Sports Products 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) | 7.6% | 6.5% | 2.9% | -1.0% | -8.0% |
|---|
| ANTA Sports Products Ltd ($2020) | | -4.5% | 22.5% | 24.7% | 20.0% |
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) | 36.2% | 35.8% | 35.0% | 33.3% | 43.5% |
|---|
| ANTA Sports Products Ltd ($2020) | 38.0% | 41.7% | 45.1% | 46.6% | 48.4% |
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% |
|---|
| ANTA Sports Products Ltd ($2020) | 21.9% | 23.3% | 24.4% | 25.9% | 25.7% |
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% | 3.1% | 1.9% |
|---|
| ANTA Sports Products Ltd ($2020) | 2.8% | 2.4% | 2.8% | 4.1% | 4.3% |
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) | 12.2% | 8.8% | 8.5% | 5.8% | 1.9% |
|---|
| ANTA Sports Products Ltd ($2020) | 21.1% | 19.2% | 22.8% | 27.0% | 30.0% |
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 | 11.1x |
| 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 |
|---|
| ANTA Sports Products Ltd ($2020) | -1.8x | -2.3x | -1.6x | -1.3x | -1.4x |
