Giordano International Ltd EBITDA decreased on 4.5% in 2016 and EBITDA Margin showed almost no change
09/03/2017 • About Giordano International Ltd (
$709) • By InTwits
Giordano International Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has highly profitable business model: ROIC is at 17.3%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Giordano International Ltd ($709) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,673 | 5,848 | 5,545 | 5,381 | 5,145 | -4.4% |
| Gross Profit | 3,331 | 3,551 | 3,214 | 3,097 | 3,055 | -1.4% |
| SG&A | 2,620 | 2,836 | 2,749 | 2,630 | 2,572 | -2.2% |
| EBITDA | 1,098 | 969 | 735 | 726 | 693 | -4.5% |
| Net Income | 826 | 663 | 408 | 426 | 434 | 1.9% |
Balance Sheet
|
|---|
| Cash | 872 | 1,232 | 688 | 939 | 1,393 | 48.3% |
| Short Term Debt | 339 | 332 | 0 | 0 | 298 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 155 | 212 | 187 | 145 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 1.1% | 3.1% | -5.2% | -3.0% | -4.4% | |
| EBITDA growth | 9.9% | -11.7% | -24.1% | -1.2% | -4.5% | |
| Gross Margin | 58.7% | 60.7% | 58.0% | 57.6% | 59.4% | 1.8% |
| EBITDA Margin | 19.4% | 16.6% | 13.3% | 13.5% | 13.5% | -0.0% |
| Net Income Margin | 14.6% | 11.3% | 7.4% | 7.9% | 8.4% | 0.5% |
| SG&A, % of revenue | 46.2% | 48.5% | 49.6% | 48.9% | 50.0% | 1.1% |
| CAPEX, % of revenue | 2.7% | 3.6% | 3.4% | 2.7% | | -2.7% |
| ROIC | 27.8% | 20.6% | 15.2% | 17.0% | 17.3% | 0.4% |
| ROE | 28.9% | 21.8% | 13.6% | 14.9% | 15.6% | 0.6% |
| Net Debt/EBITDA | -0.5x | -0.9x | -0.9x | -1.3x | -1.6x | -0.3x |
Revenue and profitability
The company's Revenue decreased on 4.4%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 102 pp from -31.9% to 70.5% in FY2016.
Gross Margin increased slightly on 1.8 pp from 57.6% to 59.4% in FY2016. SG&A as a % of Revenue increased slightly on 1.1 pp from 48.9% to 50.0% in FY2016.
Net Income marign increased slightly on 0.52 pp from 7.9% to 8.4% in FY2016.
Return on investment
The company operates at good ROIC (17.33%) and ROE (15.57%). ROIC showed almost no change in FY2016. ROE increased slightly on 0.62 pp from 14.9% to 15.6% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.6x and Debt / EBITDA is 0.4x. Net Debt / EBITDA dropped on 0.3x from -1.3x to -1.6x in FY2016. Debt jumped while cash jumped on 48.3%.
Management team
The company's CEO is Lau Kwok Kuen "Peter". Lau Kwok Kuen "Peter" has 24 years tenure at the company.
Appendix 1: Peers in Retail
Below we provide Giordano International 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% | 3.1% | -1.0% | -8.0% |
|---|
| Giordano International Ltd ($709) | | 3.1% | -5.2% | -3.0% | -4.4% |
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% |
|---|
| Giordano International Ltd ($709) | 58.7% | 60.7% | 58.0% | 57.6% | 59.4% |
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% |
|---|
| Giordano International Ltd ($709) | 19.4% | 16.6% | 13.3% | 13.5% | 13.5% |
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% | 3.5% | 1.9% |
|---|
| Giordano International Ltd ($709) | 2.7% | 3.6% | 3.4% | 2.7% | |
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% |
|---|
| Giordano International Ltd ($709) | 27.8% | 20.6% | 15.2% | 17.0% | 17.3% |
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 | -0.7x |
|---|
| Giordano International Ltd ($709) | -0.5x | -0.9x | -0.9x | -1.3x | -1.6x |
