Time2U International Holding Ltd Net Income dropped on 475% and Revenue dropped on 60.7%
09/03/2017 • About Time2U International Holding Ltd (
$1327) • By InTwits
Time2U International Holding Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Time2U International Holding Ltd is a company in decline: FY2016 revenue growth was -60.7%, 5 years revenue CAGR was -3.8%
- EBITDA Margin is quite volatile: -9.2% in FY2016, 18.0% in FY2015, 28.7% in FY2014, 28.2% in FY2013, 25.6% in FY2012
- The company has unprofitable business model: ROIC is at -9.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Time2U International Holding Ltd ($1327) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 460.8 | 580.4 | 722.7 | 691.3 | 271.8 | -60.7% |
| Gross Profit | 148.2 | 188.7 | 240.6 | 200.7 | 75.1 | -62.6% |
| SG&A | 62.2 | 61.0 | 88.0 | 126.6 | 151.3 | 19.5% |
| EBITDA | 117.9 | 163.6 | 207.1 | 124.7 | -24.9 | -120.0% |
| Net Income | 51.7 | 85.2 | 115.2 | 85.9 | -322.5 | -475.4% |
Balance Sheet
|
|---|
| Cash | 81.1 | 85.6 | 82.8 | 135.1 | 306.9 | 127.2% |
| Short Term Debt | 190.9 | 181.2 | 26.1 | 60.6 | 31.0 | -48.8% |
| Long Term Debt | | | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 38.2 | 63.1 | 33.2 | 96.2 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 39.5% | 26.0% | 24.5% | -4.3% | -60.7% | |
| EBITDA growth | 25.5% | 38.8% | 26.6% | -39.8% | -120.0% | |
| Gross Margin | 32.2% | 32.5% | 33.3% | 29.0% | 27.6% | -1.4% |
| EBITDA Margin | 25.6% | 28.2% | 28.7% | 18.0% | -9.2% | -27.2% |
| Net Income Margin | 11.2% | 14.7% | 15.9% | 12.4% | -118.7% | -131.1% |
| SG&A, % of revenue | 13.5% | 10.5% | 12.2% | 18.3% | 55.6% | 37.3% |
| CAPEX, % of revenue | 8.3% | 10.9% | 4.6% | 13.9% | | -13.9% |
| ROIC | | | | 13.4% | -9.5% | -22.9% |
| ROE | 28.1% | 34.0% | 33.1% | 15.6% | -46.6% | -62.2% |
| Net Debt/EBITDA | 0.9x | 0.6x | -0.3x | -0.6x | | 0.6x |
Revenue and profitability
Time2U International Holding Ltd's Revenue dropped on 60.7%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 27.2 pp from 18.0% to -9.2% in FY2016.
Gross Margin decreased slightly on 1.4 pp from 29.0% to 27.6% in FY2016. SG&A as a % of Revenue jumped on 37.3 pp from 18.3% to 55.6% in FY2016.
Net Income marign dropped on 131 pp from 12.4% to -119% in FY2016.
Return on investment
The company operates at negative ROIC (-9.54%) and ROE (-46.56%). ROIC dropped on 22.9 pp from 13.4% to -9.5% in FY2016. ROE dropped on 62.2 pp from 15.6% to -46.6% in FY2016.
Leverage (Debt)
Debt level is -4.6x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA surged on 0.6x from -0.6x to in FY2016. Debt dropped on 48.8% while cash surged on 127%.
Appendix 1: Peers in Retail
Below you can find Time2U International Holding 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) | 7.6% | 6.1% | 2.9% | -1.0% | -7.2% |
|---|
| Time2U International Holding Ltd ($1327) | | 26.0% | 24.5% | -4.3% | -60.7% |
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) | 37.2% | 36.4% | 35.5% | 33.9% | 44.7% |
|---|
| Time2U International Holding Ltd ($1327) | 32.2% | 32.5% | 33.3% | 29.0% | 27.6% |
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% | 5.7% |
|---|
| Time2U International Holding Ltd ($1327) | 25.6% | 28.2% | 28.7% | 18.0% | -9.2% |
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% |
|---|
| Time2U International Holding Ltd ($1327) | 8.3% | 10.9% | 4.6% | 13.9% | |
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% | 3.1% |
|---|
| Time2U International Holding Ltd ($1327) | | | | 13.4% | -9.5% |
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 | -0.6x | -0.2x | -0.5x | -0.8x |
|---|
| Time2U International Holding Ltd ($1327) | 0.9x | 0.6x | -0.3x | -0.6x | |
