Noble House China Holdings Ltd Net Income surged on 417% and EBITDA Margin surged on 17.3 pp from 20.4% to 37.6%
16/03/2017 • About Noble House China Holdings Ltd (
$8246) • By InTwits
Noble House China Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Noble House China Holdings Ltd is a fast growth stock: FY2016 revenue growth was 129%, 5 year revenue CAGR was 23.2% at FY2016 ROIC 68.8%
- EBITDA Margin is quite volatile: 37.6% in FY2016, 20.4% in FY2015, -37.4% in FY2014, -23.3% in FY2013, 9.5% in FY2012
- The company has highly profitable business model: ROIC is at 68.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Noble House China Holdings Ltd ($8246) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 124.7 | 99.5 | 74.8 | 162.5 | 372.3 | 129.1% |
| Gross Profit | | | | | 168.9 | |
| SG&A | | | 1.0 | 0.8 | 33.7 | 3,950.5% |
| EBITDA | 11.9 | -23.2 | -28.0 | 33.1 | 140.1 | 323.3% |
| Net Income | 4.8 | -26.6 | -32.2 | 18.4 | 95.1 | 417.4% |
Balance Sheet
|
|---|
| Cash | 22.9 | 20.7 | 37.2 | 125.0 | 102.8 | -17.7% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 8.0 | 6.5 | 1.4 | 4.0 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -5.0% | -20.2% | -24.8% | 117.2% | 129.1% | |
| EBITDA growth | -47.0% | -294.8% | 20.6% | -218.4% | 323.3% | |
| Gross Margin | | | | | 45.4% | 45.4% |
| EBITDA Margin | 9.5% | -23.3% | -37.4% | 20.4% | 37.6% | 17.3% |
| Net Income Margin | 3.8% | -26.8% | -43.1% | 11.3% | 25.5% | 14.2% |
| SG&A, % of revenue | | | 1.3% | 0.5% | 9.1% | 8.5% |
| CAPEX, % of revenue | 6.4% | 6.6% | 1.8% | 2.4% | | -2.4% |
| ROIC | 17.7% | -67.7% | -113.8% | 35.6% | 68.8% | 33.2% |
| ROE | 10.2% | -74.5% | -129.5% | 26.0% | 58.9% | 32.9% |
| Net Debt/EBITDA | -1.9x | | | -3.8x | -0.7x | 3.0x |
Revenue and profitability
Noble House China Holdings Ltd's Revenue surged on 129%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 8.9 pp from 16.0% to 24.9% in FY2016.
SG&A as a % of Revenue increased on 8.5 pp from 0.51% to 9.1% in FY2016.
Net Income marign jumped on 14.2 pp from 11.3% to 25.5% in FY2016.
Return on investment
The company operates at high and attractive ROIC (68.78%) and ROE (58.85%). ROIC surged on 33.2 pp from 35.6% to 68.8% in FY2016. ROE surged on 32.9 pp from 26.0% to 58.9% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 17.7%.
Appendix 1: Peers in Retail
Below we provide Noble House China Holdings 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) | | 85.6% | -42.1% | 419.8% | 21.8% |
| 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) | | 72.8% | 23.0% | 48.3% | 12.5% |
| Unlimited Creativity Holdings Ltd ($8377) | -17.7% | -35.3% | 23.7% | 40.8% | |
| |
|---|
| Median (117 companies) | 9.7% | 6.5% | 3.1% | -1.0% | -7.2% |
|---|
| Noble House China Holdings Ltd ($8246) | | -20.2% | -24.8% | 117.2% | 129.1% |
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% | 45.1% |
|---|
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% | 46.3% |
| China Dongxiang Group Co Ltd ($3818) | 6.0% | 5.6% | 58.3% | 41.4% | |
| |
|---|
| Median (117 companies) | 10.8% | 7.8% | 9.1% | 7.1% | 6.4% |
|---|
| Noble House China Holdings Ltd ($8246) | 9.5% | -23.3% | -37.4% | 20.4% | 37.6% |
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% | 3.8% | 3.5% | 2.1% |
|---|
| Noble House China Holdings Ltd ($8246) | 6.4% | 6.6% | 1.8% | 2.4% | |
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% |
| Fairwood Holdings Ltd ($52) | 28.0% | 29.1% | 28.6% | 32.1% | 36.4% |
| |
|---|
| Median (117 companies) | 12.2% | 8.9% | 8.7% | 5.8% | 4.2% |
|---|
| Noble House China Holdings Ltd ($8246) | 17.7% | -67.7% | -113.8% | 35.6% | 68.8% |
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 | -0.4x |
|---|
| Noble House China Holdings Ltd ($8246) | -1.9x | | | -3.8x | -0.7x |
