Shanghai La Chapelle Fashion Co Ltd Net Income dropped on 13.5% in 2016 and EBITDA Margin decreased on 2.4 pp from 13.6% to 11.2%
16/03/2017 • About Shanghai La Chapelle Fashion Co Ltd (
$6116) • By InTwits
Shanghai La Chapelle Fashion Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shanghai La Chapelle Fashion Co Ltd is a fast growth stock: FY2016 revenue growth was 12.5%, 5 year revenue CAGR was 40.6% at FY2016 ROIC 20.9%
- The company has highly profitable business model: ROIC is at 20.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shanghai La Chapelle Fashion Co Ltd ($6116) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,887 | 4,989 | 6,135 | 9,096 | 10,233 | 12.5% |
| Gross Profit | 1,854 | 3,186 | 3,911 | 6,198 | 6,813 | 9.9% |
| SG&A | 1,461 | 2,525 | 3,064 | 5,434 | 6,141 | 13.0% |
| EBITDA | | | | 1,236 | 1,146 | -7.3% |
| Net Income | 260 | 407 | 503 | 615 | 532 | -13.5% |
Balance Sheet
|
|---|
| Cash | 110 | 521 | 1,983 | 1,118 | 581 | -48.0% |
| Short Term Debt | 663 | 1,377 | 1,022 | 0 | 300 | |
| Long Term Debt | 0 | 0 | 21 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 366 | 493 | 504 | 459 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 54.9% | 72.8% | 23.0% | 48.3% | 12.5% | |
| EBITDA growth | | | | | -7.3% | |
| Gross Margin | 64.2% | 63.8% | 63.7% | 68.1% | 66.6% | -1.6% |
| EBITDA Margin | 0.0% | 0.0% | 0.0% | 13.6% | 11.2% | -2.4% |
| Net Income Margin | 9.0% | 8.2% | 8.2% | 6.8% | 5.2% | -1.6% |
| SG&A, % of revenue | 50.6% | 50.6% | 49.9% | 59.7% | 60.0% | 0.3% |
| CAPEX, % of revenue | 12.7% | 9.9% | 8.2% | 5.0% | | -5.0% |
| ROIC | 40.6% | 33.0% | 24.3% | 21.7% | 20.9% | -0.9% |
| ROE | 56.0% | 44.6% | 23.1% | 19.8% | 16.5% | -3.2% |
| Net Debt/EBITDA | | | | -0.9x | -0.2x | 0.7x |
Revenue and profitability
Shanghai La Chapelle Fashion Co Ltd's Revenue surged on 12.5%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.4 pp from 12.4% to 10.0% in FY2016.
Gross Margin decreased slightly on 1.6 pp from 68.1% to 66.6% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign decreased slightly on 1.6 pp from 6.8% to 5.2% in FY2016.
Return on investment
The company operates at high and attractive ROIC (20.86%) while ROE is a bit lower (16.54%). ROIC decreased slightly on 0.87 pp from 21.7% to 20.9% in FY2016. ROE decreased on 3.2 pp from 19.8% to 16.5% in FY2016.
Leverage (Debt)
Debt level is -0.2x Net Debt / EBITDA and 0.3x Debt / EBITDA. Net Debt / EBITDA surged on 0.7x from -0.9x to -0.2x in FY2016. Debt jumped while cash dropped on 48.0%.
Appendix 1: Peers in Retail
Below you can find Shanghai La Chapelle Fashion Co 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) | | 85.6% | -42.1% | 419.8% | 21.8% |
| Noble House China Holdings Ltd ($8246) | | -20.2% | -24.8% | 117.2% | 129.1% |
| 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% | |
| Unlimited Creativity Holdings Ltd ($8377) | -17.7% | -35.3% | 23.7% | 40.8% | |
| |
|---|
| Median (117 companies) | 9.7% | 6.1% | 2.9% | -1.0% | -7.2% |
|---|
| Shanghai La Chapelle Fashion Co Ltd ($6116) | | 72.8% | 23.0% | 48.3% | 12.5% |
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% | 45.1% |
|---|
| Shanghai La Chapelle Fashion Co Ltd ($6116) | 64.2% | 63.8% | 63.7% | 68.1% | 66.6% |
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% | 46.3% |
| China Dongxiang Group Co Ltd ($3818) | 6.0% | 5.6% | 58.3% | 41.4% | |
| |
|---|
| Median (117 companies) | 10.7% | 7.6% | 9.0% | 7.1% | 6.4% |
|---|
| Shanghai La Chapelle Fashion Co Ltd ($6116) | | | | 13.6% | 11.2% |
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% | 2.1% |
|---|
| Shanghai La Chapelle Fashion Co Ltd ($6116) | 12.7% | 9.9% | 8.2% | 5.0% | |
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% | 68.8% |
| |
|---|
| Median (117 companies) | 12.2% | 8.8% | 8.5% | 5.8% | 4.2% |
|---|
| Shanghai La Chapelle Fashion Co Ltd ($6116) | 40.6% | 33.0% | 24.3% | 21.7% | 20.9% |
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 | -0.6x |
|---|
| Shanghai La Chapelle Fashion Co Ltd ($6116) | | | | -0.9x | -0.2x |
