Springland International Holdings Ltd Net Income dropped on 32.3% in 2016 and EBITDA Margin decreased slightly on 1.8 pp from 25.2% to 23.4%
16/03/2017 • About Springland International Holdings Ltd (
$1700) • By InTwits
Springland International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 23.4% in FY2016 vs. 25.2% in FY2015 vs. 29.4% in FY2012
- The company has potentially unprofitable business model: ROIC is at 6.3%
- It operates with high leverage: Net Debt/EBITDA is 2.5x while industry average is 0.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Springland International Holdings Ltd ($1700) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,807 | 4,162 | 4,276 | 4,168 | 4,193 | 0.6% |
| EBITDA | 1,120 | 1,262 | 1,234 | 1,050 | 980 | -6.7% |
| Net Income | 651 | 730 | 634 | 480 | 325 | -32.3% |
Balance Sheet
|
|---|
| Cash | 1,539 | 892 | 1,823 | 629 | 402 | -36.2% |
| Short Term Debt | 794 | 1,872 | 300 | 2,098 | 1,739 | -17.1% |
| Long Term Debt | 655 | 992 | 2,294 | 878 | 1,124 | 28.0% |
Cash flow
|
|---|
| Capex | 1,215 | 724 | 1,131 | 1,536 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 5.7% | 9.3% | 2.8% | -2.5% | 0.6% | |
| EBITDA growth | 11.9% | 12.6% | -2.2% | -14.9% | -6.7% | |
| EBITDA Margin | 29.4% | 30.3% | 28.9% | 25.2% | 23.4% | -1.8% |
| Net Income Margin | 17.1% | 17.5% | 14.8% | 11.5% | 7.8% | -3.8% |
| CAPEX, % of revenue | 31.9% | 17.4% | 26.5% | 36.9% | | -36.9% |
| ROIC | 14.3% | 12.6% | 10.8% | 8.3% | 6.3% | -2.0% |
| ROE | 15.1% | 15.7% | 13.0% | 9.6% | 6.5% | -3.1% |
| Net Debt/EBITDA | -0.1x | 1.6x | 0.6x | 2.2x | 2.5x | 0.3x |
Revenue and profitability
Springland International Holdings Ltd's Revenue increased slightly on 0.60%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.2 pp from 8.8% to 10.0% in FY2016.
Net Income marign decreased on 3.8 pp from 11.5% to 7.8% in FY2016.
Return on investment
The company operates at low ROIC (6.27%) and ROE (6.50%). ROIC decreased on 2.0 pp from 8.3% to 6.3% in FY2016. ROE decreased on 3.1 pp from 9.6% to 6.5% in FY2016.
Leverage (Debt)
Debt level is 2.5x Net Debt / EBITDA and 2.9x Debt / EBITDA. Net Debt / EBITDA jumped on 0.3x from 2.2x to 2.5x in FY2016. Debt decreased on 3.8% while cash dropped on 36.2%.
Management team
Springland International Holdings Ltd's CEO is Tao Qingrong. Tao Qingrong has 7 years tenure at the company.
Appendix 1: Peers in Retail
Below we provide Springland International 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% |
| 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% | |
| Shanghai La Chapelle Fashion Co Ltd ($6116) | | 72.8% | 23.0% | 48.3% | 12.5% |
| |
|---|
| Median (117 companies) | 9.7% | 6.1% | 3.1% | -1.0% | -7.2% |
|---|
| Springland International Holdings Ltd ($1700) | | 9.3% | 2.8% | -2.5% | 0.6% |
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% | 45.2% |
|---|
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) | 10.3% | 7.3% | 8.9% | 7.1% | 6.4% |
|---|
| Springland International Holdings Ltd ($1700) | 29.4% | 30.3% | 28.9% | 25.2% | 23.4% |
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% |
| 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% | |
| Future Bright Holdings Ltd ($703) | 2.6% | 3.7% | 36.8% | 24.9% | |
| |
|---|
| Median (117 companies) | 4.0% | 3.6% | 3.7% | 3.1% | 2.1% |
|---|
| Springland International Holdings Ltd ($1700) | 31.9% | 17.4% | 26.5% | 36.9% | |
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% | 68.8% |
| |
|---|
| Median (117 companies) | 12.2% | 8.8% | 8.5% | 5.8% | 4.2% |
|---|
| Springland International Holdings Ltd ($1700) | 14.3% | 12.6% | 10.8% | 8.3% | 6.3% |
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 | -0.6x | -0.2x | -0.5x | -0.6x |
|---|
| Springland International Holdings Ltd ($1700) | -0.1x | 1.6x | 0.6x | 2.2x | 2.5x |
