Future Bright Holdings Ltd reports 6.1 pp EBITDA Margin decline from 6.1% to in 2016 in 2016
17/03/2017 • About Future Bright Holdings Ltd (
$703) • By InTwits
Future Bright 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: in FY2016 vs. 6.1% in FY2015 vs. 30.7% in FY2012
- It operates with high leverage: Net Debt/EBITDA is 36.3x 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.
Future Bright Holdings Ltd ($703) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 646.1 | 746.5 | 858.9 | 824.2 | 853.2 | 3.5% |
| Gross Profit | 237.1 | 271.8 | 626.4 | 577.4 | | -100.0% |
| SG&A | | | 120.2 | 146.1 | | -100.0% |
| EBITDA | 198.5 | 211.1 | 167.4 | 50.6 | | -100.0% |
| Net Income | 242.3 | 261.0 | 168.8 | -45.9 | -1.5 | |
Balance Sheet
|
|---|
| Cash | 320.3 | 425.9 | 465.6 | 219.3 | | -100.0% |
| Short Term Debt | 20.7 | 18.7 | 14.4 | 83.9 | | -100.0% |
| Long Term Debt | 368.9 | 335.3 | 332.7 | 137.1 | | -100.0% |
Cash flow
|
|---|
| Capex | 16.5 | 27.4 | 316.4 | 205.3 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 18.2% | 15.5% | 15.1% | -4.0% | 3.5% | |
| EBITDA growth | 19.9% | 6.4% | -20.7% | -69.8% | | |
| Gross Margin | 36.7% | 36.4% | 72.9% | 70.1% | | -70.1% |
| EBITDA Margin | 30.7% | 28.3% | 19.5% | 6.1% | 0.0% | -6.1% |
| Net Income Margin | 37.5% | 35.0% | 19.7% | -5.6% | -0.2% | 5.4% |
| SG&A, % of revenue | | | 14.0% | 17.7% | | -17.7% |
| CAPEX, % of revenue | 2.6% | 3.7% | 36.8% | 24.9% | | -24.9% |
| ROIC | 20.2% | 15.9% | 9.0% | 0.1% | | -0.1% |
| ROE | 53.9% | 37.0% | 16.8% | -4.0% | | 4.0% |
| Net Debt/EBITDA | 0.3x | -0.3x | -0.7x | 0.0x | | -0.0x |
Revenue and profitability
The company's Revenue increased on 3.5%.
Net Income marign increased on 5.4 pp from -5.6% to -0.18% in FY2016.
Appendix 1: Peers in Retail
Below we provide Future Bright 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) | 9.8% | 6.1% | 2.9% | -1.0% | -6.5% |
|---|
| Future Bright Holdings Ltd ($703) | | 15.5% | 15.1% | -4.0% | 3.5% |
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) | 36.7% | 35.8% | 35.0% | 33.3% | 45.1% |
|---|
| Future Bright Holdings Ltd ($703) | 36.7% | 36.4% | 72.9% | 70.1% | |
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) | 10.3% | 7.3% | 8.9% | 7.4% | 6.8% |
|---|
| Future Bright Holdings Ltd ($703) | 30.7% | 28.3% | 19.5% | 6.1% | |
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% | 3.7% | 3.1% | 2.1% |
|---|
| Future Bright Holdings Ltd ($703) | 2.6% | 3.7% | 36.8% | 24.9% | |
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% | 5.7% |
|---|
| Future Bright Holdings Ltd ($703) | 20.2% | 15.9% | 9.0% | 0.1% | |
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 |
|---|
| Future Bright Holdings Ltd ($703) | 0.3x | -0.3x | -0.7x | 0.0x | |
