China Outfitters Holdings Ltd reports 56.7% Net Income decline in 2016 and 10.9% Revenue decline
20/03/2017 • About China Outfitters Holdings Ltd (
$1146) • By InTwits
China Outfitters Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Outfitters Holdings Ltd is a company in decline: FY2016 revenue growth was -10.9%, 5 years revenue CAGR was -6.3%
- EBITDA Margin is declining: in FY2016 vs. 14.6% in FY2015 vs. 42.0% in FY2012
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Outfitters Holdings Ltd ($1146) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,408 | 1,247 | 1,094 | 1,013 | 902 | -10.9% |
| Gross Profit | 1,054 | 927 | 766 | 665 | | -100.0% |
| SG&A | 519 | 505 | 508 | 559 | | -100.0% |
| EBITDA | 591 | 476 | 290 | 148 | | -100.0% |
| Net Income | 460 | 384 | 204 | 105 | 45 | -56.7% |
Balance Sheet
|
|---|
| Cash | 379 | 347 | 190 | 165 | | -100.0% |
| Short Term Debt | 0 | 0 | 647 | 360 | | -100.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | | |
Cash flow
|
|---|
| Capex | 14 | 118 | 97 | 50 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 12.8% | -11.4% | -12.3% | -7.5% | -10.9% | |
| EBITDA growth | 8.0% | -19.5% | -39.1% | -49.0% | | |
| Gross Margin | 74.9% | 74.3% | 70.0% | 65.7% | | -65.7% |
| EBITDA Margin | 42.0% | 38.2% | 26.5% | 14.6% | 0.0% | -14.6% |
| Net Income Margin | 32.7% | 30.8% | 18.6% | 10.4% | 5.0% | -5.3% |
| SG&A, % of revenue | 36.9% | 40.5% | 46.4% | 55.2% | | -55.2% |
| CAPEX, % of revenue | 1.0% | 9.4% | 8.9% | 5.0% | | -5.0% |
| ROIC | 29.5% | 21.5% | 12.1% | 6.0% | | -6.0% |
| ROE | 25.4% | 18.9% | 11.0% | 6.4% | | -6.4% |
| Net Debt/EBITDA | -0.6x | -0.7x | 1.6x | 1.3x | | -1.3x |
Revenue and profitability
China Outfitters Holdings Ltd's Revenue dropped on 10.9%.
Net Income marign decreased on 5.3 pp from 10.4% to 5.0% in FY2016.
Appendix 1: Peers in Apparel
Below you can find China Outfitters Holdings Ltd benchmarking vs. other companies in Apparel 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 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | | 46.8% | 20.4% | 33.1% | 3.6% |
| Highlight China IoT International Ltd ($1682) | | 17.7% | -73.7% | 29.6% | -55.0% |
| Koradior Holdings Ltd ($3709) | 48.3% | 44.7% | 47.7% | 23.9% | |
| Kingmaker Footwear Holdings Ltd ($1170) | | 9.3% | 6.3% | 23.7% | -1.5% |
| Cosmo Lady China Holdings Co Ltd ($2298) | 36.3% | 29.2% | 37.4% | 23.6% | |
| |
|---|
| Median (52 companies) | 8.9% | 6.3% | 5.5% | -1.5% | -11.3% |
|---|
| China Outfitters Holdings Ltd ($1146) | | -11.4% | -12.3% | -7.5% | -10.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 38.5% | 42.3% | 59.6% | 75.6% | |
| Koradior Holdings Ltd ($3709) | 62.8% | 69.3% | 73.3% | 73.7% | |
| Prada SpA ($1913) | 71.5% | 72.1% | 73.8% | 71.8% | 72.4% |
| Crocodile Garments ($122) | 64.7% | 60.7% | 60.4% | 62.1% | 59.7% |
| S Culture International Holdings Ltd ($1255) | 64.7% | 63.7% | 62.9% | 61.9% | |
| |
|---|
| Median (51 companies) | 24.8% | 23.5% | 24.9% | 25.0% | 18.3% |
|---|
| China Outfitters Holdings Ltd ($1146) | 74.9% | 74.3% | 70.0% | 65.7% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Lilang Ltd ($1234) | 26.3% | 26.9% | 29.4% | 30.6% | 28.6% |
| Cabbeen Fashion Ltd ($2030) | 25.0% | 29.7% | 28.4% | 29.0% | 22.9% |
| Fuguiniao Co Ltd ($1819) | 24.5% | 26.1% | 26.7% | 27.9% | |
| Prada SpA ($1913) | 29.6% | 31.7% | 31.7% | 26.8% | 22.4% |
| Shenzhou International Group Holdings Ltd ($2313) | 26.4% | 26.2% | 26.1% | 26.7% | |
| |
|---|
| Median (52 companies) | 10.5% | 10.2% | 7.2% | 6.6% | 0.3% |
|---|
| China Outfitters Holdings Ltd ($1146) | 42.0% | 38.2% | 26.5% | 14.6% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 136.9% | 70.3% | 13.5% | 28.5% | |
| Shenzhou International Group Holdings Ltd ($2313) | 7.3% | 7.9% | 10.2% | 16.1% | |
| Crocodile Garments ($122) | 20.1% | 22.1% | 1.8% | 13.5% | 1.8% |
| Texhong Textile Group Ltd ($2678) | 8.9% | 11.8% | 5.8% | 10.5% | |
| Prada SpA ($1913) | 9.7% | 10.6% | 15.3% | 10.2% | 11.1% |
| |
|---|
| Median (51 companies) | 2.3% | 3.0% | 2.3% | 2.3% | 2.1% |
|---|
| China Outfitters Holdings Ltd ($1146) | 1.0% | 9.4% | 8.9% | 5.0% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Koradior Holdings Ltd ($3709) | 45.2% | 69.5% | 36.5% | 31.0% | |
| Cosmo Lady China Holdings Co Ltd ($2298) | 41.7% | 56.0% | 38.6% | 27.8% | |
| Cabbeen Fashion Ltd ($2030) | 32.3% | 32.9% | 26.5% | 27.0% | 16.1% |
| Sitoy Group Holdings Ltd ($1023) | 39.3% | 28.7% | 31.8% | 22.0% | 16.4% |
| Prada SpA ($1913) | 32.1% | 37.4% | 34.0% | 21.9% | 14.0% |
| |
|---|
| Median (52 companies) | 10.5% | 7.2% | 4.4% | 4.9% | -0.1% |
|---|
| China Outfitters Holdings Ltd ($1146) | 29.5% | 21.5% | 12.1% | 6.0% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| S Culture International Holdings Ltd ($1255) | 1.4x | 0.7x | 2.4x | 158.1x | |
| High Fashion International Ltd ($608) | 16.7x | 27.7x | 11.2x | 5.2x | |
| Global Brands Group Holding Ltd ($787) | -0.4x | -0.3x | 1.3x | 2.1x | |
| Fuguiniao Co Ltd ($1819) | -0.0x | -0.7x | 0.3x | 1.9x | |
| Texhong Textile Group Ltd ($2678) | 1.4x | 1.3x | 2.3x | 1.4x | 1.7x |
| |
|---|
| Median (38 companies) | -0.2x | -0.6x | -0.4x | -1.2x | -1.1x |
|---|
| China Outfitters Holdings Ltd ($1146) | -0.6x | -0.7x | 1.6x | 1.3x | |
