Convenience Retail Asia Ltd revenue increased on 3.0% in 2016
21/03/2017 • About Convenience Retail Asia Ltd (
$831) • By InTwits
Convenience Retail Asia Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: It operates with high leverage: Net Debt/EBITDA is 2.1x while industry average is 0.1x.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Convenience Retail Asia Ltd ($831) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,270 | 4,521 | 4,531 | 4,728 | 4,871 | 3.0% |
| Gross Profit | 1,469 | 1,580 | 1,567 | 1,604 | | -100.0% |
| SG&A | 278 | 310 | 301 | 319 | | -100.0% |
| EBITDA | 318 | 231 | 240 | 230 | | -100.0% |
| Net Income | 200 | 150 | 121 | 159 | 140 | -12.3% |
Balance Sheet
|
|---|
| Cash | 539 | 431 | 528 | 567 | | -100.0% |
| Short Term Debt | 0 | 0 | 0 | 0 | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | |
Cash flow
|
|---|
| Capex | 106 | 87 | 70 | 84 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 7.5% | 5.9% | 0.2% | 4.3% | 3.0% | |
| EBITDA growth | 17.6% | -27.4% | 4.0% | -4.2% | | |
| Gross Margin | 34.4% | 34.9% | 34.6% | 33.9% | | -33.9% |
| EBITDA Margin | 7.4% | 5.1% | 5.3% | 4.9% | 0.0% | -4.9% |
| Net Income Margin | 4.7% | 3.3% | 2.7% | 3.4% | 2.9% | -0.5% |
| SG&A, % of revenue | 6.5% | 6.9% | 6.7% | 6.7% | | -6.7% |
| CAPEX, % of revenue | 2.5% | 1.9% | 1.5% | 1.8% | | -1.8% |
| ROIC | 25.9% | 18.4% | 22.8% | 20.2% | | -20.2% |
| ROE | 20.5% | 17.0% | 15.6% | 19.5% | | -19.5% |
| Net Debt/EBITDA | -1.7x | -1.9x | -2.2x | -2.5x | | 2.5x |
Revenue and profitability
Convenience Retail Asia Ltd's Revenue increased on 3.0%.
Net Income marign decreased slightly on 0.50 pp from 3.4% to 2.9% in FY2016.
Appendix 1: Peers in Retail
Below you can find Convenience Retail Asia 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% | |
| Shanghai La Chapelle Fashion Co Ltd ($6116) | | 72.8% | 23.0% | 48.3% | 12.5% |
| |
|---|
| Median (117 companies) | 9.7% | 6.5% | 3.1% | -1.0% | -5.0% |
|---|
| Convenience Retail Asia Ltd ($831) | | 5.9% | 0.2% | 4.3% | 3.0% |
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) | 37.2% | 36.4% | 35.5% | 33.3% | 43.8% |
|---|
| Convenience Retail Asia Ltd ($831) | 34.4% | 34.9% | 34.6% | 33.9% | |
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% | 7.4% | 6.8% |
|---|
| Convenience Retail Asia Ltd ($831) | 7.4% | 5.1% | 5.3% | 4.9% | |
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% | 3.8% | 3.5% | 2.1% |
|---|
| Convenience Retail Asia Ltd ($831) | 2.5% | 1.9% | 1.5% | 1.8% | |
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% | 6.4% |
|---|
| Convenience Retail Asia Ltd ($831) | 25.9% | 18.4% | 22.8% | 20.2% | |
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 | -0.5x | -0.2x | -0.5x | -0.3x |
|---|
| Convenience Retail Asia Ltd ($831) | -1.7x | -1.9x | -2.2x | -2.5x | |
