China Dongxiang Group Co Ltd reports 51.8% EBITDA growth in 2016 and 2.2% Revenue growth
22/03/2017 • About China Dongxiang Group Co Ltd (
$3818) • By InTwits
China Dongxiang Group Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 61.6% in FY2016, 41.4% in FY2015, 58.3% in FY2014, 5.6% in FY2013, 6.0% in FY2012
- China Dongxiang Group Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has business model with low profitability: ROIC is at 8.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Dongxiang Group Co Ltd ($3818) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,772 | 1,414 | 1,262 | 1,469 | 1,501 | 2.2% |
| Gross Profit | 897 | 711 | 682 | 815 | 851 | 4.4% |
| SG&A | 762 | 626 | 578 | 556 | 647 | 16.4% |
| EBITDA | 106 | 79 | 735 | 609 | 924 | 51.8% |
| Net Income | 177 | 210 | 915 | 803 | 870 | 8.4% |
Balance Sheet
|
|---|
| Cash | 341 | 281 | 1,673 | 842 | 1,316 | 56.3% |
| Short Term Debt | 0 | 0 | 0 | 455 | 751 | 65.2% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 8 | 8 | 4 | 14 | 4 | -71.2% |
Ratios
|
|---|
| Revenue growth | -35.4% | -20.2% | -10.7% | 16.4% | 2.2% | |
| EBITDA growth | -30.9% | -25.6% | 831.7% | -17.2% | 51.8% | |
| Gross Margin | 50.6% | 50.3% | 54.0% | 55.5% | 56.7% | 1.2% |
| EBITDA Margin | 6.0% | 5.6% | 58.3% | 41.4% | 61.6% | 20.1% |
| Net Income Margin | 10.0% | 14.9% | 72.5% | 54.7% | 58.0% | 3.3% |
| SG&A, % of revenue | 43.0% | 44.3% | 45.8% | 37.9% | 43.1% | 5.3% |
| CAPEX, % of revenue | 0.5% | 0.6% | 0.3% | 1.0% | 0.3% | -0.7% |
| ROIC | 1.0% | 0.6% | 7.4% | 5.6% | 8.6% | 3.0% |
| ROE | 2.6% | 2.7% | 9.7% | 8.1% | 9.1% | 1.0% |
| Net Debt/EBITDA | -3.2x | -3.6x | -2.3x | -0.6x | -0.6x | 0.0x |
Revenue and profitability
China Dongxiang Group Co Ltd's Revenue increased on 2.2%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 14.8 pp from 26.9% to 12.1% in FY2016.
Gross Margin increased slightly on 1.2 pp from 55.5% to 56.7% in FY2016. SG&A as a % of Revenue increased on 5.3 pp from 37.9% to 43.1% in FY2016.
Net Income marign increased on 3.3 pp from 54.7% to 58.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
China Dongxiang Group Co Ltd's CAPEX/Revenue was 0.27% in FY2016. The company's CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average level of CAPEX/Revenue for the last three years was 0.51%.
Return on investment
The company operates at low ROIC (8.61%) and ROE (9.07%). ROIC increased on 3.0 pp from 5.6% to 8.6% in FY2016. ROE increased slightly on 0.99 pp from 8.1% to 9.1% in FY2016.
Leverage (Debt)
Debt level is -0.6x Net Debt / EBITDA and 0.8x Debt / EBITDA. Net Debt / EBITDA increased on 0.025x from -0.6x to -0.6x in FY2016. Debt surged on 65.2% while cash jumped on 56.3%.
Management team
Chen Yihong is a the company's CEO. Chen Yihong has spent 7 years at the company.
Appendix 1: Peers in Retail
Below you can find China Dongxiang Group 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% | |
| 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% | -3.7% |
|---|
| China Dongxiang Group Co Ltd ($3818) | | -20.2% | -10.7% | 16.4% | 2.2% |
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% | 43.2% |
|---|
| China Dongxiang Group Co Ltd ($3818) | 50.6% | 50.3% | 54.0% | 55.5% | 56.7% |
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% |
| Maoye International Holdings Ltd ($848) | 47.4% | 46.3% | 73.2% | 39.6% | |
| |
|---|
| Median (117 companies) | 10.8% | 7.8% | 8.9% | 7.1% | 6.8% |
|---|
| China Dongxiang Group Co Ltd ($3818) | 6.0% | 5.6% | 58.3% | 41.4% | 61.6% |
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% |
|---|
| China Dongxiang Group Co Ltd ($3818) | 0.5% | 0.6% | 0.3% | 1.0% | 0.3% |
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) | 12.3% | 8.9% | 8.7% | 5.8% | 6.4% |
|---|
| China Dongxiang Group Co Ltd ($3818) | 1.0% | 0.6% | 7.4% | 5.6% | 8.6% |
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 |
|---|
| China Dongxiang Group Co Ltd ($3818) | -3.2x | -3.6x | -2.3x | -0.6x | -0.6x |
