Cosmo Lady China Holdings Co Ltd reports 55.2% Net Income decline
27/03/2017 • About Cosmo Lady China Holdings Co Ltd (
$2298) • By InTwits
Cosmo Lady China Holdings Co 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 1.5x while industry average is -4.9x.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cosmo Lady China Holdings Co Ltd ($2298) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,258 | 2,916 | 4,008 | 4,953 | 4,512 | -8.9% |
| Gross Profit | 617 | 1,069 | 1,568 | 2,115 | | -100.0% |
| SG&A | 370 | 704 | 1,040 | 1,435 | | -100.0% |
| EBITDA | 272 | 401 | 609 | 758 | | -100.0% |
| Net Income | 193 | 276 | 425 | 540 | 242 | -55.2% |
Balance Sheet
|
|---|
| Cash | 180 | 290 | 921 | 951 | | -100.0% |
| Short Term Debt | 27 | 0 | 0 | 0 | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | |
Cash flow
|
|---|
| Capex | 102 | 55 | 133 | 193 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 36.3% | 29.2% | 37.4% | 23.6% | -8.9% | |
| EBITDA growth | 17.4% | 47.6% | 51.7% | 24.5% | | |
| Gross Margin | 27.3% | 36.7% | 39.1% | 42.7% | | -42.7% |
| EBITDA Margin | 12.0% | 13.8% | 15.2% | 15.3% | 0.0% | -15.3% |
| Net Income Margin | 8.5% | 9.4% | 10.6% | 10.9% | 5.4% | -5.5% |
| SG&A, % of revenue | 16.4% | 24.2% | 26.0% | 29.0% | | -29.0% |
| CAPEX, % of revenue | 4.5% | 1.9% | 3.3% | 3.9% | | -3.9% |
| ROIC | 41.7% | 56.0% | 38.6% | 27.8% | | -27.8% |
| ROE | 33.0% | 42.6% | 29.1% | 22.1% | | -22.1% |
| Net Debt/EBITDA | -0.6x | -0.7x | -1.5x | -1.3x | | 1.3x |
Revenue and profitability
The company's Revenue decreased on 8.9%.
Net Income marign decreased on 5.5 pp from 10.9% to 5.4% in FY2016.
Appendix 1: Peers in Apparel
Below you can find Cosmo Lady China Holdings Co 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) | | 44.7% | 47.7% | 23.9% | 24.5% |
| Kingmaker Footwear Holdings Ltd ($1170) | | 9.3% | 6.3% | 23.7% | -1.5% |
| Cabbeen Fashion Ltd ($2030) | | 0.4% | 16.4% | 23.5% | -14.4% |
| |
|---|
| Median (52 companies) | 12.3% | 5.4% | 5.4% | -2.6% | -1.5% |
|---|
| Cosmo Lady China Holdings Co Ltd ($2298) | | 29.2% | 37.4% | 23.6% | -8.9% |
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% |
| China Outfitters Holdings Ltd ($1146) | 74.9% | 74.3% | 70.0% | 65.7% | |
| Crocodile Garments ($122) | 64.7% | 60.7% | 60.4% | 62.1% | 59.7% |
| |
|---|
| Median (51 companies) | 24.8% | 23.5% | 24.9% | 25.0% | 19.1% |
|---|
| Cosmo Lady China Holdings Co Ltd ($2298) | 27.3% | 36.7% | 39.1% | 42.7% | |
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% | 29.1% |
| |
|---|
| Median (52 companies) | 10.5% | 10.2% | 7.2% | 6.6% | 4.0% |
|---|
| Cosmo Lady China Holdings Co Ltd ($2298) | 12.0% | 13.8% | 15.2% | 15.3% | |
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) | 2.2% | 3.0% | 2.3% | 2.3% | 2.1% |
|---|
| Cosmo Lady China Holdings Co Ltd ($2298) | 4.5% | 1.9% | 3.3% | 3.9% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Koradior Holdings Ltd ($3709) | 45.2% | 69.5% | 36.5% | 31.0% | |
| 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% |
| China Lilang Ltd ($1234) | 27.3% | 19.1% | 19.7% | 20.2% | 16.8% |
| |
|---|
| Median (52 companies) | 10.5% | 7.2% | 4.4% | 4.9% | 1.4% |
|---|
| Cosmo Lady China Holdings Co Ltd ($2298) | 41.7% | 56.0% | 38.6% | 27.8% | |
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 | -0.2x | -1.0x | -0.6x |
|---|
| Cosmo Lady China Holdings Co Ltd ($2298) | -0.6x | -0.7x | -1.5x | -1.3x | |
