BT4/ Ability to raise Net Profit margin above inflation rate (2017 perspective)
FY2013 FY2014 FY2015 FY2016 FY2017 Adjusted Normalised NPAT {A} $284m $254m $372m $474m $591m Revenue {B} $6,905m $6,934m $6.909m $6,752m $7,144m Net Profit Margin {A}/{B} 4.11% 3.66% 5.38% 7.02% 8.27%
Inflation in China is around 2%. The smallest gain in margin has been from FY2016 to FY2017. 2% of 7.02% (margin for FY2016) is 0.14 percentage points. That means as long as the FY2017 margin is greater than 7.02% + 0.14% = 7.16%, then our requirement is satisfied. They actual margin is 8.27%, so our requirement is met, and has been met over each of the last three 'year on year' comparisons.
Conclusion: Pass Test
SNOOPY
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