Dynam Japan Holdings Co Ltd CAPEX dropped on 21.2% in 2016 and Revenue increased slightly on 0.88%
26/05/2016 • About Dynam Japan Holdings Co Ltd (
$6889) • By InTwits
Dynam Japan Holdings Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dynam Japan Holdings Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.0%. At the same time it's a lot of higher than industry average of 0.5%.
- CAPEX is quite volatile: 1,089 in 2016, 860 in 2015, 4,151 in 2014, 2,124 in 2013, 773 in 2012
- The company has highly profitable business model: ROIC is at 12.6%
- It operates with high leverage: Net Debt/EBITDA is -0.2x while industry average is -2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dynam Japan Holdings Co Ltd ($6889) key annual financial indicators
| mln. JPY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 165,078 | 163,961 | 165,754 | 154,556 | 155,911 | 0.9% |
| SG&A | | 3,112 | 4,075 | 5,456 | 5,798 | 6.3% |
| EBITDA | 40,374 | 42,152 | 40,832 | 25,837 | 30,183 | 16.8% |
| Net Income | 15,898 | 20,925 | 21,328 | 11,303 | 10,544 | -6.7% |
Balance Sheet
|
|---|
| Cash | 28,524 | 41,466 | 34,830 | 29,239 | 28,134 | -3.8% |
| Short Term Debt | 2,841 | 2,481 | 2,134 | 3,414 | 2,455 | -28.1% |
| Long Term Debt | 23,914 | 5,445 | 3,391 | 9,226 | 18,520 | 100.7% |
Cash flow
|
|---|
| Capex | 7,471 | 10,723 | 9,292 | 16,008 | 12,613 | -21.2% |
Ratios
|
|---|
| Revenue growth | -2.7% | -0.7% | 1.1% | -6.8% | 0.9% | |
| EBITDA growth | -0.9% | 4.4% | -3.1% | -36.7% | 16.8% | |
| EBITDA Margin | 24.5% | 25.7% | 24.6% | 16.7% | 19.4% | 2.6% |
| Net Income Margin | 9.6% | 12.8% | 12.9% | 7.3% | 6.8% | -0.6% |
| SG&A, % of revenue | | 1.9% | 2.5% | 3.5% | 3.7% | 0.2% |
| CAPEX, % of revenue | 4.5% | 6.5% | 5.6% | 10.4% | 8.1% | -2.3% |
| ROIC | 23.8% | 25.4% | 21.8% | 10.5% | 12.6% | 2.1% |
| ROE | 17.8% | 19.1% | 15.9% | 8.1% | 7.9% | -0.3% |
| Net Debt/EBITDA | -0.0x | -0.8x | -0.7x | -0.6x | -0.2x | 0.4x |
Revenue and profitability
The company's Revenue increased slightly on 0.88%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.77 pp from 9.8% to 10.5% in 2016.
SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign decreased slightly on 0.55 pp from 7.3% to 6.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 8.1% in FY2016. CAPEX/Revenue increased slightly on 1.5 pp from 6.5% in FY2013 to 8.1% in FY2016. It's average CAPEX/Revenue for the last three years was 8.0%.
Return on investment
The company operates at good ROIC (12.58%) while ROE is low (7.88%). ROIC increased on 2.1 pp from 10.5% to 12.6% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt level is -0.2x Net Debt / EBITDA and 0.7x Debt / EBITDA. Net Debt / EBITDA jumped on 0.4x from -0.6x to -0.2x in FY2016. Debt jumped on 65.9% while cash decreased on 3.8%.
Appendix 1: Peers in Entertainment
Below you can find Dynam Japan Holdings Co Ltd benchmarking vs. other companies in Entertainment 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 |
|---|
| Neo Telemedia Ltd ($8167) | 268.8% | -60.2% | -13.4% | 5,442.4% | |
| National Arts Entertainment and Culture Group Ltd ($8228) | -57.9% | 181.2% | -20.1% | 162.4% | |
| Alibaba Pictures Group Ltd ($1060) | 169.4% | -45.8% | -63.8% | 108.3% | |
| SMI Holdings Group Ltd ($198) | 16.4% | 65.4% | 16.4% | 77.2% | |
| Universe International Holdings Ltd ($1046) | -42.2% | 4.3% | 159.4% | 46.3% | |
| |
|---|
| Median (26 companies) | 2.9% | 14.1% | -1.8% | -4.6% | |
|---|
| Dynam Japan Holdings Co Ltd ($6889) | | -0.7% | 1.1% | -6.8% | 0.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Amax International Holdings Ltd ($959) | | 92.1% | 98.6% | 96.6% | |
| China Vanguard Group Ltd ($8156) | 63.8% | 88.2% | 93.8% | 95.2% | |
| Universe International Holdings Ltd ($1046) | 22.1% | 36.7% | 11.4% | 84.8% | |
| Cheung Wo International Holdings Ltd ($9) | -17.5% | 71.4% | 77.7% | 77.8% | |
| REXLot Holdings Ltd ($555) | 70.2% | 73.1% | 73.4% | 67.4% | |
| |
|---|
| Median (23 companies) | 44.8% | 52.7% | 44.0% | 44.3% | |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Neptune Group Ltd ($70) | 98.6% | 98.6% | 86.6% | 99.0% | |
| Universe International Holdings Ltd ($1046) | 36.6% | 44.6% | 74.6% | 73.6% | |
| Haichang Holdings Ltd ($2255) | 55.0% | 44.5% | 46.3% | 56.6% | |
| REXLot Holdings Ltd ($555) | 53.7% | 55.1% | 6.1% | 40.5% | |
| SMI Holdings Group Ltd ($198) | 19.2% | 35.4% | 34.5% | 31.2% | |
| |
|---|
| Median (26 companies) | 19.7% | 17.2% | 14.9% | -3.5% | |
|---|
| Dynam Japan Holdings Co Ltd ($6889) | 24.5% | 25.7% | 24.6% | 16.7% | 19.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Star Cultural Media Group Ltd ($8172) | 8.9% | 0.0% | 0.0% | 848.3% | |
| National Arts Entertainment and Culture Group Ltd ($8228) | 1,237.1% | 771.1% | 799.0% | 508.9% | |
| Cheung Wo International Holdings Ltd ($9) | 90.3% | 465.2% | 383.2% | 202.4% | |
| Haichang Holdings Ltd ($2255) | 21.4% | 18.5% | 10.3% | 64.2% | |
| Amax International Holdings Ltd ($959) | 10.4% | 2.7% | 17.2% | 59.8% | |
| |
|---|
| Median (26 companies) | 9.7% | 9.0% | 4.7% | 8.3% | |
|---|
| Dynam Japan Holdings Co Ltd ($6889) | 4.5% | 6.5% | 5.6% | 10.4% | 8.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Universe International Holdings Ltd ($1046) | -6.2% | -0.8% | -3.7% | 43.8% | |
| Neptune Group Ltd ($70) | 22.8% | 23.8% | 21.1% | 18.1% | |
| SMI Holdings Group Ltd ($198) | 1.3% | 8.4% | 9.9% | 10.5% | |
| Haichang Holdings Ltd ($2255) | 7.1% | 8.1% | 8.6% | 8.9% | |
| REXLot Holdings Ltd ($555) | 15.5% | 15.4% | 0.3% | 6.8% | |
| |
|---|
| Median (27 companies) | -1.1% | 1.3% | -0.9% | -3.3% | |
|---|
| Dynam Japan Holdings Co Ltd ($6889) | 23.8% | 25.4% | 21.8% | 10.5% | 12.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Orange Sky Golden Harvest Entertainment Holdings Ltd ($1132) | 1.1x | 4.2x | 2.7x | 25.8x | |
| Nan Hai Corp Ltd ($680) | 80.8x | 3.5x | 20.8x | 12.6x | |
| Haichang Holdings Ltd ($2255) | 7.0x | 4.7x | 1.7x | 1.7x | |
| SMI Holdings Group Ltd ($198) | 2.0x | 1.6x | 2.1x | 1.6x | |
| REXLot Holdings Ltd ($555) | -0.0x | -0.2x | 7.2x | 1.6x | |
| |
|---|
| Median (12 companies) | -0.2x | -0.5x | -0.0x | -0.3x | |
|---|
| Dynam Japan Holdings Co Ltd ($6889) | -0.0x | -0.8x | -0.7x | -0.6x | -0.2x |
