Dynam Japan Holdings Co Ltd CAPEX surged on 72.3% in 2015 while Revenue decreased on 6.8%
28/05/2015 • About Dynam Japan Holdings Co Ltd (
$6889) • By InTwits
Dynam Japan Holdings Co Ltd reported FY2015 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 6.1%. At the same time it's a lot of higher than industry average of 0.9%.
- CAPEX is quite volatile: 16,008 in FY2015, 9,292 in FY2014, 10,723 in FY2013, 7,471 in FY2012, 6,152 in FY2011
- The company has business model with average profitability: ROIC is at 10.5%
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 | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 169,637 | 165,078 | 163,961 | 165,754 | 154,556 | -6.8% |
| SG&A | | | 3,112 | 4,075 | 5,456 | 33.9% |
| EBITDA | 40,753 | 40,374 | 42,152 | 40,832 | 25,837 | -36.7% |
| Net Income | 16,191 | 15,898 | 20,925 | 21,328 | 11,303 | -47.0% |
Balance Sheet
|
|---|
| Cash | 17,460 | 28,524 | 41,466 | 34,830 | 29,239 | -16.1% |
| Short Term Debt | 17,029 | 2,841 | 2,481 | 2,134 | 3,414 | 60.0% |
| Long Term Debt | 31,232 | 23,914 | 5,445 | 3,391 | 9,226 | 172.1% |
Cash flow
|
|---|
| Capex | 6,152 | 7,471 | 10,723 | 9,292 | 16,008 | 72.3% |
Ratios
|
|---|
| Revenue growth | 2.5% | -2.7% | -0.7% | 1.1% | -6.8% | |
| EBITDA growth | -11.0% | -0.9% | 4.4% | -3.1% | -36.7% | |
| EBITDA Margin | 24.0% | 24.5% | 25.7% | 24.6% | 16.7% | -7.9% |
| Net Income Margin | 9.5% | 9.6% | 12.8% | 12.9% | 7.3% | -5.6% |
| SG&A, % of revenue | | | 1.9% | 2.5% | 3.5% | 1.1% |
| CAPEX, % of revenue | 3.6% | 4.5% | 6.5% | 5.6% | 10.4% | 4.8% |
| ROIC | 22.5% | 23.8% | 25.4% | 21.8% | 10.5% | -11.3% |
| ROE | 20.6% | 17.8% | 19.1% | 15.9% | 8.1% | -7.7% |
| Net Debt/EBITDA | 0.8x | -0.0x | -0.8x | -0.7x | -0.6x | 0.1x |
Revenue and profitability
The company's Revenue decreased on 6.8% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 7.9 pp from 24.6% to 16.7% in FY2015.
SG&A as a % of Revenue increased slightly on 1.1 pp from 2.5% to 3.5% in FY2015.
Net Income marign decreased on 5.6 pp from 12.9% to 7.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 10.4% in FY2015. The company showed CAPEX/Revenue growth of 5.8 pp from 4.5% in FY2012 to 10.4% in FY2015. For the last three years the average CAPEX/Revenue was 7.5%.Battling declining revenue the company invested a large share of EBITDA (62.0%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low ROIC (10.52%) and ROE (8.14%). ROIC dropped on 11.3 pp from 21.8% to 10.5% in FY2015. ROE decreased on 7.7 pp from 15.9% to 8.1% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.6x and Debt / EBITDA is 0.5x. Net Debt / EBITDA increased on 0.1x from -0.7x to -0.6x in FY2015. Debt surged on 129% in FY2015 while cash dropped on 16.1% in FY2015.
Appendix 1: Peers in Entertainment
Below we provide Dynam Japan Holdings Co Ltd benchmarking against other companies in Entertainment industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China 3D Digital Entertainment Ltd ($8078) | -41.9% | -67.2% | 295.2% | 185.2% | |
| Universe International Holdings Ltd ($1046) | 10.2% | -42.2% | 4.3% | 159.4% | |
| China Vanguard Group Ltd ($8156) | 15.6% | -7.0% | -62.7% | 145.0% | |
| China LotSynergy Holdings Ltd ($1371) | 86.9% | 15.0% | 22.5% | 39.1% | |
| Nan Hai Corp Ltd ($680) | 20.7% | -16.3% | 18.7% | 36.0% | |
| |
|---|
| Median (25 companies) | 17.4% | 1.3% | 11.6% | 1.2% | |
|---|
| Dynam Japan Holdings Co Ltd ($6889) | | -2.7% | -0.7% | 1.1% | -6.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amax International Holdings Ltd ($959) | | | 92.1% | 98.6% | |
| China Vanguard Group Ltd ($8156) | 65.0% | 63.8% | 88.2% | 93.8% | |
| Cheung Wo International Holdings Ltd ($9) | 49.4% | -17.5% | 71.4% | 77.7% | |
| REXLot Holdings Ltd ($555) | 63.0% | 70.2% | 73.1% | 73.4% | |
| China LotSynergy Holdings Ltd ($1371) | 81.7% | 79.5% | 73.1% | 70.1% | |
| |
|---|
| Median (23 companies) | 46.1% | 44.8% | 52.7% | 44.0% | |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cheung Wo International Holdings Ltd ($9) | 7.8% | -62.7% | -217.3% | 104.5% | |
| Neptune Group Ltd ($70) | 101.1% | 98.6% | 98.6% | 86.6% | |
| Universe International Holdings Ltd ($1046) | 62.2% | 36.6% | 44.6% | 74.6% | |
| China LotSynergy Holdings Ltd ($1371) | 61.2% | 53.3% | 60.9% | 56.1% | |
| Haichang Holdings Ltd ($2255) | 46.9% | 55.0% | 44.5% | 46.3% | |
| |
|---|
| Median (25 companies) | 9.2% | 19.2% | 15.2% | 17.0% | |
|---|
| Dynam Japan Holdings Co Ltd ($6889) | 24.0% | 24.5% | 25.7% | 24.6% | 16.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| National Arts Entertainment and Culture Group Ltd ($8228) | 536.1% | 1,237.1% | 771.1% | 799.0% | |
| Cheung Wo International Holdings Ltd ($9) | 44.7% | 90.3% | 465.2% | 383.2% | |
| Alibaba Pictures Group Ltd ($1060) | 0.5% | 16.1% | 17.2% | 34.8% | |
| Mei Ah Entertainment Group Ltd ($391) | 2.5% | 6.8% | 3.6% | 25.4% | |
| Nan Hai Corp Ltd ($680) | 29.1% | 19.2% | 35.2% | 18.2% | |
| |
|---|
| Median (25 companies) | 7.5% | 8.9% | 9.4% | 4.8% | |
|---|
| Dynam Japan Holdings Co Ltd ($6889) | 3.6% | 4.5% | 6.5% | 5.6% | 10.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Group Ltd ($70) | 22.0% | 22.8% | 23.8% | 21.1% | |
| China LotSynergy Holdings Ltd ($1371) | 18.0% | 15.5% | 16.9% | 14.8% | |
| Pegasus Entertainment Holdings Ltd ($1326) | 94.5% | 82.1% | 18.5% | 10.3% | |
| SMI Holdings Group Ltd ($198) | 5.8% | 1.3% | 8.4% | 9.9% | |
| Haichang Holdings Ltd ($2255) | 6.2% | 7.1% | 8.1% | 8.6% | |
| |
|---|
| Median (26 companies) | 1.1% | -1.4% | 0.4% | -1.0% | |
|---|
| Dynam Japan Holdings Co Ltd ($6889) | 22.5% | 23.8% | 25.4% | 21.8% | 10.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nan Hai Corp Ltd ($680) | 25.2x | 80.8x | 3.5x | 20.8x | |
| Cheung Wo International Holdings Ltd ($9) | 28.3x | | | 19.1x | |
| REXLot Holdings Ltd ($555) | 0.4x | -0.0x | -0.2x | 7.2x | |
| Orange Sky Golden Harvest Entertainment Holdings Ltd ($1132) | -0.8x | 1.1x | 4.2x | 2.7x | |
| China 3D Digital Entertainment Ltd ($8078) | -11.9x | | -0.5x | 2.3x | |
| |
|---|
| Median (18 companies) | -0.1x | -0.1x | -0.3x | -0.0x | |
|---|
| Dynam Japan Holdings Co Ltd ($6889) | 0.8x | -0.0x | -0.8x | -0.7x | -0.6x |
