Media Chinese International Ltd reports 34.8% Net Income decline and 1.7 pp EBITDA Margin decline from 18.1% to 16.5%
28/05/2015 • About Media Chinese International Ltd (
$685) • By InTwits
Media Chinese International Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 16.5% in FY2015 vs. 18.1% in FY2014 vs. 20.0% in FY2011
- Media Chinese International Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's a lot of higher than industry average of 25.6%.
- CAPEX is quite volatile: 8.2 in FY2015, 10.8 in FY2014, 20.6 in FY2013, 7.2 in FY2012, 19.2 in FY2011
- The company has highly profitable business model: ROIC is at 15.6%
- It operates with high leverage: Net Debt/EBITDA is 0.2x while industry average is -2.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Media Chinese International Ltd ($685) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 445.8 | 472.2 | 477.9 | 468.7 | 429.1 | -8.4% |
| Gross Profit | 180.6 | 186.7 | 188.7 | 183.1 | 165.5 | -9.7% |
| SG&A | 104.3 | 107.5 | 114.9 | 113.2 | 108.5 | -4.2% |
| EBITDA | 89.0 | 94.4 | 87.6 | 84.9 | 70.6 | -16.9% |
| Net Income | 54.8 | 63.2 | 56.7 | 48.2 | 31.4 | -34.8% |
Balance Sheet
|
|---|
| Cash | 110.5 | 134.7 | 101.8 | 102.9 | 118.6 | 15.3% |
| Short Term Debt | 15.2 | 5.3 | 170.7 | 12.8 | 9.6 | -24.6% |
| Long Term Debt | 0.4 | 0.0 | 0.0 | 137.8 | 121.5 | -11.8% |
Cash flow
|
|---|
| Capex | 19.2 | 7.2 | 20.6 | 10.8 | 8.2 | -24.0% |
Ratios
|
|---|
| Revenue growth | 18.6% | 5.9% | 1.2% | -1.9% | -8.4% | |
| EBITDA growth | 36.0% | 6.1% | -7.2% | -3.0% | -16.9% | |
| Gross Margin | 40.5% | 39.5% | 39.5% | 39.1% | 38.6% | -0.5% |
| EBITDA Margin | 20.0% | 20.0% | 18.3% | 18.1% | 16.5% | -1.7% |
| Net Income Margin | 12.3% | 13.4% | 11.9% | 10.3% | 7.3% | -3.0% |
| SG&A, % of revenue | 23.4% | 22.8% | 24.0% | 24.2% | 25.3% | 1.1% |
| CAPEX, % of revenue | 4.3% | 1.5% | 4.3% | 2.3% | 1.9% | -0.4% |
| ROIC | 18.7% | 18.6% | 17.8% | 18.4% | 15.6% | -2.8% |
| ROE | 14.9% | 15.6% | 18.3% | 22.7% | 14.7% | -8.0% |
| Net Debt/EBITDA | -1.1x | -1.4x | 0.8x | 0.6x | 0.2x | -0.4x |
Revenue and profitability
Media Chinese International Ltd's Revenue decreased on 8.4% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 1.7 pp from 18.1% to 16.5% in FY2015.
Gross Margin decreased slightly on 0.52 pp from 39.1% to 38.6% in FY2015. SG&A as a % of Revenue increased slightly on 1.1 pp from 24.2% to 25.3% in FY2015.
Net Income marign decreased on 3.0 pp from 10.3% to 7.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Media Chinese International Ltd's CAPEX/Revenue was 1.9% in FY2015. CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 2.8%.
Return on investment
The company operates at good ROIC (15.61%) and ROE (14.70%). ROIC decreased on 2.8 pp from 18.4% to 15.6% in FY2015. ROE decreased on 8.0 pp from 22.7% to 14.7% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.2x and Debt / EBITDA is 1.9x. Net Debt / EBITDA dropped on 0.4x from 0.6x to 0.2x in FY2015. Debt dropped on 12.9% in FY2015 while cash surged on 15.3% in FY2015.
Appendix 1: Peers in Media
Below you can find Media Chinese International Ltd benchmarking vs. other companies in Media 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CMMB Vision Holdings Ltd ($471) | | | 168.1% | 27.8% | |
| Culturecom Holdings Ltd ($343) | 4.7% | -24.2% | -7.7% | 16.4% | |
| Sing Pao Media Enterprises Ltd ($8010) | 20.7% | 15.3% | 26.9% | 9.7% | |
| Focus Media Network Ltd ($8112) | 23.7% | -10.6% | 34.6% | 5.6% | |
| Hong Kong Economic Times Holdings Ltd ($423) | 15.0% | 5.6% | 2.7% | 3.1% | |
| |
|---|
| Median (19 companies) | 9.9% | 4.0% | -1.9% | -4.3% | -11.9% |
|---|
| Media Chinese International Ltd ($685) | | 5.9% | 1.2% | -1.9% | -8.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| I-CABLE Communications Ltd ($1097) | 95.6% | 94.8% | 94.7% | 94.1% | |
| Television Broadcasts Ltd ($511) | 65.3% | 62.9% | 60.9% | 59.0% | |
| Modern Media Holdings ($72) | 57.1% | 57.5% | 55.8% | 55.6% | |
| One Media Group Ltd ($426) | 52.0% | 57.3% | 56.7% | 54.5% | 52.7% |
| Focus Media Network Ltd ($8112) | 81.0% | 68.0% | 67.2% | 50.8% | |
| |
|---|
| Median (16 companies) | 47.8% | 37.5% | 39.5% | 36.1% | 52.7% |
|---|
| Media Chinese International Ltd ($685) | 40.5% | 39.5% | 39.5% | 39.1% | 38.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SCMP Group Ltd ($583) | 26.9% | 23.5% | 20.5% | 218.1% | |
| Television Broadcasts Ltd ($511) | 45.2% | 43.2% | 42.3% | 37.3% | |
| Phoenix Satellite Television Holdings Ltd ($2008) | 29.8% | 30.1% | 31.1% | 24.6% | |
| One Media Group Ltd ($426) | 14.4% | 18.7% | 23.0% | 22.8% | 15.2% |
| Tom Group Ltd ($2383) | -10.8% | -3.3% | -11.6% | 15.8% | |
| |
|---|
| Median (19 companies) | 13.3% | 9.9% | 11.5% | 9.8% | 15.2% |
|---|
| Media Chinese International Ltd ($685) | 20.0% | 20.0% | 18.3% | 18.1% | 16.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SCMP Group Ltd ($583) | 3.6% | 7.0% | 5.3% | 52.2% | |
| Culturecom Holdings Ltd ($343) | 12.5% | 10.2% | 38.6% | 24.5% | |
| Phoenix Satellite Television Holdings Ltd ($2008) | 14.6% | 12.0% | 8.5% | 11.4% | |
| I-CABLE Communications Ltd ($1097) | 10.6% | 10.1% | 7.6% | 11.3% | |
| V1 Group Ltd ($82) | 1.4% | 1.9% | 3.2% | 10.1% | |
| |
|---|
| Median (19 companies) | 4.2% | 3.9% | 5.3% | 2.9% | 0.4% |
|---|
| Media Chinese International Ltd ($685) | 4.3% | 1.5% | 4.3% | 2.3% | 1.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| One Media Group Ltd ($426) | 17.1% | 25.6% | 21.8% | 16.0% | 8.9% |
| Television Broadcasts Ltd ($511) | 26.5% | 23.8% | 22.4% | 15.1% | |
| Phoenix Satellite Television Holdings Ltd ($2008) | 21.5% | 18.5% | 18.4% | 11.7% | |
| Modern Media Holdings ($72) | 23.8% | 20.6% | 10.4% | 9.3% | |
| Next Media Ltd ($282) | 1.7% | 8.5% | 6.7% | 8.2% | |
| |
|---|
| Median (19 companies) | 7.9% | 3.7% | 4.3% | 2.6% | 8.9% |
|---|
| Media Chinese International Ltd ($685) | 18.7% | 18.6% | 17.8% | 18.4% | 15.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tom Group Ltd ($2383) | | | | 8.1x | |
| I-CABLE Communications Ltd ($1097) | -2.0x | -4.0x | -0.8x | 0.2x | |
| Modern Media Holdings ($72) | -0.9x | -0.8x | -0.9x | 0.1x | |
| Next Media Ltd ($282) | 0.0x | 0.4x | 0.4x | -0.2x | |
| Hong Kong Economic Times Holdings Ltd ($423) | -0.8x | -1.3x | -4.6x | -0.7x | |
| |
|---|
| Median (13 companies) | -1.6x | -1.9x | -1.5x | -1.5x | 1.5x |
|---|
| Media Chinese International Ltd ($685) | -1.1x | -1.4x | 0.8x | 0.6x | 0.2x |
