Asia Standard Hotel Group Ltd reports 65.6% Net Income decline and 9.5 pp EBITDA Margin decline from 49.9% to 40.4%
24/06/2015 • About Asia Standard Hotel Group Ltd (
$292) • By InTwits
Asia Standard Hotel Group Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 40.4% in FY2015, 49.9% in FY2014, 65.2% in FY2013, -23.9% in FY2012, 69.1% in FY2011
- Asia Standard Hotel Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 14.6%. At the same time it's in pair with industry average of 17.0%.
- CAPEX is quite volatile: 85.8 in FY2015, 141 in FY2014, 218 in FY2013, 7.6 in FY2012, 29.1 in FY2011
- The company has potentially unprofitable business model: ROIC is at 3.9%
- It operates with high leverage: Net Debt/EBITDA is 5.5x while industry average is -29.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Asia Standard Hotel Group Ltd ($292) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 695.9 | 822.6 | 646.7 | 651.4 | 699.6 | 7.4% |
| Gross Profit | 365.6 | 499.0 | 474.4 | 470.0 | 473.2 | 0.7% |
| SG&A | | | | | 133.0 | |
| EBITDA | 480.6 | -196.8 | 421.8 | 325.1 | 282.8 | -13.0% |
| Net Income | 326.2 | -311.5 | 423.8 | 349.0 | 120.1 | -65.6% |
Balance Sheet
|
|---|
| Cash | 111.7 | 133.7 | 136.1 | 113.0 | 182.4 | 61.4% |
| Short Term Debt | 842.3 | 668.1 | 332.8 | 618.0 | 238.1 | -61.5% |
| Long Term Debt | 968.2 | 917.8 | 1,354.6 | 1,175.6 | 1,511.0 | 28.5% |
Cash flow
|
|---|
| Capex | 29.1 | 7.6 | 218.1 | 141.3 | 85.8 | -39.2% |
Ratios
|
|---|
| Revenue growth | 17.1% | 18.2% | -21.4% | 0.7% | 7.4% | |
| EBITDA growth | -16.6% | -140.9% | -314.4% | -22.9% | -13.0% | |
| Gross Margin | 52.5% | 60.7% | 73.4% | 72.1% | 67.6% | -4.5% |
| EBITDA Margin | 69.1% | -23.9% | 65.2% | 49.9% | 40.4% | -9.5% |
| Net Income Margin | 46.9% | -37.9% | 65.5% | 53.6% | 17.2% | -36.4% |
| SG&A, % of revenue | | | | | 19.0% | 19.0% |
| CAPEX, % of revenue | 4.2% | 0.9% | 33.7% | 21.7% | 12.3% | -9.4% |
| ROIC | 9.2% | -6.6% | 7.7% | 5.0% | 3.9% | -1.1% |
| ROE | 12.6% | -11.9% | 15.9% | 11.4% | 3.7% | -7.7% |
| Net Debt/EBITDA | 3.5x | | 3.7x | 5.2x | 5.5x | 0.4x |
Revenue and profitability
Asia Standard Hotel Group Ltd's Revenue increased on 7.4% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 43.2 pp from 32.3% to -10.9% in 2015.
Gross Margin decreased on 4.5 pp from 72.1% to 67.6% in FY2015.
Net Income marign dropped on 36.4 pp from 53.6% to 17.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 12.3%. The company's CAPEX/Revenue jumped on 11.3 pp from 0.92% in FY2012 to 12.3% in FY2015. It's average CAPEX/Revenue for the last three years was 22.6%.
Return on investment
The company operates at low ROIC (3.86%) and ROE (3.71%). ROIC decreased slightly on 1.1 pp from 5.0% to 3.9% in FY2015. ROE decreased on 7.7 pp from 11.4% to 3.7% in FY2015.
Leverage (Debt)
Debt level is 5.5x Net Debt / EBITDA and 6.2x Debt / EBITDA. Net Debt / EBITDA jumped on 0.4x from 5.2x to 5.5x in FY2015. Debt decreased on 2.5% in FY2015 while cash surged on 61.4% in FY2015.
Appendix 1: Peers in Lodging
Below we provide Asia Standard Hotel Group Ltd benchmarking against other companies in Lodging 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 |
|---|
| Zhuhai Holdings Investment Group Ltd ($908) | 13.4% | 229.8% | 14.5% | 57.0% | |
| Carrianna Group Holdings Co Ltd ($126) | 13.0% | 69.3% | -36.2% | 35.4% | |
| NagaCorp Ltd ($3918) | 48.7% | 24.6% | 23.7% | 17.2% | |
| Emperor Entertainment Hotel Ltd ($296) | | 35.9% | 13.8% | 11.7% | -10.2% |
| Far East Consortium International Ltd/HK ($35) | | 6.4% | 111.9% | 9.0% | 25.7% |
| |
|---|
| Median (21 companies) | 32.0% | 14.4% | 13.8% | 0.8% | 7.7% |
|---|
| Asia Standard Hotel Group Ltd ($292) | | 18.2% | -21.4% | 0.7% | 7.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SJM Holdings Ltd ($880) | 99.7% | 99.7% | 99.7% | 99.7% | |
| Wynn Macau Ltd ($1128) | 97.6% | 97.9% | 98.3% | 98.5% | |
| Emperor Entertainment Hotel Ltd ($296) | 70.9% | 77.1% | 75.6% | 76.8% | 70.9% |
| Sino Hotels Holdings Ltd ($1221) | 69.7% | 71.3% | 70.4% | 68.9% | |
| NagaCorp Ltd ($3918) | 73.2% | 72.9% | 72.1% | 67.4% | |
| |
|---|
| Median (15 companies) | 45.7% | 50.4% | 46.3% | 48.0% | 54.5% |
|---|
| Asia Standard Hotel Group Ltd ($292) | 52.5% | 60.7% | 73.4% | 72.1% | 67.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Emperor Entertainment Hotel Ltd ($296) | 38.7% | 44.9% | 46.4% | 46.9% | 43.1% |
| Sino Hotels Holdings Ltd ($1221) | 42.8% | 46.5% | 45.9% | 43.1% | |
| Far East Consortium International Ltd/HK ($35) | 50.1% | 57.2% | 34.5% | 43.0% | 36.4% |
| NagaCorp Ltd ($3918) | 49.2% | 49.8% | 50.1% | 42.8% | |
| Macau Legend Development Ltd ($1680) | 56.6% | 48.6% | 39.8% | 41.8% | |
| |
|---|
| Median (21 companies) | 23.7% | 26.8% | 24.5% | 25.8% | 39.8% |
|---|
| Asia Standard Hotel Group Ltd ($292) | 69.1% | -23.9% | 65.2% | 49.9% | 40.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Macau Legend Development Ltd ($1680) | 1.3% | 5.0% | 24.2% | 73.0% | |
| Regal Hotels International Holdings Ltd ($78) | 4.9% | 7.4% | 7.2% | 60.4% | |
| Shangri-La Asia Ltd ($69) | 26.5% | 48.5% | 33.1% | 41.2% | |
| Wynn Macau Ltd ($1128) | 3.2% | 5.2% | 11.0% | 28.2% | |
| NagaCorp Ltd ($3918) | 20.3% | 25.9% | 17.2% | 24.0% | |
| |
|---|
| Median (21 companies) | 6.5% | 7.4% | 8.9% | 10.8% | 6.5% |
|---|
| Asia Standard Hotel Group Ltd ($292) | 4.2% | 0.9% | 33.7% | 21.7% | 12.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| MGM China Holdings Ltd ($2282) | 47.3% | 46.2% | 53.8% | 54.5% | |
| Wynn Macau Ltd ($1128) | 66.1% | 53.9% | 42.3% | 29.9% | |
| Galaxy Entertainment Group Ltd ($27) | 14.7% | 25.2% | 30.0% | 27.5% | |
| Sands China Ltd ($1928) | 14.5% | 14.2% | 24.4% | 26.7% | |
| SJM Holdings Ltd ($880) | 26.2% | 29.7% | 31.0% | 24.8% | |
| |
|---|
| Median (21 companies) | 5.2% | 7.9% | 5.7% | 3.9% | 9.8% |
|---|
| Asia Standard Hotel Group Ltd ($292) | 9.2% | -6.6% | 7.7% | 5.0% | 3.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Regal Hotels International Holdings Ltd ($78) | | 5.0x | 8.7x | 11.8x | |
| Century City International Holdings Ltd ($355) | -58.1x | 6.5x | 9.3x | 11.2x | |
| Shangri-La Asia Ltd ($69) | 4.0x | 6.0x | 6.8x | 6.9x | |
| Zhuhai Holdings Investment Group Ltd ($908) | -3.7x | -4.1x | 11.1x | 6.7x | |
| Far East Consortium International Ltd/HK ($35) | 4.8x | 5.0x | 4.0x | 4.5x | 4.0x |
| |
|---|
| Median (20 companies) | 0.1x | 0.2x | 0.4x | 0.4x | 2.0x |
|---|
| Asia Standard Hotel Group Ltd ($292) | 3.5x | | 3.7x | 5.2x | 5.5x |
