Carrianna Group Holdings Co Ltd CAPEX surged on 148% in 2015 while Revenue dropped on 33.8%
26/06/2015 • About Carrianna Group Holdings Co Ltd (
$126) • By InTwits
Carrianna Group Holdings Co Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Carrianna Group Holdings Co Ltd doesn't have a profitable business model yet: FY2015 ROIC is 1.6%
- Carrianna Group Holdings Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.1%. At the same time it's in pair with industry average of 20.8%.
- CAPEX is quite volatile: 97.5 in FY2015, 39.3 in FY2014, 26.6 in FY2013, 44.0 in FY2012, 66.2 in FY2011
- The company has potentially unprofitable business model: ROIC is at 1.6%
- It operates with high leverage: Net Debt/EBITDA is 6.2x while industry average is -29.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Carrianna Group Holdings Co Ltd ($126) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 693 | 1,173 | 748 | 1,013 | 670 | -33.8% |
| Gross Profit | 294 | 475 | 347 | 453 | 347 | -23.3% |
| SG&A | | 300 | 303 | 279 | 261 | -6.6% |
| EBITDA | 90 | 218 | 89 | 208 | 126 | -39.6% |
| Net Income | 163 | 114 | 153 | 196 | 121 | -38.3% |
Balance Sheet
|
|---|
| Cash | 222 | 305 | 479 | 363 | 229 | -36.8% |
| Short Term Debt | 541 | 562 | 765 | 560 | 774 | 38.3% |
| Long Term Debt | 369 | 602 | 303 | 353 | 232 | -34.4% |
Cash flow
|
|---|
| Capex | 66 | 44 | 27 | 39 | 98 | 148.4% |
Ratios
|
|---|
| Revenue growth | 13.0% | 69.3% | -36.2% | 35.4% | -33.8% | |
| EBITDA growth | 9.0% | 142.5% | -59.2% | 134.3% | -39.6% | |
| Gross Margin | 42.4% | 40.5% | 46.3% | 44.7% | 51.8% | 7.1% |
| EBITDA Margin | 13.0% | 18.6% | 11.9% | 20.5% | 18.7% | -1.8% |
| Net Income Margin | 23.6% | 9.7% | 20.5% | 19.3% | 18.0% | -1.3% |
| SG&A, % of revenue | | 25.5% | 40.4% | 27.6% | 39.0% | 11.4% |
| CAPEX, % of revenue | 9.6% | 3.8% | 3.6% | 3.9% | 14.5% | 10.7% |
| ROIC | 1.1% | 3.5% | 1.0% | 3.2% | 1.6% | -1.7% |
| ROE | 5.2% | 3.6% | 4.6% | 5.4% | 3.3% | -2.1% |
| Net Debt/EBITDA | 7.7x | 3.9x | 6.6x | 2.6x | 6.2x | 3.5x |
Revenue and profitability
The company's Revenue dropped on 33.8% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.8 pp from 20.5% to 18.7% in FY2015.
Gross Margin increased on 7.1 pp from 44.7% to 51.8% in FY2015. SG&A as a % of Revenue surged on 11.4 pp from 27.6% to 39.0% in FY2015.
Net Income marign decreased slightly on 1.3 pp from 19.3% to 18.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Carrianna Group Holdings Co Ltd's CAPEX/Revenue was 14.5% in FY2015. The company's CAPEX/Revenue surged on 10.8 pp from 3.8% in FY2012 to 14.5% in FY2015. It's average CAPEX/Revenue for the last three years was 7.3%.Carrianna Group Holdings Co Ltd invested a big chunk of EBITDA (77.6%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (1.56%) and ROE (3.29%). ROIC decreased slightly on 1.7 pp from 3.2% to 1.6% in FY2015. ROE decreased on 2.1 pp from 5.4% to 3.3% in FY2015.
Leverage (Debt)
Debt level is 6.2x Net Debt / EBITDA and 8.0x Debt / EBITDA. Net Debt / EBITDA jumped on 3.5x from 2.6x to 6.2x in FY2015. Debt jumped on 10.2% in FY2015 while cash dropped on 36.8% in FY2015.
Appendix 1: Peers in Lodging
Below you can find Carrianna Group Holdings Co Ltd benchmarking vs. other companies in Lodging 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 |
|---|
| Zhuhai Holdings Investment Group Ltd ($908) | 13.4% | 229.8% | 14.5% | 57.0% | |
| 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% |
| Galaxy Entertainment Group Ltd ($27) | 113.8% | 37.8% | 16.4% | 8.7% | |
| |
|---|
| Median (21 companies) | 32.3% | 14.4% | 13.8% | 0.7% | 7.4% |
|---|
| Carrianna Group Holdings Co Ltd ($126) | | 69.3% | -36.2% | 35.4% | -33.8% |
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% |
| Asia Standard Hotel Group Ltd ($292) | 52.5% | 60.7% | 73.4% | 72.1% | 67.6% |
| Sino Hotels Holdings Ltd ($1221) | 69.7% | 71.3% | 70.4% | 68.9% | |
| |
|---|
| Median (15 companies) | 52.5% | 55.7% | 55.9% | 51.3% | 67.6% |
|---|
| Carrianna Group Holdings Co Ltd ($126) | 42.4% | 40.5% | 46.3% | 44.7% | 51.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asia Standard Hotel Group Ltd ($292) | 69.1% | -23.9% | 65.2% | 49.9% | 40.4% |
| 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% | |
| |
|---|
| Median (21 companies) | 24.2% | 26.8% | 26.4% | 26.2% | 40.4% |
|---|
| Carrianna Group Holdings Co Ltd ($126) | 13.0% | 18.6% | 11.9% | 20.5% | 18.7% |
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) | 6.3% | 7.4% | 11.0% | 13.2% | 7.9% |
|---|
| Carrianna Group Holdings Co Ltd ($126) | 9.6% | 3.8% | 3.6% | 3.9% | 14.5% |
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) | 8.8% | 7.9% | 6.7% | 5.0% | 7.7% |
|---|
| Carrianna Group Holdings Co Ltd ($126) | 1.1% | 3.5% | 1.0% | 3.2% | 1.6% |
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 | |
| Asia Standard Hotel Group Ltd ($292) | 3.5x | | 3.7x | 5.2x | 5.5x |
| |
|---|
| Median (20 companies) | 0.1x | 0.2x | 0.4x | 0.4x | 4.0x |
|---|
| Carrianna Group Holdings Co Ltd ($126) | 7.7x | 3.9x | 6.6x | 2.6x | 6.2x |
