Mei Ah Entertainment Group Ltd EBITDA dropped on 164% in 2015 and Revenue dropped on 17.2%
29/06/2015 • About Mei Ah Entertainment Group Ltd (
$391) • By InTwits
Mei Ah Entertainment Group Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mei Ah Entertainment Group Ltd is a company in decline: FY2015 revenue growth was -17.2%, 5 years revenue CAGR was -5.3%
- EBITDA Margin is declining: -17.0% in FY2015 vs. 22.1% in FY2014 vs. 43.0% in FY2011
- EBITDA Margin is quite volatile: -17.0% in FY2015, 22.1% in FY2014, 24.5% in FY2013, 28.5% in FY2012, 43.0% in FY2011
- Mei Ah Entertainment Group Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.0%. At the same time it's in pair with industry average of 33.8%.
- CAPEX is quite volatile: 2.2 in FY2015, 36.7 in FY2014, 19.9 in FY2013, 24.3 in FY2012, 5.1 in FY2011
- The company has unprofitable business model: ROIC is at -8.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mei Ah Entertainment Group Ltd ($391) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 200.2 | 358.8 | 555.8 | 144.8 | 119.9 | -17.2% |
| Gross Profit | 80.7 | 110.6 | 69.3 | 62.2 | 57.5 | -7.6% |
| SG&A | | 118.1 | 169.1 | 97.2 | 126.7 | 30.3% |
| EBITDA | 86.1 | 102.3 | 136.0 | 32.0 | -20.4 | -163.7% |
| Net Income | 55.0 | -11.4 | -48.7 | -23.9 | -39.3 | 64.6% |
Balance Sheet
|
|---|
| Cash | 102.4 | 53.5 | 100.4 | 74.3 | 32.1 | -56.8% |
| Short Term Debt | 6.1 | 32.7 | 9.0 | 20.2 | 42.6 | 110.7% |
| Long Term Debt | 6.5 | 5.5 | 0.0 | 11.9 | 10.6 | -11.6% |
Cash flow
|
|---|
| Capex | 5.1 | 24.3 | 19.9 | 36.7 | 2.2 | -94.0% |
Ratios
|
|---|
| Revenue growth | 27.4% | 79.2% | 54.9% | -73.9% | -17.2% | |
| EBITDA growth | 67.1% | 18.9% | 33.0% | -76.4% | -163.7% | |
| Gross Margin | 40.3% | 30.8% | 12.5% | 42.9% | 47.9% | 5.0% |
| EBITDA Margin | 43.0% | 28.5% | 24.5% | 22.1% | -17.0% | -39.2% |
| Net Income Margin | 27.5% | -3.2% | -8.8% | -16.5% | -32.8% | -16.3% |
| SG&A, % of revenue | | 32.9% | 30.4% | 67.2% | 105.7% | 38.5% |
| CAPEX, % of revenue | 2.5% | 6.8% | 3.6% | 25.4% | 1.8% | -23.5% |
| ROIC | 3.7% | 2.5% | -4.8% | -3.6% | -8.3% | -4.7% |
| ROE | 11.0% | -1.9% | -8.3% | -4.3% | -7.3% | -3.0% |
| Net Debt/EBITDA | -1.0x | -0.1x | -0.7x | -1.3x | | 1.3x |
Revenue and profitability
Mei Ah Entertainment Group Ltd's Revenue dropped on 17.2% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 39.2 pp from 22.1% to -17.0% in FY2015.
Gross Margin increased on 5.0 pp from 42.9% to 47.9% in FY2015. SG&A as a % of Revenue jumped on 38.5 pp from 67.2% to 106% in FY2015.
Net Income marign dropped on 16.3 pp from -16.5% to -32.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.8% in FY2015. The company's CAPEX/Revenue decreased on 4.9 pp from 6.8% in FY2012 to 1.8% in FY2015. It's average level of CAPEX/Revenue for the last three years was 10.3%.
Return on investment
The company operates at negative ROIC (-8.28%) and ROE (-7.29%). ROIC decreased on 4.7 pp from -3.6% to -8.3% in FY2015. ROE decreased on 3.0 pp from -4.3% to -7.3% in FY2015.
Leverage (Debt)
Debt level is -3.8x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA surged on 1.3x from -1.3x to in FY2015. Debt surged on 65.3% in FY2015 while cash dropped on 56.8% in FY2015.
Appendix 1: Peers in Entertainment
Below we provide Mei Ah Entertainment Group 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 (26 companies) | 19.2% | -0.7% | 11.0% | 1.2% | -3.5% |
|---|
| Mei Ah Entertainment Group Ltd ($391) | | 79.2% | 54.9% | -73.9% | -17.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amax International Holdings Ltd ($959) | | | 92.1% | 98.6% | 96.6% |
| 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 (22 companies) | 48.3% | 44.9% | 56.8% | 44.1% | 77.0% |
|---|
| Mei Ah Entertainment Group Ltd ($391) | 40.3% | 30.8% | 12.5% | 42.9% | 47.9% |
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 (26 companies) | 10.3% | 19.7% | 17.2% | 14.9% | -22.0% |
|---|
| Mei Ah Entertainment Group Ltd ($391) | 43.0% | 28.5% | 24.5% | 22.1% | -17.0% |
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% | |
| Nan Hai Corp Ltd ($680) | 29.1% | 19.2% | 35.2% | 18.2% | |
| Amax International Holdings Ltd ($959) | 18.7% | 10.4% | 2.7% | 17.2% | 59.8% |
| |
|---|
| Median (26 companies) | 7.3% | 9.7% | 9.0% | 4.7% | 16.8% |
|---|
| Mei Ah Entertainment Group Ltd ($391) | 2.5% | 6.8% | 3.6% | 25.4% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dynam Japan Holdings Co Ltd ($6889) | 22.5% | 23.8% | 25.4% | 21.8% | 10.5% |
| 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% | |
| |
|---|
| Median (27 companies) | 1.1% | -1.1% | 3.7% | 0.3% | -0.4% |
|---|
| Mei Ah Entertainment Group Ltd ($391) | 3.7% | 2.5% | -4.8% | -3.6% | -8.3% |
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 (19 companies) | 0.0x | -0.1x | -0.5x | -0.0x | -5.9x |
|---|
| Mei Ah Entertainment Group Ltd ($391) | -1.0x | -0.1x | -0.7x | -1.3x | |
