Universe International Holdings Ltd reports 766% Net Income growth and 46.3% Revenue growth
29/09/2015 • About Universe International Holdings Ltd (
$1046) • By InTwits
Universe International Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Universe International Holdings Ltd is a fast growth stock: FY2015 revenue growth was 46.3%, 5 year revenue CAGR was 20.3% at FY2015 ROIC 43.8%
- Universe International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's in pair with industry average of 3.9%.
- CAPEX is quite volatile: 4.2 in FY2015, 0.17 in FY2014, 0.85 in FY2013, 1.3 in FY2012, 7.1 in FY2011
- The company has highly profitable business model: ROIC is at 43.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Universe International Holdings Ltd ($1046) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 131.3 | 75.9 | 79.1 | 205.2 | 300.2 | 46.3% |
| Gross Profit | 20.1 | 16.8 | 29.1 | 23.4 | 254.7 | 989.1% |
| SG&A | | 31.4 | 31.1 | 39.2 | 52.4 | 33.6% |
| EBITDA | 81.6 | 27.8 | 35.2 | 153.1 | 221.0 | 44.3% |
| Net Income | -20.9 | -17.4 | -4.7 | -24.3 | 162.0 | -765.7% |
Balance Sheet
|
|---|
| Cash | 79.4 | 71.1 | 50.4 | 84.2 | 102.8 | 22.2% |
| Short Term Debt | 0.1 | 0.0 | 0.0 | 0.0 | 0.0 | 105.9% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.1 | 9.3 | 17,778.8% |
Cash flow
|
|---|
| Capex | 7.1 | 1.3 | 0.9 | 0.2 | 4.2 | 2,436.5% |
Ratios
|
|---|
| Revenue growth | 10.2% | -42.2% | 4.3% | 159.4% | 46.3% | |
| EBITDA growth | 26.4% | -65.9% | 26.8% | 334.4% | 44.3% | |
| Gross Margin | 15.3% | 22.1% | 36.7% | 11.4% | 84.8% | 73.4% |
| EBITDA Margin | 62.2% | 36.6% | 44.6% | 74.6% | 73.6% | -1.0% |
| Net Income Margin | -15.9% | -22.9% | -5.9% | -11.9% | 53.9% | 65.8% |
| SG&A, % of revenue | | 41.4% | 39.3% | 19.1% | 17.4% | -1.7% |
| CAPEX, % of revenue | 5.4% | 1.8% | 1.1% | 0.1% | 1.4% | 1.3% |
| ROIC | -4.8% | -6.2% | -0.8% | -3.7% | 43.8% | 47.5% |
| ROE | -8.0% | -7.3% | -2.0% | -9.0% | 37.1% | 46.1% |
| Net Debt/EBITDA | -1.0x | -2.6x | -1.4x | -0.5x | -0.4x | 0.1x |
Revenue and profitability
Universe International Holdings Ltd's Revenue jumped on 46.3% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 0.99 pp from 74.6% to 73.6% in FY2015.
Gross Margin surged on 73.4 pp from 11.4% to 84.8% in FY2015. SG&A as a % of Revenue decreased slightly on 1.7 pp from 19.1% to 17.4% in FY2015.
Net Income marign jumped on 65.8 pp from -11.9% to 53.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.4% in FY2015. CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 0.86%.
Return on investment
The company operates at high and attractive ROIC (43.78%) and ROE (37.15%). ROIC jumped on 47.5 pp from -3.7% to 43.8% in FY2015. ROE jumped on 46.1 pp from -9.0% to 37.1% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.4x and Debt / EBITDA is 0.0x. Net Debt / EBITDA jumped on 0.1x from -0.5x to -0.4x in FY2015. Debt surged on 13,425% in FY2015 while cash surged on 22.2% in FY2015.
Appendix 1: Peers in Entertainment
Below you can find Universe International Holdings Ltd benchmarking vs. other companies in Entertainment 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 |
|---|
| China 3D Digital Entertainment Ltd ($8078) | -41.9% | -67.2% | 295.2% | 185.2% | |
| 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% | |
| Global Digital Creations Holdings Ltd ($8271) | 163.6% | 17.3% | 44.8% | 27.2% | |
| |
|---|
| Median (26 companies) | 19.5% | 2.9% | 14.1% | -1.8% | -4.3% |
|---|
| Universe International Holdings Ltd ($1046) | | -42.2% | 4.3% | 159.4% | 46.3% |
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% | 52.6% |
|---|
| Universe International Holdings Ltd ($1046) | 15.3% | 22.1% | 36.7% | 11.4% | 84.8% |
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% | 99.0% |
| 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% | |
| SMI Holdings Group Ltd ($198) | 41.3% | 19.2% | 35.4% | 34.5% | |
| |
|---|
| Median (26 companies) | 10.3% | 19.7% | 17.2% | 14.9% | -17.0% |
|---|
| Universe International Holdings Ltd ($1046) | 62.2% | 36.6% | 44.6% | 74.6% | 73.6% |
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% | 1.8% |
| Nan Hai Corp Ltd ($680) | 29.1% | 19.2% | 35.2% | 18.2% | |
| |
|---|
| Median (26 companies) | 7.3% | 9.7% | 9.0% | 5.0% | 10.4% |
|---|
| Universe International Holdings Ltd ($1046) | 5.4% | 1.8% | 1.1% | 0.1% | 1.4% |
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% | 18.1% |
| 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% | -21.3% |
| SMI Holdings Group Ltd ($198) | 5.8% | 1.3% | 8.4% | 9.9% | |
| |
|---|
| Median (27 companies) | 2.8% | -1.1% | 3.7% | 0.3% | -1.8% |
|---|
| Universe International Holdings Ltd ($1046) | -4.8% | -6.2% | -0.8% | -3.7% | 43.8% |
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 | -0.6x |
|---|
| Universe International Holdings Ltd ($1046) | -1.0x | -2.6x | -1.4x | -0.5x | -0.4x |
