China 3D Digital Entertainment Ltd EBITDA dropped on 313% in 2015 and EBITDA Margin dropped on 61.4 pp from 12.7% to -48.7%
30/09/2015 • About China 3D Digital Entertainment Ltd (
$8078) • By InTwits
China 3D Digital Entertainment Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China 3D Digital Entertainment Ltd doesn't have a profitable business model yet: FY2015 ROIC is -23.9%
- The company operates at negative EBITDA Margin: -48.7%
- China 3D Digital Entertainment Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -4.3% for the sames years0
- China 3D Digital Entertainment Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.3%. At the same time it's a lot of higher than industry average of 8.8%.
- CAPEX is quite volatile: 9.0 in FY2015, 4.0 in FY2014, 6.3 in FY2013, 3.7 in FY2012, 0.66 in FY2011
- The company has unprofitable business model: ROIC is at -23.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China 3D Digital Entertainment Ltd ($8078) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 54.0 | 17.7 | 70.0 | 199.7 | 111.2 | -44.3% |
| Gross Profit | 0.6 | 9.5 | 10.5 | 29.5 | -14.5 | -149.2% |
| SG&A | | | 25.4 | 44.1 | 81.5 | 84.9% |
| EBITDA | 4.1 | -5.2 | 10.7 | 25.4 | -54.2 | -313.5% |
| Net Income | -36.1 | -9.1 | -21.2 | -15.7 | -97.1 | 519.9% |
Balance Sheet
|
|---|
| Cash | 72.9 | 83.0 | 29.6 | 13.9 | 20.7 | 49.2% |
| Short Term Debt | 0.0 | 0.0 | 9.0 | 73.1 | 64.3 | -12.1% |
| Long Term Debt | 24.6 | 14.0 | 14.8 | 0.0 | 1.8 | |
Cash flow
|
|---|
| Capex | 0.7 | 3.7 | 6.3 | 4.0 | 9.0 | 124.9% |
Ratios
|
|---|
| Revenue growth | -41.9% | -67.2% | 295.2% | 185.2% | -44.3% | |
| EBITDA growth | 113.2% | -228.9% | -303.5% | 138.1% | -313.5% | |
| Gross Margin | 1.1% | 53.9% | 14.9% | 14.8% | -13.1% | -27.9% |
| EBITDA Margin | 7.5% | -29.5% | 15.2% | 12.7% | -48.7% | -61.4% |
| Net Income Margin | -66.9% | -51.4% | -30.3% | -7.8% | -87.3% | -79.5% |
| SG&A, % of revenue | | | 36.3% | 22.1% | 73.3% | 51.2% |
| CAPEX, % of revenue | 1.2% | 21.0% | 9.0% | 2.0% | 8.1% | 6.1% |
| ROIC | -8.4% | -4.6% | -3.8% | -1.5% | -23.9% | -22.4% |
| ROE | | -5.9% | -10.0% | -6.2% | -35.6% | -29.4% |
| Net Debt/EBITDA | -11.9x | | -0.5x | 2.3x | | -2.3x |
Revenue and profitability
The company's Revenue dropped on 44.3% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 61.4 pp from 12.7% to -48.7% in FY2015.
Gross Margin dropped on 27.9 pp from 14.8% to -13.1% in FY2015. SG&A as a % of Revenue surged on 51.2 pp from 22.1% to 73.3% in FY2015.
Net Income marign dropped on 79.5 pp from -7.8% to -87.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 China 3D Digital Entertainment Ltd had CAPEX/Revenue of 8.1%. The company showed big decline in CAPEX/Revenue of 12.9 pp from 21.0% in FY2012 to 8.1% in FY2015. It's average level of CAPEX/Revenue for the last three years was 6.4%.
Return on investment
The company operates at negative ROIC (-23.91%) and ROE (-35.58%). ROIC dropped on 22.4 pp from -1.5% to -23.9% in FY2015. ROE dropped on 29.4 pp from -6.2% to -35.6% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.2x and Debt / EBITDA is . Net Debt / EBITDA dropped on 2.3x from 2.3x to in FY2015. Debt decreased on 9.7% in FY2015 while cash jumped on 49.2% in FY2015.
Appendix 1: Peers in Entertainment
Below we provide China 3D Digital Entertainment 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 |
|---|
| Universe International Holdings Ltd ($1046) | | -42.2% | 4.3% | 159.4% | 46.3% |
| China Vanguard Group Ltd ($8156) | | -7.0% | -62.7% | 145.0% | 29.2% |
| 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) | 20.3% | 2.9% | 11.0% | -1.8% | -2.7% |
|---|
| China 3D Digital Entertainment Ltd ($8078) | | -67.2% | 295.2% | 185.2% | -44.3% |
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% | 95.2% |
| 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% | 42.8% | 56.8% | 44.1% | 71.1% |
|---|
| China 3D Digital Entertainment Ltd ($8078) | 1.1% | 53.9% | 14.9% | 14.8% | -13.1% |
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% |
| Universe International Holdings Ltd ($1046) | 62.2% | 36.6% | 44.6% | 74.6% | 73.6% |
| 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) | 14.2% | 22.1% | 19.7% | 18.3% | 5.7% |
|---|
| China 3D Digital Entertainment Ltd ($8078) | 7.5% | -29.5% | 15.2% | 12.7% | -48.7% |
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% | 8.7% | 6.6% | 5.0% | 4.2% |
|---|
| China 3D Digital Entertainment Ltd ($8078) | 1.2% | 21.0% | 9.0% | 2.0% | 8.1% |
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% | 1.0% |
|---|
| China 3D Digital Entertainment Ltd ($8078) | -8.4% | -4.6% | -3.8% | -1.5% | -23.9% |
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 | |
| SMI Holdings Group Ltd ($198) | 0.3x | 2.0x | 1.6x | 2.1x | |
| |
|---|
| Median (19 companies) | 0.0x | -0.1x | -0.6x | -0.3x | -0.6x |
|---|
| China 3D Digital Entertainment Ltd ($8078) | -11.9x | | -0.5x | 2.3x | |
