Media Asia Group Holdings Ltd reports 192% EBITDA growth and 11.7 pp EBITDA Margin growth from 13.4% to 25.1%
15/10/2015 • About Media Asia Group Holdings Ltd (
$8075) • By InTwits
Media Asia Group Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Media Asia Group Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.8%. At the same time it's a lot of higher than industry average of 4.7%.
- CAPEX is quite volatile: 0.67 in FY2015, 10.4 in FY2014, 6.8 in FY2013, 23.4 in FY2012, 1.4 in FY2011
- The company has potentially unprofitable business model: ROIC is at 4.0%
- It operates with high leverage: Net Debt/EBITDA is -2.7x while industry average is -7.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Media Asia Group Holdings Ltd ($8075) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 9.6 | 117.5 | 441.2 | 457.0 | 712.4 | 55.9% |
| Gross Profit | 1.7 | 44.5 | 137.0 | 88.8 | 277.8 | 212.7% |
| SG&A | | 84.1 | 170.2 | 165.1 | 243.7 | 47.6% |
| EBITDA | -39.9 | -36.1 | 82.2 | 61.3 | 178.7 | 191.7% |
| Net Income | -43.9 | -290.2 | -98.9 | -153.2 | 25.9 | -116.9% |
Balance Sheet
|
|---|
| Cash | 20.4 | 696.9 | 414.4 | 327.0 | 722.0 | 120.8% |
| Short Term Debt | 0.0 | 0.0 | 317.5 | 169.0 | 0.0 | -100.0% |
| Long Term Debt | 21.2 | 458.9 | 189.3 | 0.0 | 242.8 | |
Cash flow
|
|---|
| Capex | 1.4 | 23.4 | 6.8 | 10.4 | 0.7 | -93.6% |
Ratios
|
|---|
| Revenue growth | 401.1% | 1,124.6% | 275.6% | 3.6% | 55.9% | |
| EBITDA growth | 130.0% | -9.6% | -327.5% | -25.5% | 191.7% | |
| Gross Margin | 17.4% | 37.9% | 31.1% | 19.4% | 39.0% | 19.5% |
| EBITDA Margin | -416.5% | -30.8% | 18.6% | 13.4% | 25.1% | 11.7% |
| Net Income Margin | -457.5% | -247.0% | -22.4% | -33.5% | 3.6% | 37.1% |
| SG&A, % of revenue | | 71.6% | 38.6% | 36.1% | 34.2% | -1.9% |
| CAPEX, % of revenue | 15.0% | 19.9% | 1.5% | 2.3% | 0.1% | -2.2% |
| ROIC | -87.3% | -7.7% | -3.3% | -5.9% | 4.0% | 9.9% |
| ROE | -114.0% | -102.4% | -20.2% | -30.8% | 3.6% | 34.3% |
| Net Debt/EBITDA | | | 1.1x | -2.6x | -2.7x | -0.1x |
Revenue and profitability
Media Asia Group Holdings Ltd's Revenue jumped on 55.9% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 11.7 pp from 13.4% to 25.1% in FY2015.
Gross Margin surged on 19.5 pp from 19.4% to 39.0% in FY2015. SG&A as a % of Revenue decreased slightly on 1.9 pp from 36.1% to 34.2% in FY2015.
Net Income marign jumped on 37.1 pp from -33.5% to 3.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.094% in FY2015. Media Asia Group Holdings Ltd's CAPEX/Revenue dropped on 19.8 pp from 19.9% in FY2012 to 0.094% in FY2015. It's average level of CAPEX/Revenue for the last three years was 1.3%.
Return on investment
The company operates at low ROIC (4.00%) and ROE (3.55%). ROIC increased on 9.9 pp from -5.9% to 4.0% in FY2015. ROE jumped on 34.3 pp from -30.8% to 3.6% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.7x and Debt / EBITDA is 1.4x. Net Debt / EBITDA dropped on 0.1x from -2.6x to -2.7x in FY2015. Debt surged on 43.7% in FY2015 while cash surged on 121% in FY2015.
Appendix 1: Peers in Internet
Below we provide Media Asia Group Holdings Ltd benchmarking against other companies in Internet 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 Public Procurement Ltd ($1094) | -78.5% | 5,077.0% | -67.5% | 1,258.9% | |
| China Digital Culture Group Ltd ($8175) | 320.4% | -47.9% | 180.8% | 168.8% | |
| GET Holdings Ltd ($8380) | -4.3% | 13.8% | 2,126.4% | 154.4% | |
| China Healthcare Holdings Ltd ($673) | | -14.8% | -52.9% | 63.1% | 0.3% |
| ABC Multiactive Ltd ($8131) | -1.9% | -15.2% | -13.2% | 59.4% | |
| |
|---|
| Median (19 companies) | 11.2% | 11.9% | 3.7% | 14.8% | 0.3% |
|---|
| Media Asia Group Holdings Ltd ($8075) | | 1,124.6% | 275.6% | 3.6% | 55.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ABC Multiactive Ltd ($8131) | 73.0% | 86.7% | 83.5% | 86.2% | |
| Sino-I Technology Ltd ($250) | 74.2% | 75.3% | 82.7% | 78.8% | |
| AcrossAsia Ltd ($8061) | 78.7% | 70.9% | 73.0% | 72.5% | |
| Pacific Online Ltd ($543) | 69.1% | 71.0% | 70.5% | 67.3% | |
| Forgame Holdings Ltd ($484) | 82.1% | 89.8% | 84.7% | 66.1% | |
| |
|---|
| Median (16 companies) | 65.2% | 65.0% | 65.5% | 61.3% | 41.9% |
|---|
| Media Asia Group Holdings Ltd ($8075) | 17.4% | 37.9% | 31.1% | 19.4% | 39.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SUNeVision Holdings Ltd ($8008) | 61.1% | 64.2% | 71.6% | 71.6% | 72.4% |
| GET Holdings Ltd ($8380) | -182.0% | -237.7% | 56.8% | 66.4% | |
| AcrossAsia Ltd ($8061) | 15.4% | 20.8% | 24.2% | 44.7% | |
| Tencent Holdings Ltd ($700) | 48.2% | 38.4% | 34.7% | 42.5% | |
| China Digital Culture Group Ltd ($8175) | -12.1% | -66.7% | 22.5% | 40.8% | |
| |
|---|
| Median (20 companies) | 9.3% | 5.1% | 15.2% | 7.7% | -0.9% |
|---|
| Media Asia Group Holdings Ltd ($8075) | -416.5% | -30.8% | 18.6% | 13.4% | 25.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SUNeVision Holdings Ltd ($8008) | 14.2% | 7.6% | 10.2% | 62.8% | 12.4% |
| AcrossAsia Ltd ($8061) | 61.2% | 56.6% | 65.9% | 36.3% | |
| China E-Learning Group Ltd ($8055) | 1.3% | 0.0% | 2.7% | 15.3% | |
| Asian Capital Resources Holdings Ltd ($8025) | 0.0% | 0.0% | | 12.2% | |
| Capinfo Co Ltd ($1075) | 1.6% | 17.3% | 13.1% | 9.7% | |
| |
|---|
| Median (20 companies) | 10.8% | 3.2% | 2.9% | 3.4% | 0.2% |
|---|
| Media Asia Group Holdings Ltd ($8075) | 15.0% | 19.9% | 1.5% | 2.3% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tencent Holdings Ltd ($700) | 33.4% | 29.5% | 26.7% | 29.1% | |
| Pacific Online Ltd ($543) | 41.7% | 37.9% | 36.4% | 28.6% | |
| GET Holdings Ltd ($8380) | -6.8% | -6.5% | 10.8% | 19.3% | |
| Tradelink Electronic Commerce Ltd ($536) | 19.5% | 22.4% | 18.2% | 17.4% | |
| SUNeVision Holdings Ltd ($8008) | 9.9% | 10.8% | 13.3% | 14.4% | 15.3% |
| |
|---|
| Median (20 companies) | -0.8% | -2.5% | 4.0% | -2.6% | -5.1% |
|---|
| Media Asia Group Holdings Ltd ($8075) | -87.3% | -7.7% | -3.3% | -5.9% | 4.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ABC Multiactive Ltd ($8131) | | | | 9.5x | |
| AcrossAsia Ltd ($8061) | 1.7x | 2.3x | 2.9x | 1.5x | |
| Tencent Holdings Ltd ($700) | -0.1x | -0.2x | -0.2x | -0.2x | |
| China Digital Culture Group Ltd ($8175) | | | -2.2x | -0.4x | |
| GET Holdings Ltd ($8380) | | | -1.1x | -1.0x | |
| |
|---|
| Median (12 companies) | -1.8x | -1.4x | -1.4x | -1.4x | 40.8x |
|---|
| Media Asia Group Holdings Ltd ($8075) | | | 1.1x | -2.6x | -2.7x |
