Genting Hong Kong Ltd Net Income surged on 449% in 2015 while EBITDA Margin decreased on 7.7 pp from 8.6% to 0.89%
17/03/2016 • About Genting Hong Kong Ltd (
$678) • By InTwits
Genting Hong Kong Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Genting Hong Kong Ltd doesn't have a profitable business model yet: 2015 ROIC is -1.8%
- EBITDA Margin is quite volatile: 0.9% in 2015, 8.6% in 2014, 8.5% in 2013, 23.1% in 2012, 24.2% in 2011
- Genting Hong Kong Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 28.1%. At the same time it's a lot of higher than industry average of 17.0%.
- CAPEX is quite volatile: 401 in 2015, 188 in 2014, 141 in 2013, 86.6 in 2012, 36.1 in 2011
- The company has unprofitable business model: ROIC is at -1.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Genting Hong Kong Ltd ($678) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 494.0 | 520.4 | 554.7 | 570.8 | 690.0 | 20.9% |
| SG&A | 87.8 | 102.7 | 122.7 | 114.6 | 155.4 | 35.6% |
| EBITDA | 119.7 | 120.2 | 46.9 | 48.9 | 6.2 | -87.4% |
| Net Income | 182.2 | 198.4 | 552.4 | 384.5 | 2,112.7 | 449.5% |
Balance Sheet
|
|---|
| Cash | 568.2 | 450.7 | 935.4 | 718.6 | 1,778.7 | 147.5% |
| Short Term Debt | 71.3 | 130.4 | 360.4 | 220.8 | 87.2 | -60.5% |
| Long Term Debt | 689.6 | 712.0 | 386.1 | 237.7 | 444.2 | 86.9% |
Cash flow
|
|---|
| Capex | 36.1 | 86.6 | 140.7 | 188.2 | 401.2 | 113.2% |
Ratios
|
|---|
| Revenue growth | 23.6% | 5.3% | 6.6% | 2.9% | 20.9% | |
| EBITDA growth | 9.7% | 0.4% | -61.0% | 4.2% | -87.4% | |
| EBITDA Margin | 24.2% | 23.1% | 8.5% | 8.6% | 0.9% | -7.7% |
| Net Income Margin | 36.9% | 38.1% | 99.6% | 67.4% | 306.2% | 238.9% |
| SG&A, % of revenue | 17.8% | 19.7% | 22.1% | 20.1% | 22.5% | 2.4% |
| CAPEX, % of revenue | 7.3% | 16.6% | 25.4% | 33.0% | 58.1% | 25.2% |
| ROIC | 2.1% | 2.0% | -1.0% | -1.1% | -1.8% | -0.6% |
| ROE | 8.9% | 8.9% | 21.1% | 12.6% | 48.8% | 36.2% |
| Net Debt/EBITDA | 1.6x | 3.3x | -4.0x | -5.3x | -202.7x | -197.3x |
Revenue and profitability
Genting Hong Kong Ltd's Revenue surged on 20.9% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 7.7 pp from 8.6% to 0.89% in 2015.
SG&A as a % of Revenue increased on 2.4 pp from 20.1% to 22.5% in 2015.
Net Income marign jumped on 239 pp from 67.4% to 306% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 58.1%. CAPEX/Revenue jumped on 41.5 pp from 16.6% in 2012 to 58.1% in 2015. It's average level of CAPEX/Revenue for the last three years was 38.8%.To secure this fast growth Genting Hong Kong Ltd made large investments to CAPEX (6,518% of EBITDA).
Return on investment
The company operates at negative ROIC (-1.76%) and low but positive ROE (48.82%). ROIC decreased slightly on 0.65 pp from -1.1% to -1.8% in 2015. ROE jumped on 36.2 pp from 12.6% to 48.8% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -202.7x and Debt / EBITDA is 86.3x. Net Debt / EBITDA dropped on 197.3x from -5.3x to -202.7x in 2015. Debt surged on 15.9% in 2015 while cash surged on 148% in 2015.
Appendix 1: Peers in Leisure Time
Below you can find Genting Hong Kong Ltd benchmarking vs. other companies in Leisure Time 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 |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | | 11.9% | 15.3% | 19.5% | 18.9% |
| Water Oasis Group Ltd ($1161) | | -16.3% | -23.7% | 8.0% | 1.9% |
| Perfect Shape PRC Holdings Ltd ($1830) | | 23.4% | 16.2% | 6.1% | 55.0% |
| Vietnam Manufacturing & Export Processing Holdings Ltd ($422) | 9.5% | -24.4% | -15.5% | 2.8% | |
| China Travel International Investment Hong Kong Ltd ($308) | -2.5% | 7.2% | -6.6% | 2.6% | |
| |
|---|
| Median (9 companies) | 1.6% | 7.2% | -6.6% | 2.6% | 15.2% |
|---|
| Genting Hong Kong Ltd ($678) | | 5.3% | 6.6% | 2.9% | 20.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino Splendid Holdings Ltd ($8006) | 55.1% | 51.7% | 51.4% | 51.9% | |
| China Travel International Investment Hong Kong Ltd ($308) | 48.2% | 46.1% | 47.8% | 46.0% | |
| China Jiuhao Health Industry Corp Ltd ($419) | 15.5% | 57.0% | 13.5% | 23.4% | 44.9% |
| Sino Golf Holdings Ltd ($361) | 15.7% | 11.7% | 17.4% | 18.1% | |
| Vietnam Manufacturing & Export Processing Holdings Ltd ($422) | 17.5% | 10.9% | 7.8% | 6.7% | |
| |
|---|
| Median (6 companies) | 17.5% | 46.1% | 17.4% | 20.7% | 67.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Travel International Investment Hong Kong Ltd ($308) | 25.6% | 28.2% | 29.1% | 48.5% | |
| Perfect Shape PRC Holdings Ltd ($1830) | 26.3% | 27.5% | 29.1% | 26.5% | 29.8% |
| Travel Expert Asia Enterprises Ltd ($1235) | 20.1% | 17.4% | 16.2% | 18.3% | 15.0% |
| Water Oasis Group Ltd ($1161) | 11.3% | 6.5% | 4.7% | 11.4% | 13.1% |
| Sino Golf Holdings Ltd ($361) | 5.7% | 4.3% | 10.4% | 7.8% | |
| |
|---|
| Median (9 companies) | 7.5% | 6.5% | 4.7% | 7.8% | 14.0% |
|---|
| Genting Hong Kong Ltd ($678) | 24.2% | 23.1% | 8.5% | 8.6% | 0.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Jiuhao Health Industry Corp Ltd ($419) | 4.2% | 2.1% | 31.8% | 67.3% | 43.3% |
| China Travel International Investment Hong Kong Ltd ($308) | 14.6% | 13.4% | 28.3% | 29.9% | |
| Perfect Shape PRC Holdings Ltd ($1830) | 7.9% | 6.1% | 8.9% | 7.7% | 24.8% |
| Sino Golf Holdings Ltd ($361) | 1.8% | 3.0% | 2.8% | 3.2% | |
| Water Oasis Group Ltd ($1161) | 2.7% | 3.7% | 4.0% | 2.8% | 3.5% |
| |
|---|
| Median (9 companies) | 2.7% | 3.0% | 4.0% | 2.8% | 14.1% |
|---|
| Genting Hong Kong Ltd ($678) | 7.3% | 16.6% | 25.4% | 33.0% | 58.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | 140.4% | 62.8% | 44.1% | 37.7% | 44.1% |
| Travel Expert Asia Enterprises Ltd ($1235) | 179.4% | 50.9% | 26.7% | 29.8% | 23.0% |
| Water Oasis Group Ltd ($1161) | 21.6% | 5.3% | 1.7% | 15.7% | 19.2% |
| China Travel International Investment Hong Kong Ltd ($308) | 4.6% | 5.6% | 5.0% | 9.6% | |
| Sino Golf Holdings Ltd ($361) | -0.5% | -1.9% | 6.8% | 3.8% | |
| |
|---|
| Median (9 companies) | 4.6% | 0.3% | 1.7% | 3.8% | 21.1% |
|---|
| Genting Hong Kong Ltd ($678) | 2.1% | 2.0% | -1.0% | -1.1% | -1.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino Golf Holdings Ltd ($361) | 7.3x | 10.0x | 1.9x | 3.0x | |
| China Travel International Investment Hong Kong Ltd ($308) | -2.4x | -1.7x | -1.1x | -1.1x | |
| Perfect Shape PRC Holdings Ltd ($1830) | -0.9x | -2.0x | -0.8x | -1.4x | -1.8x |
| Travel Expert Asia Enterprises Ltd ($1235) | -2.3x | -1.3x | -1.2x | -1.7x | -0.3x |
| Water Oasis Group Ltd ($1161) | -2.2x | -3.2x | -5.1x | -2.8x | -2.6x |
| |
|---|
| Median (5 companies) | -2.3x | -1.5x | -1.1x | -1.4x | -1.8x |
|---|
| Genting Hong Kong Ltd ($678) | 1.6x | 3.3x | -4.0x | -5.3x | -202.7x |
