Legend Strategy International Holdings Group Co Ltd reports 3,372% CAPEX growth while 33.1% Revenue decline
18/03/2016 • About Legend Strategy International Holdings Group Co Ltd (
$1355) • By InTwits
Legend Strategy International Holdings Group Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Legend Strategy International Holdings Group Co Ltd is a company in decline: 2015 revenue growth was -33.1%, 5 years revenue CAGR was -11.8%
- The company operates at negative EBITDA Margin: -337.5%
- Legend Strategy International Holdings Group Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 26.9%. At the same time it's in pair with industry average of 22.4%.
- CAPEX is quite volatile: 12.5 in 2015, 0.36 in 2014, 22.0 in 2013, 15.5 in 2012, 10.9 in 2011
- The company has unprofitable business model: ROIC is at -58.8%
- It operates with high leverage: Net Debt/EBITDA is -0.3x while industry average is -29.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Legend Strategy International Holdings Group Co Ltd ($1355) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 69.592 | 91.155 | 57.969 | 29.701 | 19.884 | -33.1% |
| EBITDA | 38.962 | 53.630 | 10.682 | -27.436 | -67.117 | 144.6% |
| Net Income | 21.265 | 32.872 | -7.254 | -51.544 | -123.836 | 140.3% |
Balance Sheet
|
|---|
| Cash | 16.151 | 27.880 | 19.586 | 2.322 | 47.612 | 1,950.3% |
| Short Term Debt | 0.389 | 0.412 | 0.343 | 0.420 | 0.000 | -100.0% |
| Long Term Debt | 1.302 | 30.294 | 0.516 | 0.156 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 10.934 | 15.510 | 22.001 | 0.359 | 12.455 | 3,372.0% |
Ratios
|
|---|
| Revenue growth | 86.5% | 31.0% | -36.4% | -48.8% | -33.1% | |
| EBITDA growth | 95.1% | 37.6% | -80.1% | -356.8% | 144.6% | |
| EBITDA Margin | 56.0% | 58.8% | 18.4% | -92.4% | -337.5% | -245.2% |
| Net Income Margin | 30.6% | 36.1% | -12.5% | -173.5% | -622.8% | -449.2% |
| CAPEX, % of revenue | 15.7% | 17.0% | 38.0% | 1.2% | 62.6% | 61.4% |
| ROIC | 57.2% | 35.0% | 1.5% | -23.4% | -58.8% | -35.4% |
| ROE | 42.2% | 32.1% | -5.4% | -36.2% | -102.5% | -66.3% |
| Net Debt/EBITDA | -0.4x | 0.1x | -1.8x | | | 0.0x |
Revenue and profitability
Legend Strategy International Holdings Group Co Ltd's Revenue dropped on 33.1% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 82.5 pp from 52.0% to 135% in 2015.
Net Income marign dropped on 449 pp from -174% to -623% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 62.6% in 2015. The company showed fast CAPEX/Revenue growth of 45.6 pp from 17.0% in 2012 to 62.6% in 2015. For the last three years the average CAPEX/Revenue was 33.9%.
Return on investment
The company operates at negative ROIC (-58.75%) and ROE (-102.54%). ROIC dropped on 35.4 pp from -23.4% to -58.8% in 2015. ROE dropped on 66.3 pp from -36.2% to -103% in 2015.
Leverage (Debt)
The company paid down all the debt in 2015. Cash surged on 1,950% in 2015.
Appendix 1: Peers in Lodging
Below we provide Legend Strategy International Holdings Group Co Ltd benchmarking against other companies in Lodging 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 |
|---|
| Zhuhai Holdings Investment Group Ltd ($908) | 13.4% | 229.8% | 14.5% | 57.0% | |
| Carrianna Group Holdings Co Ltd ($126) | | 69.3% | -36.2% | 35.4% | -33.8% |
| NagaCorp Ltd ($3918) | | 24.6% | 23.7% | 17.2% | 24.6% |
| Emperor Entertainment Hotel Ltd ($296) | | 35.9% | 13.8% | 11.7% | -10.2% |
| Far East Consortium International Ltd/HK ($35) | | 6.4% | 111.9% | 9.0% | 25.7% |
| |
|---|
| Median (21 companies) | 24.6% | 14.4% | 13.8% | 0.8% | -10.6% |
|---|
| Legend Strategy International Holdings Group Co Ltd ($1355) | | 31.0% | -36.4% | -48.8% | -33.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SJM Holdings Ltd ($880) | 99.7% | 99.7% | 99.7% | 99.7% | 99.5% |
| Wynn Macau Ltd ($1128) | 97.6% | 97.9% | 98.3% | 98.5% | |
| Emperor Entertainment Hotel Ltd ($296) | 70.9% | 77.1% | 75.6% | 76.8% | 70.9% |
| Asia Standard Hotel Group Ltd ($292) | 52.5% | 60.7% | 73.4% | 72.1% | 67.6% |
| Sino Hotels Holdings Ltd ($1221) | 69.7% | 71.3% | 70.4% | 68.9% | 65.8% |
| |
|---|
| Median (16 companies) | 49.1% | 53.1% | 51.1% | 49.6% | 65.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asia Standard Hotel Group Ltd ($292) | 69.1% | -23.9% | 65.2% | 49.9% | 40.4% |
| Emperor Entertainment Hotel Ltd ($296) | 38.7% | 44.9% | 46.4% | 46.9% | 43.1% |
| Sino Hotels Holdings Ltd ($1221) | 42.8% | 46.5% | 45.9% | 43.1% | 39.6% |
| Far East Consortium International Ltd/HK ($35) | 50.1% | 57.2% | 34.5% | 43.0% | 36.4% |
| NagaCorp Ltd ($3918) | 49.2% | 49.8% | 50.1% | 42.8% | 45.3% |
| |
|---|
| Median (21 companies) | 23.7% | 25.0% | 26.4% | 26.2% | 30.1% |
|---|
| Legend Strategy International Holdings Group Co Ltd ($1355) | 56.0% | 58.8% | 18.4% | -92.4% | -337.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Macau Legend Development Ltd ($1680) | 1.3% | 5.0% | 24.2% | 73.0% | |
| Regal Hotels International Holdings Ltd ($78) | 4.9% | 7.4% | 7.2% | 60.4% | |
| Shangri-La Asia Ltd ($69) | 26.5% | 48.5% | 33.1% | 41.2% | |
| Wynn Macau Ltd ($1128) | 3.2% | 5.2% | 11.0% | 28.2% | |
| NagaCorp Ltd ($3918) | 20.3% | 25.9% | 17.2% | 24.0% | 27.8% |
| |
|---|
| Median (21 companies) | 6.3% | 6.3% | 8.9% | 13.2% | 12.8% |
|---|
| Legend Strategy International Holdings Group Co Ltd ($1355) | 15.7% | 17.0% | 38.0% | 1.2% | 62.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| MGM China Holdings Ltd ($2282) | 47.3% | 46.2% | 53.8% | 54.5% | 24.0% |
| Wynn Macau Ltd ($1128) | 66.1% | 53.9% | 42.3% | 29.9% | |
| Galaxy Entertainment Group Ltd ($27) | 14.7% | 25.2% | 30.0% | 27.5% | 10.2% |
| Sands China Ltd ($1928) | 14.5% | 14.2% | 24.4% | 26.7% | 15.8% |
| SJM Holdings Ltd ($880) | 26.2% | 29.7% | 31.0% | 24.8% | 8.6% |
| |
|---|
| Median (21 companies) | 5.2% | 7.6% | 6.7% | 5.0% | 7.7% |
|---|
| Legend Strategy International Holdings Group Co Ltd ($1355) | 57.2% | 35.0% | 1.5% | -23.4% | -58.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Regal Hotels International Holdings Ltd ($78) | | 5.0x | 8.7x | 11.8x | |
| Century City International Holdings Ltd ($355) | -58.1x | 6.5x | 9.3x | 11.2x | |
| Shangri-La Asia Ltd ($69) | 4.0x | 6.0x | 6.8x | 6.9x | |
| Zhuhai Holdings Investment Group Ltd ($908) | -3.7x | -4.1x | 11.1x | 6.7x | |
| Asia Standard Hotel Group Ltd ($292) | 3.5x | | 3.7x | 5.2x | 5.5x |
| |
|---|
| Median (21 companies) | 0.6x | 0.5x | 0.6x | 0.5x | 1.0x |
|---|
