Century City International Holdings Ltd CAPEX jumped on 237% in 2015 and Revenue surged on 25.9%
22/03/2016 • About Century City International Holdings Ltd (
$355) • By InTwits
Century City International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Century City International Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is 1.0%
- EBITDA Margin is quite volatile: 32.0% in 2015, 39.3% in 2014, 26.4% in 2013, 31.5% in 2012, 7.4% in 2011
- Century City International Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 20.7%. At the same time it's in pair with industry average of 20.5%.
- CAPEX is quite volatile: 1,051 in 2015, 312 in 2014, 1,194 in 2013, 370 in 2012, 1.4 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.0%
- It operates with high leverage: Net Debt/EBITDA is 12.3x while industry average is -22.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Century City International Holdings Ltd ($355) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 454 | 1,740 | 3,631 | 2,330 | 2,934 | 25.9% |
| Gross Profit | 88 | 737 | 1,223 | 1,118 | 1,234 | 10.4% |
| SG&A | | | | 383 | 419 | 9.4% |
| EBITDA | 34 | 549 | 959 | 915 | 940 | 2.8% |
| Net Income | 890 | 1,193 | 202 | 197 | 5 | -97.7% |
Balance Sheet
|
|---|
| Cash | 2,092 | 4,234 | 2,536 | 3,125 | 2,155 | -31.1% |
| Short Term Debt | 146 | 82 | 1,624 | 1,376 | 1,272 | -7.6% |
| Long Term Debt | 0 | 7,698 | 9,800 | 11,982 | 12,466 | 4.0% |
Cash flow
|
|---|
| Capex | 1 | 370 | 1,194 | 312 | 1,051 | 236.7% |
Ratios
|
|---|
| Revenue growth | 245.9% | 283.6% | 108.7% | -35.8% | 25.9% | |
| EBITDA growth | -303.0% | 1,538.2% | 74.7% | -4.6% | 2.8% | |
| Gross Margin | 19.3% | 42.4% | 33.7% | 48.0% | 42.1% | -5.9% |
| EBITDA Margin | 7.4% | 31.5% | 26.4% | 39.3% | 32.0% | -7.2% |
| Net Income Margin | 196.2% | 68.6% | 5.6% | 8.4% | 0.2% | -8.3% |
| SG&A, % of revenue | | | | 16.5% | 14.3% | -2.2% |
| CAPEX, % of revenue | 0.3% | 21.2% | 32.9% | 13.4% | 35.8% | 22.4% |
| ROIC | 0.4% | 1.3% | 1.5% | 1.1% | 1.0% | -0.1% |
| ROE | 16.3% | 18.0% | 2.7% | 2.4% | 0.1% | -2.3% |
| Net Debt/EBITDA | -58.1x | 6.5x | 9.3x | 11.2x | 12.3x | 1.1x |
Revenue and profitability
The company's Revenue surged on 25.9% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.66 pp from 4.4% to 5.1% in 2015.
Gross Margin decreased on 5.9 pp from 48.0% to 42.1% in 2015. SG&A as a % of Revenue decreased on 2.2 pp from 16.5% to 14.3% in 2015.
Net Income marign decreased on 8.3 pp from 8.4% to 0.16% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 35.8% in 2015. The company's CAPEX/Revenue jumped on 14.6 pp from 21.2% in 2012 to 35.8% in 2015. It's average CAPEX/Revenue for the last three years was 27.4%.Century City International Holdings Ltd has spent a lot to CAPEX (112% of EBITDA) to secure its growth.
Return on investment
The company operates at low ROIC (0.98%) and ROE (0.05%). ROIC showed almost no change in 2015. ROE decreased on 2.3 pp from 2.4% to 0.054% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 12.3x and Debt / EBITDA is 14.6x. Net Debt / EBITDA surged on 1.1x from 11.2x to 12.3x in 2015. Debt increased on 2.8% in 2015 while cash dropped on 31.1% in 2015.
Appendix 1: Peers in Lodging
Below you can find Century City International Holdings Ltd benchmarking vs. other companies in Lodging 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 |
|---|
| 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 (23 companies) | 22.1% | 11.5% | 10.2% | 0.8% | -10.2% |
|---|
| Century City International Holdings Ltd ($355) | | 283.6% | 108.7% | -35.8% | 25.9% |
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 (17 companies) | 56.1% | 57.2% | 55.9% | 52.0% | 56.0% |
|---|
| Century City International Holdings Ltd ($355) | 19.3% | 42.4% | 33.7% | 48.0% | 42.1% |
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 (23 companies) | 26.7% | 26.7% | 26.4% | 25.8% | 30.1% |
|---|
| Century City International Holdings Ltd ($355) | 7.4% | 31.5% | 26.4% | 39.3% | 32.0% |
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% | 12.0% |
| Jinmao Investments and Jinmao China Investments Holdings Ltd ($6139) | 2.4% | 8.1% | 28.7% | 55.4% | 22.6% |
| 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% | |
| |
|---|
| Median (23 companies) | 6.5% | 6.3% | 8.9% | 10.8% | 12.8% |
|---|
| Century City International Holdings Ltd ($355) | 0.3% | 21.2% | 32.9% | 13.4% | 35.8% |
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 (23 companies) | 8.8% | 7.6% | 5.7% | 3.9% | 4.5% |
|---|
| Century City International Holdings Ltd ($355) | 0.4% | 1.3% | 1.5% | 1.1% | 1.0% |
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 | 11.1x |
| Jinmao Investments and Jinmao China Investments Holdings Ltd ($6139) | 7.8x | 4.5x | 4.1x | 10.4x | 6.3x |
| 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) | 1.0x | 0.5x | 0.6x | 0.5x | 2.5x |
|---|
| Century City International Holdings Ltd ($355) | -58.1x | 6.5x | 9.3x | 11.2x | 12.3x |
