National Arts Entertainment and Culture Group Ltd revenue returned to growth in 2015: increased 162% vs. 20.1% decline a year earliner
23/03/2016 • About National Arts Entertainment and Culture Group Ltd (
$8228) • By InTwits
National Arts Entertainment and Culture Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- National Arts Entertainment and Culture Group Ltd doesn't have a profitable business model yet: 2015 ROIC is -7.3%
- The company operates at negative EBITDA Margin: -215.2%
- National Arts Entertainment and Culture Group Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -190.0% for the sames years0
- National Arts Entertainment and Culture Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 770.4%. At the same time it's a lot of higher than industry average of 43.9%.
- CAPEX is quite volatile: 204 in 2015, 122 in 2014, 147 in 2013, 84.0 in 2012, 86.4 in 2011
- The company has unprofitable business model: ROIC is at -7.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
National Arts Entertainment and Culture Group Ltd ($8228) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 16.116 | 6.789 | 19.094 | 15.260 | 40.038 | 162.4% |
| EBITDA | -14.867 | 5.897 | -21.743 | -68.024 | -86.149 | 26.6% |
| Net Income | -11.410 | -12.917 | -20.614 | -148.913 | -264.828 | 77.8% |
Balance Sheet
|
|---|
| Cash | 21.327 | 157.517 | 8.007 | 7.406 | 12.705 | 71.6% |
| Short Term Debt | 5.066 | 40.361 | 58.796 | 331.316 | 473.096 | 42.8% |
| Long Term Debt | 100.692 | 15.652 | 458.662 | 201.285 | 708.972 | 252.2% |
Cash flow
|
|---|
| Capex | 86.404 | 83.985 | 147.233 | 121.921 | 203.762 | 67.1% |
Ratios
|
|---|
| Revenue growth | 53.4% | -57.9% | 181.2% | -20.1% | 162.4% | |
| EBITDA growth | 83.3% | -139.7% | -468.7% | 212.9% | 26.6% | |
| EBITDA Margin | -92.2% | 86.9% | -113.9% | -445.8% | -215.2% | 230.6% |
| Net Income Margin | -70.8% | -190.3% | -108.0% | -975.8% | -661.4% | 314.4% |
| CAPEX, % of revenue | 536.1% | 1,237.1% | 771.1% | 799.0% | 508.9% | -290.0% |
| ROIC | -12.5% | 0.2% | -2.3% | -4.7% | -7.3% | -2.6% |
| ROE | -4.5% | -3.0% | -3.2% | -16.7% | -26.4% | -9.7% |
| Net Debt/EBITDA | | -17.2x | | | | 0.0x |
Revenue and profitability
National Arts Entertainment and Culture Group Ltd's Revenue surged on 162% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.4 pp from 14.4% to 15.8% in 2015.
Net Income marign jumped on 314 pp from -976% to -661% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 509% in 2015. The company's CAPEX/Revenue dropped on 728 pp from 1,237% in 2012 to 509% in 2015. It's average level of CAPEX/Revenue for the last three years was 693%.
Return on investment
The company operates at negative ROIC (-7.29%) and ROE (-26.45%). ROIC decreased on 2.6 pp from -4.7% to -7.3% in 2015. ROE decreased on 9.7 pp from -16.7% to -26.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -6.5x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt surged on 122% in 2015 while cash surged on 71.6% in 2015.
Appendix 1: Peers in Entertainment
Below you can find National Arts Entertainment and Culture Group Ltd benchmarking vs. other companies in Entertainment 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 |
|---|
| China 3D Digital Entertainment Ltd ($8078) | | -67.2% | 295.2% | 185.2% | -44.3% |
| 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) | | 15.0% | 22.5% | 39.1% | -37.8% |
| Nan Hai Corp Ltd ($680) | 20.7% | -16.3% | 18.7% | 36.0% | |
| |
|---|
| Median (26 companies) | 20.0% | 2.9% | 11.0% | 1.2% | -4.3% |
|---|
| National Arts Entertainment and Culture Group Ltd ($8228) | | -57.9% | 181.2% | -20.1% | 162.4% |
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% | 55.8% |
| |
|---|
| Median (23 companies) | 46.1% | 44.8% | 52.7% | 44.0% | 44.0% |
|---|
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% | -31.0% |
| Haichang Holdings Ltd ($2255) | 46.9% | 55.0% | 44.5% | 46.3% | |
| |
|---|
| Median (26 companies) | 14.2% | 19.7% | 19.7% | 18.3% | 2.4% |
|---|
| National Arts Entertainment and Culture Group Ltd ($8228) | -92.2% | 86.9% | -113.9% | -445.8% | -215.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | |
| Amax International Holdings Ltd ($959) | 18.7% | 10.4% | 2.7% | 17.2% | 59.8% |
| |
|---|
| Median (26 companies) | 7.2% | 8.7% | 6.6% | 4.7% | 8.1% |
|---|
| National Arts Entertainment and Culture Group Ltd ($8228) | 536.1% | 1,237.1% | 771.1% | 799.0% | 508.9% |
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% | -9.8% |
| 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% | -0.7% |
|---|
| National Arts Entertainment and Culture Group Ltd ($8228) | -12.5% | 0.2% | -2.3% | -4.7% | -7.3% |
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 | |
| China 3D Digital Entertainment Ltd ($8078) | -11.9x | | -0.5x | 2.3x | |
| |
|---|
| Median (20 companies) | -0.1x | -0.1x | -0.6x | -0.2x | -2.7x |
|---|
