SinoMedia Holding Ltd reports 60.3% Net Income decline and 23.1% Revenue decline
23/03/2016 • About SinoMedia Holding Ltd (
$623) • By InTwits
SinoMedia Holding Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- SinoMedia Holding Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's in pair with industry average of 17.9%.
- CAPEX is quite volatile: 13.2 in 2015, 87.3 in 2014, 7.6 in 2013, 4.6 in 2012, 9.1 in 2011
- The company has business model with low profitability: ROIC is at 9.6%
- It operates with high leverage: Net Debt/EBITDA is -1.9x while industry average is -1.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
SinoMedia Holding Ltd ($623) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,618 | 1,642 | 1,767 | 1,635 | 1,257 | -23.1% |
| Gross Profit | 501 | 571 | 645 | 479 | 302 | -37.0% |
| SG&A | | 108 | 120 | 113 | 148 | 30.0% |
| EBITDA | 378 | 448 | 540 | 407 | 210 | -48.3% |
| Net Income | 239 | 303 | 369 | 307 | 122 | -60.3% |
Balance Sheet
|
|---|
| Cash | 913 | 1,443 | 1,070 | 802 | 391 | -51.2% |
| Short Term Debt | 0 | 0 | 5 | 145 | 0 | -100.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 9 | 5 | 8 | 87 | 13 | -84.9% |
Ratios
|
|---|
| Revenue growth | 17.8% | 1.5% | 7.6% | -7.5% | -23.1% | |
| EBITDA growth | 76.7% | 18.4% | 20.5% | -24.7% | -48.3% | |
| Gross Margin | 31.0% | 34.8% | 36.5% | 29.3% | 24.0% | -5.3% |
| EBITDA Margin | 23.4% | 27.3% | 30.5% | 24.9% | 16.7% | -8.2% |
| Net Income Margin | 14.8% | 18.4% | 20.9% | 18.8% | 9.7% | -9.1% |
| SG&A, % of revenue | | 6.6% | 6.8% | 6.9% | 11.7% | 4.8% |
| CAPEX, % of revenue | 0.6% | 0.3% | 0.4% | 5.3% | 1.0% | -4.3% |
| ROIC | 35.1% | 34.8% | 33.8% | 20.8% | 9.6% | -11.2% |
| ROE | 25.6% | 27.0% | 27.3% | 19.5% | 7.4% | -12.1% |
| Net Debt/EBITDA | -2.4x | -3.2x | -2.0x | -1.6x | -1.9x | -0.2x |
Revenue and profitability
SinoMedia Holding Ltd's Revenue dropped on 23.1% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 17.3 pp from -7.8% to 9.5% in 2015.
Gross Margin decreased on 5.3 pp from 29.3% to 24.0% in 2015. SG&A as a % of Revenue increased on 4.8 pp from 6.9% to 11.7% in 2015.
Net Income marign decreased on 9.1 pp from 18.8% to 9.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.0% in 2015. The company showed small growth in CAPEX/Revenue of 0.77 pp from 0.28% in 2012 to 1.0% in 2015. It's average CAPEX/Revenue for the last three years was 2.3%.
Return on investment
The company operates at low ROIC (9.63%) and ROE (7.41%). ROIC dropped on 11.2 pp from 20.8% to 9.6% in 2015. ROE dropped on 12.1 pp from 19.5% to 7.4% in 2015.
Leverage (Debt)
The company paid down all the debt in 2015. Cash dropped on 51.2% in 2015.
Appendix 1: Peers in Advertising
Below we provide SinoMedia Holding Ltd benchmarking against other companies in Advertising 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 |
|---|
| Branding China Group Ltd ($8219) | 57.7% | 11.3% | 84.6% | 12.0% | |
| Clear Media Ltd ($100) | | 2.4% | 8.2% | 6.9% | 4.1% |
| Roadshow Holdings Ltd ($888) | | 13.4% | 9.7% | -0.5% | -10.3% |
| Dahe Media Co Ltd ($8243) | 4.0% | 5.8% | -5.7% | -1.6% | |
| SEEC Media Group Ltd ($205) | 36.9% | 7.1% | -4.6% | -10.0% | |
| |
|---|
| Median (7 companies) | 36.9% | 7.1% | 8.2% | -1.6% | -3.1% |
|---|
| SinoMedia Holding Ltd ($623) | | 1.5% | 7.6% | -7.5% | -23.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cinderella Media Group Ltd ($550) | 24.5% | 26.3% | 26.7% | 72.1% | |
| China Chuanglian Education Group Ltd ($2371) | -114.2% | -2,833.2% | 74.2% | 68.5% | |
| SEEC Media Group Ltd ($205) | 66.6% | 61.7% | 58.4% | 52.0% | |
| Clear Media Ltd ($100) | 37.2% | 38.3% | 40.4% | 41.2% | 43.9% |
| Dahe Media Co Ltd ($8243) | 34.4% | 35.3% | 36.7% | 40.7% | |
| |
|---|
| Median (6 companies) | 35.8% | 36.8% | 38.6% | 46.6% | 43.9% |
|---|
| SinoMedia Holding Ltd ($623) | 31.0% | 34.8% | 36.5% | 29.3% | 24.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cinderella Media Group Ltd ($550) | 16.6% | 18.2% | 18.3% | 43.6% | |
| Clear Media Ltd ($100) | 38.2% | 41.0% | 40.9% | 41.3% | 44.0% |
| China Chuanglian Education Group Ltd ($2371) | -146.2% | -2,821.1% | 50.5% | 36.2% | |
| Roadshow Holdings Ltd ($888) | 19.6% | 22.6% | 26.3% | 20.5% | -8.0% |
| Dahe Media Co Ltd ($8243) | 18.1% | 16.0% | 15.3% | 19.4% | |
| |
|---|
| Median (7 companies) | 18.1% | 18.2% | 26.2% | 20.5% | 18.0% |
|---|
| SinoMedia Holding Ltd ($623) | 23.4% | 27.3% | 30.5% | 24.9% | 16.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cinderella Media Group Ltd ($550) | 2.9% | 1.5% | 5.1% | 6.8% | |
| Roadshow Holdings Ltd ($888) | 7.3% | 2.1% | 2.8% | 1.5% | 3.8% |
| Dahe Media Co Ltd ($8243) | 2.8% | 9.7% | 2.8% | 1.3% | |
| SEEC Media Group Ltd ($205) | 1.2% | 0.9% | 0.4% | 1.1% | |
| China Chuanglian Education Group Ltd ($2371) | 10.9% | 1.2% | 5.0% | 0.7% | |
| |
|---|
| Median (7 companies) | 2.8% | 1.2% | 2.8% | 1.1% | 15.9% |
|---|
| SinoMedia Holding Ltd ($623) | 0.6% | 0.3% | 0.4% | 5.3% | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Branding China Group Ltd ($8219) | 71.5% | 29.0% | 23.6% | 13.7% | |
| Clear Media Ltd ($100) | 9.4% | 9.2% | 10.8% | 12.4% | 14.4% |
| Roadshow Holdings Ltd ($888) | 9.1% | 12.9% | 16.4% | 11.8% | -8.0% |
| Dahe Media Co Ltd ($8243) | 8.1% | 6.9% | 5.3% | 6.9% | |
| Cinderella Media Group Ltd ($550) | 24.7% | 24.6% | 6.7% | 2.3% | |
| |
|---|
| Median (7 companies) | 9.4% | 10.7% | 10.8% | 6.9% | 3.2% |
|---|
| SinoMedia Holding Ltd ($623) | 35.1% | 34.8% | 33.8% | 20.8% | 9.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dahe Media Co Ltd ($8243) | 1.1x | 1.3x | 1.7x | 2.3x | |
| Clear Media Ltd ($100) | -1.7x | -2.1x | -1.3x | -1.4x | -0.9x |
| Branding China Group Ltd ($8219) | -1.1x | -1.8x | -1.4x | -1.6x | |
| China Chuanglian Education Group Ltd ($2371) | | | -0.7x | -2.8x | |
| Roadshow Holdings Ltd ($888) | -2.1x | -1.6x | -3.0x | -4.7x | |
| |
|---|
| Median (6 companies) | -1.1x | -1.4x | -1.3x | -2.2x | -0.9x |
|---|
| SinoMedia Holding Ltd ($623) | -2.4x | -3.2x | -2.0x | -1.6x | -1.9x |
