China 33 Media Group Ltd CAPEX surged on 351% in 2015 while Revenue dropped on 22.1%
24/03/2016 • About China 33 Media Group Ltd (
$8087) • By InTwits
China 33 Media Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China 33 Media Group Ltd is a company in decline: 2015 revenue growth was -22.1%, 5 years revenue CAGR was -15.6%
- The company operates at negative EBITDA Margin: -36.3%
- China 33 Media 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 -15.4% for the sames years0
- China 33 Media Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.6%. At the same time it's a lot of higher than industry average of 4.2%.
- CAPEX is quite volatile: 7.6 in 2015, 1.7 in 2014, 1.0 in 2013, 3.2 in 2012, 2.6 in 2011
- The company has unprofitable business model: ROIC is at -9.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China 33 Media Group Ltd ($8087) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 216.8 | 226.4 | 157.4 | 114.6 | 89.3 | -22.1% |
| Gross Profit | 133.2 | 76.6 | 71.5 | 25.7 | 26.1 | 1.5% |
| SG&A | | 145.0 | 91.1 | 77.8 | 61.6 | -20.8% |
| EBITDA | 34.4 | -79.0 | -9.8 | -36.8 | -32.4 | -11.9% |
| Net Income | 14.9 | -107.1 | -26.0 | -59.1 | -45.2 | -23.6% |
Balance Sheet
|
|---|
| Cash | 200.5 | 132.2 | 105.5 | 19.4 | 420.3 | 2,062.2% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 2.6 | 3.2 | 1.0 | 1.7 | 7.6 | 350.9% |
Ratios
|
|---|
| Revenue growth | 3.8% | 4.4% | -30.5% | -27.2% | -22.1% | |
| EBITDA growth | -67.9% | -329.7% | -87.6% | 274.6% | -11.9% | |
| Gross Margin | 61.4% | 33.9% | 45.4% | 22.4% | 29.2% | 6.8% |
| EBITDA Margin | 15.9% | -34.9% | -6.2% | -32.1% | -36.3% | -4.2% |
| Net Income Margin | 6.9% | -47.3% | -16.5% | -51.6% | -50.6% | 1.0% |
| SG&A, % of revenue | | 64.1% | 57.9% | 67.9% | 69.0% | 1.1% |
| CAPEX, % of revenue | 1.2% | 1.4% | 0.6% | 1.5% | 8.5% | 7.0% |
| ROIC | 11.3% | -26.0% | -6.9% | -21.6% | -9.5% | 12.0% |
| ROE | 6.7% | -37.9% | -12.1% | -34.4% | -13.3% | 21.1% |
| Net Debt/EBITDA | -5.8x | | | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 22.1% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.2 pp from -32.1% to -36.3% in 2015.
Gross Margin increased on 6.8 pp from 22.4% to 29.2% in 2015. SG&A as a % of Revenue increased slightly on 1.1 pp from 67.9% to 69.0% in 2015.
Net Income marign increased slightly on 0.99 pp from -51.6% to -50.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 China 33 Media Group Ltd had CAPEX/Revenue of 8.5%. The company showed CAPEX/Revenue growth of 7.1 pp from 1.4% in 2012 to 8.5% in 2015. Average CAPEX/Revenue for the last three years was 3.5%.
Return on investment
The company operates at negative ROIC (-9.53%) and ROE (-13.30%). ROIC surged on 12.0 pp from -21.6% to -9.5% in 2015. ROE surged on 21.1 pp from -34.4% to -13.3% in 2015.
Leverage (Debt)
The company has no debt. Cash surged on 2,062% in 2015.
Appendix 1: Peers in Media
Below we provide China 33 Media Group Ltd benchmarking against other companies in Media 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 |
|---|
| SCMP Group Ltd ($583) | | 7.8% | 12.5% | -95.9% | 12.5% |
| Hong Kong Economic Times Holdings Ltd ($423) | | 5.6% | 2.7% | 3.1% | 5.3% |
| Modern Media Holdings ($72) | | 11.8% | -3.7% | -4.3% | -1.3% |
| Focus Media Network Ltd ($8112) | | -10.6% | 34.6% | 5.6% | -5.2% |
| Sing Tao News Corp Ltd ($1105) | | -7.5% | -7.9% | -2.4% | -6.2% |
| |
|---|
| Median (16 companies) | 9.6% | 4.1% | -1.8% | -3.9% | -8.8% |
|---|
| China 33 Media Group Ltd ($8087) | | 4.4% | -30.5% | -27.2% | -22.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| I-CABLE Communications Ltd ($1097) | 95.6% | 94.8% | 94.7% | 94.1% | 94.4% |
| Focus Media Network Ltd ($8112) | 81.0% | 68.0% | 67.2% | 50.8% | 57.6% |
| Television Broadcasts Ltd ($511) | 65.3% | 62.9% | 60.9% | 59.0% | 54.9% |
| One Media Group Ltd ($426) | 52.0% | 57.3% | 56.7% | 54.5% | 52.7% |
| Modern Media Holdings ($72) | 57.1% | 57.5% | 55.8% | 55.6% | 50.8% |
| |
|---|
| Median (13 companies) | 43.6% | 39.0% | 38.5% | 36.2% | 38.5% |
|---|
| China 33 Media Group Ltd ($8087) | 61.4% | 33.9% | 45.4% | 22.4% | 29.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SCMP Group Ltd ($583) | 26.9% | 23.5% | 20.5% | 218.1% | 193.5% |
| Media Chinese International Ltd ($685) | 20.0% | 20.0% | 18.3% | 18.1% | 16.5% |
| One Media Group Ltd ($426) | 14.4% | 18.7% | 23.0% | 22.8% | 15.2% |
| Phoenix Satellite Television Holdings Ltd ($2008) | 29.8% | 30.1% | 31.1% | 24.6% | 14.1% |
| Oriental Press Group ($18) | 20.6% | 9.5% | 12.8% | 14.6% | 13.9% |
| |
|---|
| Median (16 companies) | 13.3% | 12.9% | 11.6% | 12.5% | 10.0% |
|---|
| China 33 Media Group Ltd ($8087) | 15.9% | -34.9% | -6.2% | -32.1% | -36.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SCMP Group Ltd ($583) | 3.6% | 7.0% | 5.3% | 52.2% | 85.2% |
| Evergrande Health Industry Group Ltd ($708) | 58.0% | 14.6% | 2.4% | 2.9% | 13.5% |
| I-CABLE Communications Ltd ($1097) | 10.6% | 10.1% | 7.6% | 11.3% | 13.0% |
| Hong Kong Economic Times Holdings Ltd ($423) | 9.0% | 8.4% | 8.5% | 1.3% | 10.0% |
| Tom Group Ltd ($2383) | 10.0% | 11.9% | 8.4% | 9.4% | 9.5% |
| |
|---|
| Median (16 companies) | 4.6% | 3.9% | 5.3% | 2.9% | 5.0% |
|---|
| China 33 Media Group Ltd ($8087) | 1.2% | 1.4% | 0.6% | 1.5% | 8.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Media Chinese International Ltd ($685) | 18.7% | 18.6% | 17.8% | 18.4% | 15.6% |
| One Media Group Ltd ($426) | 17.1% | 25.6% | 21.8% | 16.0% | 8.9% |
| Next Media Ltd ($282) | 1.7% | 8.5% | 6.7% | 8.2% | 6.8% |
| Modern Media Holdings ($72) | 23.8% | 20.6% | 10.4% | 9.3% | 5.5% |
| Hong Kong Economic Times Holdings Ltd ($423) | 23.3% | 11.5% | -1.5% | 3.2% | 5.2% |
| |
|---|
| Median (16 companies) | 7.9% | 5.6% | 5.1% | 2.6% | 2.7% |
|---|
| China 33 Media Group Ltd ($8087) | 11.3% | -26.0% | -6.9% | -21.6% | -9.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tom Group Ltd ($2383) | | | | 8.1x | 16.7x |
| I-CABLE Communications Ltd ($1097) | -2.0x | -4.0x | -0.8x | 0.2x | 2.0x |
| One Media Group Ltd ($426) | -3.8x | -2.3x | -0.6x | -1.1x | 1.5x |
| Modern Media Holdings ($72) | -0.9x | -0.8x | -0.9x | 0.1x | 1.0x |
| Media Chinese International Ltd ($685) | -1.1x | -1.4x | 0.8x | 0.6x | 0.2x |
| |
|---|
| Median (12 companies) | -1.3x | -1.7x | -1.3x | -1.3x | -0.2x |
|---|
