Zhuhai Holdings Investment Group Ltd revenue growth accelerated to 76.3% in 2015 vs. 57.0% a year earliner
24/03/2016 • About Zhuhai Holdings Investment Group Ltd (
$908) • By InTwits
Zhuhai Holdings Investment Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Zhuhai Holdings Investment Group Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.6%. At the same time it's in pair with industry average of 3.8%.
- CAPEX is quite volatile: 171 in 2015, 170 in 2014, 62.1 in 2013, 56.2 in 2012, 19.1 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.3%
- It operates with high leverage: Net Debt/EBITDA is 4.0x while industry average is -21.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Zhuhai Holdings Investment Group Ltd ($908) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 293 | 968 | 1,108 | 1,739 | 3,067 | 76.3% |
| Gross Profit | 80 | 258 | 337 | 531 | 764 | 44.0% |
| SG&A | | 187 | 260 | 300 | 365 | 21.7% |
| EBITDA | 60 | 190 | 212 | 355 | 520 | 46.3% |
| Net Income | 18 | 69 | 210 | 59 | 125 | 110.1% |
Balance Sheet
|
|---|
| Cash | 224 | 783 | 911 | 1,147 | 1,873 | 63.3% |
| Short Term Debt | 0 | 0 | 1,967 | 852 | 650 | -23.7% |
| Long Term Debt | 0 | 0 | 1,295 | 2,662 | 3,327 | 25.0% |
Cash flow
|
|---|
| Capex | 19 | 56 | 62 | 170 | 171 | 0.6% |
Ratios
|
|---|
| Revenue growth | 13.4% | 229.8% | 14.5% | 57.0% | 76.3% | |
| EBITDA growth | 60.6% | 216.8% | 11.2% | 68.0% | 46.3% | |
| Gross Margin | 27.4% | 26.6% | 30.4% | 30.5% | 24.9% | -5.6% |
| EBITDA Margin | 20.5% | 19.7% | 19.1% | 20.4% | 17.0% | -3.5% |
| Net Income Margin | 6.0% | 7.1% | 19.0% | 3.4% | 4.1% | 0.7% |
| SG&A, % of revenue | | 19.4% | 23.5% | 17.3% | 11.9% | -5.3% |
| CAPEX, % of revenue | 6.5% | 5.8% | 5.6% | 9.8% | 5.6% | -4.2% |
| ROIC | 1.0% | 7.6% | 2.9% | 3.6% | 5.3% | 1.7% |
| ROE | 1.3% | 4.9% | 11.4% | 2.6% | 5.5% | 2.9% |
| Net Debt/EBITDA | -3.7x | -4.1x | 11.1x | 6.7x | 4.0x | -2.6x |
Revenue and profitability
Zhuhai Holdings Investment Group Ltd's Revenue surged on 76.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 18.1 pp from 25.3% to 43.4% in 2015.
Gross Margin decreased on 5.6 pp from 30.5% to 24.9% in 2015. SG&A as a % of Revenue decreased on 5.3 pp from 17.3% to 11.9% in 2015.
Net Income marign increased slightly on 0.65 pp from 3.4% to 4.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 5.6%. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 7.0%.
Return on investment
The company operates at low ROIC (5.29%) and ROE (5.54%). ROIC increased slightly on 1.7 pp from 3.6% to 5.3% in 2015. ROE increased on 2.9 pp from 2.6% to 5.5% in 2015.
Leverage (Debt)
Debt level is 4.0x Net Debt / EBITDA and 7.6x Debt / EBITDA. Net Debt / EBITDA dropped on 2.6x from 6.7x to 4.0x in 2015. Debt jumped on 13.2% in 2015 while cash surged on 63.3% in 2015.
Appendix 1: Peers in Lodging
Below you can find Zhuhai Holdings Investment Group 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 |
|---|
| China New City Commercial Development Ltd ($1321) | | -16.9% | 433.0% | -76.2% | 141.3% |
| Century City International Holdings Ltd ($355) | | 283.6% | 108.7% | -35.8% | 25.9% |
| Far East Consortium International Ltd/HK ($35) | | 6.4% | 111.9% | 9.0% | 25.7% |
| NagaCorp Ltd ($3918) | | 24.6% | 23.7% | 17.2% | 24.6% |
| Jinmao Investments and Jinmao China Investments Holdings Ltd ($6139) | | -1.4% | -0.6% | 4.8% | 7.7% |
| |
|---|
| Median (20 companies) | 26.4% | 11.5% | 10.2% | 0.7% | -6.8% |
|---|
| Zhuhai Holdings Investment Group Ltd ($908) | | 229.8% | 14.5% | 57.0% | 76.3% |
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% |
| 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% |
| NagaCorp Ltd ($3918) | 73.2% | 72.9% | 72.1% | 67.4% | 65.1% |
| |
|---|
| Median (14 companies) | 56.1% | 57.2% | 55.9% | 52.0% | 53.9% |
|---|
| Zhuhai Holdings Investment Group Ltd ($908) | 27.4% | 26.6% | 30.4% | 30.5% | 24.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| NagaCorp Ltd ($3918) | 49.2% | 49.8% | 50.1% | 42.8% | 45.3% |
| Emperor Entertainment Hotel Ltd ($296) | 38.7% | 44.9% | 46.4% | 46.9% | 43.1% |
| Jinmao Investments and Jinmao China Investments Holdings Ltd ($6139) | 40.9% | 41.2% | 40.5% | 25.8% | 41.5% |
| Asia Standard Hotel Group Ltd ($292) | 69.1% | -23.9% | 65.2% | 49.9% | 40.4% |
| Sino Hotels Holdings Ltd ($1221) | 42.8% | 46.5% | 45.9% | 43.1% | 39.6% |
| |
|---|
| Median (20 companies) | 26.7% | 26.8% | 26.4% | 25.8% | 27.6% |
|---|
| Zhuhai Holdings Investment Group Ltd ($908) | 20.5% | 19.7% | 19.1% | 20.4% | 17.0% |
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% | 68.5% |
| Legend Strategy International Holdings Group Co Ltd ($1355) | 15.7% | 17.0% | 38.0% | 1.2% | 62.6% |
| Century City International Holdings Ltd ($355) | 0.3% | 21.2% | 32.9% | 13.4% | 35.8% |
| Shangri-La Asia Ltd ($69) | 26.5% | 48.5% | 33.1% | 41.2% | 34.3% |
| NagaCorp Ltd ($3918) | 20.3% | 25.9% | 17.2% | 24.0% | 27.8% |
| |
|---|
| Median (20 companies) | 6.3% | 7.4% | 11.0% | 13.2% | 15.4% |
|---|
| Zhuhai Holdings Investment Group Ltd ($908) | 6.5% | 5.8% | 5.6% | 9.8% | 5.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| NagaCorp Ltd ($3918) | 27.6% | 30.6% | 28.9% | 22.6% | 28.6% |
| MGM China Holdings Ltd ($2282) | 47.3% | 46.2% | 53.8% | 54.5% | 24.0% |
| Sands China Ltd ($1928) | 14.5% | 14.2% | 24.4% | 26.7% | 15.8% |
| Emperor Entertainment Hotel Ltd ($296) | 13.0% | 22.2% | 21.1% | 18.4% | 12.0% |
| Galaxy Entertainment Group Ltd ($27) | 14.7% | 25.2% | 30.0% | 27.5% | 10.2% |
| |
|---|
| Median (20 companies) | 8.8% | 5.7% | 5.7% | 3.9% | 3.1% |
|---|
| Zhuhai Holdings Investment Group Ltd ($908) | 1.0% | 7.6% | 2.9% | 3.6% | 5.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China New City Commercial Development Ltd ($1321) | 18.7x | 26.0x | 7.9x | | 100.1x |
| Century City International Holdings Ltd ($355) | -58.1x | 6.5x | 9.3x | 11.2x | 12.3x |
| Regal Hotels International Holdings Ltd ($78) | | 5.0x | 8.7x | 11.8x | 11.1x |
| Shangri-La Asia Ltd ($69) | 4.0x | 6.0x | 6.8x | 6.9x | 9.8x |
| Macau Legend Development Ltd ($1680) | 2.2x | 2.2x | 0.6x | 0.2x | 7.1x |
| |
|---|
| Median (19 companies) | 1.0x | 1.2x | 0.6x | 0.5x | 3.8x |
|---|
| Zhuhai Holdings Investment Group Ltd ($908) | -3.7x | -4.1x | 11.1x | 6.7x | 4.0x |
