Dahe Media Co Ltd Debt jumped on 18.2% in 2015 and Revenue increased on 8.8%
28/03/2016 • About Dahe Media Co Ltd (
$8243) • By InTwits
Dahe Media Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dahe Media Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.5%. At the same time it's a lot of higher than industry average of 50.1%.
- CAPEX is quite volatile: 4.3 in 2015, 5.6 in 2014, 12.0 in 2013, 44.2 in 2012, 12.0 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.8%
- It operates with high leverage: Net Debt/EBITDA is 3.0x while industry average is -1.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dahe Media Co Ltd ($8243) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 429.7 | 454.8 | 429.0 | 422.1 | 459.0 | 8.8% |
| Gross Profit | 147.8 | 160.5 | 157.5 | 171.7 | 135.4 | -21.1% |
| SG&A | | 116.5 | 124.0 | 121.3 | 85.5 | -29.6% |
| EBITDA | 77.8 | 72.8 | 65.4 | 81.8 | 79.0 | -3.4% |
| Net Income | 13.6 | 8.9 | 6.2 | 13.4 | 22.0 | 64.2% |
Balance Sheet
|
|---|
| Cash | 207.3 | 124.1 | 198.6 | 106.5 | 117.1 | 9.9% |
| Short Term Debt | 292.0 | 220.0 | 312.9 | 297.5 | 343.4 | 15.4% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 8.3 | |
Cash flow
|
|---|
| Capex | 12.0 | 44.2 | 12.0 | 5.6 | 4.3 | -24.3% |
Ratios
|
|---|
| Revenue growth | 4.0% | 5.8% | -5.7% | -1.6% | 8.8% | |
| EBITDA growth | 12.6% | -6.3% | -10.2% | 25.0% | -3.4% | |
| Gross Margin | 34.4% | 35.3% | 36.7% | 40.7% | 29.5% | -11.2% |
| EBITDA Margin | 18.1% | 16.0% | 15.3% | 19.4% | 17.2% | -2.2% |
| Net Income Margin | 3.2% | 1.9% | 1.4% | 3.2% | 4.8% | 1.6% |
| SG&A, % of revenue | | 25.6% | 28.9% | 28.8% | 18.6% | -10.1% |
| CAPEX, % of revenue | 2.8% | 9.7% | 2.8% | 1.3% | 0.9% | -0.4% |
| ROIC | 8.1% | 6.9% | 5.3% | 6.9% | 6.8% | -0.2% |
| ROE | 4.2% | 2.7% | 1.8% | 4.1% | 6.9% | 2.8% |
| Net Debt/EBITDA | 1.1x | 1.3x | 1.7x | 2.3x | 3.0x | 0.6x |
Revenue and profitability
Dahe Media Co Ltd's Revenue increased on 8.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 14.9 pp from -20.7% to -5.8% in 2015.
Gross Margin dropped on 11.2 pp from 40.7% to 29.5% in 2015. SG&A as a % of Revenue dropped on 10.1 pp from 28.8% to 18.6% in 2015.
Net Income marign increased slightly on 1.6 pp from 3.2% to 4.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.93% in 2015. The company showed decline in CAPEX/Revenue of 8.8 pp from 9.7% in 2012 to 0.93% in 2015. Average CAPEX/Revenue for the last three years was 1.7%.
Return on investment
The company operates at low ROIC (6.76%) and ROE (6.92%). ROIC showed almost no change in 2015. ROE increased on 2.8 pp from 4.1% to 6.9% in 2015.
Leverage (Debt)
Debt level is 3.0x Net Debt / EBITDA and 4.5x Debt / EBITDA. Net Debt / EBITDA jumped on 0.6x from 2.3x to 3.0x in 2015. Debt surged on 18.2% in 2015 while cash increased on 9.9% in 2015.
Appendix 1: Peers in Advertising
Below you can find Dahe Media Co Ltd benchmarking vs. other companies in Advertising 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 |
|---|
| 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% |
| SinoMedia Holding Ltd ($623) | | 1.5% | 7.6% | -7.5% | -23.1% |
| SEEC Media Group Ltd ($205) | | 7.1% | -4.6% | -10.0% | -35.4% |
| |
|---|
| Median (7 companies) | 57.7% | 7.1% | 8.2% | -7.5% | -16.7% |
|---|
| Dahe Media Co Ltd ($8243) | | 5.8% | -5.7% | -1.6% | 8.8% |
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% | 51.6% |
| Clear Media Ltd ($100) | 37.2% | 38.3% | 40.4% | 41.2% | 43.9% |
| SinoMedia Holding Ltd ($623) | 31.0% | 34.8% | 36.5% | 29.3% | 24.0% |
| |
|---|
| Median (6 companies) | 34.1% | 36.5% | 38.5% | 46.6% | 43.9% |
|---|
| Dahe Media Co Ltd ($8243) | 34.4% | 35.3% | 36.7% | 40.7% | 29.5% |
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% | |
| SinoMedia Holding Ltd ($623) | 23.4% | 27.3% | 30.5% | 24.9% | 16.7% |
| Roadshow Holdings Ltd ($888) | 19.6% | 22.6% | 26.3% | 20.5% | -8.0% |
| |
|---|
| Median (7 companies) | 19.6% | 22.6% | 26.3% | 24.9% | 4.3% |
|---|
| Dahe Media Co Ltd ($8243) | 18.1% | 16.0% | 15.3% | 19.4% | 17.2% |
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% | |
| SinoMedia Holding Ltd ($623) | 0.6% | 0.3% | 0.4% | 5.3% | 1.0% |
| Roadshow Holdings Ltd ($888) | 7.3% | 2.1% | 2.8% | 1.5% | 3.8% |
| SEEC Media Group Ltd ($205) | 1.2% | 0.9% | 0.4% | 1.1% | 1.3% |
| China Chuanglian Education Group Ltd ($2371) | 10.9% | 1.2% | 5.0% | 0.7% | |
| |
|---|
| Median (7 companies) | 1.2% | 0.9% | 0.5% | 1.1% | 2.5% |
|---|
| Dahe Media Co Ltd ($8243) | 2.8% | 9.7% | 2.8% | 1.3% | 0.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SinoMedia Holding Ltd ($623) | 35.1% | 34.8% | 33.8% | 20.8% | 9.6% |
| 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% |
| Cinderella Media Group Ltd ($550) | 24.7% | 24.6% | 6.7% | 2.3% | |
| |
|---|
| Median (7 companies) | 9.4% | 12.9% | 12.3% | 11.8% | 1.1% |
|---|
| Dahe Media Co Ltd ($8243) | 8.1% | 6.9% | 5.3% | 6.9% | 6.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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 | |
| SinoMedia Holding Ltd ($623) | -2.4x | -3.2x | -2.0x | -1.6x | -1.9x |
| 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) | -1.4x | -1.7x | -1.4x | -2.2x | -1.4x |
|---|
| Dahe Media Co Ltd ($8243) | 1.1x | 1.3x | 1.7x | 2.3x | 3.0x |
