Alibaba Pictures Group Ltd Net Income surged on 212% in 2015 and EBITDA Margin surged on 38.4 pp from -179% to -141%
30/03/2016 • About Alibaba Pictures Group Ltd (
$1060) • By InTwits
Alibaba Pictures Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Alibaba Pictures Group Ltd doesn't have a profitable business model yet: 2015 ROIC is -3.3%
- The company operates at negative EBITDA Margin: -140.6%
- Alibaba Pictures Group Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -16.7%0
- Alibaba Pictures Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.1%. At the same time it's a lot of higher than industry average of 8.8%.
- CAPEX is quite volatile: 18.2 in 2015, 44.0 in 2014, 60.3 in 2013, 104 in 2012, 1.2 in 2011
- The company has unprofitable business model: ROIC is at -3.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Alibaba Pictures Group Ltd ($1060) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 239.4 | 644.9 | 349.4 | 126.6 | 263.7 | 108.3% |
| Gross Profit | 22.7 | 241.0 | 168.4 | -62.6 | -25.1 | -60.0% |
| SG&A | 86.8 | 170.8 | 117.2 | 95.9 | 361.8 | 277.3% |
| EBITDA | -57.8 | 158.1 | 226.2 | -226.7 | -370.9 | 63.6% |
| Net Income | -62.6 | 144.1 | 179.7 | -417.3 | 466.0 | -211.7% |
Balance Sheet
|
|---|
| Cash | 48.0 | 86.7 | 155.6 | 30.2 | 3,678.0 | 12,095.7% |
| Short Term Debt | 0.0 | 267.9 | 0.0 | 0.0 | 1,980.0 | |
| Long Term Debt | 0.0 | 17.1 | 20.9 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 1.2 | 103.7 | 60.3 | 44.0 | 18.2 | -58.7% |
Ratios
|
|---|
| Revenue growth | -32.3% | 169.4% | -45.8% | -63.8% | 108.3% | |
| EBITDA growth | -180.2% | -373.4% | 43.1% | -200.3% | 63.6% | |
| Gross Margin | 9.5% | 37.4% | 48.2% | -49.4% | -9.5% | 39.9% |
| EBITDA Margin | -24.1% | 24.5% | 64.7% | -179.1% | -140.6% | 38.4% |
| Net Income Margin | -26.1% | 22.3% | 51.4% | -329.5% | 176.7% | 506.2% |
| SG&A, % of revenue | 36.2% | 26.5% | 33.5% | 75.7% | 137.2% | 61.5% |
| CAPEX, % of revenue | 0.5% | 16.1% | 17.2% | 34.8% | 6.9% | -27.9% |
| ROIC | -10.3% | 19.5% | 15.4% | -6.2% | -3.3% | 2.9% |
| ROE | -16.9% | 24.0% | 14.7% | -11.2% | 4.2% | 15.4% |
| Net Debt/EBITDA | | 1.3x | -0.6x | | | 0.0x |
Revenue and profitability
Alibaba Pictures Group Ltd's Revenue surged on 108% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 38.4 pp from -179% to -141% in 2015.
Gross Margin surged on 39.9 pp from -49.4% to -9.5% in 2015. SG&A as a % of Revenue jumped on 61.5 pp from 75.7% to 137% in 2015.
Net Income marign surged on 506 pp from -330% to 177% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 6.9% in 2015. Alibaba Pictures Group Ltd showed decline in CAPEX/Revenue of 9.2 pp from 16.1% in 2012 to 6.9% in 2015. For the last three years the average CAPEX/Revenue was 19.6%.
Return on investment
The company operates at negative ROIC (-3.30%) and low but positive ROE (4.19%). ROIC increased on 2.9 pp from -6.2% to -3.3% in 2015. ROE surged on 15.4 pp from -11.2% to 4.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -7.1x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt surged while cash jumped on 12,096% in 2015.
Appendix 1: Peers in Entertainment
Below we provide Alibaba Pictures Group Ltd benchmarking against other companies in Entertainment 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 |
|---|
| Neo Telemedia Ltd ($8167) | | 268.8% | -60.2% | -13.4% | 5,442.4% |
| National Arts Entertainment and Culture Group Ltd ($8228) | | -57.9% | 181.2% | -20.1% | 162.4% |
| 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% |
| MelcoLot Ltd ($8198) | | -10.0% | -37.2% | -17.0% | 26.2% |
| |
|---|
| Median (23 companies) | 16.3% | -0.7% | 14.1% | 1.2% | -6.8% |
|---|
| Alibaba Pictures Group Ltd ($1060) | | 169.4% | -45.8% | -63.8% | 108.3% |
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% |
| Universe International Holdings Ltd ($1046) | 15.3% | 22.1% | 36.7% | 11.4% | 84.8% |
| Cheung Wo International Holdings Ltd ($9) | 49.4% | -17.5% | 71.4% | 77.7% | 77.8% |
| Bingo Group Holdings Ltd ($8220) | 2.0% | 2.2% | 71.2% | 55.1% | 57.4% |
| |
|---|
| Median (19 companies) | 48.3% | 44.9% | 56.8% | 44.1% | 44.3% |
|---|
| Alibaba Pictures Group Ltd ($1060) | 9.5% | 37.4% | 48.2% | -49.4% | -9.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% |
| Haichang Holdings Ltd ($2255) | 46.9% | 55.0% | 44.5% | 46.3% | 56.6% |
| China Vanguard Group Ltd ($8156) | 2.8% | -15.0% | -51.8% | 30.0% | 22.9% |
| Dynam Japan Holdings Co Ltd ($6889) | 24.0% | 24.5% | 25.7% | 24.6% | 16.7% |
| |
|---|
| Median (23 companies) | 14.2% | 19.7% | 17.2% | 18.3% | -5.3% |
|---|
| Alibaba Pictures Group Ltd ($1060) | -24.1% | 24.5% | 64.7% | -179.1% | -140.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Star Cultural Media Group Ltd ($8172) | 0.5% | 8.9% | 0.0% | 0.0% | 848.3% |
| National Arts Entertainment and Culture Group Ltd ($8228) | 536.1% | 1,237.1% | 771.1% | 799.0% | 508.9% |
| Cheung Wo International Holdings Ltd ($9) | 44.7% | 90.3% | 465.2% | 383.2% | 202.4% |
| Haichang Holdings Ltd ($2255) | 92.6% | 21.4% | 18.5% | 10.3% | 64.2% |
| Amax International Holdings Ltd ($959) | 18.7% | 10.4% | 2.7% | 17.2% | 59.8% |
| |
|---|
| Median (23 companies) | 7.3% | 8.7% | 6.6% | 4.7% | 8.5% |
|---|
| Alibaba Pictures Group Ltd ($1060) | 0.5% | 16.1% | 17.2% | 34.8% | 6.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Universe International Holdings Ltd ($1046) | -4.8% | -6.2% | -0.8% | -3.7% | 43.8% |
| Neptune Group Ltd ($70) | 22.0% | 22.8% | 23.8% | 21.1% | 18.1% |
| Dynam Japan Holdings Co Ltd ($6889) | 22.5% | 23.8% | 25.4% | 21.8% | 10.5% |
| Haichang Holdings Ltd ($2255) | 6.2% | 7.1% | 8.1% | 8.6% | 8.9% |
| China Vanguard Group Ltd ($8156) | -0.8% | -4.3% | -14.3% | 7.6% | 5.7% |
| |
|---|
| Median (23 companies) | 2.8% | -1.1% | 1.3% | 0.3% | -7.0% |
|---|
| Alibaba Pictures Group Ltd ($1060) | -10.3% | 19.5% | 15.4% | -6.2% | -3.3% |
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 | 25.8x |
| China 3D Digital Entertainment Ltd ($8078) | -11.9x | | -0.5x | 2.3x | |
| |
|---|
| Median (20 companies) | -0.1x | -0.2x | -0.5x | -0.2x | -0.7x |
|---|
