China Chuanglian Education Group Ltd CAPEX jumped on 2,508% in 2015 and Revenue surged on 26.5%
30/03/2016 • About China Chuanglian Education Group Ltd (
$2371) • By InTwits
China Chuanglian Education Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Chuanglian Education Group Ltd doesn't have a profitable business model yet: 2015 ROIC is -1.4%
- China Chuanglian Education 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 -183.7%0
- China Chuanglian Education Group Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.4%. At the same time it's in pair with industry average of 6.6%.
- CAPEX is quite volatile: 13.8 in 2015, 0.53 in 2014, 4.9 in 2013, 0.28 in 2012, 4.2 in 2011
- The company has unprofitable business model: ROIC is at -1.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Chuanglian Education Group Ltd ($2371) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 38.220 | 22.748 | 98.350 | 76.906 | 97.281 | 26.5% |
| Gross Profit | -43.655 | -644.489 | 73.004 | 52.705 | 62.517 | 18.6% |
| SG&A | | 43.230 | 39.140 | 46.008 | 76.434 | 66.1% |
| EBITDA | -55.887 | -641.744 | 49.698 | 27.838 | 7.457 | -73.2% |
| Net Income | -145.840 | -701.309 | 7.712 | 24.233 | -298.658 | -1,332.4% |
Balance Sheet
|
|---|
| Cash | 18.194 | 19.965 | 50.917 | 83.361 | 191.776 | 130.1% |
| Short Term Debt | 18.325 | 24.413 | 18.000 | 5.000 | 4.990 | -0.2% |
| Long Term Debt | 37.703 | 43.519 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 4.175 | 0.278 | 4.925 | 0.531 | 13.847 | 2,507.7% |
Ratios
|
|---|
| Revenue growth | 177.0% | -40.5% | 332.3% | -21.8% | 26.5% | |
| EBITDA growth | 59.4% | 1,048.3% | -107.7% | -44.0% | -73.2% | |
| Gross Margin | -114.2% | -2,833.2% | 74.2% | 68.5% | 64.3% | -4.3% |
| EBITDA Margin | -146.2% | -2,821.1% | 50.5% | 36.2% | 7.7% | -28.5% |
| Net Income Margin | -381.6% | -3,082.9% | 7.8% | 31.5% | -307.0% | -338.5% |
| SG&A, % of revenue | | 190.0% | 39.8% | 59.8% | 78.6% | 18.7% |
| CAPEX, % of revenue | 10.9% | 1.2% | 5.0% | 0.7% | 14.2% | 13.5% |
| ROIC | -12.9% | -171.2% | 12.3% | 1.9% | -1.4% | -3.3% |
| ROE | -21.5% | | | 4.4% | -60.3% | -64.7% |
| Net Debt/EBITDA | | | -0.7x | -2.8x | -25.0x | -22.2x |
Revenue and profitability
The company's Revenue jumped on 26.5% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 38.0 pp from 17.5% to 55.5% in FY2015.
Gross Margin decreased on 4.3 pp from 68.5% to 64.3% in 2015. SG&A as a % of Revenue surged on 18.7 pp from 59.8% to 78.6% in 2015.
Net Income marign dropped on 339 pp from 31.5% to -307% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 China Chuanglian Education Group Ltd had CAPEX/Revenue of 14.2%. The company's CAPEX/Revenue surged on 13.0 pp from 1.2% in 2012 to 14.2% in 2015. Average CAPEX/Revenue for the last three years was 6.6%.To secure this fast growth China Chuanglian Education Group Ltd made large investments to CAPEX (186% of EBITDA).
Return on investment
The company operates at negative ROIC (-1.39%) and ROE (-60.32%). ROIC decreased on 3.3 pp from 1.9% to -1.4% in 2015. ROE dropped on 64.7 pp from 4.4% to -60.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -25.0x and Debt / EBITDA is 0.7x. Net Debt / EBITDA dropped on 22.2x from -2.8x to -25.0x in 2015. Debt showed almost no change in 2015 while cash surged on 130% in 2015.
Appendix 1: Peers in Advertising
Below we provide China Chuanglian Education Group 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 |
|---|
| Dahe Media Co Ltd ($8243) | | 5.8% | -5.7% | -1.6% | 8.8% |
| Cinderella Media Group Ltd ($550) | | 7.1% | -63.6% | -89.2% | 4.9% |
| Branding China Group Ltd ($8219) | | 11.3% | 84.6% | 12.0% | 4.5% |
| Clear Media Ltd ($100) | | 2.4% | 8.2% | 6.9% | 4.1% |
| Roadshow Holdings Ltd ($888) | | 13.4% | 9.7% | -0.5% | -10.3% |
| |
|---|
| Median (7 companies) | | 7.1% | 7.6% | -1.6% | 4.1% |
|---|
| China Chuanglian Education Group Ltd ($2371) | | -40.5% | 332.3% | -21.8% | 26.5% |
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% | 72.8% |
| 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% |
| Dahe Media Co Ltd ($8243) | 34.4% | 35.3% | 36.7% | 40.7% | 29.5% |
| Branding China Group Ltd ($8219) | 44.6% | 39.4% | 33.4% | 27.3% | 29.5% |
| |
|---|
| Median (6 companies) | 35.8% | 36.8% | 36.6% | 41.0% | 36.7% |
|---|
| China Chuanglian Education Group Ltd ($2371) | -114.2% | -2,833.2% | 74.2% | 68.5% | 64.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Clear Media Ltd ($100) | 38.2% | 41.0% | 40.9% | 41.3% | 44.0% |
| Dahe Media Co Ltd ($8243) | 18.1% | 16.0% | 15.3% | 19.4% | 17.2% |
| Branding China Group Ltd ($8219) | 36.3% | 30.3% | 26.2% | 18.6% | 17.0% |
| SinoMedia Holding Ltd ($623) | 23.4% | 27.3% | 30.5% | 24.9% | 16.7% |
| Cinderella Media Group Ltd ($550) | 16.6% | 18.2% | 18.3% | 43.6% | 10.3% |
| |
|---|
| Median (7 companies) | 19.6% | 22.6% | 26.2% | 20.5% | 16.7% |
|---|
| China Chuanglian Education Group Ltd ($2371) | -146.2% | -2,821.1% | 50.5% | 36.2% | 7.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Clear Media Ltd ($100) | 0.8% | 0.6% | 0.5% | 0.6% | 28.0% |
| Roadshow Holdings Ltd ($888) | 7.3% | 2.1% | 2.8% | 1.5% | 3.8% |
| Cinderella Media Group Ltd ($550) | 2.9% | 1.5% | 5.1% | 6.8% | 2.7% |
| SEEC Media Group Ltd ($205) | 1.2% | 0.9% | 0.4% | 1.1% | 1.3% |
| SinoMedia Holding Ltd ($623) | 0.6% | 0.3% | 0.4% | 5.3% | 1.0% |
| |
|---|
| Median (7 companies) | 1.2% | 0.9% | 0.5% | 1.3% | 1.3% |
|---|
| China Chuanglian Education Group Ltd ($2371) | 10.9% | 1.2% | 5.0% | 0.7% | 14.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Clear Media Ltd ($100) | 9.4% | 9.2% | 10.8% | 12.4% | 14.4% |
| Branding China Group Ltd ($8219) | 71.5% | 29.0% | 23.6% | 13.7% | 12.0% |
| SinoMedia Holding Ltd ($623) | 35.1% | 34.8% | 33.8% | 20.8% | 9.6% |
| Dahe Media Co Ltd ($8243) | 8.1% | 6.9% | 5.3% | 6.9% | 6.8% |
| Cinderella Media Group Ltd ($550) | 24.7% | 24.6% | 6.7% | 2.3% | 2.7% |
| |
|---|
| Median (7 companies) | 9.4% | 12.9% | 10.8% | 11.8% | 6.8% |
|---|
| China Chuanglian Education Group Ltd ($2371) | -12.9% | -171.2% | 12.3% | 1.9% | -1.4% |
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 | 3.0x |
| Clear Media Ltd ($100) | -1.7x | -2.1x | -1.3x | -1.4x | -0.9x |
| SinoMedia Holding Ltd ($623) | -2.4x | -3.2x | -2.0x | -1.6x | -1.9x |
| Branding China Group Ltd ($8219) | -1.1x | -1.8x | -1.4x | -1.6x | -2.7x |
| Cinderella Media Group Ltd ($550) | -1.1x | -1.1x | -3.1x | -5.5x | -14.1x |
| |
|---|
| Median (5 companies) | -1.1x | -1.6x | -1.4x | -1.6x | -1.9x |
|---|
| China Chuanglian Education Group Ltd ($2371) | | | -0.7x | -2.8x | -25.0x |
