China Travel International Investment Hong Kong Ltd reports 64.4% CAPEX decline and 1.8% Revenue decline
30/03/2016 • About China Travel International Investment Hong Kong Ltd (
$308) • By InTwits
China Travel International Investment Hong Kong Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Travel International Investment Hong Kong Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.4%. At the same time it's a lot of higher than industry average of 12.7%.
- CAPEX is quite volatile: 477 in 2015, 1,340 in 2014, 1,235 in 2013, 624 in 2012, 635 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.0%
- It operates with high leverage: Net Debt/EBITDA is -2.0x while industry average is -30.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Travel International Investment Hong Kong Ltd ($308) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,353 | 4,668 | 4,360 | 4,475 | 4,395 | -1.8% |
| Gross Profit | 2,100 | 2,153 | 2,084 | 2,058 | 2,004 | -2.6% |
| SG&A | 1,661 | 1,654 | 1,580 | 1,500 | 1,469 | -2.1% |
| EBITDA | 1,112 | 1,319 | 1,267 | 2,172 | 1,394 | -35.8% |
| Net Income | 695 | 804 | 1,152 | 1,739 | 1,353 | -22.2% |
Balance Sheet
|
|---|
| Cash | 3,491 | 2,678 | 1,967 | 3,327 | 3,681 | 10.6% |
| Short Term Debt | 808 | 393 | 512 | 62 | 23 | -63.5% |
| Long Term Debt | 42 | 42 | 20 | 806 | 806 | -0.1% |
Cash flow
|
|---|
| Capex | 635 | 624 | 1,235 | 1,340 | 477 | -64.4% |
Ratios
|
|---|
| Revenue growth | -2.5% | 7.2% | -6.6% | 2.6% | -1.8% | |
| EBITDA growth | 28.7% | 18.6% | -3.9% | 71.4% | -35.8% | |
| Gross Margin | 48.2% | 46.1% | 47.8% | 46.0% | 45.6% | -0.4% |
| EBITDA Margin | 25.6% | 28.2% | 29.1% | 48.5% | 31.7% | -16.8% |
| Net Income Margin | 16.0% | 17.2% | 26.4% | 38.9% | 30.8% | -8.1% |
| SG&A, % of revenue | 38.1% | 35.4% | 36.2% | 33.5% | 33.4% | -0.1% |
| CAPEX, % of revenue | 14.6% | 13.4% | 28.3% | 29.9% | 10.9% | -19.1% |
| ROIC | 4.6% | 5.6% | 5.0% | 9.6% | 5.0% | -4.6% |
| ROE | 5.6% | 6.1% | 8.2% | 11.6% | 8.7% | -2.8% |
| Net Debt/EBITDA | -2.4x | -1.7x | -1.1x | -1.1x | -2.0x | -0.9x |
Revenue and profitability
China Travel International Investment Hong Kong Ltd's Revenue decreased slightly on 1.8% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 16.8 pp from 48.5% to 31.7% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased on 8.1 pp from 38.9% to 30.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 China Travel International Investment Hong Kong Ltd had CAPEX/Revenue of 10.9%. China Travel International Investment Hong Kong Ltd's CAPEX/Revenue decreased on 2.5 pp from 13.4% in 2012 to 10.9% in 2015. Average CAPEX/Revenue for the last three years was 23.0%.
Return on investment
The company operates at low ROIC (5.00%) and ROE (8.74%). ROIC decreased on 4.6 pp from 9.6% to 5.0% in 2015. ROE decreased on 2.8 pp from 11.6% to 8.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.0x and Debt / EBITDA is 0.6x. Net Debt / EBITDA dropped on 0.9x from -1.1x to -2.0x in 2015. Debt decreased on 4.6% in 2015 while cash jumped on 10.6% in 2015.
Appendix 1: Peers in Leisure Time
Below you can find China Travel International Investment Hong Kong Ltd benchmarking vs. other companies in Leisure Time 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 |
|---|
| Perfect Shape PRC Holdings Ltd ($1830) | | 23.4% | 16.2% | 6.1% | 55.0% |
| Genting Hong Kong Ltd ($678) | | 5.3% | 6.6% | 2.9% | 20.9% |
| Travel Expert Asia Enterprises Ltd ($1235) | | 11.9% | 15.3% | 19.5% | 18.9% |
| China Jiuhao Health Industry Corp Ltd ($419) | | 61.8% | -23.6% | -12.7% | 11.5% |
| EGL Holdings Co Ltd ($6882) | | 9.5% | 20.7% | 2.3% | 10.3% |
| |
|---|
| Median (11 companies) | | 9.5% | 2.0% | 2.8% | 1.9% |
|---|
| China Travel International Investment Hong Kong Ltd ($308) | | 7.2% | -6.6% | 2.6% | -1.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | | | | | 90.7% |
| Feiyu Technology International Co Ltd ($1022) | 99.1% | 96.9% | 95.4% | 87.5% | 83.1% |
| Sino Splendid Holdings Ltd ($8006) | 55.1% | 51.7% | 51.4% | 51.9% | 53.9% |
| China Jiuhao Health Industry Corp Ltd ($419) | 15.5% | 57.0% | 13.5% | 23.4% | 44.9% |
| EGL Holdings Co Ltd ($6882) | 15.7% | 16.7% | 21.4% | 20.2% | 23.4% |
| |
|---|
| Median (8 companies) | 16.6% | 34.2% | 19.4% | 20.2% | 34.2% |
|---|
| China Travel International Investment Hong Kong Ltd ($308) | 48.2% | 46.1% | 47.8% | 46.0% | 45.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Feiyu Technology International Co Ltd ($1022) | 74.8% | 77.0% | 44.0% | 51.0% | 30.0% |
| Perfect Shape PRC Holdings Ltd ($1830) | 26.3% | 27.5% | 29.1% | 26.5% | 29.8% |
| Travel Expert Asia Enterprises Ltd ($1235) | 20.1% | 17.4% | 16.2% | 18.3% | 15.0% |
| Water Oasis Group Ltd ($1161) | 11.3% | 6.5% | 4.7% | 11.4% | 13.1% |
| EGL Holdings Co Ltd ($6882) | 1.7% | 3.7% | 8.1% | 5.8% | 9.8% |
| |
|---|
| Median (11 companies) | 7.5% | 6.5% | 8.1% | 7.8% | 0.9% |
|---|
| China Travel International Investment Hong Kong Ltd ($308) | 25.6% | 28.2% | 29.1% | 48.5% | 31.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Genting Hong Kong Ltd ($678) | 7.3% | 16.6% | 25.4% | 33.0% | 58.1% |
| China Jiuhao Health Industry Corp Ltd ($419) | 4.2% | 2.1% | 31.8% | 67.3% | 43.3% |
| Perfect Shape PRC Holdings Ltd ($1830) | 7.9% | 6.1% | 8.9% | 7.7% | 24.8% |
| Water Oasis Group Ltd ($1161) | 2.7% | 3.7% | 4.0% | 2.8% | 3.5% |
| Feiyu Technology International Co Ltd ($1022) | 5.5% | 6.3% | 1.6% | 3.2% | 3.1% |
| |
|---|
| Median (11 companies) | 2.7% | 3.0% | 2.8% | 2.8% | 2.8% |
|---|
| China Travel International Investment Hong Kong Ltd ($308) | 14.6% | 13.4% | 28.3% | 29.9% | 10.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| EGL Holdings Co Ltd ($6882) | | 30.4% | 63.2% | 39.4% | 58.3% |
| Perfect Shape PRC Holdings Ltd ($1830) | 140.4% | 62.8% | 44.1% | 37.7% | 44.1% |
| Travel Expert Asia Enterprises Ltd ($1235) | 179.4% | 50.9% | 26.7% | 29.8% | 23.0% |
| Water Oasis Group Ltd ($1161) | 21.6% | 5.3% | 1.7% | 15.7% | 19.2% |
| Feiyu Technology International Co Ltd ($1022) | | 329.5% | 19.2% | 17.1% | 6.1% |
| |
|---|
| Median (11 companies) | 2.1% | 2.0% | 1.7% | 3.8% | -1.7% |
|---|
| China Travel International Investment Hong Kong Ltd ($308) | 4.6% | 5.6% | 5.0% | 9.6% | 5.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Travel Expert Asia Enterprises Ltd ($1235) | -2.3x | -1.3x | -1.2x | -1.7x | -0.3x |
| Perfect Shape PRC Holdings Ltd ($1830) | -0.9x | -2.0x | -0.8x | -1.4x | -1.8x |
| EGL Holdings Co Ltd ($6882) | -10.0x | -4.5x | -2.5x | -3.3x | -2.4x |
| Water Oasis Group Ltd ($1161) | -2.2x | -3.2x | -5.1x | -2.8x | -2.6x |
| Feiyu Technology International Co Ltd ($1022) | -0.3x | -0.3x | -1.9x | -3.2x | -4.3x |
| |
|---|
| Median (6 companies) | -2.2x | -0.8x | -1.9x | -2.8x | -2.5x |
|---|
| China Travel International Investment Hong Kong Ltd ($308) | -2.4x | -1.7x | -1.1x | -1.1x | -2.0x |
