Jimei International Entertainment Group Ltd reports 4,524% CAPEX growth and 274% Revenue growth
31/03/2016 • About Jimei International Entertainment Group Ltd (
$1159) • By InTwits
Jimei International Entertainment Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jimei International Entertainment Group Ltd doesn't have a profitable business model yet: 2015 ROIC is -24.4%
- The company operates at negative EBITDA Margin: -32.7%
- Jimei International Entertainment 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 -136.9%0
- Jimei International Entertainment Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.7%. At the same time it's a lot of higher than industry average of 4.6%.
- CAPEX is quite volatile: 14.2 in 2015, 0.31 in 2014, 11.5 in 2013, 0.012 in 2012, 0.010 in 2011
- The company has unprofitable business model: ROIC is at -24.4%
- It operates with high leverage: Net Debt/EBITDA is 1.6x while industry average is -2.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jimei International Entertainment Group Ltd ($1159) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5.0 | 10.1 | 75.8 | 52.2 | 194.9 | 273.5% |
| Gross Profit | -1.2 | 0.0 | 1.1 | 1.4 | -1.3 | -192.7% |
| SG&A | | | | | 41.1 | |
| EBITDA | -6.8 | -8.1 | -370.1 | -13.9 | -63.8 | 359.2% |
| Net Income | -75.4 | -35.3 | 344.3 | -17.7 | 8.7 | -149.2% |
Balance Sheet
|
|---|
| Cash | 19.3 | 9.9 | 10.1 | 157.1 | 316.2 | 101.3% |
| Short Term Debt | 87.0 | 87.5 | 88.1 | 7.8 | 7.2 | -6.9% |
| Long Term Debt | 229.6 | | 0.0 | 36.9 | 214.6 | 482.0% |
Cash flow
|
|---|
| Capex | 0.0 | 0.0 | 11.5 | 0.3 | 14.2 | 4,524.2% |
Ratios
|
|---|
| Revenue growth | -81.1% | 100.6% | 652.0% | -31.2% | 273.5% | |
| EBITDA growth | 33.7% | 18.6% | 4,497.4% | -96.2% | 359.2% | |
| Gross Margin | -24.0% | 0.4% | 1.5% | 2.7% | -0.7% | -3.3% |
| EBITDA Margin | -135.1% | -79.9% | -488.4% | -26.6% | -32.7% | -6.1% |
| Net Income Margin | -1,501.0% | -350.1% | 454.3% | -34.0% | 4.5% | 38.5% |
| SG&A, % of revenue | | | | | 21.1% | 21.1% |
| CAPEX, % of revenue | 0.2% | 0.1% | 15.2% | 0.6% | 7.3% | 6.7% |
| ROIC | -16.0% | | | -9.5% | -24.4% | -14.9% |
| ROE | | | | -19.9% | 5.9% | 25.8% |
Revenue and profitability
Jimei International Entertainment Group Ltd's Revenue jumped on 274% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.6 pp from -9.1% to -7.5% in FY2015.
Gross Margin decreased on 3.3 pp from 2.7% to -0.66% in 2015.
Net Income marign surged on 38.5 pp from -34.0% to 4.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 7.3%. CAPEX/Revenue increased on 7.1 pp from 0.12% in 2012 to 7.3% in 2015. It's average level of CAPEX/Revenue for the last three years was 7.7%.
Return on investment
The company operates at negative ROIC (-24.41%) and low but positive ROE (5.91%). ROIC dropped on 14.9 pp from -9.5% to -24.4% in 2015. ROE jumped on 25.8 pp from -19.9% to 5.9% in 2015.
Leverage (Debt)
Debt level is 1.6x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt jumped on 397% in 2015 while cash surged on 101% in 2015.
Appendix 1: Peers in Electrical Compo&Equip
Below we provide Jimei International Entertainment Group Ltd benchmarking against other companies in Electrical Compo&Equip 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 |
|---|
| Applied Development Holdings Ltd ($519) | | -29.1% | | | 850.5% |
| FDG Electric Vehicles Ltd ($729) | | -23.1% | -7.0% | 54.0% | 270.8% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | | -12.0% | 8.7% | 44.1% | 69.8% |
| Sun King Power Electronics Group ($580) | | -6.0% | 29.0% | -30.1% | 51.2% |
| CEC International Holdings Ltd ($759) | | 23.9% | 60.8% | 43.0% | 32.3% |
| |
|---|
| Median (30 companies) | 19.8% | -6.0% | 8.5% | 16.2% | 5.8% |
|---|
| Jimei International Entertainment Group Ltd ($1159) | | 100.6% | 652.0% | -31.2% | 273.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Titans Energy Technology Group Co Ltd ($2188) | 45.4% | 41.4% | 27.3% | 33.7% | 36.6% |
| Boer Power Holdings Ltd ($1685) | 37.1% | 36.8% | 36.0% | 35.3% | 35.7% |
| Sun King Power Electronics Group ($580) | 16.2% | 25.4% | 30.0% | 30.8% | 34.1% |
| China High Speed Transmission Equipment Group Co Ltd ($658) | 25.5% | 24.4% | 24.9% | 24.8% | 32.5% |
| CEC International Holdings Ltd ($759) | 18.5% | 23.6% | 27.9% | 29.9% | 31.8% |
| |
|---|
| Median (28 companies) | 20.7% | 19.6% | 17.9% | 16.6% | 17.0% |
|---|
| Jimei International Entertainment Group Ltd ($1159) | -24.0% | 0.4% | 1.5% | 2.7% | -0.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shougang Concord Technology Holdings ($521) | 22.7% | 12.3% | 28.1% | 31.9% | 45.8% |
| Boer Power Holdings Ltd ($1685) | 28.1% | 26.3% | 27.8% | 28.5% | 28.6% |
| China High Speed Transmission Equipment Group Co Ltd ($658) | 21.0% | 20.2% | 19.2% | 20.8% | 26.3% |
| China Titans Energy Technology Group Co Ltd ($2188) | 21.1% | 10.8% | -11.9% | 2.0% | 16.5% |
| Sun King Power Electronics Group ($580) | -3.1% | 8.4% | 13.8% | 2.2% | 15.8% |
| |
|---|
| Median (30 companies) | 10.8% | 8.3% | 7.3% | 5.5% | 6.9% |
|---|
| Jimei International Entertainment Group Ltd ($1159) | -135.1% | -79.9% | -488.4% | -26.6% | -32.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| FDG Electric Vehicles Ltd ($729) | 177.5% | 374.3% | 82.3% | 71.1% | 417.0% |
| Applied Development Holdings Ltd ($519) | 46.4% | 79.7% | | 1,285.3% | 89.8% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 23.7% | 23.1% | 50.7% | 13.5% | 22.8% |
| CEC International Holdings Ltd ($759) | 10.6% | 8.8% | 10.1% | 4.3% | 6.9% |
| Coslight Technology International Group Co Ltd ($1043) | 11.0% | 9.3% | 11.4% | 11.5% | 5.7% |
| |
|---|
| Median (30 companies) | 9.4% | 6.7% | 5.0% | 4.0% | 2.7% |
|---|
| Jimei International Entertainment Group Ltd ($1159) | 0.2% | 0.1% | 15.2% | 0.6% | 7.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Boer Power Holdings Ltd ($1685) | 18.2% | 18.0% | 17.0% | 21.2% | 19.5% |
| Tianneng Power International Ltd ($819) | 27.1% | 20.0% | 4.5% | -3.6% | 14.9% |
| Jiangnan Group Ltd ($1366) | 17.0% | 14.9% | 14.1% | 13.5% | 12.8% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 5.1% | 1.8% | 3.0% | 10.4% | 12.0% |
| Johnson Electric Holdings Ltd ($179) | 13.1% | 11.7% | 11.6% | 12.7% | 11.2% |
| |
|---|
| Median (30 companies) | 6.2% | 2.8% | 3.0% | 2.8% | 2.9% |
|---|
| Jimei International Entertainment Group Ltd ($1159) | -16.0% | | | -9.5% | -24.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wai Chi Holdings Co Ltd ($1305) | 3.1x | 3.4x | 3.1x | 2.0x | 11.8x |
| Coslight Technology International Group Co Ltd ($1043) | 11.2x | 51.9x | 8.7x | 54.7x | 7.7x |
| Guodian Technology & Environment Group Corp Ltd ($1296) | 5.4x | 6.3x | 7.6x | 6.8x | 6.9x |
| Leoch International Technology Ltd ($842) | 3.4x | 9.3x | 16.3x | 4.7x | 5.0x |
| CEC International Holdings Ltd ($759) | 2.5x | 3.9x | 6.1x | 4.1x | 4.9x |
| |
|---|
| Median (24 companies) | 0.4x | 1.5x | 1.4x | 2.2x | 1.5x |
|---|
