Melco International Development Ltd revenue surged on 135% in 2015 and EBITDA Margin surged on 105 pp from -144% to -39.8%
31/03/2016 • About Melco International Development Ltd (
$200) • By InTwits
Melco International Development Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Melco International Development Ltd doesn't have a profitable business model yet: 2015 ROIC is -1.4%
- The company operates at negative EBITDA Margin: -39.8%
- Melco International Development Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -105.9% for the sames years0
- Melco International Development Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.7%. At the same time it's a lot of higher than industry average of 9.7%.
- CAPEX is quite volatile: 19.6 in 2015, 8.4 in 2014, 1.7 in 2013, 8.7 in 2012, 1.1 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.
Melco International Development Ltd ($200) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 115.2 | 134.1 | 163.2 | 168.2 | 395.1 | 134.9% |
| Gross Profit | 82.9 | 84.6 | 86.4 | 91.7 | 313.7 | 242.0% |
| EBITDA | -318.5 | -179.6 | -134.6 | -242.8 | -157.4 | -35.2% |
| Net Income | 280.1 | 1,121.9 | 1,596.7 | 1,487.2 | 100.9 | -93.2% |
Balance Sheet
|
|---|
| Cash | 97.1 | 155.9 | 205.5 | 549.6 | 467.3 | -15.0% |
| Short Term Debt | 228.0 | 34.0 | 28.0 | 395.0 | 5.0 | -98.7% |
| Long Term Debt | 1,004.8 | 455.2 | 1,189.3 | 794.3 | 1,335.3 | 68.1% |
Cash flow
|
|---|
| Capex | 1.1 | 8.7 | 1.7 | 8.4 | 19.6 | 133.5% |
Ratios
|
|---|
| Revenue growth | 8.9% | 16.5% | 21.7% | 3.0% | 134.9% | |
| EBITDA growth | 1,184.5% | -43.6% | -25.0% | 80.3% | -35.2% | |
| Gross Margin | 72.0% | 63.1% | 52.9% | 54.5% | 79.4% | 24.9% |
| EBITDA Margin | -276.6% | -133.9% | -82.5% | -144.4% | -39.8% | 104.6% |
| Net Income Margin | 243.2% | 836.6% | 978.2% | 884.4% | 25.5% | -858.8% |
| CAPEX, % of revenue | 1.0% | 6.5% | 1.0% | 5.0% | 5.0% | -0.0% |
| ROIC | -3.9% | -2.0% | -1.2% | -1.9% | -1.4% | 0.5% |
| ROE | 4.0% | 13.6% | 15.2% | 12.4% | 0.8% | -11.6% |
Revenue and profitability
The company's Revenue jumped on 135% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.5 pp from 2.4% to 5.0% in 2015.
Gross Margin surged on 24.9 pp from 54.5% to 79.4% in 2015.
Net Income marign dropped on 859 pp from 884% to 25.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 5.0% in 2015. Melco International Development Ltd's CAPEX/Revenue decreased slightly on 1.5 pp from 6.5% in 2012 to 5.0% in 2015. Average CAPEX/Revenue for the last three years was 3.7%.
Return on investment
The company operates at negative ROIC (-1.39%) and low but positive ROE (0.82%). ROIC showed almost no change in 2015. ROE dropped on 11.6 pp from 12.4% to 0.82% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.8x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt jumped on 12.7% in 2015 while cash dropped on 15.0% in 2015.
Management team
Ho Yau Lung "Lawrence" is a Melco International Development Ltd's CEO. Ho Yau Lung "Lawrence" has spent 12 years at the company.
Appendix 1: Peers in Holding Companies-Divers
Below you can find Melco International Development Ltd benchmarking vs. other companies in Holding Companies-Divers 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 |
|---|
| Beijing Development HK Ltd ($154) | | 12.5% | | | 1,048.9% |
| CIAM Group Ltd ($378) | | -62.2% | 47.9% | -40.0% | 211.5% |
| New Century Group Hong Kong Ltd ($234) | | -68.9% | 326.7% | -70.3% | 118.2% |
| Greater China Holdings Ltd ($431) | | -35.8% | -72.1% | 67.3% | 110.3% |
| Heng Fai Enterprises Ltd ($185) | | 8.2% | -30.5% | -42.6% | 86.7% |
| |
|---|
| Median (41 companies) | -3.5% | 11.4% | 3.3% | 15.7% | 6.1% |
|---|
| Melco International Development Ltd ($200) | | 16.5% | 21.7% | 3.0% | 134.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| New Century Group Hong Kong Ltd ($234) | 76.7% | 27.3% | 85.2% | 82.8% | 91.5% |
| CIAM Group Ltd ($378) | | | | | 75.8% |
| Emperor International Holdings Ltd ($163) | 74.5% | 71.3% | 64.9% | 79.2% | 75.3% |
| Heng Fai Enterprises Ltd ($185) | 89.3% | 89.0% | 89.5% | 58.3% | 74.7% |
| Century Legend Holdings Ltd ($79) | 68.5% | 70.1% | 72.3% | 71.0% | 70.3% |
| |
|---|
| Median (37 companies) | 27.9% | 32.9% | 34.6% | 30.8% | 30.8% |
|---|
| Melco International Development Ltd ($200) | 72.0% | 63.1% | 52.9% | 54.5% | 79.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| New Century Group Hong Kong Ltd ($234) | 82.5% | -5.5% | 78.8% | 58.3% | 85.0% |
| Emperor International Holdings Ltd ($163) | 224.8% | 180.7% | 131.8% | 100.6% | 73.9% |
| Pioneer Global Group Ltd ($224) | 111.2% | -0.5% | -9.9% | -11.6% | 64.3% |
| C C Land Holdings Ltd ($1224) | 22.0% | 27.0% | 23.6% | 24.6% | 55.7% |
| China Merchants Holdings International Co Ltd ($144) | 63.7% | 56.4% | 50.8% | 45.2% | 55.7% |
| |
|---|
| Median (41 companies) | 6.3% | 2.8% | 2.8% | 7.4% | 6.2% |
|---|
| Melco International Development Ltd ($200) | -276.6% | -133.9% | -82.5% | -144.4% | -39.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Heng Fai Enterprises Ltd ($185) | 217.5% | 4.8% | 77.1% | 310.0% | 458.1% |
| Chinney Investments Ltd ($216) | 37.6% | 17.5% | 103.4% | 111.3% | 230.9% |
| China Investments Holdings Ltd ($132) | 20.7% | 4.8% | 81.9% | 382.2% | 222.5% |
| Goldin Properties Holdings Ltd ($283) | | 2,178.4% | 1,190.0% | 50.1% | 202.4% |
| Emperor International Holdings Ltd ($163) | 93.5% | 100.9% | 48.5% | 105.9% | 110.6% |
| |
|---|
| Median (41 companies) | 4.9% | 2.2% | 3.8% | 7.0% | 9.2% |
|---|
| Melco International Development Ltd ($200) | 1.0% | 6.5% | 1.0% | 5.0% | 5.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| C C Land Holdings Ltd ($1224) | 4.5% | 7.4% | 5.3% | 7.9% | 15.0% |
| Chinney Alliance Group Ltd ($385) | 3.4% | 6.4% | 8.1% | 13.6% | 15.0% |
| Top Spring International Holdings Ltd ($3688) | 27.9% | 15.6% | 6.9% | 7.3% | 8.0% |
| New Century Group Hong Kong Ltd ($234) | 8.6% | -1.7% | 11.7% | 1.7% | 7.3% |
| Chuang's China Investments Ltd ($298) | -0.9% | 22.9% | 1.5% | 2.2% | 6.1% |
| |
|---|
| Median (41 companies) | 0.6% | 0.1% | 0.2% | 0.8% | 0.2% |
|---|
| Melco International Development Ltd ($200) | -3.9% | -2.0% | -1.2% | -1.9% | -1.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chinney Investments Ltd ($216) | 111.3x | 10.3x | 63.7x | 48.6x | 93.7x |
| Multifield International Holdings Ltd ($898) | 12.0x | 3.2x | 7.3x | 3.0x | 55.9x |
| CIAM Group Ltd ($378) | -48.0x | | | | 32.6x |
| Chuang's Consortium International Ltd ($367) | 2.2x | 0.7x | 5.0x | | 23.9x |
| Pioneer Global Group Ltd ($224) | 7.9x | | | | 10.9x |
| |
|---|
| Median (23 companies) | 3.0x | 2.5x | 3.1x | 3.0x | 2.8x |
|---|
