Shanghai Jin Jiang International Hotels Group Co Ltd EBITDA surged on 150% in 2015 and Revenue jumped on 29.9%
31/03/2016 • About Shanghai Jin Jiang International Hotels Group Co Ltd (
$2006) • By InTwits
Shanghai Jin Jiang International Hotels Group Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shanghai Jin Jiang International Hotels Group Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.5%. At the same time it's a lot of higher than industry average of 18.4%.
- CAPEX is quite volatile: 1,912 in 2015, 6,734 in 2014, 3,863 in 2013, 6,172 in 2012, 8,374 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shanghai Jin Jiang International Hotels Group Co Ltd ($2006) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 12,653 | 9,004 | 9,288 | 9,364 | 12,160 | 29.9% |
| Gross Profit | 1,946 | 1,573 | 1,633 | 1,682 | 2,636 | 56.7% |
| SG&A | | 1,237 | 1,262 | 1,909 | 2,039 | 6.8% |
| EBITDA | 1,490 | 1,424 | 1,898 | 750 | 1,879 | 150.4% |
| Net Income | 536 | 317 | 444 | 621 | 866 | 39.3% |
Balance Sheet
|
|---|
| Cash | 2,494 | 2,536 | 4,475 | 5,877 | 5,040 | -14.2% |
| Short Term Debt | 799 | 1,227 | 4,561 | 1,721 | 5,250 | 205.1% |
| Long Term Debt | 1,859 | 1,394 | 1,712 | 1,862 | 11,135 | 498.1% |
Cash flow
|
|---|
| Capex | 1,130 | 725 | 775 | 841 | 1,004 | 19.3% |
Ratios
|
|---|
| Revenue growth | 7.0% | -28.8% | 3.2% | 0.8% | 29.9% | |
| EBITDA growth | -13.3% | -4.4% | 33.3% | -60.5% | 150.4% | |
| Gross Margin | 15.4% | 17.5% | 17.6% | 18.0% | 21.7% | 3.7% |
| EBITDA Margin | 11.8% | 15.8% | 20.4% | 8.0% | 15.5% | 7.4% |
| Net Income Margin | 4.2% | 3.5% | 4.8% | 6.6% | 7.1% | 0.5% |
| SG&A, % of revenue | | 13.7% | 13.6% | 20.4% | 16.8% | -3.6% |
| CAPEX, % of revenue | 8.9% | 8.1% | 8.3% | 9.0% | 8.3% | -0.7% |
| ROIC | 2.6% | 3.1% | 5.6% | -1.0% | 2.7% | 3.6% |
| ROE | 7.1% | 4.4% | 6.0% | 7.7% | 9.7% | 2.0% |
| Net Debt/EBITDA | 0.1x | 0.1x | 0.9x | -3.1x | 6.0x | 9.1x |
Revenue and profitability
Shanghai Jin Jiang International Hotels Group Co Ltd's Revenue surged on 29.9% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 7.4 pp from 8.0% to 15.5% in 2015.
Gross Margin increased on 3.7 pp from 18.0% to 21.7% in 2015. SG&A as a % of Revenue decreased on 3.6 pp from 20.4% to 16.8% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 8.3%. Shanghai Jin Jiang International Hotels Group Co Ltd's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 8.5%.Shanghai Jin Jiang International Hotels Group Co Ltd invested a big chunk of EBITDA (53.4%) to CAPEX to fuel its growth.
Return on investment
The company operates at low ROIC (2.68%) and ROE (9.67%). ROIC increased on 3.6 pp from -0.97% to 2.7% in 2015. ROE increased slightly on 2.0 pp from 7.7% to 9.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 6.0x and Debt / EBITDA is 8.7x. Net Debt / EBITDA jumped on 9.1x from -3.1x to 6.0x in 2015. Debt jumped on 357% in 2015 while cash dropped on 14.2% in 2015.
Appendix 1: Peers in Lodging
Below we provide Shanghai Jin Jiang International Hotels Group Co Ltd benchmarking against other companies in Lodging 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 |
|---|
| China New City Commercial Development Ltd ($1321) | | -16.9% | 433.0% | -76.2% | 141.3% |
| Zhuhai Holdings Investment Group Ltd ($908) | | 229.8% | 14.5% | 57.0% | 76.3% |
| Century City International Holdings Ltd ($355) | | 283.6% | 108.7% | -35.8% | 25.9% |
| Far East Consortium International Ltd/HK ($35) | | 6.4% | 111.9% | 9.0% | 25.7% |
| NagaCorp Ltd ($3918) | | 24.6% | 23.7% | 17.2% | 24.6% |
| |
|---|
| Median (23 companies) | | 14.4% | 13.8% | 0.7% | -10.2% |
|---|
| Shanghai Jin Jiang International Hotels Group Co Ltd ($2006) | | -28.8% | 3.2% | 0.8% | 29.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SJM Holdings Ltd ($880) | 99.7% | 99.7% | 99.7% | 99.7% | 99.5% |
| Wynn Macau Ltd ($1128) | 97.6% | 97.9% | 98.3% | 98.5% | 98.4% |
| Emperor Entertainment Hotel Ltd ($296) | 70.9% | 77.1% | 75.6% | 76.8% | 70.9% |
| Asia Standard Hotel Group Ltd ($292) | 52.5% | 60.7% | 73.4% | 72.1% | 67.6% |
| Sino Hotels Holdings Ltd ($1221) | 69.7% | 71.3% | 70.4% | 68.9% | 65.8% |
| |
|---|
| Median (17 companies) | 56.1% | 57.2% | 55.9% | 52.0% | 51.8% |
|---|
| Shanghai Jin Jiang International Hotels Group Co Ltd ($2006) | 15.4% | 17.5% | 17.6% | 18.0% | 21.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| NagaCorp Ltd ($3918) | 49.2% | 49.8% | 50.1% | 42.8% | 45.3% |
| Emperor Entertainment Hotel Ltd ($296) | 38.7% | 44.9% | 46.4% | 46.9% | 43.1% |
| Jinmao Investments and Jinmao China Investments Holdings Ltd ($6139) | 40.9% | 41.2% | 40.5% | 25.8% | 41.5% |
| Asia Standard Hotel Group Ltd ($292) | 69.1% | -23.9% | 65.2% | 49.9% | 40.4% |
| Sino Hotels Holdings Ltd ($1221) | 42.8% | 46.5% | 45.9% | 43.1% | 39.6% |
| |
|---|
| Median (23 companies) | 26.7% | 26.8% | 26.4% | 25.8% | 23.8% |
|---|
| Shanghai Jin Jiang International Hotels Group Co Ltd ($2006) | 11.8% | 15.8% | 20.4% | 8.0% | 15.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Macau Legend Development Ltd ($1680) | 1.3% | 5.0% | 24.2% | 73.0% | 68.5% |
| Wynn Macau Ltd ($1128) | 3.2% | 5.2% | 11.0% | 28.2% | 66.6% |
| Legend Strategy International Holdings Group Co Ltd ($1355) | 15.7% | 17.0% | 38.0% | 1.2% | 62.6% |
| Century City International Holdings Ltd ($355) | 0.3% | 21.2% | 32.9% | 13.4% | 35.8% |
| Shangri-La Asia Ltd ($69) | 26.5% | 48.5% | 33.1% | 41.2% | 34.3% |
| |
|---|
| Median (23 companies) | 6.3% | 6.3% | 11.0% | 13.2% | 14.5% |
|---|
| Shanghai Jin Jiang International Hotels Group Co Ltd ($2006) | 8.9% | 8.1% | 8.3% | 9.0% | 8.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| NagaCorp Ltd ($3918) | 27.6% | 30.6% | 28.9% | 22.6% | 28.6% |
| MGM China Holdings Ltd ($2282) | 47.3% | 46.2% | 53.8% | 54.5% | 24.0% |
| Sands China Ltd ($1928) | 14.5% | 14.2% | 24.4% | 26.7% | 15.8% |
| Emperor Entertainment Hotel Ltd ($296) | 13.0% | 22.2% | 21.1% | 18.4% | 12.0% |
| Galaxy Entertainment Group Ltd ($27) | 14.7% | 25.2% | 30.0% | 27.5% | 10.2% |
| |
|---|
| Median (23 companies) | 8.8% | 7.6% | 5.7% | 3.9% | 3.9% |
|---|
| Shanghai Jin Jiang International Hotels Group Co Ltd ($2006) | 2.6% | 3.1% | 5.6% | -1.0% | 2.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China New City Commercial Development Ltd ($1321) | 18.7x | 26.0x | 7.9x | | 100.1x |
| Century City International Holdings Ltd ($355) | -58.1x | 6.5x | 9.3x | 11.2x | 12.3x |
| Regal Hotels International Holdings Ltd ($78) | | 5.0x | 8.7x | 11.8x | 11.1x |
| Shangri-La Asia Ltd ($69) | 4.0x | 6.0x | 6.8x | 6.9x | 9.8x |
| Macau Legend Development Ltd ($1680) | 2.2x | 2.2x | 0.6x | 0.2x | 7.1x |
| |
|---|
| Median (21 companies) | 1.0x | 1.2x | 0.6x | 1.0x | 4.0x |
|---|
| Shanghai Jin Jiang International Hotels Group Co Ltd ($2006) | 0.1x | 0.1x | 0.9x | -3.1x | 6.0x |
