REXLot Holdings Ltd reports 516% EBITDA growth and 34.5 pp EBITDA Margin growth from 6.1% to 40.5%
01/04/2016 • About REXLot Holdings Ltd (
$555) • By InTwits
REXLot Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 40.5% in 2015, 6.1% in 2014, 55.1% in 2013, 53.7% in 2012, 51.6% in 2011
- REXLot Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's a lot of higher than industry average of 6.6%.
- CAPEX is quite volatile: 59.7 in 2015, 77.2 in 2014, 34.3 in 2013, 53.0 in 2012, 129 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.8%
- It operates with high leverage: Net Debt/EBITDA is 1.6x while industry average is -2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
REXLot Holdings Ltd ($555) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,805 | 1,962 | 2,165 | 1,688 | 1,554 | -7.9% |
| Gross Profit | 1,137 | 1,378 | 1,584 | 1,240 | 1,048 | -15.5% |
| SG&A | 317 | 409 | 492 | 370 | 484 | 30.8% |
| EBITDA | 931 | 1,054 | 1,193 | 102 | 630 | 515.8% |
| Net Income | 723 | 821 | 869 | -104 | 151 | -245.5% |
Balance Sheet
|
|---|
| Cash | 489 | 897 | 1,146 | 1,293 | 1,098 | -15.1% |
| Short Term Debt | 59 | 65 | 87 | 104 | 1,842 | 1,667.8% |
| Long Term Debt | 831 | 808 | 879 | 1,928 | 260 | -86.5% |
Cash flow
|
|---|
| Capex | 129 | 53 | 34 | 77 | 60 | -22.6% |
Ratios
|
|---|
| Revenue growth | 11.8% | 8.7% | 10.4% | -22.1% | -7.9% | |
| EBITDA growth | 24.2% | 13.2% | 13.2% | -91.4% | 515.8% | |
| Gross Margin | 63.0% | 70.2% | 73.1% | 73.4% | 67.4% | -6.0% |
| EBITDA Margin | 51.6% | 53.7% | 55.1% | 6.1% | 40.5% | 34.5% |
| Net Income Margin | 40.1% | 41.9% | 40.1% | -6.1% | 9.7% | 15.8% |
| SG&A, % of revenue | 17.6% | 20.9% | 22.7% | 21.9% | 31.1% | 9.2% |
| CAPEX, % of revenue | 7.2% | 2.7% | 1.6% | 4.6% | 3.8% | -0.7% |
| ROIC | 17.5% | 15.5% | 15.4% | 0.3% | 6.8% | 6.5% |
| ROE | 17.9% | 16.5% | 15.1% | -1.7% | 2.5% | 4.3% |
| Net Debt/EBITDA | 0.4x | -0.0x | -0.2x | 7.2x | 1.6x | -5.6x |
Revenue and profitability
REXLot Holdings Ltd's Revenue decreased on 7.9% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 34.5 pp from 6.1% to 40.5% in 2015.
Gross Margin decreased on 6.0 pp from 73.4% to 67.4% in 2015. SG&A as a % of Revenue increased on 9.2 pp from 21.9% to 31.1% in 2015.
Net Income marign jumped on 15.8 pp from -6.1% to 9.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 REXLot Holdings Ltd had CAPEX/Revenue of 3.8%. The company showed small growth in CAPEX/Revenue of 1.1 pp from 2.7% in 2012 to 3.8% in 2015. For the last three years the average CAPEX/Revenue was 3.3%.
Return on investment
The company operates at low ROIC (6.78%) and ROE (2.52%). ROIC increased on 6.5 pp from 0.26% to 6.8% in 2015. ROE increased on 4.3 pp from -1.7% to 2.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.6x and Debt / EBITDA is 3.3x. Net Debt / EBITDA dropped on 5.6x from 7.2x to 1.6x in 2015. Debt increased on 3.4% in 2015 while cash dropped on 15.1% in 2015.
Appendix 1: Peers in Entertainment
Below you can find REXLot Holdings Ltd benchmarking vs. other companies in Entertainment 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 |
|---|
| Neo Telemedia Ltd ($8167) | | 268.8% | -60.2% | -13.4% | 5,442.4% |
| National Arts Entertainment and Culture Group Ltd ($8228) | | -57.9% | 181.2% | -20.1% | 162.4% |
| Alibaba Pictures Group Ltd ($1060) | | 169.4% | -45.8% | -63.8% | 108.3% |
| Universe International Holdings Ltd ($1046) | | -42.2% | 4.3% | 159.4% | 46.3% |
| Nan Hai Corp Ltd ($680) | | -16.3% | 18.7% | 36.0% | 33.2% |
| |
|---|
| Median (25 companies) | 106.5% | -0.7% | 14.1% | 1.2% | -4.8% |
|---|
| REXLot Holdings Ltd ($555) | | 8.7% | 10.4% | -22.1% | -7.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amax International Holdings Ltd ($959) | | | 92.1% | 98.6% | 96.6% |
| China Vanguard Group Ltd ($8156) | 65.0% | 63.8% | 88.2% | 93.8% | 95.2% |
| Universe International Holdings Ltd ($1046) | 15.3% | 22.1% | 36.7% | 11.4% | 84.8% |
| Cheung Wo International Holdings Ltd ($9) | 49.4% | -17.5% | 71.4% | 77.7% | 77.8% |
| Nan Hai Corp Ltd ($680) | 62.2% | 62.2% | 65.3% | 65.8% | 62.1% |
| |
|---|
| Median (21 companies) | 43.8% | 42.8% | 48.7% | 43.5% | 44.3% |
|---|
| REXLot Holdings Ltd ($555) | 63.0% | 70.2% | 73.1% | 73.4% | 67.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Group Ltd ($70) | 101.1% | 98.6% | 98.6% | 86.6% | 99.0% |
| Universe International Holdings Ltd ($1046) | 62.2% | 36.6% | 44.6% | 74.6% | 73.6% |
| Haichang Holdings Ltd ($2255) | 46.9% | 55.0% | 44.5% | 46.3% | 56.6% |
| China Vanguard Group Ltd ($8156) | 2.8% | -15.0% | -51.8% | 30.0% | 22.9% |
| Nan Hai Corp Ltd ($680) | 8.1% | 4.2% | 62.0% | 8.3% | 17.5% |
| |
|---|
| Median (25 companies) | 10.3% | 19.7% | 17.2% | 18.3% | -5.3% |
|---|
| REXLot Holdings Ltd ($555) | 51.6% | 53.7% | 55.1% | 6.1% | 40.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Star Cultural Media Group Ltd ($8172) | 0.5% | 8.9% | 0.0% | 0.0% | 848.3% |
| National Arts Entertainment and Culture Group Ltd ($8228) | 536.1% | 1,237.1% | 771.1% | 799.0% | 508.9% |
| Cheung Wo International Holdings Ltd ($9) | 44.7% | 90.3% | 465.2% | 383.2% | 202.4% |
| Haichang Holdings Ltd ($2255) | 92.6% | 21.4% | 18.5% | 10.3% | 64.2% |
| Amax International Holdings Ltd ($959) | 18.7% | 10.4% | 2.7% | 17.2% | 59.8% |
| |
|---|
| Median (25 companies) | 7.3% | 9.7% | 9.0% | 5.0% | 8.5% |
|---|
| REXLot Holdings Ltd ($555) | 7.2% | 2.7% | 1.6% | 4.6% | 3.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Universe International Holdings Ltd ($1046) | -4.8% | -6.2% | -0.8% | -3.7% | 43.8% |
| Neptune Group Ltd ($70) | 22.0% | 22.8% | 23.8% | 21.1% | 18.1% |
| Dynam Japan Holdings Co Ltd ($6889) | 22.5% | 23.8% | 25.4% | 21.8% | 10.5% |
| Haichang Holdings Ltd ($2255) | 6.2% | 7.1% | 8.1% | 8.6% | 8.9% |
| China Vanguard Group Ltd ($8156) | -0.8% | -4.3% | -14.3% | 7.6% | 5.7% |
| |
|---|
| Median (26 companies) | 1.1% | -1.1% | 1.3% | -0.9% | -3.6% |
|---|
| REXLot Holdings Ltd ($555) | 17.5% | 15.5% | 15.4% | 0.3% | 6.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nan Hai Corp Ltd ($680) | 25.2x | 80.8x | 3.5x | 20.8x | 12.6x |
| Cheung Wo International Holdings Ltd ($9) | 28.3x | | | 19.1x | |
| Orange Sky Golden Harvest Entertainment Holdings Ltd ($1132) | -0.8x | 1.1x | 4.2x | 2.7x | 25.8x |
| China 3D Digital Entertainment Ltd ($8078) | -11.9x | | -0.5x | 2.3x | |
| SMI Holdings Group Ltd ($198) | 0.3x | 2.0x | 1.6x | 2.1x | |
| |
|---|
| Median (19 companies) | -0.3x | -0.2x | -0.6x | -0.3x | -0.6x |
|---|
| REXLot Holdings Ltd ($555) | 0.4x | -0.0x | -0.2x | 7.2x | 1.6x |
