SMI Holdings Group Ltd CAPEX surged on 641% in 2015 and Revenue surged on 77.2%
15/04/2016 • About SMI Holdings Group Ltd (
$198) • By InTwits
SMI Holdings Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- SMI Holdings Group Ltd is a growth stock: 2015 revenue growth was 77.2%, 5 year revenue CAGR was 52.3% at 2015 ROIC 10.5%
- SMI Holdings Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 22.0%. At the same time it's in pair with industry average of 20.5%.
- CAPEX is quite volatile: 247 in 2015, 33.3 in 2014, 371 in 2013, 146 in 2012, 417 in 2011
- The company has business model with average profitability: ROIC is at 10.5%
- It operates with high leverage: Net Debt/EBITDA is 1.6x while industry average is -2.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
SMI Holdings Group Ltd ($198) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 736 | 857 | 1,418 | 1,650 | 2,924 | 77.2% |
| Gross Profit | 414 | 478 | 896 | 413 | 854 | 106.5% |
| SG&A | | 465 | 625 | 172 | 241 | 40.2% |
| EBITDA | 304 | 164 | 501 | 569 | 913 | 60.4% |
| Net Income | 102 | 31 | 113 | 131 | 360 | 174.8% |
Balance Sheet
|
|---|
| Cash | 45 | 68 | 41 | 130 | 1,008 | 673.8% |
| Short Term Debt | 0 | 138 | 271 | 542 | 478 | -11.8% |
| Long Term Debt | 132 | 255 | 551 | 796 | 1,987 | 149.7% |
Cash flow
|
|---|
| Capex | 417 | 146 | 371 | 33 | 247 | 641.4% |
Ratios
|
|---|
| Revenue growth | 106.5% | 16.4% | 65.4% | 16.4% | 77.2% | |
| EBITDA growth | 236.8% | -46.0% | 205.5% | 13.6% | 60.4% | |
| Gross Margin | 56.3% | 55.8% | 63.2% | 25.1% | 29.2% | 4.1% |
| EBITDA Margin | 41.3% | 19.2% | 35.4% | 34.5% | 31.2% | -3.3% |
| Net Income Margin | 13.8% | 3.6% | 8.0% | 7.9% | 12.3% | 4.4% |
| SG&A, % of revenue | | 54.3% | 44.1% | 10.4% | 8.3% | -2.2% |
| CAPEX, % of revenue | 56.6% | 17.0% | 26.2% | 2.0% | 8.4% | 6.4% |
| ROIC | 5.8% | 1.3% | 8.4% | 9.9% | 10.5% | 0.7% |
| ROE | 4.5% | 1.2% | 4.3% | 4.3% | 8.4% | 4.1% |
| Net Debt/EBITDA | 0.3x | 2.0x | 1.6x | 2.1x | 1.6x | -0.5x |
Revenue and profitability
SMI Holdings Group Ltd's Revenue surged on 77.2% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.66 pp from 4.4% to 5.1% in 2015.
Gross Margin increased on 4.1 pp from 25.1% to 29.2% in 2015. SG&A as a % of Revenue decreased on 2.2 pp from 10.4% to 8.3% in 2015.
Net Income marign increased on 4.4 pp from 7.9% to 12.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 8.4%. CAPEX/Revenue decreased on 8.6 pp from 17.0% in 2012 to 8.4% in 2015. For the last three years the average CAPEX/Revenue was 12.2%.
Return on investment
The company operates at low ROIC (10.53%) and ROE (8.43%). ROIC increased slightly on 0.65 pp from 9.9% to 10.5% in 2015. ROE increased on 4.1 pp from 4.3% to 8.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.6x and Debt / EBITDA is 2.7x. Net Debt / EBITDA dropped on 0.5x from 2.1x to 1.6x in 2015. Debt surged on 84.3% in 2015 while cash surged on 674% in 2015.
Appendix 1: Peers in Entertainment
Below you can find SMI Holdings Group 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 (26 companies) | | -0.7% | 11.0% | -1.8% | -5.8% |
|---|
| SMI Holdings Group Ltd ($198) | | 16.4% | 65.4% | 16.4% | 77.2% |
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% |
| REXLot Holdings Ltd ($555) | 63.0% | 70.2% | 73.1% | 73.4% | 67.4% |
| |
|---|
| Median (22 companies) | 43.8% | 42.8% | 48.7% | 44.1% | 46.1% |
|---|
| SMI Holdings Group Ltd ($198) | 56.3% | 55.8% | 63.2% | 25.1% | 29.2% |
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% |
| REXLot Holdings Ltd ($555) | 51.6% | 53.7% | 55.1% | 6.1% | 40.5% |
| China Vanguard Group Ltd ($8156) | 2.8% | -15.0% | -51.8% | 30.0% | 22.9% |
| |
|---|
| Median (26 companies) | 10.3% | 22.1% | 17.2% | 14.9% | -3.5% |
|---|
| SMI Holdings Group Ltd ($198) | 41.3% | 19.2% | 35.4% | 34.5% | 31.2% |
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 (26 companies) | 7.2% | 8.7% | 6.6% | 5.0% | 8.3% |
|---|
| SMI Holdings Group Ltd ($198) | 56.6% | 17.0% | 26.2% | 2.0% | 8.4% |
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% |
| REXLot Holdings Ltd ($555) | 17.5% | 15.5% | 15.4% | 0.3% | 6.8% |
| |
|---|
| Median (27 companies) | 1.1% | -1.1% | 1.3% | -0.9% | -3.3% |
|---|
| SMI Holdings Group Ltd ($198) | 5.8% | 1.3% | 8.4% | 9.9% | 10.5% |
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 | |
| REXLot Holdings Ltd ($555) | 0.4x | -0.0x | -0.2x | 7.2x | 1.6x |
| 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 | |
| |
|---|
| Median (19 companies) | -0.3x | -0.2x | -0.6x | -0.3x | -0.5x |
|---|
| SMI Holdings Group Ltd ($198) | 0.3x | 2.0x | 1.6x | 2.1x | 1.6x |
