Asia Standard Hotel Group Ltd Net Income surged on 109% while Revenue decreased on 3.2%
24/06/2016 • About Asia Standard Hotel Group Ltd (
$292) • By InTwits
Asia Standard Hotel Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Asia Standard Hotel Group Ltd doesn't have a profitable business model yet: FY2016 ROIC is 0.7%
- EBITDA Margin is quite volatile: 17.8% in FY2016, 40.4% in FY2015, 49.9% in FY2014, 65.2% in FY2013, -23.9% in FY2012
- Asia Standard Hotel Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 17.9%. At the same time it's in pair with industry average of 21.7%.
- CAPEX is quite volatile: 142 in FY2016, 85.8 in FY2015, 141 in FY2014, 218 in FY2013, 7.6 in FY2012
- The company has potentially unprofitable business model: ROIC is at 0.7%
- It operates with high leverage: Net Debt/EBITDA is 15.3x while industry average is 8.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Asia Standard Hotel Group Ltd ($292) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 822.6 | 646.7 | 651.4 | 699.6 | 677.0 | -3.2% |
| Gross Profit | 499.0 | 474.4 | 470.0 | 473.2 | 445.4 | -5.9% |
| SG&A | | | | 133.0 | 138.5 | 4.2% |
| EBITDA | -196.8 | 421.8 | 325.1 | 282.8 | 120.7 | -57.3% |
| Net Income | -311.5 | 423.8 | 349.0 | 120.1 | 250.6 | 108.7% |
Balance Sheet
|
|---|
| Cash | 133.7 | 136.1 | 113.0 | 182.4 | 317.0 | 73.8% |
| Short Term Debt | 668.1 | 332.8 | 618.0 | 238.1 | 268.3 | 12.7% |
| Long Term Debt | 917.8 | 1,354.6 | 1,175.6 | 1,511.0 | 1,898.5 | 25.6% |
Cash flow
|
|---|
| Capex | 7.6 | 218.1 | 141.3 | 85.8 | 142.1 | 65.5% |
Ratios
|
|---|
| Revenue growth | 18.2% | -21.4% | 0.7% | 7.4% | -3.2% | |
| EBITDA growth | -140.9% | -314.4% | -22.9% | -13.0% | -57.3% | |
| Gross Margin | 60.7% | 73.4% | 72.1% | 67.6% | 65.8% | -1.8% |
| EBITDA Margin | -23.9% | 65.2% | 49.9% | 40.4% | 17.8% | -22.6% |
| Net Income Margin | -37.9% | 65.5% | 53.6% | 17.2% | 37.0% | 19.9% |
| SG&A, % of revenue | | | | 19.0% | 20.5% | 1.5% |
| CAPEX, % of revenue | 0.9% | 33.7% | 21.7% | 12.3% | 21.0% | 8.7% |
| ROIC | -6.6% | 7.7% | 5.0% | 3.9% | 0.7% | -3.2% |
| ROE | -11.9% | 15.9% | 11.4% | 3.7% | 7.5% | 3.7% |
| Net Debt/EBITDA | | 3.7x | 5.2x | 5.5x | 15.3x | 9.8x |
Revenue and profitability
The company's Revenue decreased on 3.2%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.4 pp from -6.0% to -3.5% in FY2016.
Gross Margin decreased slightly on 1.8 pp from 67.6% to 65.8% in FY2016. SG&A as a % of Revenue increased slightly on 1.5 pp from 19.0% to 20.5% in FY2016.
Net Income marign surged on 19.9 pp from 17.2% to 37.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Asia Standard Hotel Group Ltd had CAPEX/Revenue of 21.0%. The company's CAPEX/Revenue dropped on 12.7 pp from 33.7% in FY2013 to 21.0% in FY2016. Average CAPEX/Revenue for the last three years was 18.3%.The company has spent a lot to CAPEX (118% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (0.68%) and ROE (7.46%). ROIC decreased on 3.2 pp from 3.9% to 0.68% in FY2016. ROE increased on 3.7 pp from 3.7% to 7.5% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 15.3x and Debt / EBITDA is 18.0x. Net Debt / EBITDA surged on 9.8x from 5.5x to 15.3x in FY2016. Debt jumped on 23.9% while cash surged on 73.8%.
Appendix 1: Peers in Lodging
Below we provide Asia Standard Hotel Group 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | |
| Shanghai Jin Jiang International Hotels Group Co Ltd ($2006) | -28.8% | 3.2% | 0.8% | 29.9% | |
| Century City International Holdings Ltd ($355) | 283.6% | 108.7% | -35.8% | 25.9% | |
| Far East Consortium International Ltd/HK ($35) | | 111.9% | 9.0% | 25.7% | -21.8% |
| |
|---|
| Median (23 companies) | 11.5% | 13.8% | 0.8% | -10.2% | -18.6% |
|---|
| Asia Standard Hotel Group Ltd ($292) | | -21.4% | 0.7% | 7.4% | -3.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SJM Holdings Ltd ($880) | 99.7% | 99.7% | 99.7% | 99.5% | |
| Wynn Macau Ltd ($1128) | 97.9% | 98.3% | 98.5% | 98.4% | |
| Emperor Entertainment Hotel Ltd ($296) | 77.1% | 75.6% | 76.8% | 70.9% | 65.5% |
| Sino Hotels Holdings Ltd ($1221) | 71.3% | 70.4% | 68.9% | 65.8% | |
| NagaCorp Ltd ($3918) | 72.9% | 72.1% | 67.4% | 65.1% | |
| |
|---|
| Median (17 companies) | 55.7% | 46.3% | 51.3% | 45.4% | 54.1% |
|---|
| Asia Standard Hotel Group Ltd ($292) | 60.7% | 73.4% | 72.1% | 67.6% | 65.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| NagaCorp Ltd ($3918) | 49.8% | 50.1% | 42.8% | 45.3% | |
| Emperor Entertainment Hotel Ltd ($296) | 44.9% | 46.4% | 46.9% | 43.1% | 36.2% |
| Jinmao Investments and Jinmao China Investments Holdings Ltd ($6139) | 41.2% | 40.5% | 25.8% | 41.5% | |
| Sino Hotels Holdings Ltd ($1221) | 46.5% | 45.9% | 43.1% | 39.6% | |
| Far East Consortium International Ltd/HK ($35) | 57.2% | 34.5% | 43.0% | 36.4% | 37.3% |
| |
|---|
| Median (23 companies) | 26.8% | 26.4% | 25.8% | 22.6% | 36.8% |
|---|
| Asia Standard Hotel Group Ltd ($292) | -23.9% | 65.2% | 49.9% | 40.4% | 17.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Macau Legend Development Ltd ($1680) | 5.0% | 24.2% | 73.0% | 68.5% | |
| Wynn Macau Ltd ($1128) | 5.2% | 11.0% | 28.2% | 66.6% | |
| Legend Strategy International Holdings Group Co Ltd ($1355) | 17.0% | 38.0% | 1.2% | 62.6% | |
| Century City International Holdings Ltd ($355) | 21.2% | 32.9% | 13.4% | 35.8% | |
| Shangri-La Asia Ltd ($69) | 48.5% | 33.1% | 41.2% | 34.3% | |
| |
|---|
| Median (23 companies) | 7.4% | 8.9% | 10.8% | 14.5% | 8.8% |
|---|
| Asia Standard Hotel Group Ltd ($292) | 0.9% | 33.7% | 21.7% | 12.3% | 21.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| NagaCorp Ltd ($3918) | 30.6% | 28.9% | 22.6% | 28.6% | |
| MGM China Holdings Ltd ($2282) | 46.2% | 53.8% | 54.5% | 24.0% | |
| Sands China Ltd ($1928) | 14.2% | 24.4% | 26.7% | 15.8% | |
| Emperor Entertainment Hotel Ltd ($296) | 22.2% | 21.1% | 18.4% | 12.0% | 7.5% |
| Galaxy Entertainment Group Ltd ($27) | 25.2% | 30.0% | 27.5% | 10.2% | |
| |
|---|
| Median (23 companies) | 7.6% | 5.6% | 3.6% | 2.7% | 6.5% |
|---|
| Asia Standard Hotel Group Ltd ($292) | -6.6% | 7.7% | 5.0% | 3.9% | 0.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China New City Commercial Development Ltd ($1321) | 26.0x | 7.9x | | 100.1x | |
| Century City International Holdings Ltd ($355) | 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) | 6.0x | 6.8x | 6.9x | 9.8x | |
| Macau Legend Development Ltd ($1680) | 2.2x | 0.6x | 0.2x | 7.1x | |
| |
|---|
| Median (21 companies) | 0.8x | 0.6x | 0.5x | 4.0x | 1.2x |
|---|
| Asia Standard Hotel Group Ltd ($292) | | 3.7x | 5.2x | 5.5x | 15.3x |
