Carrianna Group Holdings Co Ltd reports 45.9% EBITDA growth in 2016 and 29.4% Revenue growth
27/06/2016 • About Carrianna Group Holdings Co Ltd (
$126) • By InTwits
Carrianna Group Holdings Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Carrianna Group Holdings Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.4%. At the same time it's in pair with industry average of 21.7%.
- CAPEX is quite volatile: 55.7 in FY2016, 97.5 in FY2015, 39.3 in FY2014, 26.6 in FY2013, 44.0 in FY2012
- The company has potentially unprofitable business model: ROIC is at 2.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Carrianna Group Holdings Co Ltd ($126) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,173 | 748 | 1,013 | 670 | 867 | 29.4% |
| Gross Profit | 475 | 347 | 453 | 347 | 385 | 10.9% |
| SG&A | 300 | 303 | 279 | 261 | 307 | 17.4% |
| EBITDA | 218 | 89 | 208 | 126 | 183 | 45.9% |
| Net Income | 114 | 153 | 196 | 121 | 121 | 0.2% |
Balance Sheet
|
|---|
| Cash | 305 | 479 | 363 | 229 | 158 | -31.0% |
| Short Term Debt | 562 | 765 | 560 | 774 | 653 | -15.7% |
| Long Term Debt | 602 | 303 | 353 | 232 | 284 | 22.3% |
Cash flow
|
|---|
| Capex | 44 | 27 | 39 | 98 | 56 | -42.8% |
Ratios
|
|---|
| Revenue growth | 69.3% | -36.2% | 35.4% | -33.8% | 29.4% | |
| EBITDA growth | 142.5% | -59.2% | 134.3% | -39.6% | 45.9% | |
| Gross Margin | 40.5% | 46.3% | 44.7% | 51.8% | 44.4% | -7.4% |
| EBITDA Margin | 18.6% | 11.9% | 20.5% | 18.7% | 21.1% | 2.4% |
| Net Income Margin | 9.7% | 20.5% | 19.3% | 18.0% | 14.0% | -4.1% |
| SG&A, % of revenue | 25.5% | 40.4% | 27.6% | 39.0% | 35.4% | -3.6% |
| CAPEX, % of revenue | 3.8% | 3.6% | 3.9% | 14.5% | 6.4% | -8.1% |
| ROIC | 3.5% | 1.0% | 3.2% | 1.6% | 2.6% | 1.1% |
| ROE | 3.6% | 4.6% | 5.4% | 3.3% | 3.4% | 0.1% |
| Net Debt/EBITDA | 3.9x | 6.6x | 2.6x | 6.2x | 4.2x | -1.9x |
Revenue and profitability
The company's Revenue surged on 29.4%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.4 pp from 18.7% to 21.1% in FY2016.
Gross Margin decreased on 7.4 pp from 51.8% to 44.4% in FY2016. SG&A as a % of Revenue decreased on 3.6 pp from 39.0% to 35.4% in FY2016.
Net Income marign decreased on 4.1 pp from 18.0% to 14.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Carrianna Group Holdings Co Ltd had CAPEX/Revenue of 6.4%. The company's CAPEX/Revenue increased on 2.9 pp from 3.6% in FY2013 to 6.4% in FY2016. It's average CAPEX/Revenue for the last three years was 8.3%.
Return on investment
The company operates at low ROIC (2.63%) and ROE (3.42%). ROIC increased slightly on 1.1 pp from 1.6% to 2.6% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.2x and Debt / EBITDA is 5.1x. Net Debt / EBITDA dropped on 1.9x from 6.2x to 4.2x in FY2016. Debt decreased on 6.9% while cash dropped on 31.0%.
Appendix 1: Peers in Lodging
Below we provide Carrianna Group Holdings 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 | 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) | 10.7% | 13.8% | 0.7% | -3.5% | -15.4% |
|---|
| Carrianna Group Holdings Co Ltd ($126) | | -36.2% | 35.4% | -33.8% | 29.4% |
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% |
| Asia Standard Hotel Group Ltd ($292) | 60.7% | 73.4% | 72.1% | 67.6% | 65.8% |
| Sino Hotels Holdings Ltd ($1221) | 71.3% | 70.4% | 68.9% | 65.8% | |
| |
|---|
| Median (17 companies) | 57.2% | 55.9% | 52.0% | 45.4% | 65.5% |
|---|
| Carrianna Group Holdings Co Ltd ($126) | 40.5% | 46.3% | 44.7% | 51.8% | 44.4% |
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% | |
| Asia Standard Hotel Group Ltd ($292) | -23.9% | 65.2% | 49.9% | 40.4% | 17.8% |
| Sino Hotels Holdings Ltd ($1221) | 46.5% | 45.9% | 43.1% | 39.6% | |
| |
|---|
| Median (23 companies) | 26.8% | 26.4% | 25.8% | 23.8% | 36.2% |
|---|
| Carrianna Group Holdings Co Ltd ($126) | 18.6% | 11.9% | 20.5% | 18.7% | 21.1% |
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% | 11.0% | 13.2% | 12.8% | 14.2% |
|---|
| Carrianna Group Holdings Co Ltd ($126) | 3.8% | 3.6% | 3.9% | 14.5% | 6.4% |
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% | 5.7% | 3.9% | 3.9% | 5.5% |
|---|
| Carrianna Group Holdings Co Ltd ($126) | 3.5% | 1.0% | 3.2% | 1.6% | 2.6% |
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) | 0.5x | 0.6x | 0.5x | 4.0x | 6.2x |
|---|
| Carrianna Group Holdings Co Ltd ($126) | 3.9x | 6.6x | 2.6x | 6.2x | 4.2x |
