Amax International Holdings Ltd revenue growth accelerated from 3.1% in FY2015 to 105% in FY2016
28/06/2016 • About Amax International Holdings Ltd (
$959) • By InTwits
Amax International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Amax International Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -2.7%
- The company operates at negative EBITDA Margin: -313.9%
- Amax International Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -436.9% for the sames years0
- Amax International Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 26.5%. At the same time it's a lot of higher than industry average of 60.7%.
- CAPEX is quite volatile: 4.5 in FY2016, 3.1 in FY2015, 0.86 in FY2014, 0.15 in FY2013, 0.51 in FY2012
- The company has unprofitable business model: ROIC is at -2.7%
- It operates with high leverage: Net Debt/EBITDA is 7.0x while industry average is -2.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Amax International Holdings Ltd ($959) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4.921 | 5.494 | 4.965 | 5.118 | 10.486 | 104.9% |
| Gross Profit | | 5.062 | 4.894 | 4.945 | 7.401 | 49.7% |
| SG&A | 23.512 | 34.374 | 37.480 | 33.512 | 42.526 | 26.9% |
| EBITDA | -17.358 | -28.144 | -30.762 | -26.178 | -32.916 | |
| Net Income | 162.251 | -38.632 | 66.662 | -40.240 | -43.136 | |
Balance Sheet
|
|---|
| Cash | 28.434 | 1.199 | 3.962 | 3.053 | 2.473 | -19.0% |
| Short Term Debt | 0.000 | 0.134 | 11.139 | 140.655 | 44.638 | -68.3% |
| Long Term Debt | 145.057 | 155.669 | 166.394 | 38.619 | 0.829 | -97.9% |
Cash flow
|
|---|
| Capex | 0.512 | 0.149 | 0.856 | 3.062 | 4.454 | 45.5% |
Ratios
|
|---|
| Revenue growth | 1.3% | 11.6% | -9.6% | 3.1% | 104.9% | |
| EBITDA growth | -2.3% | 62.1% | 9.3% | -14.9% | 25.7% | |
| Gross Margin | | 92.1% | 98.6% | 96.6% | 70.6% | -26.0% |
| EBITDA Margin | -352.7% | -512.3% | -619.6% | -511.5% | -313.9% | 197.6% |
| Net Income Margin | 3,297.1% | -703.2% | 1,342.6% | -786.2% | -411.4% | 374.9% |
| SG&A, % of revenue | 477.8% | 625.7% | 754.9% | 654.8% | 405.6% | -249.2% |
| CAPEX, % of revenue | 10.4% | 2.7% | 17.2% | 59.8% | 42.5% | -17.4% |
| ROIC | -1.8% | -2.2% | -2.0% | -1.8% | -2.7% | -0.9% |
| ROE | 16.6% | -3.7% | 6.2% | -3.5% | -3.7% | -0.2% |
Revenue and profitability
Amax International Holdings Ltd's Revenue jumped on 105%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 91.4 pp from -514% to -423% in FY2016.
Gross Margin dropped on 26.0 pp from 96.6% to 70.6% in FY2016. SG&A as a % of Revenue dropped on 249 pp from 655% to 406% in FY2016.
Net Income marign jumped on 375 pp from -786% to -411% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Amax International Holdings Ltd's CAPEX/Revenue was 42.5% in FY2016. CAPEX/Revenue jumped on 39.8 pp from 2.7% in FY2013 to 42.5% in FY2016. Average CAPEX/Revenue for the last three years was 39.8%.
Return on investment
The company operates at negative ROIC (-2.74%) and ROE (-3.73%). ROIC decreased slightly on 0.91 pp from -1.8% to -2.7% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt level is 7.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt dropped on 74.6% while cash dropped on 19.0%.
Appendix 1: Peers in Entertainment
Below you can find Amax International 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | |
| SMI Holdings Group Ltd ($198) | 16.4% | 65.4% | 16.4% | 77.2% | |
| Universe International Holdings Ltd ($1046) | -42.2% | 4.3% | 159.4% | 46.3% | |
| |
|---|
| Median (26 companies) | 4.5% | 13.4% | 1.2% | -5.8% | -2.8% |
|---|
| Amax International Holdings Ltd ($959) | | 11.6% | -9.6% | 3.1% | 104.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Vanguard Group Ltd ($8156) | 63.8% | 88.2% | 93.8% | 95.2% | |
| Universe International Holdings Ltd ($1046) | 22.1% | 36.7% | 11.4% | 84.8% | |
| Cheung Wo International Holdings Ltd ($9) | -17.5% | 71.4% | 77.7% | 77.8% | |
| REXLot Holdings Ltd ($555) | 70.2% | 73.1% | 73.4% | 67.4% | |
| Nan Hai Corp Ltd ($680) | 62.2% | 65.3% | 65.8% | 62.1% | |
| |
|---|
| Median (22 companies) | 44.8% | 48.7% | 43.5% | 42.7% | 57.9% |
|---|
| Amax International Holdings Ltd ($959) | | 92.1% | 98.6% | 96.6% | 70.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Neptune Group Ltd ($70) | 98.6% | 98.6% | 86.6% | 99.0% | |
| Universe International Holdings Ltd ($1046) | 36.6% | 44.6% | 74.6% | 73.6% | |
| Haichang Holdings Ltd ($2255) | 55.0% | 44.5% | 46.3% | 56.6% | |
| REXLot Holdings Ltd ($555) | 53.7% | 55.1% | 6.1% | 40.5% | |
| SMI Holdings Group Ltd ($198) | 19.2% | 35.4% | 34.5% | 31.2% | |
| |
|---|
| Median (26 companies) | 22.1% | 19.7% | 18.3% | 0.2% | -9.4% |
|---|
| Amax International Holdings Ltd ($959) | -352.7% | -512.3% | -619.6% | -511.5% | -313.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Star Cultural Media Group Ltd ($8172) | 8.9% | 0.0% | 0.0% | 848.3% | |
| National Arts Entertainment and Culture Group Ltd ($8228) | 1,237.1% | 771.1% | 799.0% | 508.9% | |
| Cheung Wo International Holdings Ltd ($9) | 90.3% | 465.2% | 383.2% | 202.4% | |
| Haichang Holdings Ltd ($2255) | 21.4% | 18.5% | 10.3% | 64.2% | |
| Pegasus Entertainment Holdings Ltd ($1326) | 0.1% | 0.7% | 0.1% | 30.6% | |
| |
|---|
| Median (26 companies) | 8.7% | 9.0% | 4.7% | 8.3% | 4.3% |
|---|
| Amax International Holdings Ltd ($959) | 10.4% | 2.7% | 17.2% | 59.8% | 42.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Universe International Holdings Ltd ($1046) | -6.2% | -0.8% | -3.7% | 43.8% | |
| Neptune Group Ltd ($70) | 22.8% | 23.8% | 21.1% | 18.1% | |
| SMI Holdings Group Ltd ($198) | 1.3% | 8.4% | 9.9% | 10.5% | |
| Dynam Japan Holdings Co Ltd ($6889) | 23.8% | 25.4% | 21.8% | 10.5% | 12.6% |
| Haichang Holdings Ltd ($2255) | 7.1% | 8.1% | 8.6% | 8.9% | |
| |
|---|
| Median (27 companies) | -1.1% | 3.7% | 0.3% | -3.3% | -13.6% |
|---|
| Amax International Holdings Ltd ($959) | -1.8% | -2.2% | -2.0% | -1.8% | -2.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Orange Sky Golden Harvest Entertainment Holdings Ltd ($1132) | 1.1x | 4.2x | 2.7x | 25.8x | |
| Nan Hai Corp Ltd ($680) | 80.8x | 3.5x | 20.8x | 12.6x | |
| Haichang Holdings Ltd ($2255) | 7.0x | 4.7x | 1.7x | 1.7x | |
| SMI Holdings Group Ltd ($198) | 2.0x | 1.6x | 2.1x | 1.6x | |
| REXLot Holdings Ltd ($555) | -0.0x | -0.2x | 7.2x | 1.6x | |
| |
|---|
| Median (13 companies) | -0.1x | -0.6x | -0.2x | -0.4x | -0.2x |
|---|
