China LotSynergy Holdings Ltd revenue dropped on 68.9% and EBITDA Margin dropped on 99.3 pp from -31.0% to -130%
10/03/2017 • About China LotSynergy Holdings Ltd (
$1371) • By InTwits
China LotSynergy Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China LotSynergy Holdings Ltd is a company in decline: FY2016 revenue growth was -68.9%, 5 years revenue CAGR was -17.6%
- The company operates at negative EBITDA Margin: -130.3%
- EBITDA Margin is quite volatile: -130.3% in FY2016, -31.0% in FY2015, 56.1% in FY2014, 60.9% in FY2013, 53.3% in FY2012
- The company has unprofitable business model: ROIC is at -15.6%
- It operates with high leverage: Net Debt/EBITDA is -0.2x while industry average is -2.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China LotSynergy Holdings Ltd ($1371) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 607 | 744 | 1,035 | 644 | 200 | -68.9% |
| Gross Profit | 483 | 544 | 726 | 359 | -7 | -101.9% |
| SG&A | 162 | 168 | 223 | 354 | | -100.0% |
| EBITDA | 324 | 453 | 581 | -200 | -261 | |
| Net Income | 68 | 89 | 100 | -498 | -298 | |
Balance Sheet
|
|---|
| Cash | 267 | 340 | 419 | 540 | 375 | -30.6% |
| Short Term Debt | 613 | 797 | 911 | 583 | 313 | -46.3% |
| Long Term Debt | 0 | 0 | 588 | 602 | 522 | -13.4% |
Cash flow
|
|---|
| Capex | 253 | 218 | 153 | 171 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 15.0% | 22.5% | 39.1% | -37.8% | -68.9% | |
| EBITDA growth | 0.2% | 39.7% | 28.3% | -134.4% | 30.7% | |
| Gross Margin | 79.5% | 73.1% | 70.1% | 55.8% | -3.5% | -59.3% |
| EBITDA Margin | 53.3% | 60.9% | 56.1% | -31.0% | -130.3% | -99.3% |
| Net Income Margin | 11.1% | 11.9% | 9.7% | -77.3% | -148.7% | -71.4% |
| SG&A, % of revenue | 26.8% | 22.6% | 21.6% | 55.0% | | -55.0% |
| CAPEX, % of revenue | 41.7% | 29.3% | 14.8% | 26.6% | | -26.6% |
| ROIC | 15.5% | 16.9% | 14.8% | -9.8% | -15.6% | -5.8% |
| ROE | 6.5% | 7.8% | 6.8% | -32.4% | -26.5% | 5.9% |
| Net Debt/EBITDA | 1.1x | 1.0x | 1.9x | | | 0.0x |
Revenue and profitability
China LotSynergy Holdings Ltd's Revenue dropped on 68.9%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 99.3 pp from -31.0% to -130% in FY2016.
Gross Margin dropped on 59.3 pp from 55.8% to -3.5% in FY2016.
Net Income marign dropped on 71.4 pp from -77.3% to -149% in FY2016.
Return on investment
The company operates at negative ROIC (-15.64%) and ROE (-26.53%). ROIC decreased on 5.8 pp from -9.8% to -15.6% in FY2016. ROE increased on 5.9 pp from -32.4% to -26.5% in FY2016.
Leverage (Debt)
Debt level is -0.2x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt dropped on 29.6% while cash dropped on 30.6%.
Appendix 1: Peers in Entertainment
Below we provide China LotSynergy Holdings Ltd benchmarking against other companies in Entertainment 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 |
|---|
| 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) | | 4.3% | 159.4% | 46.3% | -97.5% |
| |
|---|
| Median (27 companies) | 3.0% | 10.4% | 1.1% | -4.3% | 0.9% |
|---|
| China LotSynergy Holdings Ltd ($1371) | | 22.5% | 39.1% | -37.8% | -68.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Amax International Holdings Ltd ($959) | | 92.1% | 98.6% | 96.6% | 70.6% |
| China Vanguard Group Ltd ($8156) | 63.8% | 88.2% | 93.8% | 95.2% | 91.0% |
| Universe International Holdings Ltd ($1046) | 22.1% | 36.7% | 11.4% | 84.8% | -635.1% |
| 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% | |
| |
|---|
| Median (23 companies) | 40.9% | 48.4% | 44.0% | 41.2% | 36.4% |
|---|
| China LotSynergy Holdings Ltd ($1371) | 79.5% | 73.1% | 70.1% | 55.8% | -3.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Neptune Group Ltd ($70) | 98.6% | 98.6% | 86.6% | 99.0% | 76.3% |
| Universe International Holdings Ltd ($1046) | 36.6% | 44.6% | 74.6% | 73.6% | -1,418.4% |
| 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 (27 companies) | 20.2% | 19.2% | 17.0% | 2.2% | -11.0% |
|---|
| China LotSynergy Holdings Ltd ($1371) | 53.3% | 60.9% | 56.1% | -31.0% | -130.3% |
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% | |
| Amax International Holdings Ltd ($959) | 10.4% | 2.7% | 17.2% | 59.8% | 42.5% |
| |
|---|
| Median (27 companies) | 8.5% | 6.6% | 4.6% | 8.1% | 4.3% |
|---|
| China LotSynergy Holdings Ltd ($1371) | 41.7% | 29.3% | 14.8% | 26.6% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Universe International Holdings Ltd ($1046) | -6.2% | -0.8% | -3.7% | 43.8% | -17.0% |
| China Animation Characters Co Ltd ($1566) | | 119.2% | 117.8% | 24.1% | 14.0% |
| Neptune Group Ltd ($70) | 22.8% | 23.8% | 21.1% | 18.1% | 0.3% |
| 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% |
| |
|---|
| Median (28 companies) | -1.1% | 2.3% | -0.3% | -1.7% | -8.4% |
|---|
| China LotSynergy Holdings Ltd ($1371) | 15.5% | 16.9% | 14.8% | -9.8% | -15.6% |
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 (14 companies) | -0.1x | -0.6x | -0.4x | -0.5x | -0.4x |
|---|
