Shangri-La Asia Ltd Net Debt / EBITDA jumped on 5.0x from 9.8x to 14.7x in 2016 while Revenue decreased on 3.2%
23/03/2017 • About Shangri-La Asia Ltd (
$69) • By InTwits
Shangri-La Asia Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shangri-La Asia Ltd doesn't have a profitable business model yet: FY2016 ROIC is -0.2%
- EBITDA Margin is declining: 14.4% in FY2016 vs. 22.6% in FY2015 vs. 28.7% in FY2012
- The company has unprofitable business model: ROIC is at -0.2%
- It operates with high leverage: Net Debt/EBITDA is 14.7x 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.
Shangri-La Asia Ltd ($69) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,057 | 2,081 | 2,112 | 2,123 | 2,055 | -3.2% |
| Gross Profit | 1,176 | 1,174 | 1,199 | 1,189 | 1,176 | -1.1% |
| SG&A | 264 | 280 | 289 | 292 | 291 | -0.5% |
| EBITDA | 590 | 549 | 528 | 479 | 295 | -38.3% |
| Net Income | 359 | 392 | 181 | 140 | 106 | -24.3% |
Balance Sheet
|
|---|
| Cash | 839 | 1,135 | 1,442 | 489 | 944 | 93.2% |
| Short Term Debt | 529 | 405 | 703 | 1,603 | 809 | -49.5% |
| Long Term Debt | 3,837 | 4,448 | 4,403 | 3,565 | 4,487 | 25.9% |
Cash flow
|
|---|
| Capex | 997 | 690 | 871 | 727 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 7.6% | 1.2% | 1.5% | 0.5% | -3.2% | |
| EBITDA growth | 13.0% | -7.0% | -3.9% | -9.3% | -38.3% | |
| Gross Margin | 57.2% | 56.4% | 56.8% | 56.0% | 57.2% | 1.2% |
| EBITDA Margin | 28.7% | 26.4% | 25.0% | 22.6% | 14.4% | -8.2% |
| Net Income Margin | 17.4% | 18.9% | 8.6% | 6.6% | 5.2% | -1.4% |
| SG&A, % of revenue | 12.8% | 13.4% | 13.7% | 13.8% | 14.2% | 0.4% |
| CAPEX, % of revenue | 48.5% | 33.1% | 41.2% | 34.3% | | -34.3% |
| ROIC | 2.8% | 2.0% | 1.7% | 1.1% | -0.2% | -1.3% |
| ROE | 6.2% | 6.4% | 2.7% | 2.1% | 1.7% | -0.4% |
| Net Debt/EBITDA | 6.0x | 6.8x | 6.9x | 9.8x | 14.7x | 5.0x |
Revenue and profitability
Shangri-La Asia Ltd's Revenue decreased on 3.2%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 8.2 pp from 22.6% to 14.4% in FY2016.
Gross Margin increased slightly on 1.2 pp from 56.0% to 57.2% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign decreased slightly on 1.4 pp from 6.6% to 5.2% in FY2016.
Return on investment
The company operates at negative ROIC (-0.24%) and low but positive ROE (1.71%). ROIC decreased slightly on 1.3 pp from 1.1% to -0.24% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 14.7x and Debt / EBITDA is 17.9x. Net Debt / EBITDA jumped on 5.0x from 9.8x to 14.7x in FY2016. Debt increased on 2.5% while cash surged on 93.2%.
Management team
Lim Beng Chee is a Shangri-La Asia Ltd's CEO. Lim Beng Chee has spent 1 year at the company.
Appendix 1: Peers in Lodging
Below you can find Shangri-La Asia Ltd benchmarking vs. other companies in Lodging 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 |
|---|
| 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% | -10.2% | -3.2% |
|---|
| Shangri-La Asia Ltd ($69) | | 1.2% | 1.5% | 0.5% | -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% | 99.4% |
| 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% | 62.0% |
| |
|---|
| Median (17 companies) | 55.7% | 46.3% | 51.3% | 45.4% | 63.7% |
|---|
| Shangri-La Asia Ltd ($69) | 57.2% | 56.4% | 56.8% | 56.0% | 57.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| NagaCorp Ltd ($3918) | 49.8% | 50.1% | 42.8% | 45.3% | 48.1% |
| 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% | 33.1% |
| |
|---|
| Median (23 companies) | 26.7% | 26.4% | 25.8% | 23.8% | 24.6% |
|---|
| Shangri-La Asia Ltd ($69) | 28.7% | 26.4% | 25.0% | 22.6% | 14.4% |
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% | |
| NagaCorp Ltd ($3918) | 25.9% | 17.2% | 24.0% | 27.8% | 25.8% |
| |
|---|
| Median (23 companies) | 6.3% | 8.9% | 10.8% | 12.8% | 10.3% |
|---|
| Shangri-La Asia Ltd ($69) | 48.5% | 33.1% | 41.2% | 34.3% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| NagaCorp Ltd ($3918) | 30.6% | 28.9% | 22.6% | 28.6% | 21.3% |
| MGM China Holdings Ltd ($2282) | 46.2% | 53.8% | 54.5% | 24.0% | 16.0% |
| Sands China Ltd ($1928) | 14.2% | 24.4% | 26.7% | 15.8% | 14.3% |
| 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% | 12.7% |
| |
|---|
| Median (23 companies) | 7.6% | 5.7% | 3.9% | 3.9% | 5.5% |
|---|
| Shangri-La Asia Ltd ($69) | 2.8% | 2.0% | 1.7% | 1.1% | -0.2% |
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 | |
| Macau Legend Development Ltd ($1680) | 2.2x | 0.6x | 0.2x | 7.1x | |
| Jinmao Investments and Jinmao China Investments Holdings Ltd ($6139) | 4.5x | 4.1x | 10.4x | 6.3x | |
| |
|---|
| Median (21 companies) | 0.5x | 0.6x | 0.5x | 4.0x | 1.6x |
|---|
| Shangri-La Asia Ltd ($69) | 6.0x | 6.8x | 6.9x | 9.8x | 14.7x |
