Neway Group Holdings Ltd reports 210% Net Income growth in 2016
24/03/2017 • About Neway Group Holdings Ltd (
$55) • By InTwits
Neway Group Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: in FY2016 vs. -15.4% in FY2015 vs. 1.5% in FY2012
- Neway Group Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -1.2%0
- It operates with high leverage: Net Debt/EBITDA is 4.3x while industry average is -3.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Neway Group Holdings Ltd ($55) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 660.7 | 643.7 | 613.3 | 521.3 | 562.9 | 8.0% |
| Gross Profit | 105.1 | 112.7 | 118.8 | 93.5 | | -100.0% |
| SG&A | 124.7 | 124.9 | 138.6 | 147.4 | | -100.0% |
| EBITDA | 10.1 | 24.8 | 10.0 | -80.5 | | |
| Net Income | -55.9 | 1.7 | -21.0 | -67.3 | 74.2 | |
Balance Sheet
|
|---|
| Cash | 283.4 | 247.4 | 232.5 | 234.1 | | -100.0% |
| Short Term Debt | 2.6 | 1.6 | 18.7 | 6.0 | | -100.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | | |
Cash flow
|
|---|
| Capex | 56.4 | 15.7 | 22.0 | 7.1 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -2.6% | -2.6% | -4.7% | -15.0% | 8.0% | |
| EBITDA growth | -85.5% | 146.9% | -59.9% | -908.8% | | |
| Gross Margin | 15.9% | 17.5% | 19.4% | 17.9% | | -17.9% |
| EBITDA Margin | 1.5% | 3.9% | 1.6% | -15.4% | 0.0% | 15.4% |
| Net Income Margin | -8.5% | 0.3% | -3.4% | -12.9% | 13.2% | 26.1% |
| SG&A, % of revenue | 18.9% | 19.4% | 22.6% | 28.3% | | -28.3% |
| CAPEX, % of revenue | 8.5% | 2.4% | 3.6% | 1.4% | | -1.4% |
| ROIC | -2.8% | -0.8% | -2.4% | -11.7% | | 11.7% |
| ROE | -6.8% | 0.2% | -2.7% | -8.3% | | 8.3% |
| Net Debt/EBITDA | -27.9x | -9.9x | -21.5x | | | 0.0x |
Revenue and profitability
The company's Revenue increased on 8.0%.
Net Income marign jumped on 26.1 pp from -12.9% to 13.2% in FY2016.
Appendix 1: Peers in Entertainment
Below we provide Neway Group 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) | | 181.2% | -20.1% | 162.4% | 44.4% |
| 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) | 16.4% | 11.6% | 1.2% | -4.3% | 5.6% |
|---|
| Neway Group Holdings Ltd ($55) | | -2.6% | -4.7% | -15.0% | 8.0% |
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) | 44.8% | 52.7% | 44.3% | 44.3% | 36.4% |
|---|
| Neway Group Holdings Ltd ($55) | 15.9% | 17.5% | 19.4% | 17.9% | |
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) | 24.0% | 20.3% | 19.5% | 2.2% | -11.0% |
|---|
| Neway Group Holdings Ltd ($55) | 1.5% | 3.9% | 1.6% | -15.4% | |
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) | 8.9% | 7.8% | 4.8% | 8.4% | 4.3% |
|---|
| Neway Group Holdings Ltd ($55) | 8.5% | 2.4% | 3.6% | 1.4% | |
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% | 5.1% | 0.7% | -1.7% | -5.9% |
|---|
| Neway Group Holdings Ltd ($55) | -2.8% | -0.8% | -2.4% | -11.7% | |
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 | 4.5x |
| 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 | -0.3x | -0.2x | -0.5x | -0.4x |
|---|
