Dynam Japan Holdings Co Ltd reports 21.3% CAPEX decline in 2017 and 0.61% Revenue growth
25/05/2017 • About Dynam Japan Holdings Co Ltd (
$6889) • By InTwits
Dynam Japan Holdings Co Ltd reported FY2017 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dynam Japan Holdings Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.4%. At the same time it's a lot of higher than industry average of 0.5%.
- CAPEX is quite volatile: 3,616 in 2017, 1,089 in 2016, 860 in 2015, 4,151 in 2014, 2,124 in 2013
- The company has business model with average profitability: ROIC is at 10.3%
- It operates with high leverage: Net Debt/EBITDA is -0.6x while industry average is -3.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dynam Japan Holdings Co Ltd ($6889) key annual financial indicators
| mln. JPY | 2013 | 2014 | 2015 | 2016 | 2017 | 2017/2016 |
|---|
P&L
|
|---|
| Revenue | 163,961 | 165,754 | 154,556 | 155,911 | 156,869 | 0.6% |
| SG&A | 3,112 | 4,075 | 5,456 | 5,798 | 5,622 | -3.0% |
| EBITDA | 42,152 | 40,832 | 25,837 | 30,183 | 28,236 | -6.5% |
| Net Income | 20,925 | 21,328 | 11,303 | 10,544 | 9,360 | -11.2% |
Balance Sheet
|
|---|
| Cash | 41,466 | 34,830 | 29,239 | 28,134 | 48,499 | 72.4% |
| Short Term Debt | 2,481 | 2,134 | 3,414 | 2,455 | 7,583 | 208.9% |
| Long Term Debt | 5,445 | 3,391 | 9,226 | 18,520 | 23,343 | 26.0% |
Cash flow
|
|---|
| Capex | 10,723 | 9,292 | 16,008 | 12,613 | 9,925 | -21.3% |
Ratios
|
|---|
| Revenue growth | -0.7% | 1.1% | -6.8% | 0.9% | 0.6% | |
| EBITDA growth | 4.4% | -3.1% | -36.7% | 16.8% | -6.5% | |
| EBITDA Margin | 25.7% | 24.6% | 16.7% | 19.4% | 18.0% | -1.4% |
| Net Income Margin | 12.8% | 12.9% | 7.3% | 6.8% | 6.0% | -0.8% |
| SG&A, % of revenue | 1.9% | 2.5% | 3.5% | 3.7% | 3.6% | -0.1% |
| CAPEX, % of revenue | 6.5% | 5.6% | 10.4% | 8.1% | 6.3% | -1.8% |
| ROIC | 25.4% | 21.8% | 10.5% | 12.6% | 10.3% | -2.2% |
| ROE | 19.1% | 15.9% | 8.1% | 7.9% | 6.9% | -0.9% |
| Net Debt/EBITDA | -0.8x | -0.7x | -0.6x | -0.2x | -0.6x | -0.4x |
Revenue and profitability
Dynam Japan Holdings Co Ltd's Revenue increased slightly on 0.61%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.62 pp from 20.4% to 21.0% in 2017.
SG&A as a % of Revenue showed almost no change in FY2017.
Net Income marign decreased slightly on 0.80 pp from 6.8% to 6.0% in FY2017.
Capital expenditures (CAPEX) and working capital investments
Dynam Japan Holdings Co Ltd's CAPEX/Revenue was 6.3% in FY2017. CAPEX/Revenue increased slightly on 0.72 pp from 5.6% in FY2014 to 6.3% in FY2017. For the last three years the average CAPEX/Revenue was 8.3%.
Return on investment
The company operates at low ROIC (10.35%) and ROE (6.94%). ROIC decreased on 2.2 pp from 12.6% to 10.3% in FY2017. ROE decreased slightly on 0.93 pp from 7.9% to 6.9% in FY2017.
Leverage (Debt)
Debt level is -0.6x Net Debt / EBITDA and 1.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from -0.2x to -0.6x in FY2017. Debt surged on 47.4% while cash jumped on 72.4%.
Appendix 1: Peers in Entertainment
Below you can find Dynam Japan Holdings Co 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 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| China Star Cultural Media Group Ltd ($8172) | -40.9% | -62.1% | -4.8% | 326.4% | |
| Pegasus Entertainment Holdings Ltd ($1326) | 40.4% | -30.0% | 15.2% | 187.5% | |
| Nan Hai Corp Ltd ($680) | 18.7% | 36.0% | 33.2% | 112.3% | |
| China 3D Digital Entertainment Ltd ($8078) | 295.2% | 185.2% | -44.3% | 105.3% | |
| Amax International Holdings Ltd ($959) | 11.6% | -9.6% | 3.1% | 104.9% | |
| |
|---|
| Median (18 companies) | 11.6% | 1.2% | -4.3% | 6.9% | |
|---|
| Dynam Japan Holdings Co Ltd ($6889) | | 1.1% | -6.8% | 0.9% | 0.6% |
Top companies by Gross margin, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| China Vanguard Group Ltd ($8156) | 88.2% | 93.8% | 95.2% | 91.0% | |
| Amax International Holdings Ltd ($959) | 92.1% | 98.6% | 96.6% | 70.6% | |
| Nan Hai Corp Ltd ($680) | 65.3% | 65.8% | 62.1% | 60.2% | |
| Bingo Group Holdings Ltd ($8220) | 71.2% | 55.1% | 57.4% | 57.9% | |
| Global Digital Creations Holdings Ltd ($8271) | 40.0% | 38.0% | 40.1% | 46.6% | |
| |
|---|
| Median (12 companies) | 48.7% | 44.1% | 42.7% | 36.4% | |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Neptune Group Ltd ($70) | 98.6% | 86.6% | 99.0% | 76.3% | |
| Nan Hai Corp Ltd ($680) | 62.0% | 8.3% | 17.5% | 35.4% | |
| Global Digital Creations Holdings Ltd ($8271) | 15.0% | 30.5% | 16.0% | 24.9% | |
| China Animation Characters Co Ltd ($1566) | 38.2% | 44.5% | 21.4% | 22.2% | |
| Pegasus Entertainment Holdings Ltd ($1326) | 12.4% | 19.5% | -41.9% | 3.7% | |
| |
|---|
| Median (14 companies) | 19.2% | 17.0% | -1.7% | -14.4% | |
|---|
| Dynam Japan Holdings Co Ltd ($6889) | 25.7% | 24.6% | 16.7% | 19.4% | 18.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Amax International Holdings Ltd ($959) | 2.7% | 17.2% | 59.8% | 42.5% | |
| China Vanguard Group Ltd ($8156) | 58.3% | 4.0% | 4.2% | 26.5% | |
| Universe International Holdings Ltd ($1046) | 1.1% | 0.1% | 1.4% | 21.9% | |
| China 3D Digital Entertainment Ltd ($8078) | 9.0% | 2.0% | 8.1% | 18.8% | |
| Magnum Entertainment Group Holdings Ltd ($2080) | 3.5% | 1.1% | 23.2% | 4.3% | |
| |
|---|
| Median (10 companies) | 7.8% | 4.6% | 8.1% | 2.5% | |
|---|
| Dynam Japan Holdings Co Ltd ($6889) | 6.5% | 5.6% | 10.4% | 8.1% | 6.3% |
Top companies by ROIC, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| China Animation Characters Co Ltd ($1566) | 119.2% | 117.8% | 24.1% | 14.0% | |
| Nan Hai Corp Ltd ($680) | 10.2% | -2.8% | 3.7% | 14.0% | |
| Global Digital Creations Holdings Ltd ($8271) | 0.4% | 3.6% | 0.7% | 1.7% | |
| Neptune Group Ltd ($70) | 23.8% | 21.1% | 18.1% | 0.3% | |
| Pegasus Entertainment Holdings Ltd ($1326) | 18.5% | 10.3% | -21.3% | -0.7% | |
| |
|---|
| Median (18 companies) | 2.3% | -0.3% | -2.6% | -7.1% | |
|---|
| Dynam Japan Holdings Co Ltd ($6889) | 25.4% | 21.8% | 10.5% | 12.6% | 10.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Nan Hai Corp Ltd ($680) | 3.5x | 20.8x | 12.6x | 4.5x | |
| China Animation Characters Co Ltd ($1566) | -0.0x | -0.6x | -3.2x | 0.1x | |
| Neptune Group Ltd ($70) | -0.1x | -0.0x | -0.1x | -0.6x | |
| Pegasus Entertainment Holdings Ltd ($1326) | -1.3x | -1.4x | | -4.4x | |
| Global Digital Creations Holdings Ltd ($8271) | 1.0x | -0.3x | -4.7x | -7.5x | |
| |
|---|
| Median (5 companies) | -0.3x | -0.2x | -0.4x | -0.6x | |
|---|
| Dynam Japan Holdings Co Ltd ($6889) | -0.8x | -0.7x | -0.6x | -0.2x | -0.6x |
