Eye on CIFI Holdings Group Co Ltd with its long history of healthy growth
17/03/2015 • About CIFI Holdings Group Co Ltd (
$884) • By InTwits
CIFI Holdings Group Co Ltd is a growth stock in Real Estate industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
CIFI Holdings Group Co Ltd showed growth in the last financial year. The company's revenue surged on 35.9% in FY2014. EBITDA also increased considerably: 20.9% for the same period.
If we look for the longer period the company showed fast revenue growth of 59.2% from 2011 to 2014 annualy. EBITDA surged on 19.4% from 2011 to 2014 annualy.
CIFI Holdings Group Co Ltd ($884) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 4,162 | 4,008 | 8,144 | 11,909 | 16,179 |
|---|
| Revenue growth, % | | -3.7% | 103.2% | 46.2% | 35.9% |
|---|
| Gross margin, % | 26.7% | 34.2% | 23.7% | 25.8% | 25.9% |
|---|
| SG&A, % | 4.85% | 8.92% | 6.52% | 6.90% | 5.25% |
|---|
| EBITDA | 1,061 | 2,236 | 2,884 | 3,150 | 3,808 |
|---|
| EBITDA growth, % | | 110.8% | 29.0% | 9.2% | 20.9% |
|---|
| EBITDA margin, % | 25.5% | 55.8% | 35.4% | 26.5% | 23.5% |
|---|
| Net Income | 474 | 1,337 | 1,937 | 1,894 | 1,861 |
|---|
| Net Income margin, % | 11.4% | 33.4% | 23.8% | 15.9% | 11.5% |
|---|
| |
| CAPEX | 39 | 139 | 45 | 63 | 301 |
|---|
| CAPEX/Revenue, % | 0.941% | 3.48% | 0.548% | 0.529% | 1.86% |
|---|
| Debt | 3,975 | 7,752 | 8,865 | 13,292 | 13,861 |
|---|
| Cash | 2,157 | 2,574 | 4,591 | 7,061 | 7,094 |
|---|
| Net Debt/EBITDA | 1.7x | 2.3x | 1.5x | 2.0x | 1.8x |
|---|
| |
| ROIC, % | 19.7% | 24.3% | 20.4% | 15.8% | 15.3% |
|---|
| ROE, % | 29.6% | 52.4% | 39.5% | 25.0% | 19.8% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 26.5% in FY2013 to 23.5% in FY2014. In the last 3 years CIFI Holdings Group Co Ltd showed big decline in EBITDA margin of 32.3 pp from 55.8% in 2011 to 23.5% in 2014.
CIFI Holdings Group Co Ltd shows attractive ROIC at 15.3% for the last 12 months which assumes stable development model. Three years ago it was higher at 24.3%. For the last three years the average ROIC was 17.2%.
Net Income margin dropped on 4.40 pp from 15.9% to 11.5% in 2014. In the longer period CIFI Holdings Group Co Ltd's Net Income margin dropped on 21.9 pp from 33.4% in 2011 to 11.5% in 2014.
CIFI Holdings Group Co Ltd operates at ROE of 19.8%. It's average ROE for the last three years was 28.1%.
Capital expenditures (CAPEX)
CIFI Holdings Group Co Ltd's CAPEX/Revenue was 1.86% in FY2014. The company showed big decline in CAPEX/Revenue of 1.61 pp from 3.48% in 2011 to 1.86% in 2014. It's average level of CAPEX/Revenue for the last three years was 0.980%.
Leverage (Debt)
CIFI Holdings Group Co Ltd has medium debt level at 1.8x Net Debt/EBITDA to maintain high growth. In the last 3 years CIFI Holdings Group Co Ltd's leverage dropped on 0.54x from 2.32x in 2011 to 1.78x in 2014.
Management team
CIFI Holdings Group Co Ltd is headed by Lin Feng as a CEO and by Yau Sze Ka "Albert" as a CFO.
Peers in Real Estate
Below you can find CIFI Holdings Group Co Ltd benchmarking vs. other companies in Real Estate 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Rykadan Capital Ltd ($2288) | | -20.2% | -94.0% | 91.5% | 1,252.9% |
| Winfull Group Holdings Ltd ($183) | | 57.1% | -68.3% | -34.7% | 394.8% |
| Wang On Group Ltd ($1222) | | -2.7% | -26.6% | 81.1% | 126.7% |
| CSI Properties Ltd ($497) | | 89.6% | 17.2% | -63.9% | 121.8% |
| Lai Sun Development Co Ltd ($488) | | 63.6% | -26.6% | 10.1% | 118.9% |
| |
|---|
| Median (62 companies) | | 11.5% | 11.4% | 10.4% | 8.6% |
|---|
| CIFI Holdings Group Co Ltd ($884) | | -3.7% | 103.2% | 46.2% | 35.9% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Tern Properties Co Ltd ($277) | 95.8% | 96.9% | 96.7% | 98.4% | 98.4% |
| GR Properties Ltd ($108) | 50.7% | 37.4% | 39.3% | | 98.2% |
| ITC Properties Group Ltd ($199) | 44.7% | 29.8% | 22.8% | 92.9% | 95.2% |
| Wah Ha Realty Co Ltd ($278) | 91.9% | 88.7% | 96.3% | 96.0% | 93.2% |
| Tian Teck Land Ltd ($266) | 67.8% | 79.0% | 86.0% | 86.9% | 88.9% |
| |
|---|
| Median (54 companies) | 48.4% | 44.2% | 47.1% | 53.3% | 50.5% |
|---|
| CIFI Holdings Group Co Ltd ($884) | 26.7% | 34.2% | 23.7% | 25.8% | 25.9% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| ITC Properties Group Ltd ($199) | 116.8% | 24.0% | -125.5% | -2,995.7% | 1,685.3% |
| Sino Land Co Ltd ($83) | 82.1% | 152.4% | 107.7% | 94.3% | 116.3% |
| Asia Orient Holdings Ltd ($214) | 659.0% | 229.8% | -82.0% | 141.6% | 112.0% |
| SOHO China Ltd ($410) | 48.0% | 113.8% | 113.6% | 80.8% | 104.0% |
| Associated International Hotels Ltd ($105) | 48.0% | 72.1% | 79.9% | 88.8% | 84.2% |
| |
|---|
| Median (61 companies) | 44.2% | 40.0% | 27.3% | 34.9% | 35.9% |
|---|
| CIFI Holdings Group Co Ltd ($884) | 25.5% | 55.8% | 35.4% | 26.5% | 23.5% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| ITC Properties Group Ltd ($199) | 13.6% | 25.6% | 56.2% | 4,202.4% | 1,304.7% |
| Pacific Century Premium Developments Ltd ($432) | 4.2% | 6.5% | 2.9% | 323.1% | 351.2% |
| Liu Chong Hing Investment Ltd ($194) | 1.0% | 9.4% | 18.5% | 6.1% | 269.7% |
| Henry Group Holdings Ltd ($859) | 370.5% | 364.6% | 432.0% | 616.8% | 195.1% |
| Winfair Investment Co Ltd ($287) | 0.1% | 379.9% | 0.3% | 169.0% | 147.3% |
| |
|---|
| Median (61 companies) | 7.8% | 7.6% | 7.7% | 5.7% | 8.0% |
|---|
| CIFI Holdings Group Co Ltd ($884) | 0.9% | 3.5% | 0.5% | 0.5% | 1.9% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Rykadan Capital Ltd ($2288) | 43.3% | 17.2% | -1.8% | -2.6% | 48.4% |
| China South City Holdings Ltd ($1668) | 17.9% | 14.0% | 15.2% | 15.9% | 15.9% |
| Times Property Holdings Ltd ($1233) | | 5.4% | 6.9% | 14.6% | 15.5% |
| Mexan Ltd ($22) | -0.9% | 1.6% | 4.2% | 10.5% | 13.3% |
| Wang On Group Ltd ($1222) | 5.1% | 2.3% | 1.5% | 4.4% | 13.2% |
| |
|---|
| Median (62 companies) | 3.8% | 3.0% | 1.9% | 3.9% | 2.7% |
|---|
| CIFI Holdings Group Co Ltd ($884) | 19.7% | 24.3% | 20.4% | 15.8% | 15.3% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Cheuk Nang Holdings Ltd ($131) | | 53.2x | | 177.3x | 901.7x |
| Coastal Greenland Ltd ($1124) | 11.2x | 4.2x | 2.2x | 7.1x | 26.6x |
| Easyknit International Holdings Ltd ($1218) | -2.1x | -1.6x | -0.8x | 3.0x | 17.0x |
| Beijing Capital Land Ltd ($2868) | 0.9x | 2.9x | 7.1x | 4.6x | 11.7x |
| Sino Harbour Property Group Ltd ($1663) | 1.2x | 0.4x | -0.1x | 1.5x | 9.7x |
| |
|---|
| Median (49 companies) | 1.4x | 1.1x | 1.5x | 2.7x | 2.4x |
|---|
| CIFI Holdings Group Co Ltd ($884) | 1.7x | 2.3x | 1.5x | 2.0x | 1.8x |
