Country Garden Holdings Co Ltd demonstrated healthy growth over the last few years
18/03/2015 • About Country Garden Holdings Co Ltd (
$2007) • By InTwits
Have you thought about Country Garden Holdings Co Ltd as a growth stock? Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Country Garden Holdings Co Ltd showed growth in the last financial year. Country Garden Holdings Co Ltd's revenue surged on 34.8% in FY2014. The growth also happened in EBITDA of 30.9% for the same period.
If we look for the longer period Country Garden Holdings Co Ltd showed fast revenue growth of 34.5% from 2011 to 2014 annualy. EBITDA surged on 20.6% from 2011 to 2014 annualy.
Country Garden Holdings Co Ltd ($2007) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 25,804 | 34,748 | 41,891 | 62,725 | 84,549 |
|---|
| Revenue growth, % | | 34.7% | 20.6% | 49.7% | 34.8% |
|---|
| Gross margin, % | 32.4% | 34.5% | 36.6% | 30.3% | 26.1% |
|---|
| SG&A, % | 5.64% | 7.04% | 8.96% | 10.1% | 8.89% |
|---|
| EBITDA | 7,248 | 9,903 | 12,115 | 13,287 | 17,388 |
|---|
| EBITDA growth, % | | 36.6% | 22.3% | 9.7% | 30.9% |
|---|
| EBITDA margin, % | 28.1% | 28.5% | 28.9% | 21.2% | 20.6% |
|---|
| Net Income | 4,291 | 5,813 | 6,853 | 8,514 | 10,229 |
|---|
| Net Income margin, % | 16.6% | 16.7% | 16.4% | 13.6% | 12.1% |
|---|
| |
| CAPEX | 2,090 | 2,818 | 3,896 | 5,311 | 5,106 |
|---|
| CAPEX/Revenue, % | 8.10% | 8.11% | 9.30% | 8.47% | 6.04% |
|---|
| Debt | 20,118 | 28,966 | 36,913 | 56,249 | 61,069 |
|---|
| Cash | 5,094 | 7,744 | 11,809 | 18,910 | 18,761 |
|---|
| Net Debt/EBITDA | 2.1x | 2.1x | 2.1x | 2.8x | 2.4x |
|---|
| |
| ROIC, % | 15.3% | 16.9% | 15.9% | 13.2% | 13.7% |
|---|
| ROE, % | 18.7% | 21.6% | 20.6% | 20.9% | 20.3% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. In the last 3 years the company showed big decline in EBITDA margin of 7.90 pp from 28.5% in 2011 to 20.6% in 2014.
Country Garden Holdings Co Ltd shows attractive ROIC at 13.7% for the last 12 months which assumes stable development model. Three years ago it was a bit higher at 16.9%. It's average ROIC for the last three years was 14.3%.
The company showed big decline in Net Income margin of 1.50 pp from 13.6% to 12.1% in 2014. In the longer period the company's Net Income margin dropped on 4.60 pp from 16.7% in 2011 to 12.1% in 2014.
Country Garden Holdings Co Ltd operates at ROE of 20.3%. Average ROE for the last three years was 20.6%.
Capital expenditures (CAPEX)
To fuel this fast growth the company had to invest in CAPEX.In FY2014 Country Garden Holdings Co Ltd had CAPEX/Revenue of 6.04%. CAPEX/Revenue dropped on 2.07 pp from 8.11% in 2011 to 6.04% in 2014. For the last three years the average CAPEX/Revenue was 7.94%.
Leverage (Debt)
Country Garden Holdings Co Ltd has medium debt level at 2.4x Net Debt/EBITDA to maintain high growth. If we look for the longer period Country Garden Holdings Co Ltd's leverage surged on 0.29x from 2.14x in 2011 to 2.43x in 2014.
Peers in Real Estate
Below you can find Country Garden Holdings 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 (65 companies) | | 9.1% | 14.0% | 10.7% | 7.5% |
|---|
| Country Garden Holdings Co Ltd ($2007) | | 34.7% | 20.6% | 49.7% | 34.8% |
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 (57 companies) | 48.4% | 44.2% | 46.7% | 52.6% | 50.6% |
|---|
| Country Garden Holdings Co Ltd ($2007) | 32.4% | 34.5% | 36.6% | 30.3% | 26.1% |
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 (64 companies) | 44.2% | 41.3% | 27.6% | 35.5% | 34.9% |
|---|
| Country Garden Holdings Co Ltd ($2007) | 28.1% | 28.5% | 28.9% | 21.2% | 20.6% |
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% |
| Wanda Hotel Development Co Ltd ($169) | | | 5.9% | 24.1% | 1,091.1% |
| 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% |
| |
|---|
| Median (64 companies) | 7.8% | 7.6% | 7.7% | 6.1% | 9.3% |
|---|
| Country Garden Holdings Co Ltd ($2007) | 8.1% | 8.1% | 9.3% | 8.5% | 6.0% |
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% |
| CIFI Holdings Group Co Ltd ($884) | 19.7% | 24.3% | 20.4% | 15.8% | 15.3% |
| Mexan Ltd ($22) | -0.9% | 1.6% | 4.2% | 10.5% | 13.3% |
| |
|---|
| Median (65 companies) | 3.8% | 3.0% | 2.4% | 3.9% | 2.7% |
|---|
| Country Garden Holdings Co Ltd ($2007) | 15.3% | 16.9% | 15.9% | 13.2% | 13.7% |
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 (51 companies) | 1.7x | 1.6x | 1.6x | 2.7x | 2.2x |
|---|
| Country Garden Holdings Co Ltd ($2007) | 2.1x | 2.1x | 2.1x | 2.8x | 2.4x |
