Shimao Property Holdings Ltd demonstrates fast growth
07/04/2015 • About Shimao Property Holdings Ltd (
$813) • By InTwits
Shimao Property Holdings Ltd is a growth stock in Real Estate industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Shimao Property Holdings Ltd showed growth in the last financial year. Shimao Property Holdings Ltd's revenue surged on 35.1% in FY2014. The growth also happened in EBITDA of 33.1% for the same period.
In the longer period Shimao Property Holdings Ltd showed fast revenue growth of 29.2% from 2011 to 2014 annualy. EBITDA surged on 14.7% from 2011 to 2014 annualy.
Shimao Property Holdings Ltd ($813) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 21,789 | 26,031 | 28,652 | 41,503 | 56,081 |
|---|
| Revenue growth, % | | 19.5% | 10.1% | 44.8% | 35.1% |
|---|
| Gross margin, % | 36.6% | 38.4% | 33.5% | 35.3% | 32.5% |
|---|
| SG&A, % | 7.56% | 8.14% | 9.99% | 8.65% | 7.67% |
|---|
| EBITDA | 9,337 | 10,828 | 10,398 | 12,272 | 16,335 |
|---|
| EBITDA growth, % | | 16.0% | -4.0% | 18.0% | 33.1% |
|---|
| EBITDA margin, % | 42.9% | 41.6% | 36.3% | 29.6% | 29.1% |
|---|
| Net Income | 4,672 | 5,723 | 5,765 | 7,390 | 8,104 |
|---|
| Net Income margin, % | 21.4% | 22.0% | 20.1% | 17.8% | 14.5% |
|---|
| |
| CAPEX | 1,254 | 2,591 | 4,275 | 4,784 | 4,297 |
|---|
| CAPEX/Revenue, % | 5.76% | 9.95% | 14.9% | 11.5% | 7.66% |
|---|
| Debt | 34,072 | 42,561 | 40,994 | 49,329 | 61,994 |
|---|
| Cash | 12,140 | 12,313 | 15,894 | 17,026 | 20,472 |
|---|
| Net Debt/EBITDA | 2.3x | 2.8x | 2.4x | 2.6x | 2.5x |
|---|
| |
| ROIC, % | 14.7% | 13.3% | 11.2% | 11.6% | 12.4% |
|---|
| ROE, % | 18.7% | 20.0% | 17.3% | 19.0% | 18.3% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. In the longer period EBITDA margin dropped on 12.5 pp from 41.6% in 2011 to 29.1% in 2014.
We call Shimao Property Holdings Ltd an attractive growth stock as together with the growth it delivers high ROIC at 12.4%. Three years ago it was a bit higher at 13.3%. It's average level of ROIC for the last three years was 11.7%.
Shimao Property Holdings Ltd showed big decline in Net Income margin of 3.30 pp from 17.8% to 14.5% in 2014. In the longer period Net Income margin dropped on 7.50 pp from 22% in 2011 to 14.5% in 2014.
Shimao Property Holdings Ltd operates at ROE of 18.3%. It's average level of ROE for the last three years was 18.2%.
Capital expenditures (CAPEX)
To this fast growth the company had to invest in CAPEX.Shimao Property Holdings Ltd's CAPEX/Revenue was 7.66% in FY2014. CAPEX/Revenue dropped on 2.29 pp from 9.95% in 2011 to 7.66% in 2014. For the last three years the average CAPEX/Revenue was 11.4%.
Leverage (Debt)
The company has medium debt level at 2.5x Net Debt/EBITDA to maintain high growth. In the last 3 years the company showed decline of 0.25x from 2.79x in 2011 to 2.54x in 2014.
Peers in Real Estate
Below you can find Shimao Property Holdings 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 |
|---|
| Landsea Green Properties Co Ltd ($106) | | -91.1% | -35.1% | -51.2% | 3,097.3% |
| LVGEM China Real Estate Invest ($95) | | -0.1% | -27.5% | -21.9% | 3,008.3% |
| Rivera Holdings Ltd ($281) | | 222.2% | 197.1% | -89.9% | 2,067.2% |
| Ceneric Holdings Ltd ($542) | | -94.0% | -73.9% | -49.8% | 1,922.5% |
| Rykadan Capital Ltd ($2288) | | -20.2% | -94.0% | 91.5% | 1,252.9% |
| |
|---|
| Median (168 companies) | | 12.9% | 16.3% | 13.1% | 5.0% |
|---|
| Shimao Property Holdings Ltd ($813) | | 19.5% | 10.1% | 44.8% | 35.1% |
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% |
| Renhe Commercial Holdings Co Ltd ($1387) | -5.5% | 71.1% | 79.0% | 95.2% | 97.9% |
| YT Realty Group Ltd ($75) | 94.5% | 91.5% | 94.4% | 96.6% | 96.7% |
| ITC Properties Group Ltd ($199) | 44.7% | 29.8% | 22.8% | 92.9% | 95.2% |
| |
|---|
| Median (150 companies) | 41.2% | 43.6% | 42.1% | 41.8% | 39.2% |
|---|
| Shimao Property Holdings Ltd ($813) | 36.6% | 38.4% | 33.5% | 35.3% | 32.5% |
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% |
| Beijing Properties Holdings Ltd ($925) | -115.2% | 33.2% | -606.3% | 2,162.6% | 224.3% |
| Chinese Estates Holdings Ltd ($127) | -348.6% | 340.9% | 356.2% | 91.6% | 195.5% |
| Zall Development Group Ltd ($2098) | 120.7% | 73.6% | 105.3% | 133.1% | 143.2% |
| Ceneric Holdings Ltd ($542) | -1.6% | -5.9% | -382.7% | -1,024.0% | 126.8% |
| |
|---|
| Median (168 companies) | 33.1% | 35.3% | 28.9% | 28.3% | 26.9% |
|---|
| Shimao Property Holdings Ltd ($813) | 42.9% | 41.6% | 36.3% | 29.6% | 29.1% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| LT Commercial Real Estate Ltd ($112) | 0.0% | 0.0% | 0.0% | 18.0% | 27,965.5% |
| 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% |
| |
|---|
| Median (169 companies) | 4.6% | 5.9% | 5.2% | 5.7% | 4.5% |
|---|
| Shimao Property Holdings Ltd ($813) | 5.8% | 10.0% | 14.9% | 11.5% | 7.7% |
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% |
| LVGEM China Real Estate Invest ($95) | 1.9% | 0.2% | -0.2% | -1.1% | 22.1% |
| Zall Development Group Ltd ($2098) | 38.0% | 39.0% | 19.2% | 17.6% | 18.7% |
| China Overseas Land & Investment Ltd ($688) | 20.9% | 18.0% | 18.4% | 15.1% | 18.5% |
| Hong Kong Ferry Holdings Co Ltd ($50) | 6.6% | 4.7% | 3.8% | 0.6% | 18.0% |
| |
|---|
| Median (172 companies) | 4.8% | 4.6% | 3.9% | 4.0% | 3.8% |
|---|
| Shimao Property Holdings Ltd ($813) | 14.7% | 13.3% | 11.2% | 11.6% | 12.4% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| China Properties Group Ltd ($1838) | 37.7x | 16.9x | 43.0x | 21.4x | 1,523.0x |
| SRE Group Ltd ($1207) | 4.5x | 10.6x | 14.1x | 24.7x | 1,184.6x |
| Cheuk Nang Holdings Ltd ($131) | | 53.2x | | 177.3x | 901.7x |
| Tian An China Investment Co Ltd ($28) | -0.0x | 2.4x | 13.2x | 15.1x | 486.6x |
| Greenland Hong Kong Holdings Ltd ($337) | 4.2x | 3.7x | | 6.2x | 49.3x |
| |
|---|
| Median (137 companies) | 1.4x | 2.1x | 2.2x | 2.8x | 3.0x |
|---|
| Shimao Property Holdings Ltd ($813) | 2.3x | 2.8x | 2.4x | 2.6x | 2.5x |
