Sino Harbour Property Group Ltd Net Income dropped on 35.4% in 2015 while Revenue increased on 5.2%
29/05/2015 • About Sino Harbour Property Group Ltd (
$1663) • By InTwits
Sino Harbour Property Group Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 20.4% in FY2015 vs. 22.9% in FY2014 vs. 49.6% in FY2011
- EBITDA Margin is quite volatile: 20.4% in FY2015, 22.9% in FY2014, 34.2% in FY2013, 40.5% in FY2012, 49.6% in FY2011
- Sino Harbour Property Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has potentially unprofitable business model: ROIC is at 3.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sino Harbour Property Group Ltd ($1663) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 340.2 | 515.2 | 559.9 | 476.3 | 500.9 | 5.2% |
| Gross Profit | 139.1 | 215.0 | 190.7 | 152.2 | 135.5 | -11.0% |
| SG&A | | 18.9 | 33.4 | 45.2 | 52.5 | 16.2% |
| EBITDA | 168.8 | 208.9 | 191.5 | 108.9 | 102.0 | -6.4% |
| Net Income | 123.9 | 101.3 | 126.4 | 143.8 | 92.9 | -35.4% |
Balance Sheet
|
|---|
| Cash | 137.2 | 92.8 | 240.9 | 67.8 | 183.7 | 171.0% |
| Short Term Debt | 210.0 | 0.0 | 99.0 | 375.2 | 697.8 | 86.0% |
| Long Term Debt | 0.0 | 80.0 | 434.5 | 748.5 | 480.0 | -35.9% |
Cash flow
|
|---|
| Capex | 0.9 | 3.0 | 0.2 | 2.0 | 1.0 | -51.1% |
Ratios
|
|---|
| Revenue growth | 72.8% | 51.4% | 8.7% | -14.9% | 5.2% | |
| EBITDA growth | 80.7% | 23.7% | -8.3% | -43.1% | -6.4% | |
| Gross Margin | 40.9% | 41.7% | 34.1% | 31.9% | 27.1% | -4.9% |
| EBITDA Margin | 49.6% | 40.5% | 34.2% | 22.9% | 20.4% | -2.5% |
| Net Income Margin | 36.4% | 19.7% | 22.6% | 30.2% | 18.6% | -11.6% |
| SG&A, % of revenue | | 3.7% | 6.0% | 9.5% | 10.5% | 1.0% |
| CAPEX, % of revenue | 0.3% | 0.6% | 0.0% | 0.4% | 0.2% | -0.2% |
| ROIC | 17.7% | 17.8% | 12.1% | 4.9% | 3.8% | -1.1% |
| ROE | 26.1% | 14.2% | 13.4% | 13.8% | 8.1% | -5.6% |
| Net Debt/EBITDA | 0.4x | -0.1x | 1.5x | 9.7x | 9.8x | 0.1x |
Revenue and profitability
The company's Revenue increased on 5.2% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.5 pp from 22.9% to 20.4% in FY2015.
Gross Margin decreased on 4.9 pp from 31.9% to 27.1% in FY2015. SG&A as a % of Revenue increased slightly on 0.99 pp from 9.5% to 10.5% in FY2015.
Net Income marign dropped on 11.6 pp from 30.2% to 18.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.19%. CAPEX/Revenue showed almost no change from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 0.22%.
Return on investment
The company operates at low ROIC (3.80%) and ROE (8.13%). ROIC decreased slightly on 1.1 pp from 4.9% to 3.8% in FY2015. ROE decreased on 5.6 pp from 13.8% to 8.1% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 9.8x and Debt / EBITDA is 11.6x. Net Debt / EBITDA increased on 0.1x from 9.7x to 9.8x in FY2015. Debt increased on 4.8% in FY2015 while cash surged on 171% in FY2015.
Appendix 1: Peers in Real Estate
Below you can find Sino Harbour Property Group 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Common Splendor International Health Industry Group Ltd ($286) | -0.9% | -0.5% | 1.9% | 4,120.2% | |
| 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% | |
| |
|---|
| Median (172 companies) | 12.9% | 15.2% | 13.1% | 5.1% | |
|---|
| Sino Harbour Property Group Ltd ($1663) | | 51.4% | 8.7% | -14.9% | 5.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tern Properties Co Ltd ($277) | 96.9% | 96.7% | 98.4% | 98.4% | |
| GR Properties Ltd ($108) | 37.4% | 39.3% | | 98.2% | |
| Renhe Commercial Holdings Co Ltd ($1387) | 71.1% | 79.0% | 95.2% | 97.9% | |
| YT Realty Group Ltd ($75) | 91.5% | 94.4% | 96.6% | 96.7% | |
| ITC Properties Group Ltd ($199) | 29.8% | 22.8% | 92.9% | 95.2% | |
| |
|---|
| Median (154 companies) | 43.7% | 42.1% | 41.1% | 39.2% | |
|---|
| Sino Harbour Property Group Ltd ($1663) | 40.9% | 41.7% | 34.1% | 31.9% | 27.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ITC Properties Group Ltd ($199) | 24.0% | -125.5% | -2,995.7% | 1,685.3% | |
| Beijing Properties Holdings Ltd ($925) | 33.2% | -606.3% | 2,162.6% | 224.3% | |
| Chinese Estates Holdings Ltd ($127) | 340.9% | 356.2% | 91.6% | 195.5% | |
| Zall Development Group Ltd ($2098) | 73.6% | 105.3% | 133.1% | 143.2% | |
| Ceneric Holdings Ltd ($542) | -5.9% | -382.7% | -1,024.0% | 126.8% | |
| |
|---|
| Median (172 companies) | 35.2% | 28.9% | 27.9% | 26.9% | |
|---|
| Sino Harbour Property Group Ltd ($1663) | 49.6% | 40.5% | 34.2% | 22.9% | 20.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| LT Commercial Real Estate Ltd ($112) | 0.0% | 0.0% | 18.0% | 27,965.5% | |
| ITC Properties Group Ltd ($199) | 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) | 6.5% | 2.9% | 323.1% | 351.2% | |
| Liu Chong Hing Investment Ltd ($194) | 9.4% | 18.5% | 6.1% | 269.7% | |
| |
|---|
| Median (173 companies) | 6.0% | 5.6% | 6.1% | 4.7% | |
|---|
| Sino Harbour Property Group Ltd ($1663) | 0.3% | 0.6% | 0.0% | 0.4% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rykadan Capital Ltd ($2288) | 17.2% | -1.8% | -2.6% | 48.4% | |
| LVGEM China Real Estate Invest ($95) | 0.2% | -0.2% | -1.1% | 22.1% | |
| Zall Development Group Ltd ($2098) | 39.0% | 19.2% | 17.6% | 18.7% | |
| China Overseas Land & Investment Ltd ($688) | 18.0% | 18.4% | 15.1% | 18.5% | |
| Hong Kong Ferry Holdings Co Ltd ($50) | 4.7% | 3.8% | 0.6% | 18.0% | |
| |
|---|
| Median (176 companies) | 4.6% | 3.9% | 3.8% | 3.8% | |
|---|
| Sino Harbour Property Group Ltd ($1663) | 17.7% | 17.8% | 12.1% | 4.9% | 3.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Properties Group Ltd ($1838) | 16.9x | 43.0x | 21.4x | 1,523.0x | |
| SRE Group Ltd ($1207) | 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) | 2.4x | 13.2x | 15.1x | 486.6x | |
| Greenland Hong Kong Holdings Ltd ($337) | 3.7x | | 6.2x | 49.3x | |
| |
|---|
| Median (139 companies) | 2.1x | 2.4x | 2.8x | 3.0x | |
|---|
| Sino Harbour Property Group Ltd ($1663) | 0.4x | -0.1x | 1.5x | 9.7x | 9.8x |
