Henry Group Holdings Ltd reports 293% Net Income growth while 4.3% Revenue decline
12/06/2015 • About Henry Group Holdings Ltd (
$859) • By InTwits
Henry Group Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Henry Group Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is 0.2%
- EBITDA Margin is quite volatile: 11.7% in FY2015, -16.7% in FY2014, 12.9% in FY2013, 35.8% in FY2012, 3.6% in FY2011
- Henry Group Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 321.7%. At the same time it's a lot of higher than industry average of 194.4%.
- CAPEX is quite volatile: 0.0060 in FY2015, 105 in FY2014, 308 in FY2013, 170 in FY2012, 122 in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Henry Group Holdings Ltd ($859) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 33.461 | 39.330 | 49.977 | 53.555 | 51.270 | -4.3% |
| EBITDA | 1.193 | 14.080 | 6.429 | -8.966 | 5.973 | -166.6% |
| Net Income | 147.709 | 377.623 | 354.080 | 123.600 | 486.169 | 293.3% |
Balance Sheet
|
|---|
| Cash | 143.069 | 143.337 | 379.202 | 964.792 | 1,146.096 | 18.8% |
| Short Term Debt | 90.359 | 51.896 | 109.036 | 26.750 | 26.750 | 0.0% |
| Long Term Debt | 1,823.330 | 2,063.983 | 933.103 | 973.124 | 981.374 | 0.8% |
Cash flow
|
|---|
| Capex | 122.000 | 169.891 | 308.267 | 104.505 | 0.006 | -100.0% |
Ratios
|
|---|
| Revenue growth | -1.7% | 17.5% | 27.1% | 7.2% | -4.3% | |
| EBITDA growth | -148.3% | 1,080.2% | -54.3% | -239.5% | -166.6% | |
| EBITDA Margin | 3.6% | 35.8% | 12.9% | -16.7% | 11.7% | 28.4% |
| Net Income Margin | 441.4% | 960.1% | 708.5% | 230.8% | 948.3% | 717.5% |
| CAPEX, % of revenue | 364.6% | 432.0% | 616.8% | 195.1% | 0.0% | -195.1% |
| ROIC | 0.0% | 0.3% | 0.1% | -0.3% | 0.2% | 0.5% |
| ROE | 19.0% | 32.7% | 21.5% | 6.5% | 21.2% | 14.7% |
| Net Debt/EBITDA | 1,484.2x | 140.1x | 103.1x | | -23.1x | -23.1x |
Revenue and profitability
Henry Group Holdings Ltd's Revenue decreased on 4.3% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 28.4 pp from -16.7% to 11.7% in FY2015.
Net Income marign surged on 717 pp from 231% to 948% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.012% in FY2015. The company showed big decline in CAPEX/Revenue of 432 pp from 432% in FY2012 to 0.012% in FY2015. It's average CAPEX/Revenue for the last three years was 271%.
Return on investment
The company operates at good ROE (21.24%) while ROIC is low (0.18%). ROIC showed almost no change in FY2015. ROE surged on 14.7 pp from 6.5% to 21.2% in FY2015.
Leverage (Debt)
Debt level is -23.1x Net Debt / EBITDA and 168.8x Debt / EBITDA. Net Debt / EBITDA dropped23.1x from to -23.1x in FY2015. Debt increased slightly on 0.83% in FY2015 while cash jumped on 18.8% in FY2015.
Appendix 1: Peers in Real Estate
Below you can find Henry Group 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, %
| 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) | 14.1% | 15.2% | 12.4% | 5.0% | -39.8% |
|---|
| Henry Group Holdings Ltd ($859) | | 17.5% | 27.1% | 7.2% | -4.3% |
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 (155 companies) | 43.6% | 41.9% | 40.5% | 39.1% | 27.2% |
|---|
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) | 35.4% | 28.9% | 28.1% | 26.9% | 0.8% |
|---|
| Henry Group Holdings Ltd ($859) | 3.6% | 35.8% | 12.9% | -16.7% | 11.7% |
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) | 5.9% | 5.3% | 6.1% | 4.5% | 1.6% |
|---|
| Henry Group Holdings Ltd ($859) | 364.6% | 432.0% | 616.8% | 195.1% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rykadan Capital Ltd ($2288) | 17.2% | -1.8% | -2.6% | 48.4% | -3.7% |
| 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% | 4.0% | 3.9% | 3.8% | 0.1% |
|---|
| Henry Group Holdings Ltd ($859) | 0.0% | 0.3% | 0.1% | -0.3% | 0.2% |
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 (140 companies) | 2.1x | 2.3x | 2.7x | 3.0x | 9.8x |
|---|
