Rykadan Capital Ltd reports 107% EBITDA decline and 57.6 pp EBITDA Margin decline from 39.0% to -18.7%
12/06/2015 • About Rykadan Capital Ltd (
$2288) • By InTwits
Rykadan Capital Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Rykadan Capital Ltd is a company in decline: FY2015 revenue growth was -84.8%, 5 years revenue CAGR was -28.4%
- The company operates at negative EBITDA Margin: -18.7%
- Rykadan Capital Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.7%. At the same time it's a lot of higher than industry average of 4.6%.
- CAPEX is quite volatile: 9.6 in FY2015, 6.3 in FY2014, 5.8 in FY2013, 13.3 in FY2012, 4.4 in FY2011
- The company has unprofitable business model: ROIC is at -3.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Rykadan Capital Ltd ($2288) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,362 | 82 | 156 | 2,116 | 322 | -84.8% |
| Gross Profit | 251 | 15 | 42 | 1,006 | 88 | -91.3% |
| SG&A | | 42 | 76 | 183 | 153 | -16.6% |
| EBITDA | 185 | -12 | -35 | 824 | -60 | -107.3% |
| Net Income | 141 | 110 | 138 | 422 | 113 | -73.1% |
Balance Sheet
|
|---|
| Cash | 434 | 371 | 230 | 958 | 280 | -70.8% |
| Short Term Debt | 123 | 64 | 312 | 161 | 127 | -21.1% |
| Long Term Debt | 244 | 596 | 97 | 162 | 151 | -6.6% |
Cash flow
|
|---|
| Capex | 4 | 13 | 6 | 6 | 10 | 52.9% |
Ratios
|
|---|
| Revenue growth | -20.2% | -94.0% | 91.5% | 1,252.9% | -84.8% | |
| EBITDA growth | -26.1% | -106.4% | 197.4% | -2,448.1% | -107.3% | |
| Gross Margin | 18.4% | 17.9% | 26.8% | 47.5% | 27.3% | -20.3% |
| EBITDA Margin | 13.6% | -14.5% | -22.4% | 39.0% | -18.7% | -57.6% |
| Net Income Margin | 10.4% | 134.2% | 88.3% | 19.9% | 35.3% | 15.3% |
| SG&A, % of revenue | | 52.0% | 48.4% | 8.7% | 47.5% | 38.8% |
| CAPEX, % of revenue | 0.3% | 16.2% | 3.7% | 0.3% | 3.0% | 2.7% |
| ROIC | 17.2% | -1.8% | -2.6% | 48.4% | -3.7% | -52.1% |
| ROE | 17.2% | 12.1% | 15.2% | 40.1% | 9.3% | -30.8% |
| Net Debt/EBITDA | -0.4x | | | -0.8x | | 0.8x |
Revenue and profitability
Rykadan Capital Ltd's Revenue dropped on 84.8% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 13.9 pp from 31.9% to 45.8% in 2015.
Gross Margin dropped on 20.3 pp from 47.5% to 27.3% in FY2015. SG&A as a % of Revenue surged on 38.8 pp from 8.7% to 47.5% in FY2015.
Net Income marign surged on 15.3 pp from 19.9% to 35.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Rykadan Capital Ltd's CAPEX/Revenue was 3.0% in FY2015. Rykadan Capital Ltd showed big decline in CAPEX/Revenue of 13.3 pp from 16.2% in FY2012 to 3.0% in FY2015. It's average level of CAPEX/Revenue for the last three years was 2.3%.
Return on investment
The company operates at negative ROIC (-3.67%) and low but positive ROE (9.31%). ROIC dropped on 52.1 pp from 48.4% to -3.7% in FY2015. ROE dropped on 30.8 pp from 40.1% to 9.3% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 16.4x and Debt / EBITDA is . Net Debt / EBITDA jumped on 0.8x from -0.8x to in FY2015. Debt dropped on 13.8% in FY2015 while cash dropped on 70.8% in FY2015.
Appendix 1: Peers in Real Estate
Below you can find Rykadan Capital 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% | 15.6% | 12.4% | 5.0% | 0.4% |
|---|
| Rykadan Capital Ltd ($2288) | | -94.0% | 91.5% | 1,252.9% | -84.8% |
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% | 38.9% | 27.1% |
|---|
| Rykadan Capital Ltd ($2288) | 18.4% | 17.9% | 26.8% | 47.5% | 27.3% |
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% | 26.4% | 16.0% |
|---|
| Rykadan Capital Ltd ($2288) | 13.6% | -14.5% | -22.4% | 39.0% | -18.7% |
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) | 6.0% | 5.3% | 6.1% | 4.7% | 0.1% |
|---|
| Rykadan Capital Ltd ($2288) | 0.3% | 16.2% | 3.7% | 0.3% | 3.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | |
| Redco Properties Group Ltd ($1622) | 10.0% | 14.9% | 31.7% | 17.6% | |
| |
|---|
| Median (176 companies) | 4.6% | 4.0% | 3.9% | 3.8% | 2.0% |
|---|
| Rykadan Capital Ltd ($2288) | 17.2% | -1.8% | -2.6% | 48.4% | -3.7% |
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 | -6.7x |
|---|
| Rykadan Capital Ltd ($2288) | -0.4x | | | -0.8x | |
