Southeast Asia Properties & Finance Ltd CAPEX jumped on 1,087% in 2015 and Revenue surged on 21.3%
19/06/2015 • About Southeast Asia Properties & Finance Ltd (
$252) • By InTwits
Southeast Asia Properties & Finance Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Southeast Asia Properties & Finance 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 7.0%.
- CAPEX is quite volatile: 81.7 in FY2015, 6.9 in FY2014, 3.8 in FY2013, 8.9 in FY2012, 11.4 in FY2011
- The company has potentially unprofitable business model: ROIC is at 2.1%
- It operates with high leverage: Net Debt/EBITDA is 4.3x while industry average is 2.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Southeast Asia Properties & Finance Ltd ($252) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 349.7 | 400.0 | 392.9 | 430.6 | 522.2 | 21.3% |
| Gross Profit | 65.5 | 77.8 | 96.7 | 94.5 | 102.4 | 8.4% |
| SG&A | | | 71.0 | 71.8 | 75.2 | 4.7% |
| EBITDA | 39.6 | 32.9 | 50.8 | 38.4 | 43.3 | 12.9% |
| Net Income | 77.4 | 80.3 | 145.3 | 95.3 | 161.3 | 69.2% |
Balance Sheet
|
|---|
| Cash | 26.1 | 60.9 | 25.1 | 32.8 | 101.0 | 208.1% |
| Short Term Debt | 209.2 | 215.8 | 153.3 | 240.0 | 192.4 | -19.8% |
| Long Term Debt | 84.4 | 65.4 | 160.4 | 145.8 | 96.4 | -33.9% |
Cash flow
|
|---|
| Capex | 11.4 | 8.9 | 3.8 | 6.9 | 81.7 | 1,087.3% |
Ratios
|
|---|
| Revenue growth | 13.5% | 14.4% | -1.8% | 9.6% | 21.3% | |
| EBITDA growth | -7.8% | -17.0% | 54.7% | -24.5% | 12.9% | |
| Gross Margin | 18.7% | 19.4% | 24.6% | 21.9% | 19.6% | -2.3% |
| EBITDA Margin | 11.3% | 8.2% | 12.9% | 8.9% | 8.3% | -0.6% |
| Net Income Margin | 22.1% | 20.1% | 37.0% | 22.1% | 30.9% | 8.8% |
| SG&A, % of revenue | | | 18.1% | 16.7% | 14.4% | -2.3% |
| CAPEX, % of revenue | 3.3% | 2.2% | 1.0% | 1.6% | 15.6% | 14.0% |
| ROIC | 2.6% | 1.7% | 3.2% | 1.9% | 2.1% | 0.3% |
| ROE | 11.6% | 10.8% | 17.0% | 9.8% | 15.1% | 5.3% |
| Net Debt/EBITDA | 6.8x | 6.7x | 5.7x | 9.2x | 4.3x | -4.9x |
Revenue and profitability
The company's Revenue jumped on 21.3% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 12.7 pp from -8.0% to -20.7% in FY2015.
Gross Margin decreased on 2.3 pp from 21.9% to 19.6% in FY2015. SG&A as a % of Revenue decreased on 2.3 pp from 16.7% to 14.4% in FY2015.
Net Income marign increased on 8.8 pp from 22.1% to 30.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Southeast Asia Properties & Finance Ltd's CAPEX/Revenue was 15.6% in FY2015. Southeast Asia Properties & Finance Ltd showed fast CAPEX/Revenue growth of 13.4 pp from 2.2% in FY2012 to 15.6% in FY2015. It's average CAPEX/Revenue for the last three years was 6.1%.To secure this fast growth Southeast Asia Properties & Finance Ltd made large investments to CAPEX (189% of EBITDA).
Return on investment
The company operates at good ROE (15.06%) while ROIC is low (2.14%). ROIC showed almost no change in FY2015. ROE increased on 5.3 pp from 9.8% to 15.1% in FY2015.
Leverage (Debt)
Debt level is 4.3x Net Debt / EBITDA and 6.7x Debt / EBITDA. Net Debt / EBITDA dropped on 4.9x from 9.2x to 4.3x in FY2015. Debt dropped on 25.1% in FY2015 while cash jumped on 208% in FY2015.
Appendix 1: Peers in Holding Companies-Divers
Below we provide Southeast Asia Properties & Finance Ltd benchmarking against other companies in Holding Companies-Divers industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kong Sun Holdings Ltd ($295) | -18.7% | -88.3% | 5.1% | 7,067.0% | |
| Goldin Properties Holdings Ltd ($283) | | | 126.0% | 2,065.8% | |
| China Primary Energy Holdings Ltd ($8117) | -43.1% | -56.3% | -23.6% | 195.4% | |
| Carnival Group International Holdings Ltd ($996) | | | | 159.1% | |
| 21 Holdings Ltd ($1003) | 20.3% | -57.4% | -12.4% | 106.4% | |
| |
|---|
| Median (42 companies) | 13.3% | 11.4% | 4.9% | 15.7% | |
|---|
| Southeast Asia Properties & Finance Ltd ($252) | | 14.4% | -1.8% | 9.6% | 21.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Multifield International Holdings Ltd ($898) | 66.4% | 87.5% | 84.7% | 89.1% | |
| New Century Group Hong Kong Ltd ($234) | 76.7% | 27.3% | 85.2% | 82.8% | |
| Emperor International Holdings Ltd ($163) | 74.5% | 71.3% | 64.9% | 79.2% | |
| China Renji Medical Group Ltd/Hong Kong ($648) | 54.9% | 70.0% | 67.3% | 78.6% | |
| Century Legend Holdings Ltd ($79) | 68.5% | 70.1% | 72.3% | 71.0% | |
| |
|---|
| Median (39 companies) | 29.5% | 33.4% | 36.0% | 34.4% | |
|---|
| Southeast Asia Properties & Finance Ltd ($252) | 18.7% | 19.4% | 24.6% | 21.9% | 19.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Emperor International Holdings Ltd ($163) | 224.8% | 180.7% | 131.8% | 100.6% | |
| Multifield International Holdings Ltd ($898) | 49.8% | 80.1% | 68.3% | 97.5% | |
| New Century Group Hong Kong Ltd ($234) | 82.5% | -5.5% | 78.8% | 58.3% | |
| Magnificent Estates ($201) | 42.1% | 45.5% | 47.8% | 53.0% | |
| China Merchants Holdings International Co Ltd ($144) | 63.7% | 56.4% | 50.8% | 45.2% | |
| |
|---|
| Median (44 companies) | 5.2% | 1.7% | 1.9% | 5.6% | |
|---|
| Southeast Asia Properties & Finance Ltd ($252) | 11.3% | 8.2% | 12.9% | 8.9% | 8.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Far East Holdings International Ltd ($36) | 2.7% | 0.1% | 13.2% | 422.1% | |
| China Investments Holdings Ltd ($132) | 20.7% | 4.8% | 81.9% | 382.2% | |
| Heng Fai Enterprises Ltd ($185) | 217.5% | 4.8% | 77.1% | 310.0% | |
| New Century Group Hong Kong Ltd ($234) | 1.0% | 97.2% | 1.0% | 142.7% | |
| Chinney Investments Ltd ($216) | 37.6% | 17.5% | 103.4% | 111.3% | |
| |
|---|
| Median (44 companies) | 4.9% | 2.7% | 3.8% | 7.0% | |
|---|
| Southeast Asia Properties & Finance Ltd ($252) | 3.3% | 2.2% | 1.0% | 1.6% | 15.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wisdom Holdings Group ($1661) | 62.7% | 68.6% | 42.1% | 28.8% | |
| Chinney Alliance Group Ltd ($385) | 3.4% | 6.4% | 8.1% | 13.6% | |
| Hutchison Whampoa Ltd ($13) | 3.3% | 3.7% | 4.2% | 8.1% | |
| Code Agriculture Holdings Ltd ($8153) | -0.1% | 2.4% | -3.3% | 7.9% | |
| C C Land Holdings Ltd ($1224) | 4.5% | 7.4% | 5.3% | 7.9% | |
| |
|---|
| Median (44 companies) | 0.3% | -0.2% | -0.2% | 0.5% | |
|---|
| Southeast Asia Properties & Finance Ltd ($252) | 2.6% | 1.7% | 3.2% | 1.9% | 2.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chinney Investments Ltd ($216) | 111.3x | 10.3x | 63.7x | 48.6x | |
| Carnival Group International Holdings Ltd ($996) | | | | 23.7x | |
| Van Shung Chong Holdings Ltd ($1001) | 3.4x | | 0.9x | 12.3x | |
| Code Agriculture Holdings Ltd ($8153) | 24.3x | 11.9x | 42.8x | 8.7x | |
| China Renji Medical Group Ltd/Hong Kong ($648) | 0.7x | -0.3x | -0.1x | 6.2x | |
| |
|---|
| Median (26 companies) | 2.7x | 2.4x | 2.9x | 2.9x | |
|---|
| Southeast Asia Properties & Finance Ltd ($252) | 6.8x | 6.7x | 5.7x | 9.2x | 4.3x |
