China Sandi Holdings Ltd Debt dropped on 32.5% in 2015 and EBITDA decreased on 6.0%
23/06/2015 • About China Sandi Holdings Ltd (
$910) • By InTwits
China Sandi Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Sandi Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is 1.9%
- China Sandi Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 96.0%. At the same time it's in pair with industry average of 7.2%.
- CAPEX is quite volatile: 0.16 in FY2015, 3.5 in FY2014, 5.9 in FY2013, 3.2 in FY2012, 12.7 in FY2011
- The company has potentially unprofitable business model: ROIC is at 1.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Sandi Holdings Ltd ($910) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2.8 | 23.9 | 118.7 | 130.8 | 133.0 | 1.7% |
| Gross Profit | 1.1 | 22.5 | | | | |
| EBITDA | -83.5 | -11.5 | 108.6 | 96.0 | 90.2 | -6.0% |
| Net Income | -1,203.7 | -632.5 | 155.6 | -439.3 | -266.5 | -39.3% |
Balance Sheet
|
|---|
| Cash | 580.9 | 24.4 | 120.7 | 449.2 | 15.6 | -96.5% |
| Short Term Debt | 0.0 | 0.0 | 34.6 | 41.2 | 115.6 | 180.6% |
| Long Term Debt | 162.1 | 934.4 | 1,066.5 | 1,063.2 | 629.9 | -40.8% |
Cash flow
|
|---|
| Capex | 12.7 | 3.2 | 5.9 | 3.5 | 0.2 | -95.4% |
Ratios
|
|---|
| Revenue growth | -64.1% | 764.3% | 397.2% | 10.2% | 1.7% | |
| EBITDA growth | -51.4% | -86.2% | -1,045.4% | -11.7% | -6.0% | |
| Gross Margin | 41.1% | 94.5% | | | | 0.0% |
| EBITDA Margin | -3,024.6% | -48.2% | 91.6% | 73.4% | 67.8% | -5.5% |
| Net Income Margin | -43,594.7% | -2,650.4% | 131.1% | -335.8% | -200.4% | 135.4% |
| CAPEX, % of revenue | 458.8% | 13.5% | 5.0% | 2.7% | 0.1% | -2.6% |
| ROIC | -2.5% | -1.2% | 1.2% | 1.4% | 1.9% | 0.6% |
| ROE | -27.0% | -16.4% | 4.2% | -13.5% | -10.4% | 3.1% |
| Net Debt/EBITDA | | | 9.0x | 6.8x | 8.1x | 1.3x |
Revenue and profitability
China Sandi Holdings Ltd's Revenue increased slightly on 1.7% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 17.7 pp from 11.2% to 28.9% in 2015.
Net Income marign jumped on 135 pp from -336% to -200% in FY2015.
Capital expenditures (CAPEX) and working capital investments
China Sandi Holdings Ltd's CAPEX/Revenue was 0.12% in FY2015. The company's CAPEX/Revenue dropped on 13.4 pp from 13.5% in FY2012 to 0.12% in FY2015. For the last three years the average CAPEX/Revenue was 2.6%.
Return on investment
The company operates at low but positive ROIC (1.94%) and negative ROE (-10.43%). ROIC increased slightly on 0.58 pp from 1.4% to 1.9% in FY2015. ROE increased on 3.1 pp from -13.5% to -10.4% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 8.1x and Debt / EBITDA is 8.3x. Net Debt / EBITDA jumped on 1.3x from 6.8x to 8.1x in FY2015. Debt dropped on 32.5% in FY2015 while cash dropped on 96.5% in FY2015.
Appendix 1: Peers in Real Estate
Below we provide China Sandi Holdings Ltd benchmarking against other companies in Real Estate 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 |
|---|
| 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% | 7.2% |
|---|
| China Sandi Holdings Ltd ($910) | | 764.3% | 397.2% | 10.2% | 1.7% |
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% | 98.7% |
| 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) | 43.7% | 41.9% | 40.5% | 39.1% | 36.7% |
|---|
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% | 27.9% | 26.4% | 16.0% |
|---|
| China Sandi Holdings Ltd ($910) | -3,024.6% | -48.2% | 91.6% | 73.4% | 67.8% |
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% | 4.7% | 0.7% |
|---|
| China Sandi Holdings Ltd ($910) | 458.8% | 13.5% | 5.0% | 2.7% | 0.1% |
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% | 0.9% |
|---|
| China Sandi Holdings Ltd ($910) | -2.5% | -1.2% | 1.2% | 1.4% | 1.9% |
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 | 2.7x | 3.0x | -9.1x |
|---|
| China Sandi Holdings Ltd ($910) | | | 9.0x | 6.8x | 8.1x |
