Associated International Hotels Ltd reports 733% CAPEX growth and 6.4% Revenue growth
25/06/2015 • About Associated International Hotels Ltd (
$105) • By InTwits
Associated International Hotels Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Associated International Hotels Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.9%. At the same time it's a lot of higher than industry average of 5.7%.
- CAPEX is quite volatile: 51.4 in FY2015, 6.2 in FY2014, 14.1 in FY2013, 48.4 in FY2012, 102 in FY2011
- The company has potentially 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.
Associated International Hotels Ltd ($105) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 376.4 | 455.3 | 518.9 | 606.3 | 645.0 | 6.4% |
| Gross Profit | 297.2 | 392.0 | 451.1 | 538.9 | 564.5 | 4.8% |
| SG&A | | | | 40.0 | 39.5 | -1.4% |
| EBITDA | 271.5 | 363.9 | 460.8 | 510.3 | 538.8 | 5.6% |
| Net Income | 1,222.4 | 429.7 | 2,733.6 | 1,382.3 | 1,290.4 | -6.6% |
Balance Sheet
|
|---|
| Cash | 892.0 | 114.8 | 139.4 | 209.9 | 300.6 | 43.2% |
| Short Term Debt | 200.0 | 0.0 | 200.0 | 0.0 | 0.0 | -14.7% |
| Long Term Debt | 1,002.4 | 202.3 | 2.2 | 202.1 | 202.1 | 0.0% |
Cash flow
|
|---|
| Capex | 102.3 | 48.4 | 14.1 | 6.2 | 51.4 | 733.2% |
Ratios
|
|---|
| Revenue growth | 213.8% | 21.0% | 14.0% | 16.8% | 6.4% | |
| EBITDA growth | 371.0% | 34.1% | 26.6% | 10.7% | 5.6% | |
| Gross Margin | 79.0% | 86.1% | 86.9% | 88.9% | 87.5% | -1.4% |
| EBITDA Margin | 72.1% | 79.9% | 88.8% | 84.2% | 83.5% | -0.6% |
| Net Income Margin | 324.8% | 94.4% | 526.8% | 228.0% | 200.1% | -27.9% |
| SG&A, % of revenue | | | | 6.6% | 6.1% | -0.5% |
| CAPEX, % of revenue | 27.2% | 10.6% | 2.7% | 1.0% | 8.0% | 7.0% |
| ROIC | 2.5% | 3.3% | 3.9% | 3.8% | 3.7% | -0.0% |
| ROE | 13.1% | 4.3% | 24.2% | 10.7% | 9.3% | -1.4% |
| Net Debt/EBITDA | 1.1x | 0.2x | 0.1x | -0.0x | -0.2x | -0.2x |
Revenue and profitability
Associated International Hotels Ltd's Revenue increased on 6.4% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.95 pp from 12.3% to 13.2% in 2015.
Gross Margin decreased slightly on 1.4 pp from 88.9% to 87.5% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign dropped on 27.9 pp from 228% to 200% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 8.0% in FY2015. The company's CAPEX/Revenue decreased on 2.6 pp from 10.6% in FY2012 to 8.0% in FY2015. It's average CAPEX/Revenue for the last three years was 3.9%.
Return on investment
The company operates at low ROIC (3.74%) and ROE (9.30%). ROIC showed almost no change in FY2015. ROE decreased slightly on 1.4 pp from 10.7% to 9.3% in FY2015.
Leverage (Debt)
Debt level is -0.2x Net Debt / EBITDA and 0.4x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from -0.015x to -0.2x in FY2015. Debt showed almost no change in FY2015 while cash surged on 43.2% in FY2015.
Appendix 1: Peers in Real Estate
Below we provide Associated International Hotels 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) | 15.0% | 15.2% | 12.4% | 5.0% | 2.9% |
|---|
| Associated International Hotels Ltd ($105) | | 21.0% | 14.0% | 16.8% | 6.4% |
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 (154 companies) | 43.4% | 41.9% | 40.0% | 38.9% | 53.1% |
|---|
| Associated International Hotels Ltd ($105) | 79.0% | 86.1% | 86.9% | 88.9% | 87.5% |
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% | 26.4% | 25.8% |
|---|
| Associated International Hotels Ltd ($105) | 72.1% | 79.9% | 88.8% | 84.2% | 83.5% |
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% | 7.8% |
|---|
| Associated International Hotels Ltd ($105) | 27.2% | 10.6% | 2.7% | 1.0% | 8.0% |
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% | 3.8% | 3.8% | 1.9% |
|---|
| Associated International Hotels Ltd ($105) | 2.5% | 3.3% | 3.9% | 3.8% | 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 | 0.7x |
|---|
| Associated International Hotels Ltd ($105) | 1.1x | 0.2x | 0.1x | -0.0x | -0.2x |
