Tian Teck Land Ltd CAPEX jumped on 733% in 2015 and Revenue increased on 6.4%
25/06/2015 • About Tian Teck Land Ltd (
$266) • By InTwits
Tian Teck Land Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tian Teck Land Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's in pair with industry average of 7.3%.
- CAPEX is quite volatile: 51.4 in FY2015, 6.2 in FY2014, 14.1 in FY2013, 48.4 in FY2012, 1.9 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.
Tian Teck Land Ltd ($266) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 382.6 | 462.0 | 527.5 | 617.2 | 656.9 | 6.4% |
| Gross Profit | 302.3 | 397.4 | 458.5 | 548.7 | 575.1 | 4.8% |
| SG&A | | | | | 43.5 | |
| EBITDA | 272.4 | 364.9 | 427.2 | 515.9 | 541.7 | 5.0% |
| Net Income | 641.1 | 250.9 | 1,425.7 | 730.1 | 680.0 | -6.9% |
Balance Sheet
|
|---|
| Cash | 899.2 | 127.1 | 159.4 | 235.4 | 337.6 | 43.4% |
| Short Term Debt | 200.1 | 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 | 1.9 | 48.4 | 14.1 | 6.2 | 51.4 | 733.2% |
Ratios
|
|---|
| Revenue growth | 198.8% | 20.7% | 14.2% | 17.0% | 6.4% | |
| EBITDA growth | 350.9% | 33.9% | 17.1% | 20.8% | 5.0% | |
| Gross Margin | 79.0% | 86.0% | 86.9% | 88.9% | 87.5% | -1.4% |
| EBITDA Margin | 71.2% | 79.0% | 81.0% | 83.6% | 82.5% | -1.1% |
| Net Income Margin | 167.5% | 54.3% | 270.3% | 118.3% | 103.5% | -14.8% |
| SG&A, % of revenue | | | | | 6.6% | 6.6% |
| CAPEX, % of revenue | 0.5% | 10.5% | 2.7% | 1.0% | 7.8% | 6.8% |
| ROIC | 2.5% | 3.3% | 3.5% | 3.7% | 3.7% | -0.1% |
| ROE | 13.2% | 4.8% | 24.0% | 10.7% | 9.3% | -1.4% |
| Net Debt/EBITDA | 1.1x | 0.2x | 0.1x | -0.1x | -0.2x | -0.2x |
Revenue and profitability
The company's Revenue increased on 6.4% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.8 pp from -7.3% to -5.6% in 2015.
Gross Margin decreased slightly on 1.4 pp from 88.9% to 87.5% in FY2015.
Net Income marign dropped on 14.8 pp from 118% to 104% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Tian Teck Land Ltd's CAPEX/Revenue was 7.8% in FY2015. Tian Teck Land Ltd's CAPEX/Revenue decreased on 2.6 pp from 10.5% in FY2012 to 7.8% in FY2015. It's average level of CAPEX/Revenue for the last three years was 3.8%.
Return on investment
The company operates at low ROIC (3.66%) and ROE (9.29%). ROIC showed almost no change in FY2015. ROE decreased slightly on 1.4 pp from 10.7% to 9.3% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.2x and Debt / EBITDA is 0.4x. Net Debt / EBITDA dropped on 0.2x from -0.1x to -0.2x in FY2015. Debt showed almost no change in FY2015 while cash surged on 43.4% in FY2015.
Appendix 1: Peers in Real Estate
Below you can find Tian Teck Land 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) | 15.0% | 15.2% | 12.4% | 5.0% | 2.9% |
|---|
| Tian Teck Land Ltd ($266) | | 20.7% | 14.2% | 17.0% | 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% |
|---|
| Tian Teck Land Ltd ($266) | 79.0% | 86.0% | 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% |
|---|
| Tian Teck Land Ltd ($266) | 71.2% | 79.0% | 81.0% | 83.6% | 82.5% |
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) | 6.0% | 5.3% | 6.1% | 4.7% | 8.0% |
|---|
| Tian Teck Land Ltd ($266) | 0.5% | 10.5% | 2.7% | 1.0% | 7.8% |
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% | 1.9% |
|---|
| Tian Teck Land Ltd ($266) | 2.5% | 3.3% | 3.5% | 3.7% | 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 |
|---|
| Tian Teck Land Ltd ($266) | 1.1x | 0.2x | 0.1x | -0.1x | -0.2x |
