CSI Properties Ltd revenue dropped on 71.1% in 2015 while EBITDA Margin increased on 3.8 pp from 36.8% to 40.6%
26/06/2015 • About CSI Properties Ltd (
$497) • By InTwits
CSI Properties Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CSI Properties Ltd is a company in decline: FY2015 revenue growth was -71.1%, 5 years revenue CAGR was -12.4%
- CSI Properties Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has potentially unprofitable business model: ROIC is at 2.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CSI Properties Ltd ($497) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,745 | 3,218 | 1,162 | 2,578 | 746 | -71.1% |
| Gross Profit | 972 | 1,666 | 738 | 940 | 360 | -61.6% |
| SG&A | | | | | 152 | |
| EBITDA | 903 | 1,605 | 732 | 948 | 302 | -68.1% |
| Net Income | 858 | 1,754 | 903 | 815 | 263 | -67.8% |
Balance Sheet
|
|---|
| Cash | 1,722 | 2,424 | 3,112 | 1,791 | 1,274 | -28.8% |
| Short Term Debt | 1,087 | 736 | 752 | 802 | 710 | -11.5% |
| Long Term Debt | 1,701 | 1,928 | 3,125 | 2,958 | 3,216 | 8.7% |
Cash flow
|
|---|
| Capex | 2 | 41 | 2 | 48 | 6 | -86.6% |
Ratios
|
|---|
| Revenue growth | 89.6% | 17.2% | -63.9% | 121.8% | -71.1% | |
| EBITDA growth | 243.9% | 77.7% | -54.4% | 29.6% | -68.1% | |
| Gross Margin | 35.4% | 51.8% | 63.5% | 36.4% | 48.3% | 11.9% |
| EBITDA Margin | 32.9% | 49.9% | 62.9% | 36.8% | 40.6% | 3.8% |
| Net Income Margin | 31.2% | 54.5% | 77.7% | 31.6% | 35.3% | 3.6% |
| SG&A, % of revenue | | | | | 20.4% | 20.4% |
| CAPEX, % of revenue | 0.1% | 1.3% | 0.1% | 1.9% | 0.9% | -1.0% |
| ROIC | 12.3% | 19.6% | 6.7% | 7.8% | 2.2% | -5.6% |
| ROE | 22.4% | 34.4% | 13.9% | 11.0% | 3.3% | -7.7% |
| Net Debt/EBITDA | 1.2x | 0.1x | 1.0x | 2.1x | 8.8x | 6.7x |
Revenue and profitability
The company's Revenue dropped on 71.1% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.8 pp from 36.8% to 40.6% in FY2015.
Gross Margin jumped on 11.9 pp from 36.4% to 48.3% in FY2015.
Net Income marign increased on 3.6 pp from 31.6% to 35.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
CSI Properties Ltd's CAPEX/Revenue was 0.87% in FY2015. CSI Properties Ltd showed almost no change in CAPEX/Revenue from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 0.96%.
Return on investment
The company operates at low ROIC (2.22%) and ROE (3.28%). ROIC decreased on 5.6 pp from 7.8% to 2.2% in FY2015. ROE decreased on 7.7 pp from 11.0% to 3.3% in FY2015.
Leverage (Debt)
Debt level is 8.8x Net Debt / EBITDA and 13.0x Debt / EBITDA. Net Debt / EBITDA surged on 6.7x from 2.1x to 8.8x in FY2015. Debt increased on 4.4% in FY2015 while cash dropped on 28.8% in FY2015.
Appendix 1: Peers in Real Estate
Below you can find CSI Properties 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% | 13.1% | 5.0% | 2.9% |
|---|
| CSI Properties Ltd ($497) | | 17.2% | -63.9% | 121.8% | -71.1% |
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) | 43.7% | 41.9% | 40.0% | 39.2% | 53.1% |
|---|
| CSI Properties Ltd ($497) | 35.4% | 51.8% | 63.5% | 36.4% | 48.3% |
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% | 27.9% | 26.4% | 26.9% |
|---|
| CSI Properties Ltd ($497) | 32.9% | 49.9% | 62.9% | 36.8% | 40.6% |
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% | 5.6% | 6.1% | 4.7% | 7.8% |
|---|
| CSI Properties Ltd ($497) | 0.1% | 1.3% | 0.1% | 1.9% | 0.9% |
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% | 3.9% | 3.8% | 3.8% | 2.2% |
|---|
| CSI Properties Ltd ($497) | 12.3% | 19.6% | 6.7% | 7.8% | 2.2% |
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 | 1.1x |
|---|
| CSI Properties Ltd ($497) | 1.2x | 0.1x | 1.0x | 2.1x | 8.8x |
