Coastal Greenland Ltd EBITDA dropped on 269% in 2015 and Revenue dropped on 23.0%
26/06/2015 • About Coastal Greenland Ltd (
$1124) • By InTwits
Coastal Greenland Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Coastal Greenland Ltd is a company in decline: FY2015 revenue growth was -23.0%, 5 years revenue CAGR was -11.4%
- EBITDA Margin is declining: -16.3% in FY2015 vs. 7.4% in FY2014 vs. 25.0% in FY2011
- EBITDA Margin is quite volatile: -16.3% in FY2015, 7.4% in FY2014, 15.2% in FY2013, 27.5% in FY2012, 25.0% in FY2011
- Coastal Greenland Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has unprofitable business model: ROIC is at -2.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Coastal Greenland Ltd ($1124) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,753 | 7,178 | 3,717 | 2,781 | 2,141 | -23.0% |
| Gross Profit | 1,069 | 2,342 | 887 | 517 | 224 | -56.6% |
| SG&A | | 353 | 472 | 461 | 391 | -15.2% |
| EBITDA | 940 | 1,973 | 563 | 206 | -348 | -268.6% |
| Net Income | 149 | 604 | 93 | 65 | -508 | -884.3% |
Balance Sheet
|
|---|
| Cash | 1,897 | 1,913 | 1,793 | 1,947 | 844 | -56.7% |
| Short Term Debt | 1,591 | 5,037 | 1,063 | 1,945 | 4,671 | 140.1% |
| Long Term Debt | 4,274 | 1,310 | 4,736 | 5,489 | 4,140 | -24.6% |
Cash flow
|
|---|
| Capex | 10 | 26 | 16 | 11 | 10 | -13.5% |
Ratios
|
|---|
| Revenue growth | -4.3% | 91.2% | -48.2% | -25.2% | -23.0% | |
| EBITDA growth | 163.7% | 109.9% | -71.4% | -63.4% | -268.6% | |
| Gross Margin | 28.5% | 32.6% | 23.9% | 18.6% | 10.5% | -8.1% |
| EBITDA Margin | 25.0% | 27.5% | 15.2% | 7.4% | -16.3% | -23.7% |
| Net Income Margin | 4.0% | 8.4% | 2.5% | 2.3% | -23.7% | -26.1% |
| SG&A, % of revenue | | 4.9% | 12.7% | 16.6% | 18.3% | 1.7% |
| CAPEX, % of revenue | 0.3% | 0.4% | 0.4% | 0.4% | 0.5% | 0.0% |
| ROIC | 7.8% | 15.5% | 4.1% | 1.5% | -2.6% | -4.1% |
| ROE | 4.2% | 15.0% | 2.1% | 1.4% | -10.9% | -12.2% |
| Net Debt/EBITDA | 4.2x | 2.2x | 7.1x | 26.6x | | -26.6x |
Revenue and profitability
Coastal Greenland Ltd's Revenue dropped on 23.0% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 23.7 pp from 7.4% to -16.3% in FY2015.
Gross Margin decreased on 8.1 pp from 18.6% to 10.5% in FY2015. SG&A as a % of Revenue increased slightly on 1.7 pp from 16.6% to 18.3% in FY2015.
Net Income marign dropped on 26.1 pp from 2.3% to -23.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Coastal Greenland Ltd had CAPEX/Revenue of 0.45%. CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 0.43%.
Return on investment
The company operates at negative ROIC (-2.56%) and ROE (-10.86%). ROIC decreased on 4.1 pp from 1.5% to -2.6% in FY2015. ROE dropped on 12.2 pp from 1.4% to -10.9% in FY2015.
Leverage (Debt)
Debt level is -0.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 26.6x from 26.6x to in FY2015. Debt surged on 18.5% in FY2015 while cash dropped on 56.7% in FY2015.
Appendix 1: Peers in Real Estate
Below we provide Coastal Greenland 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% | 13.1% | 5.1% | 2.9% |
|---|
| Coastal Greenland Ltd ($1124) | | 91.2% | -48.2% | -25.2% | -23.0% |
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% | 42.1% | 41.1% | 39.2% | 53.1% |
|---|
| Coastal Greenland Ltd ($1124) | 28.5% | 32.6% | 23.9% | 18.6% | 10.5% |
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) | 35.4% | 28.9% | 28.1% | 26.9% | 28.8% |
|---|
| Coastal Greenland Ltd ($1124) | 25.0% | 27.5% | 15.2% | 7.4% | -16.3% |
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% |
|---|
| Coastal Greenland Ltd ($1124) | 0.3% | 0.4% | 0.4% | 0.4% | 0.5% |
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% |
|---|
| Coastal Greenland Ltd ($1124) | 7.8% | 15.5% | 4.1% | 1.5% | -2.6% |
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 | 1.5x |
|---|
| Coastal Greenland Ltd ($1124) | 4.2x | 2.2x | 7.1x | 26.6x | |
