Mexan Ltd reports 34.6% Net Income decline and 18.5% Revenue decline
26/06/2015 • About Mexan Ltd (
$22) • By InTwits
Mexan Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mexan Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has business model with low profitability: ROIC is at 9.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mexan Ltd ($22) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 80.0 | 97.0 | 149.4 | 169.1 | 137.8 | -18.5% |
| Gross Profit | 53.7 | 70.3 | 123.7 | 143.9 | 111.5 | -22.5% |
| SG&A | | | | | 45.8 | |
| EBITDA | 28.4 | 43.4 | 78.2 | 89.5 | 66.3 | -25.9% |
| Net Income | 3.2 | 16.9 | 43.5 | 55.1 | 36.0 | -34.6% |
Balance Sheet
|
|---|
| Cash | 12.5 | 32.6 | 22.9 | 19.6 | 24.4 | 24.4% |
| Short Term Debt | 355.1 | 323.3 | 233.3 | 151.1 | 121.5 | -19.6% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.1 | 0.1 | 0.5 | 1.2 | 0.7 | -38.6% |
Ratios
|
|---|
| Revenue growth | 21.1% | 21.2% | 54.1% | 13.1% | -18.5% | |
| EBITDA growth | 118.3% | 52.9% | 80.3% | 14.4% | -25.9% | |
| Gross Margin | 67.1% | 72.5% | 82.8% | 85.1% | 80.9% | -4.2% |
| EBITDA Margin | 35.5% | 44.7% | 52.3% | 52.9% | 48.1% | -4.8% |
| Net Income Margin | 4.0% | 17.4% | 29.1% | 32.6% | 26.2% | -6.4% |
| SG&A, % of revenue | | | | | 33.2% | 33.2% |
| CAPEX, % of revenue | 0.1% | 0.1% | 0.3% | 0.7% | 0.5% | -0.2% |
| ROIC | 1.6% | 4.2% | 10.5% | 13.3% | 9.2% | -4.2% |
| ROE | 1.4% | 6.9% | 15.8% | 17.0% | 9.8% | -7.3% |
| Net Debt/EBITDA | 12.1x | 6.7x | 2.7x | 1.5x | 1.5x | -0.0x |
Revenue and profitability
The company's Revenue dropped on 18.5% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 4.8 pp from 52.9% to 48.1% in FY2015.
Gross Margin decreased on 4.2 pp from 85.1% to 80.9% in FY2015.
Net Income marign decreased on 6.4 pp from 32.6% to 26.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.51%. Mexan Ltd's CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 0.52%.
Return on investment
The company operates at low ROIC (9.17%) and ROE (9.75%). ROIC decreased on 4.2 pp from 13.3% to 9.2% in FY2015. ROE decreased on 7.3 pp from 17.0% to 9.8% in FY2015.
Leverage (Debt)
Debt level is 1.5x Net Debt / EBITDA and 1.8x Debt / EBITDA. Net Debt / EBITDA decreased slightly on 0.0057x from 1.5x to 1.5x in FY2015. Debt dropped on 19.6% in FY2015 while cash jumped on 24.4% in FY2015.
Appendix 1: Peers in Real Estate
Below we provide Mexan 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% |
|---|
| Mexan Ltd ($22) | | 21.2% | 54.1% | 13.1% | -18.5% |
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% | 48.3% |
|---|
| Mexan Ltd ($22) | 67.1% | 72.5% | 82.8% | 85.1% | 80.9% |
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% | 26.9% |
|---|
| Mexan Ltd ($22) | 35.5% | 44.7% | 52.3% | 52.9% | 48.1% |
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% |
|---|
| Mexan Ltd ($22) | 0.1% | 0.1% | 0.3% | 0.7% | 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% |
|---|
| Mexan Ltd ($22) | 1.6% | 4.2% | 10.5% | 13.3% | 9.2% |
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 | 2.3x | 2.8x | 3.0x | 2.3x |
|---|
| Mexan Ltd ($22) | 12.1x | 6.7x | 2.7x | 1.5x | 1.5x |
