Ground Properties Co Ltd revenue surged on 133% in 2015 and EBITDA Margin jumped on 13.0 pp from -44.2% to -31.2%
28/06/2015 • About Ground Properties Co Ltd (
$989) • By InTwits
Ground Properties Co Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ground Properties Co Ltd doesn't have a profitable business model yet: FY2015 ROIC is -4.2%
- The company operates at negative EBITDA Margin: -31.2%
- Ground Properties Co Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -14.7%0
- Ground Properties Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's a lot of higher than industry average of 8.8%.
- CAPEX is quite volatile: 0.49 in FY2015, 1.7 in FY2014, 1.1 in FY2013, 1.6 in FY2012, 0.53 in FY2011
- The company has unprofitable business model: ROIC is at -4.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ground Properties Co Ltd ($989) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 139.6 | 62.8 | 51.6 | 44.3 | 103.5 | 133.4% |
| Gross Profit | 60.1 | 28.0 | 28.5 | 31.1 | 44.7 | 44.0% |
| SG&A | | 40.4 | 36.1 | 52.8 | 78.5 | 48.6% |
| EBITDA | 5.2 | -9.2 | -3.4 | -19.6 | -32.3 | 64.8% |
| Net Income | -9.9 | -38.4 | 67.5 | -3.0 | -18.1 | 497.6% |
Balance Sheet
|
|---|
| Cash | 88.2 | 83.3 | 81.7 | 31.2 | 57.6 | 84.8% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 116.2 | 255.6 | 119.9% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 120.3 | 142.4 | 18.4% |
Cash flow
|
|---|
| Capex | 0.5 | 1.6 | 1.1 | 1.7 | 0.5 | -70.9% |
Ratios
|
|---|
| Revenue growth | -4.6% | -55.0% | -17.8% | -14.1% | 133.4% | |
| EBITDA growth | 5.6% | -275.5% | -63.0% | 477.0% | 64.8% | |
| Gross Margin | 43.1% | 44.6% | 55.1% | 70.1% | 43.3% | -26.9% |
| EBITDA Margin | 3.7% | -14.6% | -6.6% | -44.2% | -31.2% | 13.0% |
| Net Income Margin | -7.1% | -61.1% | 130.7% | -6.8% | -17.5% | -10.7% |
| SG&A, % of revenue | | 64.4% | 69.9% | 119.2% | 75.9% | -43.3% |
| CAPEX, % of revenue | 0.4% | 2.6% | 2.2% | 3.8% | 0.5% | -3.4% |
| ROIC | 0.9% | -3.4% | -1.6% | -4.3% | -4.2% | 0.1% |
| ROE | -2.8% | -12.3% | 20.9% | -0.9% | -3.9% | -3.0% |
| Net Debt/EBITDA | -16.9x | | | | | 0.0x |
Revenue and profitability
The company's Revenue jumped on 133% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 13.0 pp from -44.2% to -31.2% in FY2015.
Gross Margin dropped on 26.9 pp from 70.1% to 43.3% in FY2015. SG&A as a % of Revenue dropped on 43.3 pp from 119% to 75.9% in FY2015.
Net Income marign dropped on 10.7 pp from -6.8% to -17.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.48%. Ground Properties Co Ltd's CAPEX/Revenue decreased on 2.1 pp from 2.6% in FY2012 to 0.48% in FY2015. It's average CAPEX/Revenue for the last three years was 2.2%.
Return on investment
The company operates at negative ROIC (-4.23%) and ROE (-3.90%). ROIC showed almost no change in FY2015. ROE decreased on 3.0 pp from -0.88% to -3.9% in FY2015.
Leverage (Debt)
Debt level is -4.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt surged on 68.3% in FY2015 while cash jumped on 84.8% in FY2015.
Appendix 1: Peers in Real Estate
Below we provide Ground Properties Co 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) | 15.2% | 15.6% | 13.1% | 5.1% | 2.3% |
|---|
| Ground Properties Co Ltd ($989) | | -55.0% | -17.8% | -14.1% | 133.4% |
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) | 43.7% | 41.9% | 40.0% | 38.9% | 50.7% |
|---|
| Ground Properties Co Ltd ($989) | 43.1% | 44.6% | 55.1% | 70.1% | 43.3% |
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% | 28.1% | 26.9% | 27.8% |
|---|
| Ground Properties Co Ltd ($989) | 3.7% | -14.6% | -6.6% | -44.2% | -31.2% |
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% | 5.4% |
|---|
| Ground Properties Co Ltd ($989) | 0.4% | 2.6% | 2.2% | 3.8% | 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% | 4.0% | 3.9% | 3.8% | 2.2% |
|---|
| Ground Properties Co Ltd ($989) | 0.9% | -3.4% | -1.6% | -4.3% | -4.2% |
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 (140 companies) | 2.1x | 2.4x | 2.8x | 3.0x | 1.5x |
|---|
