ITC Properties Group Ltd EBITDA Margin dropped on 2,210 pp from 1,685% to -525% in 2015 while Revenue jumped on 679%
30/06/2015 • About ITC Properties Group Ltd (
$199) • By InTwits
ITC Properties Group Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- ITC Properties Group Ltd doesn't have a profitable business model yet: FY2015 ROIC is -4.7%
- The company operates at negative EBITDA Margin: -525.1%
- ITC Properties Group Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -75.3% for the sames years0
- ITC Properties Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 1,155.7%. At the same time it's a lot of higher than industry average of 188.9%.
- CAPEX is quite volatile: 77.5 in FY2015, 68.5 in FY2014, 126 in FY2013, 35.1 in FY2012, 54.2 in FY2011
- The company has unprofitable business model: ROIC is at -4.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
ITC Properties Group Ltd ($199) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 211.4 | 62.4 | 3.0 | 5.3 | 40.9 | 678.6% |
| Gross Profit | 63.1 | 14.2 | 2.8 | 5.0 | 25.6 | 412.8% |
| SG&A | | | | | 229.6 | |
| EBITDA | 50.7 | -78.3 | -89.5 | 88.5 | -214.7 | -342.6% |
| Net Income | 80.5 | 162.3 | 579.6 | 386.9 | 803.6 | 107.7% |
Balance Sheet
|
|---|
| Cash | 294.8 | 759.7 | 415.4 | 470.8 | 318.4 | -32.4% |
| Short Term Debt | 1,287.7 | 148.7 | 919.0 | 453.3 | 393.5 | -13.2% |
| Long Term Debt | 100.2 | 1,097.3 | 374.1 | 0.2 | 593.4 | 302,669.9% |
Cash flow
|
|---|
| Capex | 54.2 | 35.1 | 125.6 | 68.5 | 77.5 | 13.2% |
Ratios
|
|---|
| Revenue growth | 86.8% | -70.5% | -95.2% | 75.7% | 678.6% | |
| EBITDA growth | -61.6% | -254.4% | 14.4% | -198.8% | -342.6% | |
| Gross Margin | 29.8% | 22.8% | 92.9% | 95.2% | 62.7% | -32.5% |
| EBITDA Margin | 24.0% | -125.5% | -2,995.7% | 1,685.3% | -525.1% | -2,210.5% |
| Net Income Margin | 38.1% | 260.2% | 19,397.6% | 7,368.6% | 1,965.8% | -5,402.9% |
| SG&A, % of revenue | | | | | 561.7% | 561.7% |
| CAPEX, % of revenue | 25.6% | 56.2% | 4,202.4% | 1,304.7% | 189.7% | -1,115.0% |
| ROIC | 1.1% | -2.5% | -2.6% | 1.8% | -4.7% | -6.5% |
| ROE | 3.6% | 7.0% | 22.8% | 11.7% | 20.3% | 8.5% |
| Net Debt/EBITDA | 21.6x | | | -0.2x | | 0.2x |
Revenue and profitability
ITC Properties Group Ltd's Revenue surged on 679% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 68.9 pp from 2.1% to -66.8% in 2015.
Gross Margin dropped on 32.5 pp from 95.2% to 62.7% in FY2015.
Net Income marign dropped on 5,403 pp from 7,369% to 1,966% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 190% in FY2015. The company's CAPEX/Revenue jumped on 134 pp from 56.2% in FY2012 to 190% in FY2015. Average CAPEX/Revenue for the last three years was 1,899%.
Return on investment
The company operates at negative ROIC (-4.66%) and low but positive ROE (20.26%). ROIC decreased on 6.5 pp from 1.8% to -4.7% in FY2015. ROE increased on 8.5 pp from 11.7% to 20.3% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 22.2x and Debt / EBITDA is . Net Debt / EBITDA surged on 0.2x from -0.2x to in FY2015. Debt jumped on 118% in FY2015 while cash dropped on 32.4% in FY2015.
Appendix 1: Peers in Real Estate
Below you can find ITC Properties Group 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% | 15.6% | 13.1% | 5.0% | 2.3% |
|---|
| ITC Properties Group Ltd ($199) | | -70.5% | -95.2% | 75.7% | 678.6% |
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% | |
| Allied Properties HK Ltd ($56) | 94.3% | 95.0% | 94.3% | 93.5% | |
| |
|---|
| Median (154 companies) | 43.7% | 42.1% | 40.0% | 38.9% | 50.7% |
|---|
| ITC Properties Group Ltd ($199) | 29.8% | 22.8% | 92.9% | 95.2% | 62.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | |
| Sino Land Co Ltd ($83) | 152.4% | 107.7% | 94.3% | 116.3% | |
| |
|---|
| Median (172 companies) | 35.4% | 28.9% | 28.1% | 26.4% | 26.9% |
|---|
| ITC Properties Group Ltd ($199) | 24.0% | -125.5% | -2,995.7% | 1,685.3% | -525.1% |
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% | |
| 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% | |
| Madex International Holdings Ltd ($231) | 586.8% | 174.5% | 519.7% | 205.3% | |
| |
|---|
| Median (173 companies) | 5.9% | 5.3% | 6.1% | 4.5% | 1.0% |
|---|
| ITC Properties Group Ltd ($199) | 25.6% | 56.2% | 4,202.4% | 1,304.7% | 189.7% |
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% |
|---|
| ITC Properties Group Ltd ($199) | 1.1% | -2.5% | -2.6% | 1.8% | -4.7% |
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 | 1.1x |
|---|
| ITC Properties Group Ltd ($199) | 21.6x | | | -0.2x | |
