Winfair Investment Co Ltd Net Income jumped on 151% in 2015 and EBITDA Margin surged on 13.8 pp from 64.3% to 78.1%
30/06/2015 • About Winfair Investment Co Ltd (
$287) • By InTwits
Winfair Investment Co Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 78.1% in FY2015, 64.3% in FY2014, 307.2% in FY2013, -3.6% in FY2012, 90.2% in FY2011
- Winfair Investment Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 139.3%. At the same time it's in pair with industry average of 188.9%.
- CAPEX is quite volatile: 0.022 in FY2015, 32.8 in FY2014, 36.2 in FY2013, 0.051 in FY2012, 70.5 in FY2011
- The company has potentially unprofitable business model: ROIC is at 3.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Winfair Investment Co Ltd ($287) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 18.567 | 18.473 | 21.395 | 22.276 | 29.557 | 32.7% |
| SG&A | | 5.875 | 5.732 | 6.405 | 6.809 | 6.3% |
| EBITDA | 16.746 | -0.658 | 65.725 | 14.323 | 23.074 | 61.1% |
| Net Income | 65.901 | 38.819 | 177.733 | 29.146 | 73.142 | 150.9% |
Balance Sheet
|
|---|
| Cash | 9.379 | 12.681 | 95.508 | 35.381 | 53.215 | 50.4% |
| Short Term Debt | 0.000 | 0.000 | 16.388 | 30.173 | 28.244 | -6.4% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 70.540 | 0.051 | 36.168 | 32.818 | 0.022 | -99.9% |
Ratios
|
|---|
| Revenue growth | -28.8% | -0.5% | 15.8% | 4.1% | 32.7% | |
| EBITDA growth | -48.1% | -103.9% | -10,085.2% | -78.2% | 61.1% | |
| EBITDA Margin | 90.2% | -3.6% | 307.2% | 64.3% | 78.1% | 13.8% |
| Net Income Margin | 354.9% | 210.1% | 830.7% | 130.8% | 247.5% | 116.6% |
| SG&A, % of revenue | | 31.8% | 26.8% | 28.8% | 23.0% | -5.7% |
| CAPEX, % of revenue | 379.9% | 0.3% | 169.0% | 147.3% | 0.1% | -147.2% |
| ROIC | 3.8% | -0.2% | 11.1% | 2.0% | 3.0% | 1.0% |
| ROE | 15.9% | 8.2% | 30.5% | 4.3% | 10.1% | 5.8% |
| Net Debt/EBITDA | -0.6x | | -1.2x | -0.4x | -1.1x | -0.7x |
Revenue and profitability
Winfair Investment Co Ltd's Revenue surged on 32.7% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 1,180 pp from 97.9% to 1,278% in 2015.
SG&A as a % of Revenue decreased on 5.7 pp from 28.8% to 23.0% in FY2015.
Net Income marign jumped on 117 pp from 131% to 247% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.073% in FY2015. The company showed almost no change in CAPEX/Revenue from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 105%.
Return on investment
The company operates at low ROIC (3.04%) and ROE (10.07%). ROIC increased slightly on 1.0 pp from 2.0% to 3.0% in FY2015. ROE increased on 5.8 pp from 4.3% to 10.1% in FY2015.
Leverage (Debt)
Debt level is -1.1x Net Debt / EBITDA and 1.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.7x from -0.4x to -1.1x in FY2015. Debt decreased on 6.4% in FY2015 while cash surged on 50.4% in FY2015.
Appendix 1: Peers in Real Estate
Below we provide Winfair Investment 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) | 15.0% | 15.6% | 12.4% | 5.1% | 2.3% |
|---|
| Winfair Investment Co Ltd ($287) | | -0.5% | 15.8% | 4.1% | 32.7% |
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% | 62.7% |
| |
|---|
| Median (155 companies) | 43.6% | 41.9% | 40.5% | 39.1% | 53.0% |
|---|
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% | -525.1% |
| 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% | 25.8% |
|---|
| Winfair Investment Co Ltd ($287) | 90.2% | -3.6% | 307.2% | 64.3% | 78.1% |
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% | 189.7% |
| 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) | 5.9% | 5.6% | 6.1% | 4.5% | 2.1% |
|---|
| Winfair Investment Co Ltd ($287) | 379.9% | 0.3% | 169.0% | 147.3% | 0.1% |
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% | 3.8% | 3.8% | 2.1% |
|---|
| Winfair Investment Co Ltd ($287) | 3.8% | -0.2% | 11.1% | 2.0% | 3.0% |
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 | 1.5x |
|---|
| Winfair Investment Co Ltd ($287) | -0.6x | | -1.2x | -0.4x | -1.1x |
