Sino Land Co Ltd reports 197% revenue growth in FY2015 and 77.9 pp EBITDA Margin decline from 116% to 38.3%
26/08/2015 • About Sino Land Co Ltd (
$83) • By InTwits
Sino Land 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: 38.3% in FY2015, 116.3% in FY2014, 94.3% in FY2013, 107.7% in FY2012, 152.4% in FY2011
- Sino Land Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.4%. At the same time it's in pair with industry average of 14.4%.
- CAPEX is quite volatile: 1,293 in 2015, 3,161 in 2014, 5,204 in 2013, 3,669 in 2012, 3,412 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sino Land Co Ltd ($83) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,876 | 8,329 | 7,756 | 7,344 | 21,778 | 196.6% |
| Gross Profit | 3,361 | 4,393 | 3,322 | 4,496 | 5,740 | 27.7% |
| SG&A | 731 | 630 | 644 | 665 | 684 | 2.8% |
| EBITDA | 8,957 | 8,967 | 7,317 | 8,538 | 8,344 | -2.3% |
| Net Income | 10,544 | 10,673 | 11,687 | 8,921 | 9,372 | 5.0% |
Balance Sheet
|
|---|
| Cash | 7,920 | 5,042 | 11,620 | 13,999 | 19,503 | 39.3% |
| Short Term Debt | 2,265 | 1,847 | 4,553 | 121 | 801 | 564.7% |
| Long Term Debt | 12,950 | 8,143 | 5,766 | 7,949 | 5,263 | -33.8% |
Cash flow
|
|---|
| Capex | 442 | 260 | 330 | 428 | 318 | -25.6% |
Ratios
|
|---|
| Revenue growth | -23.0% | 41.7% | -6.9% | -5.3% | 196.6% | |
| EBITDA growth | 43.0% | 0.1% | -18.4% | 16.7% | -2.3% | |
| Gross Margin | 57.2% | 52.7% | 42.8% | 61.2% | 26.4% | -34.9% |
| EBITDA Margin | 152.4% | 107.7% | 94.3% | 116.3% | 38.3% | -77.9% |
| Net Income Margin | 179.4% | 128.1% | 150.7% | 121.5% | 43.0% | -78.5% |
| SG&A, % of revenue | 12.4% | 7.6% | 8.3% | 9.1% | 3.1% | -5.9% |
| CAPEX, % of revenue | 7.5% | 3.1% | 4.3% | 5.8% | 1.5% | -4.4% |
| ROIC | 9.2% | 8.5% | 6.4% | 7.0% | 6.5% | -0.4% |
| ROE | 14.4% | 12.2% | 11.7% | 8.2% | 8.1% | -0.1% |
| Net Debt/EBITDA | 0.8x | 0.6x | -0.2x | -0.7x | -1.6x | -0.9x |
Revenue and profitability
The company's Revenue jumped on 197% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.0 pp from 7.9% to 10.9% in 2015.
Gross Margin dropped on 34.9 pp from 61.2% to 26.4% in FY2015. SG&A as a % of Revenue decreased on 5.9 pp from 9.1% to 3.1% in FY2015.
Net Income marign dropped on 78.5 pp from 121% to 43.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 1.5%. CAPEX/Revenue decreased slightly on 1.7 pp from 3.1% in FY2012 to 1.5% in FY2015. It's average CAPEX/Revenue for the last three years was 3.8%.
Return on investment
The company operates at low ROIC (6.53%) and ROE (8.14%). ROIC showed almost no change in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.6x and Debt / EBITDA is 0.7x. Net Debt / EBITDA dropped on 0.9x from -0.7x to -1.6x in FY2015. Debt dropped on 24.8% in FY2015 while cash jumped on 39.3% in FY2015.
Appendix 1: Peers in Real Estate
Below you can find Sino Land Co 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) | 15.7% | 15.2% | 13.1% | 5.1% | 2.9% |
|---|
| Sino Land Co Ltd ($83) | | 41.7% | -6.9% | -5.3% | 196.6% |
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% | |
| ITC Properties Group Ltd ($199) | 29.8% | 22.8% | 92.9% | 95.2% | 62.7% |
| |
|---|
| Median (154 companies) | 43.4% | 41.9% | 40.0% | 38.9% | 53.0% |
|---|
| Sino Land Co Ltd ($83) | 57.2% | 52.7% | 42.8% | 61.2% | 26.4% |
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% | 26.4% |
|---|
| Sino Land Co Ltd ($83) | 152.4% | 107.7% | 94.3% | 116.3% | 38.3% |
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% | 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% | 1.5% |
|---|
| Sino Land Co Ltd ($83) | 7.5% | 3.1% | 4.3% | 5.8% | 1.5% |
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% |
|---|
| Sino Land Co Ltd ($83) | 9.2% | 8.5% | 6.4% | 7.0% | 6.5% |
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 | 0.6x |
|---|
| Sino Land Co Ltd ($83) | 0.8x | 0.6x | -0.2x | -0.7x | -1.6x |
