Tsim Sha Tsui Properties Ltd reports 192% revenue growth in FY2015 and 48.2 pp EBITDA Margin decline from 71.7% to 23.5%
26/08/2015 • About Tsim Sha Tsui Properties Ltd (
$247) • By InTwits
Tsim Sha Tsui Properties 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: 23.5% in FY2015, 71.7% in FY2014, 44.4% in FY2013, 45.0% in FY2012, 51.5% in FY2011
- Tsim Sha Tsui Properties 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 3.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tsim Sha Tsui Properties Ltd ($247) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,010 | 8,461 | 7,880 | 7,511 | 21,896 | 191.5% |
| Gross Profit | 3,474 | 4,500 | 3,419 | 4,631 | 5,826 | 25.8% |
| SG&A | | | | | 695 | |
| EBITDA | 3,095 | 3,804 | 3,500 | 5,385 | 5,140 | -4.5% |
| Net Income | 5,437 | 5,381 | 5,977 | 4,513 | 4,747 | 5.2% |
Balance Sheet
|
|---|
| Cash | 7,930 | 5,046 | 11,625 | 14,091 | 19,608 | 39.1% |
| Short Term Debt | 4,224 | 2,984 | 5,062 | 310 | 899 | 189.7% |
| Long Term Debt | 16,879 | 14,047 | 11,217 | 12,590 | 7,375 | -41.4% |
Cash flow
|
|---|
| Capex | 443 | 260 | 330 | 428 | 319 | -25.6% |
Ratios
|
|---|
| Revenue growth | -22.7% | 40.8% | -6.9% | -4.7% | 191.5% | |
| EBITDA growth | -22.9% | 22.9% | -8.0% | 53.9% | -4.5% | |
| Gross Margin | 57.8% | 53.2% | 43.4% | 61.7% | 26.6% | -35.0% |
| EBITDA Margin | 51.5% | 45.0% | 44.4% | 71.7% | 23.5% | -48.2% |
| Net Income Margin | 90.5% | 63.6% | 75.9% | 60.1% | 21.7% | -38.4% |
| SG&A, % of revenue | | | | | 3.2% | 3.2% |
| CAPEX, % of revenue | 7.4% | 3.1% | 4.2% | 5.7% | 1.5% | -4.2% |
| ROIC | 3.1% | 3.5% | 2.9% | 4.3% | 3.9% | -0.3% |
| ROE | 16.7% | 13.6% | 12.8% | 8.7% | 8.4% | -0.3% |
| Net Debt/EBITDA | 4.3x | 3.2x | 1.3x | -0.2x | -2.2x | -2.0x |
Revenue and profitability
The company's Revenue surged on 192% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 48.2 pp from 71.7% to 23.5% in FY2015.
Gross Margin dropped on 35.0 pp from 61.7% to 26.6% in FY2015.
Net Income marign dropped on 38.4 pp from 60.1% to 21.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 1.5%. CAPEX/Revenue decreased slightly on 1.6 pp from 3.1% in FY2012 to 1.5% in FY2015. It's average level of CAPEX/Revenue for the last three years was 3.8%.
Return on investment
The company operates at low ROIC (3.94%) and ROE (8.37%). ROIC showed almost no change in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt level is -2.2x Net Debt / EBITDA and 1.6x Debt / EBITDA. Net Debt / EBITDA dropped on 2.0x from -0.2x to -2.2x in FY2015. Debt dropped on 35.9% in FY2015 while cash jumped on 39.1% in FY2015.
Appendix 1: Peers in Real Estate
Below we provide Tsim Sha Tsui Properties 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) | 15.7% | 15.2% | 13.1% | 5.1% | 2.9% |
|---|
| Tsim Sha Tsui Properties Ltd ($247) | | 40.8% | -6.9% | -4.7% | 191.5% |
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% | 62.7% |
| |
|---|
| Median (154 companies) | 43.4% | 41.9% | 40.0% | 38.9% | 53.0% |
|---|
| Tsim Sha Tsui Properties Ltd ($247) | 57.8% | 53.2% | 43.4% | 61.7% | 26.6% |
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% | 27.8% |
|---|
| Tsim Sha Tsui Properties Ltd ($247) | 51.5% | 45.0% | 44.4% | 71.7% | 23.5% |
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% |
|---|
| Tsim Sha Tsui Properties Ltd ($247) | 7.4% | 3.1% | 4.2% | 5.7% | 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% | 4.0% | 3.9% | 3.8% | 2.2% |
|---|
| Tsim Sha Tsui Properties Ltd ($247) | 3.1% | 3.5% | 2.9% | 4.3% | 3.9% |
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 | 0.6x |
|---|
| Tsim Sha Tsui Properties Ltd ($247) | 4.3x | 3.2x | 1.3x | -0.2x | -2.2x |
