China Motor Bus Co Ltd reports 30.2% Net Income decline and 7.5 pp EBITDA Margin decline from 73.4% to 66.0%
21/09/2015 • About China Motor Bus Co Ltd (
$26) • By InTwits
China Motor Bus Co Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Motor Bus Co Ltd doesn't have a profitable business model yet: FY2015 ROIC is 0.8%
- China Motor Bus Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has potentially unprofitable business model: ROIC is at 0.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Motor Bus Co Ltd ($26) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 260.5 | 83.8 | 90.1 | 93.5 | 96.7 | 3.4% |
| Gross Profit | 162.8 | | 89.1 | | | |
| SG&A | | | | | 8.7 | |
| EBITDA | 142.3 | 57.8 | 63.1 | 68.7 | 63.8 | -7.1% |
| Net Income | 664.2 | 358.9 | 443.5 | 666.4 | 465.1 | -30.2% |
Balance Sheet
|
|---|
| Cash | 2,587.8 | 2,523.4 | 2,504.8 | 2,024.9 | 1,906.2 | -5.9% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.0 | 0.1 | 0.0 | 0.5 | 0.3 | -44.7% |
Ratios
|
|---|
| Revenue growth | -49.3% | -67.9% | 7.5% | 3.8% | 3.4% | |
| EBITDA growth | -54.7% | -59.4% | 9.2% | 8.8% | -7.1% | |
| Gross Margin | 62.5% | | 98.9% | | | 0.0% |
| EBITDA Margin | 54.6% | 69.0% | 70.1% | 73.4% | 66.0% | -7.5% |
| Net Income Margin | 254.9% | 428.5% | 492.4% | 712.7% | 481.1% | -231.7% |
| SG&A, % of revenue | | | | | 9.0% | 9.0% |
| CAPEX, % of revenue | 0.0% | 0.1% | 0.0% | 0.5% | 0.3% | -0.2% |
| ROIC | 2.4% | 0.9% | 1.0% | 1.0% | 0.8% | -0.1% |
| ROE | 11.4% | 6.0% | 7.1% | 9.5% | 6.2% | -3.3% |
| Net Debt/EBITDA | -18.2x | -43.7x | -39.7x | -29.5x | -29.9x | -0.4x |
Revenue and profitability
China Motor Bus Co Ltd's Revenue increased on 3.4% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 7.5 pp from 73.4% to 66.0% in FY2015.
Net Income marign dropped on 232 pp from 713% to 481% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.28% in FY2015. China Motor Bus Co Ltd's CAPEX/Revenue showed almost no change from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 0.28%.
Return on investment
The company operates at low ROIC (0.85%) and ROE (6.24%). ROIC showed almost no change in FY2015. ROE decreased on 3.3 pp from 9.5% to 6.2% in FY2015.
Leverage (Debt)
The company has no debt. Cash decreased on 5.9% in FY2015.
Appendix 1: Peers in Real Estate
Below you can find China Motor Bus 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% | 15.6% | 13.1% | 5.1% | 2.9% |
|---|
| China Motor Bus Co Ltd ($26) | | -67.9% | 7.5% | 3.8% | 3.4% |
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% | 62.7% |
| |
|---|
| Median (155 companies) | 43.4% | 41.9% | 40.0% | 39.1% | 48.3% |
|---|
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% | -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% |
|---|
| China Motor Bus Co Ltd ($26) | 54.6% | 69.0% | 70.1% | 73.4% | 66.0% |
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) | 6.0% | 5.6% | 6.1% | 4.7% | 1.5% |
|---|
| China Motor Bus Co Ltd ($26) | 0.0% | 0.1% | 0.0% | 0.5% | 0.3% |
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% |
|---|
| China Motor Bus Co Ltd ($26) | 2.4% | 0.9% | 1.0% | 1.0% | 0.8% |
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 |
|---|
| China Motor Bus Co Ltd ($26) | -18.2x | -43.7x | -39.7x | -29.5x | -29.9x |
