Cheuk Nang Holdings Ltd EBITDA dropped on 597% in 2015 and EBITDA Margin dropped on 23.9 pp from 4.2% to -19.7%
23/09/2015 • About Cheuk Nang Holdings Ltd (
$131) • By InTwits
Cheuk Nang Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cheuk Nang Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is -0.2%
- The company operates at negative EBITDA Margin: -19.7%
- EBITDA Margin is quite volatile: -19.7% in FY2015, 4.2% in FY2014, 15.5% in FY2013, -27.4% in FY2012, 39.8% in FY2011
- Cheuk Nang Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 120.0%. At the same time it's a lot of higher than industry average of 9.2%.
- CAPEX is quite volatile: 76.1 in FY2015, 33.6 in FY2014, 68.8 in FY2013, 28.1 in FY2012, 74.0 in FY2011
- The company has unprofitable business model: ROIC is at -0.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cheuk Nang Holdings Ltd ($131) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 40.473 | 37.571 | 52.763 | 49.763 | 52.473 | 5.4% |
| Gross Profit | 25.471 | 20.730 | 31.757 | 29.983 | 32.590 | 8.7% |
| SG&A | | | | | 47.433 | |
| EBITDA | 16.123 | -10.312 | 8.174 | 2.081 | -10.342 | -597.0% |
| Net Income | 284.460 | 157.677 | 106.286 | 395.232 | 241.028 | -39.0% |
Balance Sheet
|
|---|
| Cash | 95.615 | 205.521 | 78.187 | 99.658 | 73.122 | -26.6% |
| Short Term Debt | 953.991 | 858.577 | 715.968 | 1,680.461 | 1,809.474 | 7.7% |
| Long Term Debt | 0.000 | 412.024 | 811.468 | 295.580 | 26.404 | -91.1% |
Cash flow
|
|---|
| Capex | 73.962 | 28.050 | 68.765 | 33.582 | 76.058 | 126.5% |
Ratios
|
|---|
| Revenue growth | 4.3% | -7.2% | 40.4% | -5.7% | 5.4% | |
| EBITDA growth | -2,999.8% | -164.0% | -179.3% | -74.5% | -597.0% | |
| Gross Margin | 62.9% | 55.2% | 60.2% | 60.3% | 62.1% | 1.9% |
| EBITDA Margin | 39.8% | -27.4% | 15.5% | 4.2% | -19.7% | -23.9% |
| Net Income Margin | 702.8% | 419.7% | 201.4% | 794.2% | 459.3% | -334.9% |
| SG&A, % of revenue | | | | | 90.4% | 90.4% |
| CAPEX, % of revenue | 182.7% | 74.7% | 130.3% | 67.5% | 144.9% | 77.5% |
| ROIC | 0.3% | -0.3% | 0.1% | -0.0% | -0.2% | -0.2% |
| ROE | 7.9% | 3.9% | 2.5% | 8.8% | 5.0% | -3.8% |
| Net Debt/EBITDA | 53.2x | | 177.3x | 901.7x | | -901.7x |
Revenue and profitability
The company's Revenue increased on 5.4% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 33.1 pp from -39.0% to -5.9% in FY2015.
Gross Margin increased slightly on 1.9 pp from 60.3% to 62.1% in FY2015.
Net Income marign dropped on 335 pp from 794% to 459% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 145%. Cheuk Nang Holdings Ltd showed fast CAPEX/Revenue growth of 70.3 pp from 74.7% in FY2012 to 145% in FY2015. For the last three years the average CAPEX/Revenue was 114%.
Return on investment
The company operates at negative ROIC (-0.20%) and low but positive ROE (4.98%). ROIC showed almost no change in FY2015. ROE decreased on 3.8 pp from 8.8% to 5.0% in FY2015.
Leverage (Debt)
Debt level is -0.4x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 901.7x from 901.7x to in FY2015. Debt decreased on 7.1% in FY2015 while cash dropped on 26.6% in FY2015.
Appendix 1: Peers in Real Estate
Below we provide Cheuk Nang Holdings 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% | 15.6% | 12.4% | 5.1% | 2.9% |
|---|
| Cheuk Nang Holdings Ltd ($131) | | -7.2% | 40.4% | -5.7% | 5.4% |
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 (154 companies) | 43.4% | 41.9% | 40.0% | 38.9% | 47.4% |
|---|
| Cheuk Nang Holdings Ltd ($131) | 62.9% | 55.2% | 60.2% | 60.3% | 62.1% |
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% | 28.1% | 26.9% | 32.3% |
|---|
| Cheuk Nang Holdings Ltd ($131) | 39.8% | -27.4% | 15.5% | 4.2% | -19.7% |
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% | 5.3% | 6.1% | 4.5% | 1.5% |
|---|
| Cheuk Nang Holdings Ltd ($131) | 182.7% | 74.7% | 130.3% | 67.5% | 144.9% |
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% |
|---|
| Cheuk Nang Holdings Ltd ($131) | 0.3% | -0.3% | 0.1% | -0.0% | -0.2% |
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 | |
| 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 | |
| Coastal Greenland Ltd ($1124) | 4.2x | 2.2x | 7.1x | 26.6x | |
| |
|---|
| Median (139 companies) | 2.1x | 2.4x | 2.7x | 3.0x | 0.6x |
|---|
| Cheuk Nang Holdings Ltd ($131) | 53.2x | | 177.3x | 901.7x | |
