Dynamic Holdings Ltd Net Income increased on 7.0% in 2015 while Revenue decreased on 2.6%
25/09/2015 • About Dynamic Holdings Ltd (
$29) • By InTwits
Dynamic Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dynamic Holdings Ltd is a company in decline: FY2015 revenue growth was -2.6%, 5 years revenue CAGR was -3.9%
- Dynamic Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.1%.
- The company has potentially unprofitable business model: ROIC is at 2.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dynamic Holdings Ltd ($29) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 100.1 | 94.2 | 124.5 | 106.2 | 103.4 | -2.6% |
| Gross Profit | 67.1 | 69.2 | 94.3 | 81.9 | 82.5 | 0.7% |
| SG&A | | 32.1 | 24.7 | 27.7 | 24.2 | -12.9% |
| EBITDA | 47.8 | 41.5 | 72.1 | 58.2 | 60.3 | 3.5% |
| Net Income | 74.6 | 85.0 | 123.2 | 95.0 | 101.6 | 7.0% |
Balance Sheet
|
|---|
| Cash | 97.8 | 174.6 | 203.1 | 223.8 | 252.8 | 13.0% |
| Short Term Debt | 79.5 | 24.5 | 205.7 | 7.6 | 7.6 | -0.2% |
| Long Term Debt | 160.2 | 205.7 | 0.0 | 191.2 | 164.6 | -13.9% |
Cash flow
|
|---|
| Capex | 0.0 | 0.1 | 0.1 | 0.1 | 0.2 | 111.4% |
Ratios
|
|---|
| Revenue growth | -20.8% | -5.9% | 32.1% | -14.7% | -2.6% | |
| EBITDA growth | 8.1% | -13.1% | 73.6% | -19.3% | 3.5% | |
| Gross Margin | 67.0% | 73.4% | 75.8% | 77.1% | 79.7% | 2.6% |
| EBITDA Margin | 47.8% | 44.1% | 57.9% | 54.8% | 58.3% | 3.5% |
| Net Income Margin | 74.5% | 90.2% | 98.9% | 89.4% | 98.2% | 8.8% |
| SG&A, % of revenue | | 34.1% | 19.8% | 26.1% | 23.4% | -2.8% |
| CAPEX, % of revenue | 0.0% | 0.1% | 0.1% | 0.1% | 0.2% | 0.1% |
| ROIC | 2.3% | 1.9% | 3.1% | 2.4% | 2.4% | -0.0% |
| ROE | 4.8% | 5.2% | 7.2% | 5.2% | 5.3% | 0.1% |
| Net Debt/EBITDA | 3.0x | 1.3x | 0.0x | -0.4x | -1.3x | -0.9x |
Revenue and profitability
The company's Revenue decreased on 2.6% in FY2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.5 pp from 54.8% to 58.3% in FY2015.
Gross Margin increased on 2.6 pp from 77.1% to 79.7% in FY2015. SG&A as a % of Revenue decreased on 2.8 pp from 26.1% to 23.4% in FY2015.
Net Income marign increased on 8.8 pp from 89.4% to 98.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.18%. Dynamic Holdings Ltd showed almost no change in CAPEX/Revenue from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 0.12%.
Return on investment
The company operates at low ROIC (2.38%) and ROE (5.28%). ROIC showed almost no change in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.3x and Debt / EBITDA is 2.9x. Net Debt / EBITDA dropped on 0.9x from -0.4x to -1.3x in FY2015. Debt dropped on 13.4% in FY2015 while cash surged on 13.0% in FY2015.
Appendix 1: Peers in Real Estate
Below we provide Dynamic 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) | 15.8% | 15.6% | 12.4% | 5.1% | 2.3% |
|---|
| Dynamic Holdings Ltd ($29) | | -5.9% | 32.1% | -14.7% | -2.6% |
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% | 48.3% |
|---|
| Dynamic Holdings Ltd ($29) | 67.0% | 73.4% | 75.8% | 77.1% | 79.7% |
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% | 28.8% |
|---|
| Dynamic Holdings Ltd ($29) | 47.8% | 44.1% | 57.9% | 54.8% | 58.3% |
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) | 6.0% | 5.6% | 6.1% | 4.7% | 2.2% |
|---|
| Dynamic Holdings Ltd ($29) | 0.0% | 0.1% | 0.1% | 0.1% | 0.2% |
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% |
|---|
| Dynamic Holdings Ltd ($29) | 2.3% | 1.9% | 3.1% | 2.4% | 2.4% |
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 | 0.7x |
|---|
| Dynamic Holdings Ltd ($29) | 3.0x | 1.3x | 0.0x | -0.4x | -1.3x |
