eSun Holdings Ltd EBITDA jumped on 94.8% in 2015 and Revenue surged on 42.0%
15/10/2015 • About eSun Holdings Ltd (
$571) • By InTwits
eSun Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- eSun Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is 1.8%
- EBITDA Margin is expanding: 23.0% in FY2015 vs. 16.8% in FY2014 vs. in FY2011
- The company has potentially unprofitable business model: ROIC is at 1.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
eSun Holdings Ltd ($571) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 702 | 702 | 2,632 | 2,345 | 3,329 | 42.0% |
| Gross Profit | | 255 | 781 | 921 | 1,419 | 54.0% |
| SG&A | | | 781 | 748 | 815 | 9.0% |
| EBITDA | | -83 | 316 | 393 | 766 | 94.8% |
| Net Income | 1,162 | 1,162 | -17 | 269 | 258 | -3.9% |
Balance Sheet
|
|---|
| Cash | | 3,211 | 4,833 | 3,455 | 3,151 | -8.8% |
| Short Term Debt | | 1,559 | 2,236 | 836 | 2,860 | 242.0% |
| Long Term Debt | | 2,118 | 4,172 | 4,872 | 3,961 | -18.7% |
Cash flow
|
|---|
| Capex | | 54 | 245 | 1,042 | 436 | -58.2% |
Ratios
|
|---|
| Revenue growth | 53.0% | 0.0% | 274.8% | -10.9% | 42.0% | |
| EBITDA growth | | | -482.5% | 24.5% | 94.8% | |
| Gross Margin | | 36.3% | 29.7% | 39.3% | 42.6% | 3.3% |
| EBITDA Margin | 0.0% | -11.8% | 12.0% | 16.8% | 23.0% | 6.2% |
| Net Income Margin | 165.4% | 165.4% | -0.7% | 11.5% | 7.8% | -3.7% |
| SG&A, % of revenue | | | 29.7% | 31.9% | 24.5% | -7.4% |
| CAPEX, % of revenue | | 7.7% | 9.3% | 44.4% | 13.1% | -31.3% |
| ROIC | | | 0.2% | 0.5% | 1.8% | 1.3% |
| ROE | | | -0.2% | 3.1% | 2.9% | -0.3% |
| Net Debt/EBITDA | | | 5.0x | 5.7x | 4.8x | -0.9x |
Revenue and profitability
ESun Holdings Ltd's Revenue jumped on 42.0% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.7 pp from -38.7% to -34.9% in 2015.
Gross Margin increased on 3.3 pp from 39.3% to 42.6% in FY2015. SG&A as a % of Revenue decreased on 7.4 pp from 31.9% to 24.5% in FY2015.
Net Income marign decreased on 3.7 pp from 11.5% to 7.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 eSun Holdings Ltd had CAPEX/Revenue of 13.1%. ESun Holdings Ltd showed CAPEX/Revenue growth of 5.4 pp from 7.7% in FY2012 to 13.1% in FY2015. For the last three years the average CAPEX/Revenue was 22.3%.eSun Holdings Ltd invested a big chunk of EBITDA (56.9%) to CAPEX to fuel its growth.
Return on investment
The company operates at low ROIC (1.79%) and ROE (2.85%). ROIC increased slightly on 1.3 pp from 0.51% to 1.8% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt level is 4.8x Net Debt / EBITDA and 8.9x Debt / EBITDA. Net Debt / EBITDA dropped on 0.9x from 5.7x to 4.8x in FY2015. Debt surged on 19.5% in FY2015 while cash decreased on 8.8% in FY2015.
Appendix 1: Peers in Real Estate
Below we provide eSun 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) | 15.5% | 15.6% | 12.4% | 5.1% | 0.3% |
|---|
| eSun Holdings Ltd ($571) | | 0.0% | 274.8% | -10.9% | 42.0% |
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) | 43.6% | 42.1% | 41.1% | 38.9% | 53.1% |
|---|
| eSun Holdings Ltd ($571) | | 36.3% | 29.7% | 39.3% | 42.6% |
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) | 35.3% | 28.9% | 28.1% | 26.9% | 34.7% |
|---|
| eSun Holdings Ltd ($571) | | -11.8% | 12.0% | 16.8% | 23.0% |
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) | 5.9% | 5.3% | 6.1% | 4.5% | 4.8% |
|---|
| eSun Holdings Ltd ($571) | | 7.7% | 9.3% | 44.4% | 13.1% |
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% |
|---|
| eSun Holdings Ltd ($571) | | | 0.2% | 0.5% | 1.8% |
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 | 2.7x | 3.0x | 1.4x |
|---|
| eSun Holdings Ltd ($571) | | | 5.0x | 5.7x | 4.8x |
