Melbourne Enterprises Ltd reports 4,682% Net Income growth and 8.1 pp EBITDA Margin growth from 71.2% to 79.3%
14/12/2015 • About Melbourne Enterprises Ltd (
$158) • By InTwits
Melbourne Enterprises Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Melbourne Enterprises Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has potentially unprofitable business model: ROIC is at 3.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Melbourne Enterprises Ltd ($158) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 159.5 | 186.7 | 201.4 | 211.9 | 223.4 | 5.4% |
| SG&A | | | | 10.4 | 10.8 | 3.6% |
| EBITDA | 127.1 | 149.9 | 152.4 | 150.9 | 177.2 | 17.4% |
| Net Income | 1,159.6 | 537.8 | 575.5 | 11.7 | 560.6 | 4,682.0% |
Balance Sheet
|
|---|
| Cash | 92.3 | 107.6 | 124.6 | 139.7 | 175.8 | 25.9% |
| 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 | 0.4 | 4.5 | 0.8 | 0.0 | 0.0 | |
Ratios
|
|---|
| Revenue growth | 9.1% | 17.1% | 7.9% | 5.2% | 5.4% | |
| EBITDA growth | 11.6% | 17.9% | 1.6% | -1.0% | 17.4% | |
| EBITDA Margin | 79.7% | 80.3% | 75.6% | 71.2% | 79.3% | 8.1% |
| Net Income Margin | 727.0% | 288.1% | 285.7% | 5.5% | 250.9% | 245.4% |
| SG&A, % of revenue | | | | 4.9% | 4.8% | -0.1% |
| CAPEX, % of revenue | 0.2% | 2.4% | 0.4% | 0.0% | 0.0% | 0.0% |
| ROIC | 3.0% | 3.0% | 2.8% | 2.7% | 3.0% | 0.4% |
| ROE | 29.1% | 10.7% | 10.6% | 0.2% | 9.7% | 9.4% |
| Net Debt/EBITDA | -0.7x | -0.7x | -0.8x | -0.9x | -1.0x | -0.1x |
Revenue and profitability
Melbourne Enterprises Ltd's Revenue increased on 5.4% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 8.1 pp from 71.2% to 79.3% in FY2015.
SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign jumped on 245 pp from 5.5% to 251% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Melbourne Enterprises Ltd had CAPEX/Revenue of 0.0067%. The company showed decline in CAPEX/Revenue of 2.4 pp from 2.4% in FY2012 to 0.0067% in FY2015.
Return on investment
The company operates at low ROIC (3.03%) and ROE (9.66%). ROIC showed almost no change in FY2015. ROE increased on 9.4 pp from 0.21% to 9.7% in FY2015.
Leverage (Debt)
The company has no debt. Cash jumped on 25.9% in FY2015.
Appendix 1: Peers in Real Estate
Below we provide Melbourne Enterprises 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% | 15.2% | 13.1% | 5.0% | 0.3% |
|---|
| Melbourne Enterprises Ltd ($158) | | 17.1% | 7.9% | 5.2% | 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 (155 companies) | 43.6% | 41.9% | 40.5% | 39.1% | 53.0% |
|---|
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% | 34.5% |
|---|
| Melbourne Enterprises Ltd ($158) | 79.7% | 80.3% | 75.6% | 71.2% | 79.3% |
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% | 4.8% |
|---|
| Melbourne Enterprises Ltd ($158) | 0.2% | 2.4% | 0.4% | 0.0% | 0.0% |
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% | 2.1% |
|---|
| Melbourne Enterprises Ltd ($158) | 3.0% | 3.0% | 2.8% | 2.7% | 3.0% |
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 | 1.4x |
|---|
| Melbourne Enterprises Ltd ($158) | -0.7x | -0.7x | -0.8x | -0.9x | -1.0x |
