Gemdale Properties & Investment Corp Ltd reports 193% Net Income growth and 0.53 pp EBITDA Margin decline from 46.3% to 45.8%
22/01/2016 • About Gemdale Properties & Investment Corp Ltd (
$535) • By InTwits
Gemdale Properties & Investment Corp Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gemdale Properties & Investment Corp Ltd is a fast growth stock: 2015 revenue growth was 95.6%, 5 year revenue CAGR was 29.1% at 2015 ROIC 15.9%
- EBITDA Margin is quite volatile: 45.8% in 2015, 46.3% in 2014, 579.5% in 2013, 390.0% in 2012, 128.1% in 2011
- Gemdale Properties & Investment Corp Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.3%. At the same time it's a lot of higher than industry average of 50.5%.
- CAPEX is quite volatile: 325 in 2015, 196 in 2014, 29.9 in 2013, 1.6 in 2012, 2.7 in 2011
- The company has highly profitable business model: ROIC is at 15.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Gemdale Properties & Investment Corp Ltd ($535) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 254 | 163 | 233 | 2,168 | 4,241 | 95.6% |
| Gross Profit | 197 | 154 | 217 | 841 | 2,062 | 145.2% |
| SG&A | 25 | 28 | 95 | 79 | 100 | 25.9% |
| EBITDA | 326 | 634 | 1,350 | 1,004 | 1,942 | 93.3% |
| Net Income | 173 | 406 | 1,042 | 361 | 1,056 | 192.7% |
Balance Sheet
|
|---|
| Cash | 737 | 1,035 | 1,427 | 1,782 | 1,725 | -3.2% |
| Short Term Debt | 398 | 955 | 3,198 | 1,059 | 4,147 | 291.7% |
| Long Term Debt | 671 | 211 | 0 | 1,111 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 3 | 2 | 30 | 196 | 325 | 66.3% |
Ratios
|
|---|
| Revenue growth | -78.5% | -36.0% | 43.2% | 831.0% | 95.6% | |
| EBITDA growth | -14.8% | 94.8% | 112.8% | -25.6% | 93.3% | |
| Gross Margin | 77.6% | 95.0% | 93.0% | 38.8% | 48.6% | 9.9% |
| EBITDA Margin | 128.1% | 390.0% | 579.5% | 46.3% | 45.8% | -0.5% |
| Net Income Margin | 68.0% | 249.5% | 447.5% | 16.6% | 24.9% | 8.3% |
| SG&A, % of revenue | 9.9% | 17.0% | 40.8% | 3.6% | 2.3% | -1.3% |
| CAPEX, % of revenue | 1.1% | 1.0% | 12.8% | 9.0% | 7.7% | -1.4% |
| ROIC | 8.9% | 15.3% | 19.6% | 10.8% | 15.9% | 5.0% |
| ROE | 9.5% | 19.4% | 30.2% | 7.6% | 15.6% | 8.0% |
| Net Debt/EBITDA | 1.0x | 0.2x | 1.3x | 0.4x | 1.2x | 0.9x |
Revenue and profitability
Gemdale Properties & Investment Corp Ltd's Revenue surged on 95.6% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.2 pp from 11.2% to 12.4% in 2015.
Gross Margin increased on 9.9 pp from 38.8% to 48.6% in 2015. SG&A as a % of Revenue decreased slightly on 1.3 pp from 3.6% to 2.3% in 2015.
Net Income marign increased on 8.3 pp from 16.6% to 24.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 7.7%. CAPEX/Revenue increased on 6.7 pp from 0.99% in 2012 to 7.7% in 2015. It's average level of CAPEX/Revenue for the last three years was 9.8%.
Return on investment
The company operates at good ROIC (15.89%) and ROE (15.57%). ROIC increased on 5.0 pp from 10.8% to 15.9% in 2015. ROE increased on 8.0 pp from 7.6% to 15.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.2x and Debt / EBITDA is 2.1x. Net Debt / EBITDA surged on 0.9x from 0.4x to 1.2x in 2015. Debt jumped on 91.1% in 2015 while cash decreased on 3.2% in 2015.
Appendix 1: Peers in Real Estate
Below you can find Gemdale Properties & Investment Corp 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% | 12.4% | 5.0% | 1.7% |
|---|
| Gemdale Properties & Investment Corp Ltd ($535) | | -36.0% | 43.2% | 831.0% | 95.6% |
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% | 39.2% | 53.0% |
|---|
| Gemdale Properties & Investment Corp Ltd ($535) | 77.6% | 95.0% | 93.0% | 38.8% | 48.6% |
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) | 35.2% | 28.9% | 27.9% | 26.4% | 34.6% |
|---|
| Gemdale Properties & Investment Corp Ltd ($535) | 128.1% | 390.0% | 579.5% | 46.3% | 45.8% |
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% | 4.5% | 3.0% |
|---|
| Gemdale Properties & Investment Corp Ltd ($535) | 1.1% | 1.0% | 12.8% | 9.0% | 7.7% |
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% | 3.9% | 3.8% | 3.8% | 2.2% |
|---|
| Gemdale Properties & Investment Corp Ltd ($535) | 8.9% | 15.3% | 19.6% | 10.8% | 15.9% |
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 | 1.1x |
|---|
| Gemdale Properties & Investment Corp Ltd ($535) | 1.0x | 0.2x | 1.3x | 0.4x | 1.2x |
