Eye on Gemdale Properties & Investment Corp Ltd with its long history of healthy growth
29/01/2016 • About Gemdale Properties & Investment Corp Ltd (
$535) • By InTwits
Pay attention to Gemdale Properties & Investment Corp Ltd as a growth stock. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Gemdale Properties & Investment Corp Ltd showed growth in the last financial year. Gemdale Properties & Investment Corp Ltd's revenue surged on 95.6% in FY2015. At the same time Gemdale Properties & Investment Corp Ltd well managed its profitability and also showed EBITDA growth of 93.3% for the same period.
In the last 3 years Gemdale Properties & Investment Corp Ltd showed fast revenue growth of 197% from 2012 to 2015 annualy. EBITDA surged on 45.2% from 2012 to 2015 annualy.
Gemdale Properties & Investment Corp Ltd ($535) financials for the last 5 years
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 254 | 163 | 233 | 2,168 | 4,241 |
|---|
| Revenue growth, % | | -36.0% | 43.2% | 831.0% | 95.6% |
|---|
| Gross margin, % | 77.6% | 95.0% | 93.0% | 38.8% | 48.6% |
|---|
| SG&A, % | 9.89% | 17.0% | 40.8% | 3.65% | 2.35% |
|---|
| EBITDA | 326 | 634 | 1,350 | 1,004 | 1,942 |
|---|
| EBITDA growth, % | | 94.8% | 112.8% | -25.6% | 93.3% |
|---|
| EBITDA margin, % | 128% | 390% | 580% | 46.3% | 45.8% |
|---|
| Net Income | 173 | 406 | 1,042 | 361 | 1,056 |
|---|
| Net Income margin, % | 68.0% | 249% | 448% | 16.6% | 24.9% |
|---|
| |
| CAPEX | 3 | 2 | 30 | 196 | 325 |
|---|
| CAPEX/Revenue, % | 1.07% | 0.985% | 12.8% | 9.02% | 7.67% |
|---|
| Debt | 1,070 | 1,166 | 3,198 | 2,170 | 4,147 |
|---|
| Cash | 737 | 1,035 | 1,427 | 1,782 | 1,725 |
|---|
| Net Debt/EBITDA | 1.0x | 0.2x | 1.3x | 0.4x | 1.2x |
|---|
| |
| ROIC, % | 8.9% | 15.3% | 19.6% | 10.8% | 15.9% |
|---|
| ROE, % | 9.5% | 19.4% | 30.2% | 7.6% | 15.6% |
|---|
Profitability and return on investment
Despite revenue growth EBITDA margin declined slightly from 46.3% in FY2014 to 45.8% in FY2015. In the longer period the company's EBITDA margin dropped on 344 pp from 390% in 2012 to 45.8% in 2015.
Gemdale Properties & Investment Corp Ltd shows attractive ROIC at 15.9% for the last 12 months which assumes stable development model. Three years ago it was a bit lower at 15.3%. It's average level of ROIC for the last three years was 15.4%.
The company's Net Income margin surged on 8.30 pp from 16.6% to 24.9% in 2015. If we look for the longer period Net Income margin dropped on 225 pp from 250% in 2012 to 24.9% in 2015.
Gemdale Properties & Investment Corp Ltd operates at ROE of 15.6%. Average ROE for the last three years was 17.8%.
Capital expenditures (CAPEX)
To this fast growth the company had to invest in CAPEX.In FY2015 Gemdale Properties & Investment Corp Ltd had CAPEX/Revenue of 7.67%. The company's CAPEX/Revenue surged on 6.68 pp from 0.985% in 2012 to 7.67% in 2015. For the last three years the average CAPEX/Revenue was 9.83%.
Leverage (Debt)
Having such a fast growth profile the company keeps medium debt level at 1.2x Net Debt/EBITDA. In the last 3 years Gemdale Properties & Investment Corp Ltd's leverage surged on 1.04x from 0.21x in 2012 to 1.25x in 2015.
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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 |
