Future Land Development Holdings Ltd reports 54.6% CAPEX growth and 15.0% Revenue growth
05/02/2016 • About Future Land Development Holdings Ltd (
$1030) • By InTwits
Future Land Development Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Future Land Development Holdings Ltd is a fast growth stock: 2015 revenue growth was 15.0%, 5 year revenue CAGR was 25.6% at 2015 ROIC 12.3%
- Future Land Development Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.3%. At the same time it's in pair with industry average of 10.8%.
- CAPEX is quite volatile: 3,443 in 2015, 2,226 in 2014, 198 in 2013, 572 in 2012, 770 in 2011
- The company has highly profitable business model: ROIC is at 12.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Future Land Development Holdings Ltd ($1030) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 10,767 | 17,517 | 20,771 | 20,719 | 23,836 | 15.0% |
| Gross Profit | 3,024 | 3,930 | 4,683 | 3,874 | 4,856 | 25.4% |
| SG&A | 836 | 1,023 | 1,250 | 1,288 | 1,807 | 40.3% |
| EBITDA | 2,535 | 2,951 | 3,658 | 3,095 | 3,939 | 27.3% |
| Net Income | 887 | 931 | 981 | 1,026 | 1,031 | 0.5% |
Balance Sheet
|
|---|
| Cash | 4,222 | 4,852 | 7,412 | 4,818 | 6,479 | 34.5% |
| Short Term Debt | 4,217 | 5,130 | 2,175 | 3,376 | 3,976 | 17.8% |
| Long Term Debt | 6,649 | 4,510 | 11,715 | 10,555 | 15,005 | 42.2% |
Cash flow
|
|---|
| Capex | 770 | 572 | 198 | 2,226 | 3,443 | 54.6% |
Ratios
|
|---|
| Revenue growth | 41.3% | 62.7% | 18.6% | -0.3% | 15.0% | |
| EBITDA growth | 30.1% | 16.4% | 23.9% | -15.4% | 27.3% | |
| Gross Margin | 28.1% | 22.4% | 22.5% | 18.7% | 20.4% | 1.7% |
| EBITDA Margin | 23.5% | 16.8% | 17.6% | 14.9% | 16.5% | 1.6% |
| Net Income Margin | 8.2% | 5.3% | 4.7% | 5.0% | 4.3% | -0.6% |
| SG&A, % of revenue | 7.8% | 5.8% | 6.0% | 6.2% | 7.6% | 1.4% |
| CAPEX, % of revenue | 7.2% | 3.3% | 1.0% | 10.7% | 14.4% | 3.7% |
| ROIC | 16.7% | 16.1% | 16.0% | 11.3% | 12.3% | 1.0% |
| ROE | 32.6% | 20.8% | 15.7% | 14.3% | 13.0% | -1.2% |
| Net Debt/EBITDA | 2.6x | 1.6x | 1.8x | 2.9x | 3.2x | 0.2x |
Revenue and profitability
The company's Revenue jumped on 15.0% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.86 pp from 1.7% to 2.6% in 2015.
Gross Margin increased slightly on 1.7 pp from 18.7% to 20.4% in 2015. SG&A as a % of Revenue increased slightly on 1.4 pp from 6.2% to 7.6% in 2015.
Net Income marign decreased slightly on 0.63 pp from 5.0% to 4.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Future Land Development Holdings Ltd had CAPEX/Revenue of 14.4%. The company showed fast CAPEX/Revenue growth of 11.2 pp from 3.3% in 2012 to 14.4% in 2015. It's average level of CAPEX/Revenue for the last three years was 8.7%.The company invested a big chunk of EBITDA (87.4%) to CAPEX to fuel its growth.
Return on investment
The company operates at good ROIC (12.31%) and ROE (13.04%). ROIC increased slightly on 0.99 pp from 11.3% to 12.3% in 2015. ROE decreased slightly on 1.2 pp from 14.3% to 13.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.2x and Debt / EBITDA is 4.8x. Net Debt / EBITDA jumped on 0.2x from 2.9x to 3.2x in 2015. Debt surged on 36.2% in 2015 while cash jumped on 34.5% in 2015.
Appendix 1: Peers in Real Estate
Below we provide Future Land Development 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) | 15.7% | 15.2% | 12.4% | 5.1% | 1.7% |
|---|
| Future Land Development Holdings Ltd ($1030) | | 62.7% | 18.6% | -0.3% | 15.0% |
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) | 43.7% | 42.1% | 41.1% | 39.2% | 53.1% |
|---|
| Future Land Development Holdings Ltd ($1030) | 28.1% | 22.4% | 22.5% | 18.7% | 20.4% |
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) | 35.4% | 28.9% | 28.1% | 26.9% | 37.0% |
|---|
| Future Land Development Holdings Ltd ($1030) | 23.5% | 16.8% | 17.6% | 14.9% | 16.5% |
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% | 5.6% | 6.1% | 4.5% | 7.7% |
|---|
| Future Land Development Holdings Ltd ($1030) | 7.2% | 3.3% | 1.0% | 10.7% | 14.4% |
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% |
|---|
| Future Land Development Holdings Ltd ($1030) | 16.7% | 16.1% | 16.0% | 11.3% | 12.3% |
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 | 1.3x |
|---|
| Future Land Development Holdings Ltd ($1030) | 2.6x | 1.6x | 1.8x | 2.9x | 3.2x |
