Wing Lee Property Investments Ltd reports CAPEX growth and 7.0% Revenue growth
05/02/2016 • About Wing Lee Property Investments Ltd (
$864) • By InTwits
Wing Lee Property Investments Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Wing Lee Property Investments Ltd doesn't have a profitable business model yet: 2015 ROIC is 1.5%
- EBITDA Margin is quite volatile: 56.5% in 2015, 60.9% in 2014, 37.9% in 2013, 7.3% in 2012, 50.3% in 2011
- Wing Lee Property Investments Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 124.4%. At the same time it's in pair with industry average of 45.9%.
- CAPEX is quite volatile: 21.7 in 2015, 0 in 2014, 21.0 in 2013, 24.7 in 2012, 74.2 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Wing Lee Property Investments Ltd ($864) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 20.428 | 24.213 | 25.237 | 27.751 | 29.704 | 7.0% |
| SG&A | | | | 12.556 | 12.272 | -2.3% |
| EBITDA | 10.271 | 1.771 | 9.556 | 16.912 | 16.770 | -0.8% |
| Net Income | 158.789 | 306.289 | 40.965 | 82.955 | 25.991 | -68.7% |
Balance Sheet
|
|---|
| Cash | 60.807 | 61.342 | 60.626 | 56.618 | 27.824 | -50.9% |
| Short Term Debt | 33.145 | 32.007 | 44.169 | 28.082 | 25.980 | -7.5% |
| Long Term Debt | 99.266 | 94.227 | 71.140 | 69.717 | 54.573 | -21.7% |
Cash flow
|
|---|
| Capex | 74.223 | 24.744 | 20.950 | 0.000 | 21.745 | |
Ratios
|
|---|
| Revenue growth | 27.4% | 18.5% | 4.2% | 10.0% | 7.0% | |
| EBITDA growth | | -82.8% | 439.6% | 77.0% | -0.8% | |
| EBITDA Margin | 50.3% | 7.3% | 37.9% | 60.9% | 56.5% | -4.5% |
| Net Income Margin | 777.3% | 1,265.0% | 162.3% | 298.9% | 87.5% | -211.4% |
| SG&A, % of revenue | | | | 45.2% | 41.3% | -3.9% |
| CAPEX, % of revenue | 363.3% | 102.2% | 83.0% | 0.0% | 73.2% | 73.2% |
| ROIC | 3.5% | 0.3% | 1.1% | 1.5% | 1.5% | -0.1% |
| ROE | 96.7% | 77.2% | 5.6% | 8.7% | 2.6% | -6.1% |
| Net Debt/EBITDA | 7.0x | 36.6x | 5.7x | 2.4x | 3.1x | 0.7x |
Revenue and profitability
The company's Revenue increased on 7.0% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 4.5 pp from 60.9% to 56.5% in 2015.
SG&A as a % of Revenue decreased on 3.9 pp from 45.2% to 41.3% in 2015.
Net Income marign dropped on 211 pp from 299% to 87.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
Wing Lee Property Investments Ltd's CAPEX/Revenue was 73.2% in 2015. The company showed big decline in CAPEX/Revenue of 29.0 pp from 102% in 2012 to 73.2% in 2015.Wing Lee Property Investments Ltd maintained rich investment policy and has spent a lot to CAPEX (130% of EBITDA).
Return on investment
The company operates at low ROIC (1.45%) and ROE (2.57%). ROIC showed almost no change in 2015. ROE decreased on 6.1 pp from 8.7% to 2.6% in 2015.
Leverage (Debt)
Debt level is 3.1x Net Debt / EBITDA and 4.8x Debt / EBITDA. Net Debt / EBITDA surged on 0.7x from 2.4x to 3.1x in 2015. Debt dropped on 17.6% in 2015 while cash dropped on 50.9% in 2015.
Appendix 1: Peers in Real Estate
Below we provide Wing Lee Property Investments 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% | 13.1% | 5.0% | 1.7% |
|---|
| Wing Lee Property Investments Ltd ($864) | | 18.5% | 4.2% | 10.0% | 7.0% |
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 (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% | 35.2% |
|---|
| Wing Lee Property Investments Ltd ($864) | 50.3% | 7.3% | 37.9% | 60.9% | 56.5% |
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% | 5.3% | 6.1% | 4.7% | 7.7% |
|---|
| Wing Lee Property Investments Ltd ($864) | 363.3% | 102.2% | 83.0% | 0.0% | 73.2% |
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% |
|---|
| Wing Lee Property Investments Ltd ($864) | 3.5% | 0.3% | 1.1% | 1.5% | 1.5% |
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 | 2.3x | 2.7x | 3.0x | 1.3x |
|---|
| Wing Lee Property Investments Ltd ($864) | 7.0x | 36.6x | 5.7x | 2.4x | 3.1x |
