Times Property Holdings Ltd revenue growth accelerated from 7.5% in 2014 to 30.9% in 2015
22/02/2016 • About Times Property Holdings Ltd (
$1233) • By InTwits
Times Property Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Times Property Holdings Ltd is a fast growth stock: 2015 revenue growth was 30.9%, 5 year revenue CAGR was 54.5% at 2015 ROIC 12.0%
- Times Property Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%.
- The company has highly profitable business model: ROIC is at 12.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Times Property Holdings Ltd ($1233) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,467 | 3,197 | 9,695 | 10,419 | 13,638 | 30.9% |
| Gross Profit | 686 | 909 | 2,340 | 3,186 | 3,546 | 11.3% |
| SG&A | 441 | 349 | 697 | 788 | 831 | 5.5% |
| EBITDA | 376 | 659 | 1,752 | 2,500 | 2,837 | 13.5% |
| Net Income | 247 | 363 | 987 | 1,279 | 1,421 | 11.1% |
Balance Sheet
|
|---|
| Cash | 566 | 936 | 1,721 | 2,726 | 4,841 | 77.6% |
| Short Term Debt | 1,221 | 3,177 | 1,977 | 1,786 | 359 | -79.9% |
| Long Term Debt | 3,011 | 2,500 | 5,425 | 9,323 | 15,609 | 67.4% |
Cash flow
|
|---|
| Capex | 28 | 18 | 204 | 49 | 79 | 60.8% |
Ratios
|
|---|
| Revenue growth | 59.4% | 29.6% | 203.2% | 7.5% | 30.9% | |
| EBITDA growth | 37.0% | 75.1% | 166.0% | 42.7% | 13.5% | |
| Gross Margin | 27.8% | 28.4% | 24.1% | 30.6% | 26.0% | -4.6% |
| EBITDA Margin | 15.2% | 20.6% | 18.1% | 24.0% | 20.8% | -3.2% |
| Net Income Margin | 10.0% | 11.4% | 10.2% | 12.3% | 10.4% | -1.9% |
| SG&A, % of revenue | 17.9% | 10.9% | 7.2% | 7.6% | 6.1% | -1.5% |
| CAPEX, % of revenue | 1.1% | 0.6% | 2.1% | 0.5% | 0.6% | 0.1% |
| ROIC | 5.4% | 6.9% | 14.6% | 15.5% | 12.0% | -3.4% |
| ROE | 11.1% | 14.3% | 29.4% | 27.1% | 22.7% | -4.5% |
| Net Debt/EBITDA | 9.7x | 7.2x | 3.2x | 3.4x | 3.9x | 0.6x |
Revenue and profitability
Times Property Holdings Ltd's Revenue surged on 30.9% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 3.2 pp from 24.0% to 20.8% in 2015.
Gross Margin decreased on 4.6 pp from 30.6% to 26.0% in 2015. SG&A as a % of Revenue decreased slightly on 1.5 pp from 7.6% to 6.1% in 2015.
Net Income marign decreased slightly on 1.9 pp from 12.3% to 10.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.58% in 2015. Times Property Holdings Ltd's CAPEX/Revenue showed almost no change from 2012 to 2015. Average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at high and attractive ROE (22.66%) while ROIC is a bit lower (12.04%). ROIC decreased on 3.4 pp from 15.5% to 12.0% in 2015. ROE decreased on 4.5 pp from 27.1% to 22.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.9x and Debt / EBITDA is 5.6x. Net Debt / EBITDA surged on 0.6x from 3.4x to 3.9x in 2015. Debt surged on 43.7% in 2015 while cash surged on 77.6% in 2015.
Appendix 1: Peers in Real Estate
Below we provide Times Property 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) | 15.2% | 15.2% | 12.4% | 5.0% | 1.7% |
|---|
| Times Property Holdings Ltd ($1233) | | 29.6% | 203.2% | 7.5% | 30.9% |
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% | 50.8% |
|---|
| Times Property Holdings Ltd ($1233) | 27.8% | 28.4% | 24.1% | 30.6% | 26.0% |
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) | 35.4% | 28.9% | 28.1% | 26.9% | 35.2% |
|---|
| Times Property Holdings Ltd ($1233) | 15.2% | 20.6% | 18.1% | 24.0% | 20.8% |
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% | 4.7% | 7.7% |
|---|
| Times Property Holdings Ltd ($1233) | 1.1% | 0.6% | 2.1% | 0.5% | 0.6% |
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% |
|---|
| Times Property Holdings Ltd ($1233) | 5.4% | 6.9% | 14.6% | 15.5% | 12.0% |
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 | 2.3x | 2.7x | 3.0x | 1.4x |
|---|
| Times Property Holdings Ltd ($1233) | 9.7x | 7.2x | 3.2x | 3.4x | 3.9x |
