Pacific Century Premium Developments Ltd reports 105% Net Income decline and 0.60% Revenue decline
26/02/2016 • About Pacific Century Premium Developments Ltd (
$432) • By InTwits
Pacific Century Premium Developments Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pacific Century Premium Developments Ltd doesn't have a profitable business model yet: 2015 ROIC is -4.8%
- The company operates at negative EBITDA Margin: -158.2%
- Pacific Century Premium Developments Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -6.7% for the sames years0
- Pacific Century Premium Developments Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 204.8%. At the same time it's in pair with industry average of 191.0%.
- CAPEX is quite volatile: 562 in 2015, 583 in 2014, 1,415 in 2013, 34 in 2012, 138 in 2011
- The company has unprofitable business model: ROIC is at -4.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pacific Century Premium Developments Ltd ($432) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,126 | 1,184 | 438 | 166 | 165 | -0.6% |
| Gross Profit | 841 | 553 | 158 | 108 | 111 | 2.8% |
| SG&A | | 491 | 389 | 376 | 389 | 3.5% |
| EBITDA | 337 | 111 | -210 | -252 | -261 | 3.6% |
| Net Income | 62 | 67 | 77 | 1,491 | -81 | -105.4% |
Balance Sheet
|
|---|
| Cash | 2,855 | 829 | 866 | 2,466 | 1,815 | -26.4% |
| Short Term Debt | 33 | 24 | 2,844 | 0 | 0 | |
| Long Term Debt | 2,505 | 2,657 | 1,467 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 138 | 34 | 1,415 | 583 | 562 | -3.6% |
Ratios
|
|---|
| Revenue growth | 42.2% | -44.3% | -63.0% | -62.1% | -0.6% | |
| EBITDA growth | 14.6% | -67.1% | -289.2% | 20.0% | 3.6% | |
| Gross Margin | 39.6% | 46.7% | 36.1% | 65.1% | 67.3% | 2.2% |
| EBITDA Margin | 15.9% | 9.4% | -47.9% | -151.8% | -158.2% | -6.4% |
| Net Income Margin | 2.9% | 5.7% | 17.6% | 898.2% | -49.1% | -947.3% |
| SG&A, % of revenue | | 41.5% | 88.8% | 226.5% | 235.8% | 9.3% |
| CAPEX, % of revenue | 6.5% | 2.9% | 323.1% | 351.2% | 340.6% | -10.6% |
| ROIC | 2.8% | 0.7% | -2.3% | -3.1% | -4.8% | -1.7% |
| ROE | 0.9% | 1.0% | 1.4% | 27.0% | -1.5% | -28.5% |
| Net Debt/EBITDA | -0.9x | 16.7x | | | | 0.0x |
Revenue and profitability
The company's Revenue decreased slightly on 0.60% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 6.4 pp from -152% to -158% in 2015.
Gross Margin increased on 2.2 pp from 65.1% to 67.3% in 2015. SG&A as a % of Revenue increased on 9.3 pp from 227% to 236% in 2015.
Net Income marign dropped on 947 pp from 898% to -49.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 341%. The company's CAPEX/Revenue surged on 338 pp from 2.9% in 2012 to 341% in 2015. It's average level of CAPEX/Revenue for the last three years was 338%.
Return on investment
The company operates at negative ROIC (-4.81%) and ROE (-1.50%). ROIC decreased slightly on 1.7 pp from -3.1% to -4.8% in 2015. ROE dropped on 28.5 pp from 27.0% to -1.5% in 2015.
Leverage (Debt)
The company has no debt. Cash dropped on 26.4% in 2015.
Appendix 1: Peers in Real Estate
Below you can find Pacific Century Premium Developments 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) | 15.5% | 15.6% | 13.1% | 5.1% | 2.3% |
|---|
| Pacific Century Premium Developments Ltd ($432) | | -44.3% | -63.0% | -62.1% | -0.6% |
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) | 43.7% | 41.9% | 41.1% | 38.9% | 48.6% |
|---|
| Pacific Century Premium Developments Ltd ($432) | 39.6% | 46.7% | 36.1% | 65.1% | 67.3% |
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% | 34.5% |
|---|
| Pacific Century Premium Developments Ltd ($432) | 15.9% | 9.4% | -47.9% | -151.8% | -158.2% |
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% | |
| Liu Chong Hing Investment Ltd ($194) | 9.4% | 18.5% | 6.1% | 269.7% | |
| Madex International Holdings Ltd ($231) | 586.8% | 174.5% | 519.7% | 205.3% | |
| |
|---|
| Median (173 companies) | 5.9% | 5.6% | 6.1% | 4.5% | 7.2% |
|---|
| Pacific Century Premium Developments Ltd ($432) | 6.5% | 2.9% | 323.1% | 351.2% | 340.6% |
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% | 4.0% | 3.9% | 3.8% | 2.3% |
|---|
| Pacific Century Premium Developments Ltd ($432) | 2.8% | 0.7% | -2.3% | -3.1% | -4.8% |
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 (140 companies) | 2.1x | 2.3x | 2.8x | 3.0x | 1.5x |
|---|
