Times Property Holdings Ltd demonstrated fast growth in recent years. Will the growth continue?
29/02/2016 • About Times Property Holdings Ltd (
$1233) • By InTwits
Pay attention to Times Property Holdings Ltd as a growth stock. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Times Property Holdings Ltd showed growth in the last financial year. The company's revenue surged on 30.9% in FY2015. The growth also happened in EBITDA of 13.5% for the same period.
In the longer period the company showed fast revenue growth of 62.2% from 2012 to 2015 annualy. EBITDA surged on 62.7% from 2012 to 2015 annualy.
Times Property Holdings Ltd ($1233) financials for the last 5 years
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 2,467 | 3,197 | 9,695 | 10,419 | 13,638 |
|---|
| Revenue growth, % | | 29.6% | 203.2% | 7.5% | 30.9% |
|---|
| Gross margin, % | 27.8% | 28.4% | 24.1% | 30.6% | 26.0% |
|---|
| SG&A, % | 17.9% | 10.9% | 7.19% | 7.56% | 6.09% |
|---|
| EBITDA | 376 | 659 | 1,752 | 2,500 | 2,837 |
|---|
| EBITDA growth, % | | 75.1% | 166.0% | 42.7% | 13.5% |
|---|
| EBITDA margin, % | 15.2% | 20.6% | 18.1% | 24.0% | 20.8% |
|---|
| Net Income | 247 | 363 | 987 | 1,279 | 1,421 |
|---|
| Net Income margin, % | 10.0% | 11.4% | 10.2% | 12.3% | 10.4% |
|---|
| |
| CAPEX | 28 | 18 | 204 | 49 | 79 |
|---|
| CAPEX/Revenue, % | 1.12% | 0.556% | 2.10% | 0.474% | 0.583% |
|---|
| Debt | 4,232 | 5,677 | 7,403 | 11,109 | 15,968 |
|---|
| Cash | 566 | 936 | 1,721 | 2,726 | 4,841 |
|---|
| Net Debt/EBITDA | 9.7x | 7.2x | 3.2x | 3.4x | 3.9x |
|---|
| |
| ROIC, % | 5.4% | 6.9% | 14.6% | 15.5% | 12.0% |
|---|
| ROE, % | 11.1% | 14.3% | 29.4% | 27.1% | 22.7% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. If we look for the longer period Times Property Holdings Ltd's EBITDA margin increased slightly on 0.200 pp from 20.6% in 2012 to 20.8% in 2015.
We call Times Property Holdings Ltd an attractive growth stock as together with the growth it delivers high ROIC at 12.0%. During the last three years it surged - it was 6.89% in FY2012. For the last three years the average ROIC was 14.0%.
Net Income margin dropped on 1.90 pp from 12.3% to 10.4% in 2015. In the longer period the company's Net Income margin decreased on 1 pp from 11.4% in 2012 to 10.4% in 2015.
Times Property Holdings Ltd operates at ROE of 22.7%. Average ROE for the last three years was 26.4%.
Capital expenditures (CAPEX)
In FY2015 Times Property Holdings Ltd had CAPEX/Revenue of 0.583%. Times Property Holdings Ltd's CAPEX/Revenue increased slightly on 0.0264 pp from 0.556% in 2012 to 0.583% in 2015. For the last three years the average CAPEX/Revenue was 1.05%.
Leverage (Debt)
Having such a fast growth profile the company keeps medium debt level at 3.9x Net Debt/EBITDA. In the last 3 years Times Property Holdings Ltd showed big decline in leverage of 3.28x from 7.20x in 2012 to 3.92x in 2015.
Peers in Real Estate
Below you can find Times Property Holdings 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) | 15.2% | 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, %
| 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) | 43.7% | 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, %
| 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) | 35.4% | 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, %
| 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% | 4.7% | 7.7% |
|---|
| Times Property Holdings Ltd ($1233) | 1.1% | 0.6% | 2.1% | 0.5% | 0.6% |
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% |
|---|
| Times Property Holdings Ltd ($1233) | 5.4% | 6.9% | 14.6% | 15.5% | 12.0% |
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 | 2.3x | 2.7x | 3.0x | 1.4x |
|---|
| Times Property Holdings Ltd ($1233) | 9.7x | 7.2x | 3.2x | 3.4x | 3.9x |
