Vanke Property Overseas Ltd Net Income surged on 17.6% in 2015 and Revenue increased on 3.8%
01/03/2016 • About Vanke Property Overseas Ltd (
$1036) • By InTwits
Vanke Property Overseas Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vanke Property Overseas Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.3%. At the same time it's a lot of higher than industry average of 4.2%.
- CAPEX is quite volatile: 0.47 in 2015, 0 in 2014, 0.014 in 2013, 0.72 in 2012, 33.2 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Vanke Property Overseas Ltd ($1036) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 66.373 | 77.574 | 82.550 | 85.809 | 89.067 | 3.8% |
| Gross Profit | 48.952 | 59.929 | 62.903 | 66.025 | 68.908 | 4.4% |
| SG&A | 7.101 | 17.770 | | | 12.660 | |
| EBITDA | 47.252 | 43.922 | | 55.177 | 56.483 | 2.4% |
| Net Income | 2,465.240 | 506.193 | 151.506 | 137.555 | 161.705 | 17.6% |
Balance Sheet
|
|---|
| Cash | 647.478 | 50.151 | 20.708 | 11.986 | 715.728 | 5,871.4% |
| Short Term Debt | 561.682 | 0.000 | 155.500 | 330.000 | 0.000 | -100.0% |
| Long Term Debt | 1,630.100 | 0.000 | 510.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 33.183 | 0.717 | 0.014 | 0.000 | 0.466 | |
Ratios
|
|---|
| Revenue growth | -83.6% | 16.9% | 6.4% | 3.9% | 3.8% | |
| EBITDA growth | -88.3% | -7.0% | | | 2.4% | |
| Gross Margin | 73.8% | 77.3% | 76.2% | 76.9% | 77.4% | 0.4% |
| EBITDA Margin | 71.2% | 56.6% | 0.0% | 64.3% | 63.4% | -0.9% |
| Net Income Margin | 3,714.2% | 652.5% | 183.5% | 160.3% | 181.6% | 21.3% |
| SG&A, % of revenue | 10.7% | 22.9% | | | 14.2% | 14.2% |
| CAPEX, % of revenue | 50.0% | 0.9% | 0.0% | 0.0% | 0.5% | 0.5% |
| ROIC | 0.4% | 0.6% | 2.8% | 2.7% | 2.4% | -0.3% |
| ROE | 23.7% | 8.0% | 11.2% | 9.2% | 7.5% | -1.7% |
| Net Debt/EBITDA | 32.7x | -1.1x | | 5.8x | -12.7x | -18.4x |
Revenue and profitability
The company's Revenue increased on 3.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.8 pp from 40.8% to 46.6% in 2015.
Gross Margin showed almost no change in 2015.
Net Income marign jumped on 21.3 pp from 160% to 182% in 2015.
Capital expenditures (CAPEX) and working capital investments
Vanke Property Overseas Ltd's CAPEX/Revenue was 0.52% in 2015. The company showed almost no change in CAPEX/Revenue from 2012 to 2015.
Return on investment
The company operates at low ROIC (2.41%) and ROE (7.54%). ROIC showed almost no change in 2015. ROE decreased slightly on 1.7 pp from 9.2% to 7.5% in 2015.
Leverage (Debt)
The company paid down all the debt in 2015. Cash jumped on 5,871% in 2015.
Appendix 1: Peers in Real Estate
Below we provide Vanke Property Overseas 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) | 15.5% | 15.2% | 13.1% | 5.1% | 1.8% |
|---|
| Vanke Property Overseas Ltd ($1036) | | 16.9% | 6.4% | 3.9% | 3.8% |
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) | 43.4% | 41.9% | 40.0% | 38.9% | 48.5% |
|---|
| Vanke Property Overseas Ltd ($1036) | 73.8% | 77.3% | 76.2% | 76.9% | 77.4% |
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) | 35.2% | 28.9% | 28.0% | 26.4% | 34.3% |
|---|
| Vanke Property Overseas Ltd ($1036) | 71.2% | 56.6% | | 64.3% | 63.4% |
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% | 340.6% |
| Liu Chong Hing Investment Ltd ($194) | 9.4% | 18.5% | 6.1% | 269.7% | |
| |
|---|
| Median (173 companies) | 5.9% | 5.6% | 6.1% | 4.7% | 7.7% |
|---|
| Vanke Property Overseas Ltd ($1036) | 50.0% | 0.9% | 0.0% | 0.0% | 0.5% |
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% |
|---|
| Vanke Property Overseas Ltd ($1036) | 0.4% | 0.6% | 2.8% | 2.7% | 2.4% |
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 | 1.7x |
|---|
| Vanke Property Overseas Ltd ($1036) | 32.7x | -1.1x | | 5.8x | -12.7x |
