Fantasia Holdings Group Co Ltd reports 15.9% CAPEX decline while 11.7% Revenue growth
03/03/2016 • About Fantasia Holdings Group Co Ltd (
$1777) • By InTwits
Fantasia Holdings Group Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Fantasia Holdings Group Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.9%. At the same time it's in pair with industry average of 38.8%.
- CAPEX is quite volatile: 1,028 in 2015, 1,222 in 2014, 215 in 2013, 284 in 2012, 430 in 2011
- The company has business model with low profitability: ROIC is at 7.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Fantasia Holdings Group Co Ltd ($1777) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,592 | 6,230 | 7,280 | 7,306 | 8,164 | 11.7% |
| Gross Profit | 2,392 | 2,520 | 2,794 | 2,807 | 2,519 | -10.3% |
| SG&A | 572 | 606 | 803 | 855 | 1,060 | 23.9% |
| EBITDA | 2,235 | 2,487 | 2,308 | 2,779 | 2,539 | -8.6% |
| Net Income | 1,057 | 1,139 | 1,215 | 1,298 | 1,274 | -1.8% |
Balance Sheet
|
|---|
| Cash | 1,021 | 2,788 | 2,777 | 3,738 | 2,882 | -22.9% |
| Short Term Debt | 2,100 | 2,452 | 2,079 | 4,890 | 2,434 | -50.2% |
| Long Term Debt | 3,393 | 5,429 | 9,926 | 9,793 | 11,170 | 14.1% |
Cash flow
|
|---|
| Capex | 430 | 284 | 215 | 1,222 | 1,028 | -15.9% |
Ratios
|
|---|
| Revenue growth | 25.1% | 11.4% | 16.9% | 0.4% | 11.7% | |
| EBITDA growth | 13.1% | 11.3% | -7.2% | 20.4% | -8.6% | |
| Gross Margin | 42.8% | 40.5% | 38.4% | 38.4% | 30.9% | -7.6% |
| EBITDA Margin | 40.0% | 39.9% | 31.7% | 38.0% | 31.1% | -6.9% |
| Net Income Margin | 18.9% | 18.3% | 16.7% | 17.8% | 15.6% | -2.2% |
| SG&A, % of revenue | 10.2% | 9.7% | 11.0% | 11.7% | 13.0% | 1.3% |
| CAPEX, % of revenue | 7.7% | 4.6% | 3.0% | 16.7% | 12.6% | -4.1% |
| ROIC | 17.8% | 16.0% | 10.9% | 10.0% | 7.9% | -2.1% |
| ROE | 20.9% | 18.7% | 17.5% | 14.9% | 12.2% | -2.8% |
| Net Debt/EBITDA | 2.0x | 2.0x | 4.0x | 3.9x | 4.2x | 0.3x |
Revenue and profitability
The company's Revenue surged on 11.7% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 10.5 pp from 45.2% to 55.7% in 2015.
Gross Margin decreased on 7.6 pp from 38.4% to 30.9% in 2015. SG&A as a % of Revenue increased slightly on 1.3 pp from 11.7% to 13.0% in 2015.
Net Income marign decreased on 2.2 pp from 17.8% to 15.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
Fantasia Holdings Group Co Ltd's CAPEX/Revenue was 12.6% in 2015. CAPEX/Revenue increased on 8.0 pp from 4.6% in 2012 to 12.6% in 2015. For the last three years the average CAPEX/Revenue was 10.8%.
Return on investment
The company operates at good ROE (12.17%) while ROIC is low (7.95%). ROIC decreased on 2.1 pp from 10.0% to 7.9% in 2015. ROE decreased on 2.8 pp from 14.9% to 12.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.2x and Debt / EBITDA is 5.4x. Net Debt / EBITDA jumped on 0.3x from 3.9x to 4.2x in 2015. Debt decreased on 7.3% in 2015 while cash dropped on 22.9% in 2015.
Management team
Fantasia Holdings Group Co Ltd's CEO Pan Jun has spent 11 years at the company. The company's CFO is Lam Kam Tong. Lam Kam Tong has 6 years tenure at the company.
Appendix 1: Peers in Real Estate
Below you can find Fantasia Holdings Group Co 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 (173 companies) | 15.0% | 15.8% | 13.0% | 5.2% | 3.2% |
|---|
| Fantasia Holdings Group Co Ltd ($1777) | | 11.4% | 16.9% | 0.4% | 11.7% |
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) | 43.8% | 42.2% | 41.8% | 39.3% | 50.8% |
|---|
| Fantasia Holdings Group Co Ltd ($1777) | 42.8% | 40.5% | 38.4% | 38.4% | 30.9% |
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 (173 companies) | 35.1% | 28.9% | 28.0% | 26.4% | 34.5% |
|---|
| Fantasia Holdings Group Co Ltd ($1777) | 40.0% | 39.9% | 31.7% | 38.0% | 31.1% |
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% | 0.9% |
| |
|---|
| Median (174 companies) | 5.8% | 5.5% | 6.2% | 4.6% | 6.8% |
|---|
| Fantasia Holdings Group Co Ltd ($1777) | 7.7% | 4.6% | 3.0% | 16.7% | 12.6% |
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% |
| Colour Life Services Group Co Ltd ($1778) | | 44.2% | 47.9% | 29.3% | 14.5% |
| 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% | |
| |
|---|
| Median (177 companies) | 4.6% | 4.0% | 3.8% | 3.8% | 2.4% |
|---|
| Fantasia Holdings Group Co Ltd ($1777) | 17.8% | 16.0% | 10.9% | 10.0% | 7.9% |
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 | 2.4x | 2.7x | 2.9x | 1.5x |
|---|
| Fantasia Holdings Group Co Ltd ($1777) | 2.0x | 2.0x | 4.0x | 3.9x | 4.2x |
