China Chengtong Development Group Ltd reports 259% Net Income growth and 8.1 pp EBITDA Margin growth from -3.3% to 4.8%
04/03/2016 • About China Chengtong Development Group Ltd (
$217) • By InTwits
China Chengtong Development Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Chengtong Development Group Ltd doesn't have a profitable business model yet: 2015 ROIC is 0.2%
- EBITDA Margin is quite volatile: 4.8% in 2015, -3.3% in 2014, -0.4% in 2013, 1.1% in 2012, 4.6% in 2011
- China Chengtong Development Group Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -0.1%0
- China Chengtong Development Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has potentially unprofitable business model: ROIC is at 0.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Chengtong Development Group Ltd ($217) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 419 | 8,627 | 15,500 | 3,224 | 548 | -83.0% |
| Gross Profit | 61 | 182 | 89 | -15 | 83 | -670.6% |
| SG&A | | 113 | 167 | 145 | 123 | -15.6% |
| EBITDA | 19 | 94 | -60 | -107 | 27 | -124.9% |
| Net Income | 36 | 185 | 51 | -51 | 82 | -259.1% |
Balance Sheet
|
|---|
| Cash | 949 | 1,973 | 2,557 | 728 | 1,404 | 92.8% |
| Short Term Debt | 644 | 7,949 | 17,113 | 2,671 | 0 | -100.0% |
| Long Term Debt | 722 | 732 | 0 | 722 | 695 | -3.7% |
Cash flow
|
|---|
| Capex | 2 | 2 | 70 | 2 | 2 | -28.8% |
Ratios
|
|---|
| Revenue growth | 366.1% | 1,956.5% | 79.7% | -79.2% | -83.0% | |
| EBITDA growth | -168.8% | 385.5% | -164.1% | 77.2% | -124.9% | |
| Gross Margin | 14.4% | 2.1% | 0.6% | -0.5% | 15.2% | 15.7% |
| EBITDA Margin | 4.6% | 1.1% | -0.4% | -3.3% | 4.8% | 8.1% |
| Net Income Margin | 8.7% | 2.1% | 0.3% | -1.6% | 14.9% | 16.5% |
| SG&A, % of revenue | | 1.3% | 1.1% | 4.5% | 22.4% | 17.9% |
| CAPEX, % of revenue | 0.5% | 0.0% | 0.5% | 0.1% | 0.3% | 0.2% |
| ROIC | 0.8% | 1.3% | -0.5% | -1.0% | 0.2% | 1.2% |
| ROE | 2.5% | 11.1% | 2.7% | -2.7% | 3.5% | 6.2% |
| Net Debt/EBITDA | 21.6x | 71.5x | | | -26.7x | -26.7x |
Revenue and profitability
China Chengtong Development Group Ltd's Revenue dropped on 83.0% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 8.1 pp from -3.3% to 4.8% in 2015.
Gross Margin surged on 15.7 pp from -0.45% to 15.2% in 2015. SG&A as a % of Revenue surged on 17.9 pp from 4.5% to 22.4% in 2015.
Net Income marign surged on 16.5 pp from -1.6% to 14.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.32%. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 0.28%.
Return on investment
The company operates at low ROIC (0.18%) and ROE (3.54%). ROIC increased slightly on 1.2 pp from -1.0% to 0.18% in 2015. ROE increased on 6.2 pp from -2.7% to 3.5% in 2015.
Leverage (Debt)
Debt level is -26.7x Net Debt / EBITDA and 26.2x Debt / EBITDA. Net Debt / EBITDA dropped26.7x from to -26.7x in 2015. Debt dropped on 79.5% in 2015 while cash surged on 92.8% in 2015.
Appendix 1: Peers in Holding Companies-Divers
Below you can find China Chengtong Development Group Ltd benchmarking vs. other companies in Holding Companies-Divers 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 |
|---|
| Kong Sun Holdings Ltd ($295) | -18.7% | -88.3% | 5.1% | 7,067.0% | |
| Goldin Properties Holdings Ltd ($283) | | | 126.0% | 2,065.8% | -79.6% |
| China Primary Energy Holdings Ltd ($8117) | -43.1% | -56.3% | -23.6% | 195.4% | |
| Carnival Group International Holdings Ltd ($996) | | | | 159.1% | |
| 21 Holdings Ltd ($1003) | 20.3% | -57.4% | -12.4% | 106.4% | |
| |
|---|
| Median (42 companies) | 17.2% | 11.4% | 3.3% | 15.7% | 5.0% |
|---|
| China Chengtong Development Group Ltd ($217) | | 1,956.5% | 79.7% | -79.2% | -83.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Multifield International Holdings Ltd ($898) | 66.4% | 87.5% | 84.7% | 89.1% | |
| New Century Group Hong Kong Ltd ($234) | 76.7% | 27.3% | 85.2% | 82.8% | 91.5% |
| Emperor International Holdings Ltd ($163) | 74.5% | 71.3% | 64.9% | 79.2% | 75.3% |
| China Renji Medical Group Ltd/Hong Kong ($648) | 54.9% | 70.0% | 67.3% | 78.6% | |
| Century Legend Holdings Ltd ($79) | 68.5% | 70.1% | 72.3% | 71.0% | |
| |
|---|
| Median (39 companies) | 29.5% | 33.4% | 36.0% | 34.4% | 41.9% |
|---|
| China Chengtong Development Group Ltd ($217) | 14.4% | 2.1% | 0.6% | -0.5% | 15.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Emperor International Holdings Ltd ($163) | 224.8% | 180.7% | 131.8% | 100.6% | 73.9% |
| Multifield International Holdings Ltd ($898) | 49.8% | 80.1% | 68.3% | 97.5% | |
| New Century Group Hong Kong Ltd ($234) | 82.5% | -5.5% | 78.8% | 58.3% | 85.0% |
| Magnificent Estates ($201) | 42.1% | 45.5% | 47.8% | 53.0% | |
| China Merchants Holdings International Co Ltd ($144) | 63.7% | 56.4% | 50.8% | 45.2% | |
| |
|---|
| Median (44 companies) | 6.3% | 2.8% | 2.8% | 7.4% | 5.7% |
|---|
| China Chengtong Development Group Ltd ($217) | 4.6% | 1.1% | -0.4% | -3.3% | 4.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Far East Holdings International Ltd ($36) | 2.7% | 0.1% | 13.2% | 422.1% | |
| China Investments Holdings Ltd ($132) | 20.7% | 4.8% | 81.9% | 382.2% | |
| Heng Fai Enterprises Ltd ($185) | 217.5% | 4.8% | 77.1% | 310.0% | 458.1% |
| New Century Group Hong Kong Ltd ($234) | 1.0% | 97.2% | 1.0% | 142.7% | 32.2% |
| Chinney Investments Ltd ($216) | 37.6% | 17.5% | 103.4% | 111.3% | 230.9% |
| |
|---|
| Median (44 companies) | 4.9% | 2.7% | 3.8% | 7.0% | 21.0% |
|---|
| China Chengtong Development Group Ltd ($217) | 0.5% | 0.0% | 0.5% | 0.1% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wisdom Holdings Group ($1661) | 62.7% | 68.6% | 42.1% | 28.8% | |
| Chinney Alliance Group Ltd ($385) | 3.4% | 6.4% | 8.1% | 13.6% | |
| Hutchison Whampoa Ltd ($13) | 3.3% | 3.7% | 4.2% | 8.1% | |
| Code Agriculture Holdings Ltd ($8153) | -0.1% | 2.4% | -3.3% | 7.9% | -6.2% |
| C C Land Holdings Ltd ($1224) | 4.5% | 7.4% | 5.3% | 7.9% | |
| |
|---|
| Median (44 companies) | 0.3% | -0.2% | 0.2% | 0.8% | 0.3% |
|---|
| China Chengtong Development Group Ltd ($217) | 0.8% | 1.3% | -0.5% | -1.0% | 0.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chinney Investments Ltd ($216) | 111.3x | 10.3x | 63.7x | 48.6x | 93.7x |
| Carnival Group International Holdings Ltd ($996) | | | | 23.7x | |
| Van Shung Chong Holdings Ltd ($1001) | 3.4x | | 0.9x | 12.3x | 7.7x |
| Southeast Asia Properties & Finance Ltd ($252) | 6.8x | 6.7x | 5.7x | 9.2x | 4.3x |
| Code Agriculture Holdings Ltd ($8153) | 24.3x | 11.9x | 42.8x | 8.7x | |
| |
|---|
| Median (27 companies) | 2.7x | 2.4x | 3.1x | 3.0x | 7.2x |
|---|
