China Aoyuan Property Group Ltd reports 172% CAPEX growth and 37.2% Revenue growth
07/03/2016 • About China Aoyuan Property Group Ltd (
$3883) • By InTwits
China Aoyuan Property Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Aoyuan Property Group Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.2%. At the same time it's in pair with industry average of 4.7%.
- CAPEX is quite volatile: 885 in 2015, 325 in 2014, 476 in 2013, 419 in 2012, 252 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Aoyuan Property Group Ltd ($3883) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,022 | 3,943 | 5,729 | 6,976 | 9,572 | 37.2% |
| Gross Profit | 818 | 1,187 | 1,759 | 2,067 | 2,646 | 28.0% |
| SG&A | 413 | 607 | 670 | 770 | 890 | 15.6% |
| EBITDA | 465 | 636 | 1,162 | 1,361 | 1,827 | 34.2% |
| Net Income | 433 | 930 | 736 | 809 | 812 | 0.3% |
Balance Sheet
|
|---|
| Cash | 877 | 2,381 | 2,812 | 1,989 | 7,769 | 290.6% |
| Short Term Debt | 2,616 | 1,675 | 2,411 | 4,464 | 2,570 | -42.4% |
| Long Term Debt | 2,016 | 3,248 | 7,113 | 7,033 | 13,727 | 95.2% |
Cash flow
|
|---|
| Capex | 252 | 419 | 476 | 325 | 885 | 172.4% |
Ratios
|
|---|
| Revenue growth | 23.7% | 30.5% | 45.3% | 21.8% | 37.2% | |
| EBITDA growth | -4.4% | 36.8% | 82.7% | 17.2% | 34.2% | |
| Gross Margin | 27.1% | 30.1% | 30.7% | 29.6% | 27.6% | -2.0% |
| EBITDA Margin | 15.4% | 16.1% | 20.3% | 19.5% | 19.1% | -0.4% |
| Net Income Margin | 14.3% | 23.6% | 12.8% | 11.6% | 8.5% | -3.1% |
| SG&A, % of revenue | 13.7% | 15.4% | 11.7% | 11.0% | 9.3% | -1.7% |
| CAPEX, % of revenue | 8.3% | 10.6% | 8.3% | 4.7% | 9.2% | 4.6% |
| ROIC | 3.8% | 4.7% | 7.0% | 6.5% | 6.8% | 0.3% |
| ROE | 7.2% | 14.2% | 10.4% | 10.8% | 10.2% | -0.7% |
| Net Debt/EBITDA | 8.1x | 4.0x | 5.8x | 7.0x | 4.7x | -2.3x |
Revenue and profitability
The company's Revenue surged on 37.2% in 2015. EBITDA Margin showed almost no change in 2015.
Gross Margin decreased slightly on 2.0 pp from 29.6% to 27.6% in 2015. SG&A as a % of Revenue decreased slightly on 1.7 pp from 11.0% to 9.3% in 2015.
Net Income marign decreased on 3.1 pp from 11.6% to 8.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 9.2%. China Aoyuan Property Group Ltd's CAPEX/Revenue decreased slightly on 1.4 pp from 10.6% in 2012 to 9.2% in 2015. Average CAPEX/Revenue for the last three years was 7.4%.
Return on investment
The company operates at low ROIC (6.78%) and ROE (10.18%). ROIC showed almost no change in 2015. ROE decreased slightly on 0.66 pp from 10.8% to 10.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.7x and Debt / EBITDA is 8.9x. Net Debt / EBITDA dropped on 2.3x from 7.0x to 4.7x in 2015. Debt surged on 41.8% in 2015 while cash surged on 291% in 2015.
Appendix 1: Peers in Real Estate
Below we provide China Aoyuan Property Group 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 (173 companies) | 12.6% | 15.4% | 13.0% | 5.0% | 3.6% |
|---|
| China Aoyuan Property Group Ltd ($3883) | | 30.5% | 45.3% | 21.8% | 37.2% |
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% | 48.5% |
|---|
| China Aoyuan Property Group Ltd ($3883) | 27.1% | 30.1% | 30.7% | 29.6% | 27.6% |
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) | 35.3% | 29.1% | 28.2% | 27.3% | 34.2% |
|---|
| China Aoyuan Property Group Ltd ($3883) | 15.4% | 16.1% | 20.3% | 19.5% | 19.1% |
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% | 5.4% | 6.1% | 4.6% | 6.8% |
|---|
| China Aoyuan Property Group Ltd ($3883) | 8.3% | 10.6% | 8.3% | 4.7% | 9.2% |
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% |
|---|
| China Aoyuan Property Group Ltd ($3883) | 3.8% | 4.7% | 7.0% | 6.5% | 6.8% |
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 | 2.2x | 2.7x | 2.9x | 1.5x |
|---|
| China Aoyuan Property Group Ltd ($3883) | 8.1x | 4.0x | 5.8x | 7.0x | 4.7x |
