CIFI Holdings Group Co Ltd Debt jumped on 72.8% in 2015 and Net Debt / EBITDA surged on 0.5x from 1.8x to 2.2x
09/03/2016 • About CIFI Holdings Group Co Ltd (
$884) • By InTwits
CIFI Holdings Group Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CIFI Holdings Group Co Ltd is a fast growth stock: 2015 revenue growth was 12.7%, 5 year revenue CAGR was 34.4% at 2015 ROIC 12.1%
- EBITDA Margin is declining: 22.2% in 2015 vs. 23.5% in 2014 vs. 55.8% in 2011
- EBITDA Margin is quite volatile: 22.2% in 2015, 23.5% in 2014, 26.5% in 2013, 35.4% in 2012, 55.8% in 2011
- CIFI Holdings Group Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's in pair with industry average of 21.1%.
- CAPEX is quite volatile: 510 in 2015, 301 in 2014, 63.1 in 2013, 44.6 in 2012, 139 in 2011
- The company has highly profitable business model: ROIC is at 12.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CIFI Holdings Group Co Ltd ($884) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,008 | 8,144 | 11,909 | 16,179 | 18,231 | 12.7% |
| Gross Profit | 1,369 | 1,926 | 3,069 | 4,187 | 4,144 | -1.0% |
| SG&A | 358 | 531 | 822 | 849 | 978 | 15.3% |
| EBITDA | 2,236 | 2,884 | 3,150 | 3,808 | 4,054 | 6.5% |
| Net Income | 1,337 | 1,937 | 1,894 | 1,861 | 2,133 | 14.6% |
Balance Sheet
|
|---|
| Cash | 2,574 | 4,591 | 7,061 | 7,094 | 14,874 | 109.7% |
| Short Term Debt | 1,923 | 3,372 | 2,935 | 3,035 | 2,794 | -8.0% |
| Long Term Debt | 5,829 | 5,493 | 10,357 | 10,825 | 21,161 | 95.5% |
Cash flow
|
|---|
| Capex | 139 | 45 | 63 | 301 | 510 | 69.1% |
Ratios
|
|---|
| Revenue growth | -3.7% | 103.2% | 46.2% | 35.9% | 12.7% | |
| EBITDA growth | 110.8% | 29.0% | 9.2% | 20.9% | 6.5% | |
| Gross Margin | 34.2% | 23.7% | 25.8% | 25.9% | 22.7% | -3.1% |
| EBITDA Margin | 55.8% | 35.4% | 26.5% | 23.5% | 22.2% | -1.3% |
| Net Income Margin | 33.4% | 23.8% | 15.9% | 11.5% | 11.7% | 0.2% |
| SG&A, % of revenue | 8.9% | 6.5% | 6.9% | 5.2% | 5.4% | 0.1% |
| CAPEX, % of revenue | 3.5% | 0.5% | 0.5% | 1.9% | 2.8% | 0.9% |
| ROIC | 24.3% | 20.4% | 15.8% | 15.3% | 12.1% | -3.2% |
| ROE | 52.4% | 39.5% | 25.0% | 19.8% | 18.2% | -1.6% |
| Net Debt/EBITDA | 2.3x | 1.5x | 2.0x | 1.8x | 2.2x | 0.5x |
Revenue and profitability
CIFI Holdings Group Co Ltd's Revenue jumped on 12.7% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.3 pp from 23.5% to 22.2% in 2015.
Gross Margin decreased on 3.1 pp from 25.9% to 22.7% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
CIFI Holdings Group Co Ltd's CAPEX/Revenue was 2.8% in 2015. CAPEX/Revenue increased on 2.2 pp from 0.55% in 2012 to 2.8% in 2015. For the last three years the average CAPEX/Revenue was 1.7%.
Return on investment
The company operates at good ROIC (12.14%) and ROE (18.20%). ROIC decreased on 3.2 pp from 15.3% to 12.1% in 2015. ROE decreased slightly on 1.6 pp from 19.8% to 18.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.2x and Debt / EBITDA is 5.9x. Net Debt / EBITDA jumped on 0.5x from 1.8x to 2.2x in 2015. Debt surged on 72.8% in 2015 while cash jumped on 110% in 2015.
Management team
CIFI Holdings Group Co Ltd's CEO is Lin Feng. Lin Feng has 7 years tenure at the company. CIFI Holdings Group Co Ltd's CFO is Yau Sze Ka "Albert". Yau Sze Ka "Albert" has 7 years tenure at the company.
Appendix 1: Peers in Real Estate
Below we provide CIFI Holdings Group Co 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) | 15.2% | 15.4% | 13.0% | 5.0% | 3.8% |
|---|
| CIFI Holdings Group Co Ltd ($884) | | 103.2% | 46.2% | 35.9% | 12.7% |
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% | 48.6% |
|---|
| CIFI Holdings Group Co Ltd ($884) | 34.2% | 23.7% | 25.8% | 25.9% | 22.7% |
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% | 28.2% | 27.3% | 34.3% |
|---|
| CIFI Holdings Group Co Ltd ($884) | 55.8% | 35.4% | 26.5% | 23.5% | 22.2% |
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) | 5.9% | 5.5% | 6.2% | 4.7% | 7.7% |
|---|
| CIFI Holdings Group Co Ltd ($884) | 3.5% | 0.5% | 0.5% | 1.9% | 2.8% |
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% | 2.6% |
|---|
| CIFI Holdings Group Co Ltd ($884) | 24.3% | 20.4% | 15.8% | 15.3% | 12.1% |
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 | 2.8x | 3.0x | 1.7x |
|---|
| CIFI Holdings Group Co Ltd ($884) | 2.3x | 1.5x | 2.0x | 1.8x | 2.2x |
