Logan Property Holdings Co Ltd Debt jumped on 21.4% in 2015 and Revenue jumped on 16.6%
10/03/2016 • About Logan Property Holdings Co Ltd (
$3380) • By InTwits
Logan Property Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Logan Property Holdings Co Ltd is a fast growth stock: 2015 revenue growth was 16.6%, 5 year revenue CAGR was 38.6% at 2015 ROIC 12.1%
- Logan Property Holdings Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's a lot of higher than industry average of 4.6%.
- CAPEX is quite volatile: 371 in 2015, 98.2 in 2014, 90.2 in 2013, 32.1 in 2012, 43.1 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.
Logan Property Holdings Co Ltd ($3380) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,447 | 6,588 | 11,119 | 12,498 | 14,574 | 16.6% |
| Gross Profit | 1,385 | 2,560 | 4,116 | 3,804 | 4,430 | 16.4% |
| SG&A | 347 | 471 | 713 | 940 | 1,161 | 23.5% |
| EBITDA | 1,925 | 2,953 | 3,416 | 3,788 | 4,281 | 13.0% |
| Net Income | 1,248 | 1,794 | 2,024 | 2,348 | 2,649 | 12.8% |
Balance Sheet
|
|---|
| Cash | 960 | 2,537 | 3,827 | 5,576 | 8,635 | 54.9% |
| Short Term Debt | 1,846 | 2,435 | 2,754 | 3,824 | 4,045 | 5.8% |
| Long Term Debt | 4,178 | 4,183 | 6,228 | 12,441 | 15,706 | 26.2% |
Cash flow
|
|---|
| Capex | 43 | 32 | 90 | 98 | 371 | 278.1% |
Ratios
|
|---|
| Revenue growth | 20.9% | 91.1% | 68.8% | 12.4% | 16.6% | |
| EBITDA growth | 47.1% | 53.4% | 15.7% | 10.9% | 13.0% | |
| Gross Margin | 40.2% | 38.9% | 37.0% | 30.4% | 30.4% | -0.0% |
| EBITDA Margin | 55.8% | 44.8% | 30.7% | 30.3% | 29.4% | -0.9% |
| Net Income Margin | 36.2% | 27.2% | 18.2% | 18.8% | 18.2% | -0.6% |
| SG&A, % of revenue | 10.1% | 7.1% | 6.4% | 7.5% | 8.0% | 0.4% |
| CAPEX, % of revenue | 1.3% | 0.5% | 0.8% | 0.8% | 2.5% | 1.8% |
| ROIC | 23.8% | 28.3% | 23.0% | 15.4% | 12.1% | -3.3% |
| ROE | 62.8% | 56.2% | 35.4% | 25.3% | 21.4% | -3.9% |
| Net Debt/EBITDA | 2.6x | 1.4x | 1.5x | 2.8x | 2.6x | -0.2x |
Revenue and profitability
The company's Revenue jumped on 16.6% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 15.6 pp from 3.5% to 19.1% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased slightly on 0.61 pp from 18.8% to 18.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Logan Property Holdings Co Ltd had CAPEX/Revenue of 2.5%. Logan Property Holdings Co Ltd showed CAPEX/Revenue growth of 2.1 pp from 0.49% in 2012 to 2.5% in 2015. It's average level of CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at high and attractive ROE (21.40%) while ROIC is a bit lower (12.14%). ROIC decreased on 3.3 pp from 15.4% to 12.1% in 2015. ROE decreased on 3.9 pp from 25.3% to 21.4% in 2015.
Leverage (Debt)
Debt level is 2.6x Net Debt / EBITDA and 4.6x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 2.8x to 2.6x in 2015. Debt surged on 21.4% in 2015 while cash surged on 54.9% in 2015.
Appendix 1: Peers in Real Estate
Below you can find Logan Property Holdings 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% | 15.4% | 13.0% | 5.0% | 4.0% |
|---|
| Logan Property Holdings Co Ltd ($3380) | | 91.1% | 68.8% | 12.4% | 16.6% |
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% |
|---|
| Logan Property Holdings Co Ltd ($3380) | 40.2% | 38.9% | 37.0% | 30.4% | 30.4% |
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 (173 companies) | 35.1% | 28.9% | 28.0% | 26.4% | 34.5% |
|---|
| Logan Property Holdings Co Ltd ($3380) | 55.8% | 44.8% | 30.7% | 30.3% | 29.4% |
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% | 0.9% |
| |
|---|
| Median (174 companies) | 5.9% | 5.5% | 6.2% | 4.7% | 7.7% |
|---|
| Logan Property Holdings Co Ltd ($3380) | 1.3% | 0.5% | 0.8% | 0.8% | 2.5% |
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% |
| 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% | 2.9% |
|---|
| Logan Property Holdings Co Ltd ($3380) | 23.8% | 28.3% | 23.0% | 15.4% | 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 | 2.1x |
|---|
| Logan Property Holdings Co Ltd ($3380) | 2.6x | 1.4x | 1.5x | 2.8x | 2.6x |
