Country Garden Holdings Co Ltd revenue surged on 33.9% in 2015 while EBITDA Margin decreased on 5.7 pp from 20.6% to 14.9%
15/03/2016 • About Country Garden Holdings Co Ltd (
$2007) • By InTwits
Country Garden Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Country Garden Holdings Co Ltd is a growth stock: 2015 revenue growth was 33.9%, 5 year revenue CAGR was 34.4% at 2015 ROIC 10.1%
- EBITDA Margin is declining: 14.9% in 2015 vs. 20.6% in 2014 vs. 28.5% in 2011
- Country Garden Holdings Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.8%. At the same time it's a lot of higher than industry average of 0.9%.
- CAPEX is quite volatile: 3,132 in 2015, 3,121 in 2014, 814 in 2013, 387 in 2012, 6,549 in 2011
- The company has business model with average profitability: ROIC is at 10.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Country Garden Holdings Co Ltd ($2007) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 34,748 | 41,891 | 62,725 | 84,549 | 113,223 | 33.9% |
| Gross Profit | 11,996 | 15,340 | 19,011 | 22,055 | 22,863 | 3.7% |
| SG&A | 2,448 | 3,754 | 6,337 | 7,516 | 7,919 | 5.4% |
| EBITDA | 9,903 | 12,115 | 13,287 | 17,388 | 16,833 | -3.2% |
| Net Income | 5,813 | 6,853 | 8,514 | 10,229 | 9,276 | -9.3% |
Balance Sheet
|
|---|
| Cash | 7,744 | 11,809 | 18,910 | 18,761 | 36,241 | 93.2% |
| Short Term Debt | 6,469 | 9,096 | 12,434 | 14,929 | 22,778 | 52.6% |
| Long Term Debt | 22,497 | 27,817 | 43,815 | 46,139 | 66,966 | 45.1% |
Cash flow
|
|---|
| Capex | 2,818 | 3,896 | 5,311 | 5,106 | 2,617 | -48.8% |
Ratios
|
|---|
| Revenue growth | 34.7% | 20.6% | 49.7% | 34.8% | 33.9% | |
| EBITDA growth | 36.6% | 22.3% | 9.7% | 30.9% | -3.2% | |
| Gross Margin | 34.5% | 36.6% | 30.3% | 26.1% | 20.2% | -5.9% |
| EBITDA Margin | 28.5% | 28.9% | 21.2% | 20.6% | 14.9% | -5.7% |
| Net Income Margin | 16.7% | 16.4% | 13.6% | 12.1% | 8.2% | -3.9% |
| SG&A, % of revenue | 7.0% | 9.0% | 10.1% | 8.9% | 7.0% | -1.9% |
| CAPEX, % of revenue | 8.1% | 9.3% | 8.5% | 6.0% | 2.3% | -3.7% |
| ROIC | 16.9% | 15.9% | 13.2% | 13.7% | 10.1% | -3.6% |
| ROE | 21.6% | 20.6% | 20.9% | 20.3% | 15.2% | -5.1% |
| Net Debt/EBITDA | 2.1x | 2.1x | 2.8x | 2.4x | 3.2x | 0.7x |
Revenue and profitability
The company's Revenue jumped on 33.9% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 6.7 pp from -2.4% to 4.4% in 2015.
Gross Margin decreased on 5.9 pp from 26.1% to 20.2% in 2015. SG&A as a % of Revenue decreased slightly on 1.9 pp from 8.9% to 7.0% in 2015.
Net Income marign decreased on 3.9 pp from 12.1% to 8.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 2.3%. Country Garden Holdings Co Ltd's CAPEX/Revenue decreased on 7.0 pp from 9.3% in 2012 to 2.3% in 2015. For the last three years the average CAPEX/Revenue was 5.6%.
Return on investment
The company operates at good ROE (15.21%) while ROIC is low (10.10%). ROIC decreased on 3.6 pp from 13.7% to 10.1% in 2015. ROE decreased on 5.1 pp from 20.3% to 15.2% in 2015.
Leverage (Debt)
Debt level is 3.2x Net Debt / EBITDA and 5.3x Debt / EBITDA. Net Debt / EBITDA jumped on 0.7x from 2.4x to 3.2x in 2015. Debt surged on 47.0% in 2015 while cash jumped on 93.2% in 2015.
Appendix 1: Peers in Real Estate
Below you can find Country Garden 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) | 12.6% | 15.4% | 13.0% | 5.0% | 3.9% |
|---|
| Country Garden Holdings Co Ltd ($2007) | | 20.6% | 49.7% | 34.8% | 33.9% |
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% |
|---|
| Country Garden Holdings Co Ltd ($2007) | 34.5% | 36.6% | 30.3% | 26.1% | 20.2% |
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% | 397.4% |
| 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% | 34.5% |
|---|
| Country Garden Holdings Co Ltd ($2007) | 28.5% | 28.9% | 21.2% | 20.6% | 14.9% |
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% | 7.2% |
|---|
| Country Garden Holdings Co Ltd ($2007) | 8.1% | 9.3% | 8.5% | 6.0% | 2.3% |
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% | 3.0% |
|---|
| Country Garden Holdings Co Ltd ($2007) | 16.9% | 15.9% | 13.2% | 13.7% | 10.1% |
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 | 2.7x | 3.0x | 2.0x |
|---|
| Country Garden Holdings Co Ltd ($2007) | 2.1x | 2.1x | 2.8x | 2.4x | 3.2x |
