China SCE Property Holdings Ltd revenue jumped on 55.2% in 2015 while EBITDA Margin dropped on 13.1 pp from 39.3% to 26.2%
17/03/2016 • About China SCE Property Holdings Ltd (
$1966) • By InTwits
China SCE Property Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China SCE Property Holdings Ltd is a growth stock: 2015 revenue growth was 55.2%, 5 year revenue CAGR was 20.9% at 2015 ROIC 10.9%
- China SCE Property Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's a lot of higher than industry average of 7.3%.
- CAPEX is quite volatile: 130 in 2015, 17.6 in 2014, 596 in 2013, 313 in 2012, 130 in 2011
- The company has business model with average profitability: ROIC is at 10.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China SCE Property Holdings Ltd ($1966) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,770 | 3,637 | 6,588 | 6,887 | 10,690 | 55.2% |
| Gross Profit | 1,543 | 1,285 | 1,845 | 2,402 | 3,011 | 25.3% |
| SG&A | 335 | 361 | 486 | 591 | 699 | 18.2% |
| EBITDA | 1,651 | 1,429 | 2,132 | 2,706 | 2,800 | 3.5% |
| Net Income | 716 | 672 | 888 | 901 | 1,167 | 29.6% |
Balance Sheet
|
|---|
| Cash | 1,887 | 2,277 | 3,300 | 3,534 | 4,835 | 36.8% |
| Short Term Debt | 1,407 | 2,112 | 2,409 | 3,700 | 3,841 | 3.8% |
| Long Term Debt | 3,674 | 4,844 | 7,290 | 8,527 | 10,612 | 24.4% |
Cash flow
|
|---|
| Capex | 130 | 313 | 596 | 18 | 130 | 640.0% |
Ratios
|
|---|
| Revenue growth | -8.7% | -3.5% | 81.2% | 4.5% | 55.2% | |
| EBITDA growth | 13.2% | -13.4% | 49.3% | 26.9% | 3.5% | |
| Gross Margin | 40.9% | 35.3% | 28.0% | 34.9% | 28.2% | -6.7% |
| EBITDA Margin | 43.8% | 39.3% | 32.4% | 39.3% | 26.2% | -13.1% |
| Net Income Margin | 19.0% | 18.5% | 13.5% | 13.1% | 10.9% | -2.2% |
| SG&A, % of revenue | 8.9% | 9.9% | 7.4% | 8.6% | 6.5% | -2.0% |
| CAPEX, % of revenue | 3.4% | 8.6% | 9.0% | 0.3% | 1.2% | 1.0% |
| ROIC | 17.2% | 10.8% | 12.6% | 12.5% | 10.9% | -1.6% |
| ROE | 17.9% | 14.7% | 16.8% | 14.7% | 13.6% | -1.0% |
| Net Debt/EBITDA | 1.9x | 3.3x | 3.0x | 3.2x | 3.4x | 0.2x |
Revenue and profitability
China SCE Property Holdings Ltd's Revenue jumped on 55.2% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 15.0 pp from 29.0% to 14.0% in 2015.
Gross Margin decreased on 6.7 pp from 34.9% to 28.2% in 2015. SG&A as a % of Revenue decreased on 2.0 pp from 8.6% to 6.5% in 2015.
Net Income marign decreased on 2.2 pp from 13.1% to 10.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.2% in 2015. The company showed decline in CAPEX/Revenue of 7.4 pp from 8.6% in 2012 to 1.2% in 2015. It's average CAPEX/Revenue for the last three years was 3.5%.
Return on investment
The company operates at good ROE (13.64%) while ROIC is low (10.92%). ROIC decreased slightly on 1.6 pp from 12.5% to 10.9% in 2015. ROE decreased slightly on 1.0 pp from 14.7% to 13.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.4x and Debt / EBITDA is 5.2x. Net Debt / EBITDA surged on 0.2x from 3.2x to 3.4x in 2015. Debt jumped on 18.2% in 2015 while cash surged on 36.8% in 2015.
Appendix 1: Peers in Real Estate
Below we provide China SCE Property Holdings 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) | 12.2% | 15.8% | 13.0% | 5.2% | 4.2% |
|---|
| China SCE Property Holdings Ltd ($1966) | | -3.5% | 81.2% | 4.5% | 55.2% |
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% | 99.9% |
| 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% | 48.3% |
|---|
| China SCE Property Holdings Ltd ($1966) | 40.9% | 35.3% | 28.0% | 34.9% | 28.2% |
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) | 35.1% | 28.9% | 28.0% | 26.4% | 31.1% |
|---|
| China SCE Property Holdings Ltd ($1966) | 43.8% | 39.3% | 32.4% | 39.3% | 26.2% |
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% | 190.4% |
| 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% | 5.4% | 6.1% | 4.7% | 7.2% |
|---|
| China SCE Property Holdings Ltd ($1966) | 3.4% | 8.6% | 9.0% | 0.3% | 1.2% |
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% | 3.0% |
|---|
| China SCE Property Holdings Ltd ($1966) | 17.2% | 10.8% | 12.6% | 12.5% | 10.9% |
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 | 2.4x |
|---|
| China SCE Property Holdings Ltd ($1966) | 1.9x | 3.3x | 3.0x | 3.2x | 3.4x |
