Eye on Logan Property Holdings Co Ltd with its long history of healthy growth
17/03/2016 • About Logan Property Holdings Co Ltd (
$3380) • By InTwits
Logan Property Holdings Co Ltd is an attractive growth stock in Real Estate industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Logan Property Holdings Co Ltd showed fast growth in the last financial year. The company's revenue surged on 16.6% in FY2015. Together with revenue growth Logan Property Holdings Co Ltd also managed to keep EBITDA growth. EBITDA grew 13.0% for the same period.
If we look for the longer period the company showed fast revenue growth of 30.3% from 2012 to 2015 annualy. EBITDA surged on 13.2% from 2012 to 2015 annualy.
Logan Property Holdings Co Ltd ($3380) financials for the last 5 years
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 3,447 | 6,588 | 11,119 | 12,498 | 14,574 |
|---|
| Revenue growth, % | | 91.1% | 68.8% | 12.4% | 16.6% |
|---|
| Gross margin, % | 40.2% | 38.9% | 37.0% | 30.4% | 30.4% |
|---|
| SG&A, % | 10.1% | 7.14% | 6.41% | 7.52% | 7.97% |
|---|
| EBITDA | 1,925 | 2,953 | 3,416 | 3,788 | 4,281 |
|---|
| EBITDA growth, % | | 53.4% | 15.7% | 10.9% | 13.0% |
|---|
| EBITDA margin, % | 55.8% | 44.8% | 30.7% | 30.3% | 29.4% |
|---|
| Net Income | 1,248 | 1,794 | 2,024 | 2,348 | 2,649 |
|---|
| Net Income margin, % | 36.2% | 27.2% | 18.2% | 18.8% | 18.2% |
|---|
| |
| CAPEX | 43 | 32 | 90 | 98 | 371 |
|---|
| CAPEX/Revenue, % | 1.25% | 0.487% | 0.811% | 0.785% | 2.55% |
|---|
| Debt | 6,024 | 6,618 | 8,983 | 16,265 | 19,751 |
|---|
| Cash | 960 | 2,537 | 3,827 | 5,576 | 8,635 |
|---|
| Net Debt/EBITDA | 2.6x | 1.4x | 1.5x | 2.8x | 2.6x |
|---|
| |
| ROIC, % | 23.8% | 28.3% | 23.0% | 15.4% | 12.1% |
|---|
| ROE, % | 62.8% | 56.2% | 35.4% | 25.3% | 21.4% |
|---|
Profitability and return on investment
Despite revenue growth EBITDA margin declined slightly from 30.3% in FY2014 to 29.4% in FY2015. In the last 3 years Logan Property Holdings Co Ltd showed big decline in EBITDA margin of 15.4 pp from 44.8% in 2012 to 29.4% in 2015.
We call Logan Property Holdings Co Ltd an attractive growth stock as together with the growth it delivers high ROIC at 12.1%. Three years ago it was considerably higher at 28.3%. It's average level of ROIC for the last three years was 16.8%.
The company showed small Net Income margin decline of 0.600 pp from 18.8% to 18.2% in 2015. In the last 3 years Net Income margin dropped on 9 pp from 27.2% in 2012 to 18.2% in 2015.
Logan Property Holdings Co Ltd operates at ROE of 21.4%. Average ROE for the last three years was 27.4%.
Capital expenditures (CAPEX)
Logan Property Holdings Co Ltd's CAPEX/Revenue was 2.55% in FY2015. The company showed fast CAPEX/Revenue growth of 2.06 pp from 0.487% in 2012 to 2.55% in 2015. For the last three years the average CAPEX/Revenue was 1.38%.
Leverage (Debt)
Logan Property Holdings Co Ltd has medium debt level at 2.6x Net Debt/EBITDA to maintain high growth. In the last 3 years the company's leverage surged on 1.21x from 1.38x in 2012 to 2.60x in 2015.
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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 |
