Nanyang Holdings Ltd Net Income dropped on 56.1% in 2015 and EBITDA Margin showed almost no change
17/03/2016 • About Nanyang Holdings Ltd (
$212) • By InTwits
Nanyang Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Nanyang Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has potentially unprofitable business model: ROIC is at 2.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Nanyang Holdings Ltd ($212) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 118.9 | 140.7 | 155.7 | 137.1 | 125.1 | -8.8% |
| Gross Profit | 106.3 | 127.4 | 142.1 | 122.8 | 109.8 | -10.6% |
| SG&A | | | | 38.9 | 34.2 | -12.2% |
| EBITDA | 65.9 | 94.4 | 110.0 | 82.3 | 75.0 | -8.8% |
| Net Income | 211.5 | 559.6 | 162.2 | 357.8 | 157.1 | -56.1% |
Balance Sheet
|
|---|
| Cash | 78.2 | 66.7 | 55.8 | 47.5 | 44.7 | -5.9% |
| Short Term Debt | 118.0 | 80.0 | 53.0 | 98.5 | 57.0 | -42.1% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.0 | 0.0 | 0.2 | 1.4 | 0.3 | -74.3% |
Ratios
|
|---|
| Revenue growth | -11.6% | 18.3% | 10.6% | -11.9% | -8.8% | |
| EBITDA growth | -21.7% | 43.2% | 16.6% | -25.2% | -8.8% | |
| Gross Margin | 89.4% | 90.5% | 91.3% | 89.6% | 87.7% | -1.8% |
| EBITDA Margin | 55.4% | 67.1% | 70.7% | 60.0% | 60.0% | -0.0% |
| Net Income Margin | 177.9% | 397.7% | 104.2% | 260.9% | 125.6% | -135.3% |
| SG&A, % of revenue | | | | 28.4% | 27.3% | -1.1% |
| CAPEX, % of revenue | 0.0% | 0.0% | 0.1% | 1.0% | 0.3% | -0.7% |
| ROIC | 2.3% | 2.9% | 3.0% | 2.2% | 2.0% | -0.2% |
| ROE | 7.9% | 17.8% | 4.6% | 9.8% | 4.3% | -5.4% |
| Net Debt/EBITDA | 0.6x | 0.1x | -0.0x | 0.6x | 0.2x | -0.5x |
Revenue and profitability
The company's Revenue decreased on 8.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.9 pp from -5.5% to -3.6% in 2015.
Gross Margin decreased slightly on 1.8 pp from 89.6% to 87.7% in 2015. SG&A as a % of Revenue decreased slightly on 1.1 pp from 28.4% to 27.3% in 2015.
Net Income marign dropped on 135 pp from 261% to 126% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.28%. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 0.47%.
Return on investment
The company operates at low ROIC (2.01%) and ROE (4.33%). ROIC showed almost no change in 2015. ROE decreased on 5.4 pp from 9.8% to 4.3% in 2015.
Leverage (Debt)
Debt level is 0.2x Net Debt / EBITDA and 0.8x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from 0.6x to 0.2x in 2015. Debt dropped on 42.1% in 2015 while cash decreased on 5.9% in 2015.
Appendix 1: Peers in Real Estate
Below you can find Nanyang Holdings 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) | 12.2% | 15.4% | 13.1% | 5.2% | 4.5% |
|---|
| Nanyang Holdings Ltd ($212) | | 18.3% | 10.6% | -11.9% | -8.8% |
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) | 43.6% | 41.9% | 40.5% | 39.1% | 46.5% |
|---|
| Nanyang Holdings Ltd ($212) | 89.4% | 90.5% | 91.3% | 89.6% | 87.7% |
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% | 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% | 29.7% |
|---|
| Nanyang Holdings Ltd ($212) | 55.4% | 67.1% | 70.7% | 60.0% | 60.0% |
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% | 5.5% | 6.2% | 4.7% | 7.2% |
|---|
| Nanyang Holdings Ltd ($212) | 0.0% | 0.0% | 0.1% | 1.0% | 0.3% |
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% | 4.1% | 3.9% | 3.9% | 3.0% |
|---|
| Nanyang Holdings Ltd ($212) | 2.3% | 2.9% | 3.0% | 2.2% | 2.0% |
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 | 2.7x |
|---|
| Nanyang Holdings Ltd ($212) | 0.6x | 0.1x | -0.0x | 0.6x | 0.2x |
