Redco Properties Group Ltd Net Income jumped on 15.5% in 2015 and EBITDA Margin increased on 3.0 pp from 20.5% to 23.5%
17/03/2016 • About Redco Properties Group Ltd (
$1622) • By InTwits
Redco Properties Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Redco Properties Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has highly profitable business model: ROIC is at 13.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Redco Properties Group Ltd ($1622) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,356 | 1,551 | 2,985 | 3,503 | 3,378 | -3.6% |
| Gross Profit | 269 | 458 | 966 | 946 | 1,088 | 15.0% |
| SG&A | 94 | 118 | 131 | 202 | 271 | 34.3% |
| EBITDA | 172 | 327 | 830 | 717 | 795 | 10.8% |
| Net Income | 85 | 66 | 400 | 347 | 401 | 15.5% |
Balance Sheet
|
|---|
| Cash | 138 | 501 | 696 | 596 | 1,020 | 71.2% |
| Short Term Debt | 322 | 479 | 474 | 609 | 471 | -22.8% |
| Long Term Debt | 882 | 846 | 980 | 2,152 | 2,750 | 27.8% |
Cash flow
|
|---|
| Capex | 8 | 5 | 6 | 12 | 26 | 114.3% |
Ratios
|
|---|
| Revenue growth | -11.3% | 14.4% | 92.4% | 17.4% | -3.6% | |
| EBITDA growth | -35.7% | 90.2% | 153.9% | -13.6% | 10.8% | |
| Gross Margin | 19.8% | 29.5% | 32.4% | 27.0% | 32.2% | 5.2% |
| EBITDA Margin | 12.7% | 21.1% | 27.8% | 20.5% | 23.5% | 3.0% |
| Net Income Margin | 6.3% | 4.2% | 13.4% | 9.9% | 11.9% | 2.0% |
| SG&A, % of revenue | 7.0% | 7.6% | 4.4% | 5.8% | 8.0% | 2.3% |
| CAPEX, % of revenue | 0.6% | 0.4% | 0.2% | 0.3% | 0.8% | 0.4% |
| ROIC | 10.0% | 14.9% | 31.7% | 17.6% | 13.2% | -4.3% |
| ROE | 20.0% | 12.8% | 55.8% | 26.9% | 19.0% | -7.9% |
| Net Debt/EBITDA | 6.2x | 2.5x | 0.9x | 3.0x | 2.8x | -0.3x |
Revenue and profitability
The company's Revenue decreased on 3.6% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.0 pp from 20.5% to 23.5% in 2015.
Gross Margin increased on 5.2 pp from 27.0% to 32.2% in 2015. SG&A as a % of Revenue increased on 2.3 pp from 5.8% to 8.0% in 2015.
Net Income marign increased slightly on 2.0 pp from 9.9% to 11.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Redco Properties Group Ltd had CAPEX/Revenue of 0.77%. Redco Properties Group Ltd showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 0.44%.
Return on investment
The company operates at good ROIC (13.22%) and ROE (19.02%). ROIC decreased on 4.3 pp from 17.6% to 13.2% in 2015. ROE decreased on 7.9 pp from 26.9% to 19.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.8x and Debt / EBITDA is 4.1x. Net Debt / EBITDA dropped on 0.3x from 3.0x to 2.8x in 2015. Debt surged on 16.6% in 2015 while cash jumped on 71.2% in 2015.
Appendix 1: Peers in Real Estate
Below you can find Redco Properties Group 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% | 15.8% | 13.0% | 5.0% | 4.5% |
|---|
| Redco Properties Group Ltd ($1622) | | 14.4% | 92.4% | 17.4% | -3.6% |
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% | 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% |
|---|
| Redco Properties Group Ltd ($1622) | 19.8% | 29.5% | 32.4% | 27.0% | 32.2% |
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% | 31.1% |
|---|
| Redco Properties Group Ltd ($1622) | 12.7% | 21.1% | 27.8% | 20.5% | 23.5% |
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% |
|---|
| Redco Properties Group Ltd ($1622) | 0.6% | 0.4% | 0.2% | 0.3% | 0.8% |
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% |
|---|
| Redco Properties Group Ltd ($1622) | 10.0% | 14.9% | 31.7% | 17.6% | 13.2% |
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 | 2.8x | 2.9x | 2.4x |
|---|
| Redco Properties Group Ltd ($1622) | 6.2x | 2.5x | 0.9x | 3.0x | 2.8x |
