Beijing Capital Land Ltd Net Debt / EBITDA surged on 37.3x from 11.7x to 49.1x in 2015 and Revenue surged on 58.0%
18/03/2016 • About Beijing Capital Land Ltd (
$2868) • By InTwits
Beijing Capital Land Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Beijing Capital Land Ltd doesn't have a profitable business model yet: 2015 ROIC is 0.8%
- EBITDA Margin is quite volatile: 4.0% in 2015, 16.9% in 2014, 20.0% in 2013, 17.2% in 2012, 23.8% in 2011
- Beijing Capital Land Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.2%. At the same time it's a lot of higher than industry average of 7.0%.
- CAPEX is quite volatile: 557 in 2015, 39.3 in 2014, 45.9 in 2013, 18.3 in 2012, 287 in 2011
- The company has potentially unprofitable business model: ROIC is at 0.8%
- It operates with high leverage: Net Debt/EBITDA is 49.1x while industry average is 22.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Beijing Capital Land Ltd ($2868) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,707 | 8,128 | 10,252 | 9,413 | 14,873 | 58.0% |
| Gross Profit | 2,092 | 1,940 | 2,696 | 2,356 | 1,793 | -23.9% |
| SG&A | | 576 | 690 | 819 | 1,109 | 35.5% |
| EBITDA | 1,599 | 1,397 | 2,050 | 1,590 | 588 | -63.0% |
| Net Income | 955 | 1,111 | 1,522 | 1,690 | 2,079 | 23.1% |
Balance Sheet
|
|---|
| Cash | 8,352 | 8,617 | 11,345 | 13,897 | 19,937 | 43.5% |
| Short Term Debt | 4,842 | 3,498 | 8,161 | 11,624 | 9,807 | -15.6% |
| Long Term Debt | 8,134 | 15,077 | 12,717 | 20,948 | 38,986 | 86.1% |
Cash flow
|
|---|
| Capex | 416 | 799 | 547 | 749 | 1,027 | 37.2% |
Ratios
|
|---|
| Revenue growth | 18.5% | 21.2% | 26.1% | -8.2% | 58.0% | |
| EBITDA growth | 8.8% | -12.6% | 46.8% | -22.5% | -63.0% | |
| Gross Margin | 31.2% | 23.9% | 26.3% | 25.0% | 12.1% | -13.0% |
| EBITDA Margin | 23.8% | 17.2% | 20.0% | 16.9% | 4.0% | -12.9% |
| Net Income Margin | 14.2% | 13.7% | 14.8% | 18.0% | 14.0% | -4.0% |
| SG&A, % of revenue | | 7.1% | 6.7% | 8.7% | 7.5% | -1.2% |
| CAPEX, % of revenue | 6.2% | 9.8% | 5.3% | 8.0% | 6.9% | -1.0% |
| ROIC | 7.5% | 5.2% | 5.9% | 3.3% | 0.8% | -2.5% |
| ROE | 17.5% | 16.7% | 18.6% | 19.0% | 17.0% | -2.0% |
| Net Debt/EBITDA | 2.9x | 7.1x | 4.6x | 11.7x | 49.1x | 37.3x |
Revenue and profitability
Beijing Capital Land Ltd's Revenue jumped on 58.0% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.9 pp from 5.5% to 8.4% in 2015.
Gross Margin dropped on 13.0 pp from 25.0% to 12.1% in 2015. SG&A as a % of Revenue decreased slightly on 1.2 pp from 8.7% to 7.5% in 2015.
Net Income marign decreased on 4.0 pp from 18.0% to 14.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 6.9%. The company's CAPEX/Revenue decreased on 2.9 pp from 9.8% in 2012 to 6.9% in 2015. For the last three years the average CAPEX/Revenue was 6.7%.Beijing Capital Land Ltd has spent a lot to CAPEX (175% of EBITDA) to secure its growth.
Return on investment
The company operates at good ROE (17.00%) while ROIC is low (0.83%). ROIC decreased on 2.5 pp from 3.3% to 0.83% in 2015. ROE decreased slightly on 2.0 pp from 19.0% to 17.0% in 2015.
Leverage (Debt)
Debt level is 49.1x Net Debt / EBITDA and 83.0x Debt / EBITDA. Net Debt / EBITDA surged on 37.3x from 11.7x to 49.1x in 2015. Debt jumped on 49.8% in 2015 while cash surged on 43.5% in 2015.
Appendix 1: Peers in Real Estate
Below we provide Beijing Capital Land 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) | | 197.1% | -89.9% | 2,067.2% | -92.7% |
| Ceneric Holdings Ltd ($542) | -94.0% | -73.9% | -49.8% | 1,922.5% | |
| |
|---|
| Median (173 companies) | 11.5% | 15.4% | 13.0% | 5.2% | 4.3% |
|---|
| Beijing Capital Land Ltd ($2868) | | 21.2% | 26.1% | -8.2% | 58.0% |
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% | 43.8% |
|---|
| Beijing Capital Land Ltd ($2868) | 31.2% | 23.9% | 26.3% | 25.0% | 12.1% |
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% | 29.1% |
|---|
| Beijing Capital Land Ltd ($2868) | 23.8% | 17.2% | 20.0% | 16.9% | 4.0% |
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) | 5.8% | 5.4% | 6.2% | 4.6% | 6.8% |
|---|
| Beijing Capital Land Ltd ($2868) | 6.2% | 9.8% | 5.3% | 8.0% | 6.9% |
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% | 15.4% |
| |
|---|
| Median (177 companies) | 4.6% | 4.0% | 3.8% | 3.9% | 3.0% |
|---|
| Beijing Capital Land Ltd ($2868) | 7.5% | 5.2% | 5.9% | 3.3% | 0.8% |
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 | 2.7x |
|---|
| Beijing Capital Land Ltd ($2868) | 2.9x | 7.1x | 4.6x | 11.7x | 49.1x |
