Tian An China Investment Co Ltd EBITDA dropped on 918% in 2015 and Revenue showed almost no change
18/03/2016 • About Tian An China Investment Co Ltd (
$28) • By InTwits
Tian An China Investment Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tian An China Investment Co Ltd doesn't have a profitable business model yet: 2015 ROIC is -0.6%
- EBITDA Margin is quite volatile: -4.8% in 2015, 0.6% in 2014, 14.9% in 2013, 11.5% in 2012, 23.9% in 2011
- Tian An China Investment Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.7%. At the same time it's a lot of higher than industry average of 14.1%.
- CAPEX is quite volatile: 20.3 in 2015, 164 in 2014, 113 in 2013, 363 in 2012, 173 in 2011
- The company has unprofitable business model: ROIC is at -0.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tian An China Investment Co Ltd ($28) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,987 | 1,410 | 1,030 | 1,032 | 1,029 | -0.2% |
| Gross Profit | 738 | 488 | 530 | 433 | 446 | 3.0% |
| SG&A | 349 | 349 | 330 | 340 | 356 | 4.7% |
| EBITDA | 476 | 163 | 153 | 6 | -49 | -917.7% |
| Net Income | 747 | 401 | 338 | 1,285 | 2,600 | 102.4% |
Balance Sheet
|
|---|
| Cash | 2,235 | 1,207 | 1,939 | 1,515 | 4,135 | 173.0% |
| Short Term Debt | 1,745 | 1,398 | 2,162 | 1,776 | 2,184 | 23.0% |
| Long Term Debt | 1,640 | 1,966 | 2,099 | 2,649 | 2,902 | 9.6% |
Cash flow
|
|---|
| Capex | 173 | 363 | 113 | 164 | 20 | -87.7% |
Ratios
|
|---|
| Revenue growth | 40.7% | -29.0% | -27.0% | 0.2% | -0.2% | |
| EBITDA growth | -44.5% | -65.8% | -5.9% | -96.1% | -917.7% | |
| Gross Margin | 37.2% | 34.6% | 51.5% | 42.0% | 43.3% | 1.3% |
| EBITDA Margin | 23.9% | 11.5% | 14.9% | 0.6% | -4.8% | -5.3% |
| Net Income Margin | 37.6% | 28.5% | 32.8% | 124.5% | 252.6% | 128.1% |
| SG&A, % of revenue | 17.5% | 24.8% | 32.1% | 33.0% | 34.6% | 1.6% |
| CAPEX, % of revenue | 8.7% | 25.7% | 11.0% | 15.9% | 2.0% | -13.9% |
| ROIC | 2.0% | 0.1% | -0.1% | -0.6% | -0.6% | -0.1% |
| ROE | 5.8% | 3.0% | 2.5% | 8.7% | 16.0% | 7.3% |
| Net Debt/EBITDA | 2.4x | 13.2x | 15.1x | 486.6x | | -486.6x |
Revenue and profitability
Tian An China Investment Co Ltd's Revenue showed almost no change in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.3 pp from 0.58% to -4.8% in 2015.
Gross Margin increased slightly on 1.3 pp from 42.0% to 43.3% in 2015. SG&A as a % of Revenue increased slightly on 1.6 pp from 33.0% to 34.6% in 2015.
Net Income marign jumped on 128 pp from 124% to 253% in 2015.
Capital expenditures (CAPEX) and working capital investments
Tian An China Investment Co Ltd's CAPEX/Revenue was 2.0% in 2015. Tian An China Investment Co Ltd's CAPEX/Revenue dropped on 23.8 pp from 25.7% in 2012 to 2.0% in 2015. Average CAPEX/Revenue for the last three years was 9.6%.
Return on investment
The company operates at negative ROIC (-0.64%) and low but positive ROE (15.96%). ROIC showed almost no change in 2015. ROE increased on 7.3 pp from 8.7% to 16.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.8x and Debt / EBITDA is . Net Debt / EBITDA dropped on 486.6x from 486.6x to in 2015. Debt surged on 14.9% in 2015 while cash surged on 173% in 2015.
Appendix 1: Peers in Real Estate
Below we provide Tian An China Investment Co 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% | 15.8% | 13.1% | 5.2% | 4.8% |
|---|
| Tian An China Investment Co Ltd ($28) | | -29.0% | -27.0% | 0.2% | -0.2% |
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% | 40.5% | 39.1% | 43.7% |
|---|
| Tian An China Investment Co Ltd ($28) | 37.2% | 34.6% | 51.5% | 42.0% | 43.3% |
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% |
|---|
| Tian An China Investment Co Ltd ($28) | 23.9% | 11.5% | 14.9% | 0.6% | -4.8% |
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% | 6.1% | 4.6% | 6.9% |
|---|
| Tian An China Investment Co Ltd ($28) | 8.7% | 25.7% | 11.0% | 15.9% | 2.0% |
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% | 4.1% | 3.9% | 3.9% | 3.0% |
|---|
| Tian An China Investment Co Ltd ($28) | 2.0% | 0.1% | -0.1% | -0.6% | -0.6% |
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 | |
| Greenland Hong Kong Holdings Ltd ($337) | 3.7x | | 6.2x | 49.3x | |
| Coastal Greenland Ltd ($1124) | 4.2x | 2.2x | 7.1x | 26.6x | |
| |
|---|
| Median (140 companies) | 2.1x | 2.2x | 2.7x | 2.9x | 2.8x |
|---|
| Tian An China Investment Co Ltd ($28) | 2.4x | 13.2x | 15.1x | 486.6x | |
