Landsea Green Properties Co Ltd revenue jumped on 189% in 2015 while EBITDA Margin dropped on 20.7 pp from 57.7% to 37.0%
20/03/2016 • About Landsea Green Properties Co Ltd (
$106) • By InTwits
Landsea Green Properties Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 37.0% in 2015, 57.7% in 2014, -68.3% in 2013, 17.1% in 2012, 50.2% in 2011
- Landsea Green Properties Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.7%. At the same time it's in pair with industry average of 11.4%.
- CAPEX is quite volatile: 8.7 in 2015, 1.5 in 2014, 1.6 in 2013, 0.013 in 2012, 1.9 in 2011
- The company has business model with low profitability: ROIC is at 8.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Landsea Green Properties Co Ltd ($106) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 55 | 36 | 17 | 559 | 1,614 | 188.5% |
| Gross Profit | 34 | 26 | 11 | 377 | 712 | 89.0% |
| SG&A | | 17 | 24 | 56 | 124 | 120.9% |
| EBITDA | 28 | 6 | -12 | 323 | 597 | 85.0% |
| Net Income | 59 | 63 | 23 | 240 | 481 | 100.6% |
Balance Sheet
|
|---|
| Cash | 583 | 400 | 747 | 476 | 990 | 107.9% |
| Short Term Debt | 0 | 0 | 1,082 | 1,967 | 756 | -61.6% |
| Long Term Debt | 0 | 0 | 94 | 2,900 | 4,444 | 53.2% |
Cash flow
|
|---|
| Capex | 2 | 0 | 2 | 2 | 9 | 473.9% |
Ratios
|
|---|
| Revenue growth | -91.1% | -35.1% | -51.2% | 3,097.3% | 188.5% | |
| EBITDA growth | -84.6% | -77.8% | -294.6% | -2,801.1% | 85.0% | |
| Gross Margin | 62.1% | 71.6% | 65.5% | 67.3% | 44.1% | -23.2% |
| EBITDA Margin | 50.2% | 17.1% | -68.3% | 57.7% | 37.0% | -20.7% |
| Net Income Margin | 106.5% | 176.9% | 129.2% | 42.9% | 29.8% | -13.1% |
| SG&A, % of revenue | | 47.4% | 138.5% | 10.0% | 7.7% | -2.3% |
| CAPEX, % of revenue | 3.4% | 0.0% | 9.1% | 0.3% | 0.5% | 0.3% |
| ROIC | 1.7% | 0.6% | -1.0% | 8.0% | 8.9% | 0.9% |
| ROE | 3.9% | 6.8% | 3.9% | 25.5% | 33.4% | 8.0% |
| Net Debt/EBITDA | -21.0x | -65.1x | | 13.6x | 7.0x | -6.6x |
Revenue and profitability
Landsea Green Properties Co Ltd's Revenue surged on 189% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.63 pp from 2.1% to 2.7% in FY2015.
Gross Margin dropped on 23.2 pp from 67.3% to 44.1% in 2015. SG&A as a % of Revenue decreased on 2.3 pp from 10.0% to 7.7% in 2015.
Net Income marign dropped on 13.1 pp from 42.9% to 29.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.54%. CAPEX/Revenue increased slightly on 0.50 pp from 0.036% in 2012 to 0.54% in 2015. Average CAPEX/Revenue for the last three years was 3.3%.
Return on investment
The company operates at good ROE (33.42%) while ROIC is low (8.91%). ROIC increased slightly on 0.89 pp from 8.0% to 8.9% in 2015. ROE increased on 8.0 pp from 25.5% to 33.4% in 2015.
Leverage (Debt)
Debt level is 7.0x Net Debt / EBITDA and 8.7x Debt / EBITDA. Net Debt / EBITDA dropped on 6.6x from 13.6x to 7.0x in 2015. Debt increased on 6.8% in 2015 while cash jumped on 108% in 2015.
Management team
Landsea Green Properties Co Ltd's CEO is Xiang Jiong. Xiang Jiong has 4 years tenure at the company. Landsea Green Properties Co Ltd's CFO Tian Jiong has spent 3 years at the company.
Appendix 1: Peers in Real Estate
Below we provide Landsea Green Properties 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% | |
| 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% | |
| Rykadan Capital Ltd ($2288) | | -94.0% | 91.5% | 1,252.9% | -84.8% |
| |
|---|
| Median (173 companies) | 11.8% | 15.8% | 13.1% | 5.0% | 4.8% |
|---|
| Landsea Green Properties Co Ltd ($106) | | -35.1% | -51.2% | 3,097.3% | 188.5% |
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% | 43.3% |
|---|
| Landsea Green Properties Co Ltd ($106) | 62.1% | 71.6% | 65.5% | 67.3% | 44.1% |
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) | 35.1% | 29.1% | 28.2% | 26.4% | 28.8% |
|---|
| Landsea Green Properties Co Ltd ($106) | 50.2% | 17.1% | -68.3% | 57.7% | 37.0% |
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% | 6.1% | 4.7% | 6.8% |
|---|
| Landsea Green Properties Co Ltd ($106) | 3.4% | 0.0% | 9.1% | 0.3% | 0.5% |
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% | 3.8% | 3.0% |
|---|
| Landsea Green Properties Co Ltd ($106) | 1.7% | 0.6% | -1.0% | 8.0% | 8.9% |
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 | 2.7x | 2.9x | 2.8x |
|---|
| Landsea Green Properties Co Ltd ($106) | -21.0x | -65.1x | | 13.6x | 7.0x |
