Baoye Group Co Ltd EBITDA increased on 5.2% in 2015 while Revenue decreased on 3.6%
21/03/2016 • About Baoye Group Co Ltd (
$2355) • By InTwits
Baoye Group Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Baoye Group Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's a lot of higher than industry average of 0.7%.
- CAPEX is quite volatile: 510 in 2015, 301 in 2014, 63.1 in 2013, 44.6 in 2012, 139 in 2011
- The company has business model with average profitability: ROIC is at 11.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Baoye Group Co Ltd ($2355) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 16,187 | 17,276 | 17,553 | 18,898 | 18,216 | -3.6% |
| Gross Profit | 1,350 | 1,460 | 1,205 | 1,181 | 1,243 | 5.3% |
| SG&A | 417 | 440 | 455 | 469 | 480 | 2.4% |
| EBITDA | 1,180 | 1,305 | 984 | 960 | 1,010 | 5.2% |
| Net Income | 710 | 752 | 663 | 649 | 564 | -13.1% |
Balance Sheet
|
|---|
| Cash | 1,878 | 1,613 | 2,159 | 2,319 | 3,170 | 36.7% |
| Short Term Debt | 1,400 | 655 | 758 | 719 | 537 | -25.3% |
| Long Term Debt | 210 | 190 | 243 | 289 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 216 | 232 | 220 | 174 | 167 | -4.0% |
Ratios
|
|---|
| Revenue growth | 34.3% | 6.7% | 1.6% | 7.7% | -3.6% | |
| EBITDA growth | 54.2% | 10.6% | -24.6% | -2.4% | 5.2% | |
| Gross Margin | 8.3% | 8.5% | 6.9% | 6.2% | 6.8% | 0.6% |
| EBITDA Margin | 7.3% | 7.6% | 5.6% | 5.1% | 5.5% | 0.5% |
| Net Income Margin | 4.4% | 4.4% | 3.8% | 3.4% | 3.1% | -0.3% |
| SG&A, % of revenue | 2.6% | 2.5% | 2.6% | 2.5% | 2.6% | 0.2% |
| CAPEX, % of revenue | 1.3% | 1.3% | 1.3% | 0.9% | 0.9% | -0.0% |
| ROIC | 18.3% | 17.7% | 12.4% | 11.2% | 11.7% | 0.4% |
| ROE | 17.4% | 16.1% | 12.6% | 11.3% | 9.1% | -2.2% |
| Net Debt/EBITDA | -0.2x | -0.6x | -1.2x | -1.4x | -2.6x | -1.2x |
Revenue and profitability
The company's Revenue decreased on 3.6% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 11.3 pp from 42.3% to 53.6% in 2015.
Gross Margin increased slightly on 0.58 pp from 6.2% to 6.8% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.92%. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 1.0%.
Return on investment
The company operates at low ROIC (11.66%) and ROE (9.13%). ROIC showed almost no change in 2015. ROE decreased on 2.2 pp from 11.3% to 9.1% in 2015.
Leverage (Debt)
Debt level is -2.6x Net Debt / EBITDA and 0.5x Debt / EBITDA. Net Debt / EBITDA dropped on 1.2x from -1.4x to -2.6x in 2015. Debt dropped on 46.7% in 2015 while cash surged on 36.7% in 2015.
Appendix 1: Peers in Home Builders
Below we provide Baoye Group Co Ltd benchmarking against other companies in Home Builders 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Modern Land China Co Ltd ($1107) | 103.7% | -37.7% | 76.5% | 17.6% | |
| |
|---|
| Median (1 company) | 103.7% | -37.7% | 76.5% | 17.6% | |
|---|
| Baoye Group Co Ltd ($2355) | | 6.7% | 1.6% | 7.7% | -3.6% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Modern Land China Co Ltd ($1107) | 42.8% | 44.4% | 39.5% | 40.6% | |
| |
|---|
| Median (1 company) | 42.8% | 44.4% | 39.5% | 40.6% | |
|---|
| Baoye Group Co Ltd ($2355) | 8.3% | 8.5% | 6.9% | 6.2% | 6.8% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Modern Land China Co Ltd ($1107) | 33.4% | 39.8% | 29.4% | 30.7% | |
| |
|---|
| Median (1 company) | 33.4% | 39.8% | 29.4% | 30.7% | |
|---|
| Baoye Group Co Ltd ($2355) | 7.3% | 7.6% | 5.6% | 5.1% | 5.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Modern Land China Co Ltd ($1107) | 5.5% | 5.9% | 3.2% | 0.4% | |
| |
|---|
| Median (1 company) | 5.5% | 5.9% | 3.2% | 0.4% | |
|---|
| Baoye Group Co Ltd ($2355) | 1.3% | 1.3% | 1.3% | 0.9% | 0.9% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Modern Land China Co Ltd ($1107) | 28.6% | 20.5% | 21.4% | 16.4% | |
| |
|---|
| Median (1 company) | 28.6% | 20.5% | 21.4% | 16.4% | |
|---|
| Baoye Group Co Ltd ($2355) | 18.3% | 17.7% | 12.4% | 11.2% | 11.7% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Modern Land China Co Ltd ($1107) | 1.7x | 0.4x | -0.6x | 1.4x | |
| |
|---|
| Median (1 company) | 1.7x | 0.4x | -0.6x | 1.4x | |
|---|
| Baoye Group Co Ltd ($2355) | -0.2x | -0.6x | -1.2x | -1.4x | -2.6x |
