Greenland Hong Kong Holdings Ltd Net Debt / EBITDA dropped on 10.9x from 49.3x to 38.4x in 2015 while EBITDA jumped on 89.3%
21/03/2016 • About Greenland Hong Kong Holdings Ltd (
$337) • By InTwits
Greenland Hong Kong Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Greenland Hong Kong Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is 1.0%
- EBITDA Margin is quite volatile: 6.2% in 2015, 6.7% in 2014, 19.0% in 2013, -19.8% in 2012, 28.0% in 2011
- Greenland Hong Kong Holdings 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 8.3%.
- CAPEX is quite volatile: 126 in 2015, 44.1 in 2014, 25.9 in 2013, 21.6 in 2012, 37.7 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.0%
- It operates with high leverage: Net Debt/EBITDA is 38.4x while industry average is 22.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Greenland Hong Kong Holdings Ltd ($337) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,678 | 1,767 | 5,448 | 2,840 | 5,802 | 104.3% |
| Gross Profit | 1,939 | 405 | 1,446 | 779 | 1,144 | 46.8% |
| SG&A | 474 | 411 | 417 | 693 | 829 | 19.6% |
| EBITDA | 1,588 | -349 | 1,037 | 191 | 362 | 89.3% |
| Net Income | 898 | -938 | 35 | 108 | 220 | 104.5% |
Balance Sheet
|
|---|
| Cash | 1,645 | 817 | 922 | 5,033 | 5,207 | 3.5% |
| Short Term Debt | 2,078 | 3,873 | 1,725 | 1,227 | 7,795 | 535.3% |
| Long Term Debt | 5,406 | 2,964 | 5,666 | 13,218 | 11,292 | -14.6% |
Cash flow
|
|---|
| Capex | 38 | 22 | 26 | 44 | 126 | 187.0% |
Ratios
|
|---|
| Revenue growth | 32.9% | -68.9% | 208.4% | -47.9% | 104.3% | |
| EBITDA growth | 54.0% | -122.0% | -397.0% | -81.6% | 89.3% | |
| Gross Margin | 34.1% | 22.9% | 26.6% | 27.4% | 19.7% | -7.7% |
| EBITDA Margin | 28.0% | -19.8% | 19.0% | 6.7% | 6.2% | -0.5% |
| Net Income Margin | 15.8% | -53.1% | 0.6% | 3.8% | 3.8% | 0.0% |
| SG&A, % of revenue | 8.3% | 23.3% | 7.7% | 24.4% | 14.3% | -10.1% |
| CAPEX, % of revenue | 0.7% | 1.2% | 0.5% | 1.6% | 2.2% | 0.6% |
| ROIC | 11.9% | -3.2% | 7.3% | 0.5% | 1.0% | 0.5% |
| ROE | 18.6% | -19.7% | 0.7% | 1.9% | 3.5% | 1.6% |
| Net Debt/EBITDA | 3.7x | | 6.2x | 49.3x | 38.4x | -10.9x |
Revenue and profitability
The company's Revenue jumped on 104% in 2015. EBITDA Margin showed almost no change in 2015.
Gross Margin decreased on 7.7 pp from 27.4% to 19.7% in 2015. SG&A as a % of Revenue dropped on 10.1 pp from 24.4% to 14.3% 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 2.2%. Greenland Hong Kong Holdings Ltd showed small growth in CAPEX/Revenue of 0.96 pp from 1.2% in 2012 to 2.2% in 2015. It's average CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at low ROIC (1.00%) and ROE (3.51%). ROIC increased slightly on 0.52 pp from 0.47% to 1.00% in 2015. ROE increased slightly on 1.6 pp from 1.9% to 3.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 38.4x and Debt / EBITDA is 52.8x. Net Debt / EBITDA dropped on 10.9x from 49.3x to 38.4x in 2015. Debt surged on 32.1% in 2015 while cash increased on 3.5% in 2015.
Appendix 1: Peers in Real Estate
Below you can find Greenland Hong Kong Holdings 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) | | -35.1% | -51.2% | 3,097.3% | 188.5% |
| 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% | 13.0% | 5.2% | 4.3% |
|---|
| Greenland Hong Kong Holdings Ltd ($337) | | -68.9% | 208.4% | -47.9% | 104.3% |
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% | 43.3% |
|---|
| Greenland Hong Kong Holdings Ltd ($337) | 34.1% | 22.9% | 26.6% | 27.4% | 19.7% |
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% | 28.9% |
|---|
| Greenland Hong Kong Holdings Ltd ($337) | 28.0% | -19.8% | 19.0% | 6.7% | 6.2% |
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% | 6.3% |
|---|
| Greenland Hong Kong Holdings Ltd ($337) | 0.7% | 1.2% | 0.5% | 1.6% | 2.2% |
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% | 3.8% | 3.9% | 3.1% |
|---|
| Greenland Hong Kong Holdings Ltd ($337) | 11.9% | -3.2% | 7.3% | 0.5% | 1.0% |
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 | |
| Coastal Greenland Ltd ($1124) | 4.2x | 2.2x | 7.1x | 26.6x | |
| |
|---|
| Median (140 companies) | 2.1x | 2.3x | 2.7x | 2.9x | 2.6x |
|---|
| Greenland Hong Kong Holdings Ltd ($337) | 3.7x | | 6.2x | 49.3x | 38.4x |
