Modern Land China Co Ltd revenue surged on 55.7% in 2015 while EBITDA Margin decreased on 7.0 pp from 30.7% to 23.7%
22/03/2016 • About Modern Land China Co Ltd (
$1107) • By InTwits
Modern Land China Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Modern Land China Co Ltd is a fast growth stock: 2015 revenue growth was 55.7%, 5 year revenue CAGR was 32.6% at 2015 ROIC 14.8%
- Modern Land China Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.1%. At the same time it's a lot of higher than industry average of 0.6%.
- CAPEX is quite volatile: 15.4 in 2015, 17.9 in 2014, 112 in 2013, 116 in 2012, 175 in 2011
- The company has highly profitable business model: ROIC is at 14.8%
- It operates with high leverage: Net Debt/EBITDA is 1.9x while industry average is -0.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Modern Land China Co Ltd ($1107) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,153 | 1,965 | 3,469 | 4,079 | 6,350 | 55.7% |
| Gross Profit | 1,348 | 873 | 1,370 | 1,655 | 1,964 | 18.7% |
| SG&A | 313 | 272 | 375 | 449 | 456 | 1.5% |
| EBITDA | 1,052 | 781 | 1,020 | 1,252 | 1,507 | 20.4% |
| Net Income | 432 | 471 | 529 | 521 | 578 | 10.9% |
Balance Sheet
|
|---|
| Cash | 283 | 788 | 2,744 | 2,798 | 2,521 | -9.9% |
| Short Term Debt | 1,148 | 109 | 257 | 1,314 | 1,757 | 33.7% |
| Long Term Debt | 875 | 1,001 | 1,902 | 3,193 | 3,635 | 13.9% |
Cash flow
|
|---|
| Capex | 175 | 116 | 112 | 18 | 15 | -14.1% |
Ratios
|
|---|
| Revenue growth | 103.7% | -37.7% | 76.5% | 17.6% | 55.7% | |
| EBITDA growth | 152.1% | -25.7% | 30.5% | 22.8% | 20.4% | |
| Gross Margin | 42.8% | 44.4% | 39.5% | 40.6% | 30.9% | -9.6% |
| EBITDA Margin | 33.4% | 39.8% | 29.4% | 30.7% | 23.7% | -7.0% |
| Net Income Margin | 13.7% | 24.0% | 15.2% | 12.8% | 9.1% | -3.7% |
| SG&A, % of revenue | 9.9% | 13.8% | 10.8% | 11.0% | 7.2% | -3.8% |
| CAPEX, % of revenue | 5.5% | 5.9% | 3.2% | 0.4% | 0.2% | -0.2% |
| ROIC | 28.6% | 20.5% | 21.4% | 16.4% | 14.8% | -1.6% |
| ROE | 40.7% | 37.0% | 26.6% | 19.5% | 17.4% | -2.1% |
| Net Debt/EBITDA | 1.7x | 0.4x | -0.6x | 1.4x | 1.9x | 0.5x |
Revenue and profitability
The company's Revenue jumped on 55.7% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.2 pp from 5.3% to 3.1% in 2015.
Gross Margin decreased on 9.6 pp from 40.6% to 30.9% in 2015. SG&A as a % of Revenue decreased on 3.8 pp from 11.0% to 7.2% in 2015.
Net Income marign decreased on 3.7 pp from 12.8% to 9.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.24%. Modern Land China Co Ltd's CAPEX/Revenue decreased on 5.7 pp from 5.9% in 2012 to 0.24% in 2015. It's average level of CAPEX/Revenue for the last three years was 1.3%.
Return on investment
The company operates at good ROIC (14.85%) and ROE (17.44%). ROIC decreased slightly on 1.6 pp from 16.4% to 14.8% in 2015. ROE decreased on 2.1 pp from 19.5% to 17.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.9x and Debt / EBITDA is 3.6x. Net Debt / EBITDA surged on 0.5x from 1.4x to 1.9x in 2015. Debt jumped on 19.6% in 2015 while cash decreased on 9.9% in 2015.
Appendix 1: Peers in Home Builders
Below you can find Modern Land China Co Ltd benchmarking vs. other companies in Home Builders 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Baoye Group Co Ltd ($2355) | | 6.7% | 1.6% | 7.7% | -3.6% |
| |
|---|
| Median (1 company) | | 6.7% | 1.6% | 7.7% | -3.6% |
|---|
| Modern Land China Co Ltd ($1107) | | -37.7% | 76.5% | 17.6% | 55.7% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Baoye Group Co Ltd ($2355) | 8.3% | 8.5% | 6.9% | 6.2% | 6.8% |
| |
|---|
| Median (1 company) | 8.3% | 8.5% | 6.9% | 6.2% | 6.8% |
|---|
| Modern Land China Co Ltd ($1107) | 42.8% | 44.4% | 39.5% | 40.6% | 30.9% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Baoye Group Co Ltd ($2355) | 7.3% | 7.6% | 5.6% | 5.1% | 5.5% |
| |
|---|
| Median (1 company) | 7.3% | 7.6% | 5.6% | 5.1% | 5.5% |
|---|
| Modern Land China Co Ltd ($1107) | 33.4% | 39.8% | 29.4% | 30.7% | 23.7% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Baoye Group Co Ltd ($2355) | 1.3% | 1.3% | 1.3% | 0.9% | 0.9% |
| |
|---|
| Median (1 company) | 1.3% | 1.3% | 1.3% | 0.9% | 0.9% |
|---|
| Modern Land China Co Ltd ($1107) | 5.5% | 5.9% | 3.2% | 0.4% | 0.2% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Baoye Group Co Ltd ($2355) | 18.3% | 17.7% | 12.4% | 11.2% | 11.7% |
| |
|---|
| Median (1 company) | 18.3% | 17.7% | 12.4% | 11.2% | 11.7% |
|---|
| Modern Land China Co Ltd ($1107) | 28.6% | 20.5% | 21.4% | 16.4% | 14.8% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Baoye Group Co Ltd ($2355) | -0.2x | -0.6x | -1.2x | -1.4x | -2.6x |
| |
|---|
| Median (1 company) | -0.2x | -0.6x | -1.2x | -1.4x | -2.6x |
|---|
| Modern Land China Co Ltd ($1107) | 1.7x | 0.4x | -0.6x | 1.4x | 1.9x |
