Silver Grant International Industries Ltd Net Income dropped on 160% in 2015 and EBITDA Margin decreased slightly on 1.3 pp from -36.5% to -37.8%
22/03/2016 • About Silver Grant International Industries Ltd (
$171) • By InTwits
Silver Grant International Industries Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Silver Grant International Industries Ltd doesn't have a profitable business model yet: 2015 ROIC is -1.7%
- The company operates at negative EBITDA Margin: -37.8%
- EBITDA Margin is quite volatile: -37.8% in 2015, -36.5% in 2014, 9.2% in 2013, 47.8% in 2012, 66.2% in 2011
- Silver Grant International Industries Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 182.6%. At the same time it's in pair with industry average of 188.5%.
- CAPEX is quite volatile: 3.9 in 2015, 20.0 in 2014, 15.0 in 2013, 61.3 in 2012, 34.3 in 2011
- The company has unprofitable business model: ROIC is at -1.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Silver Grant International Industries Ltd ($171) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 409.4 | 538.8 | 388.5 | 407.7 | 337.2 | -17.3% |
| Gross Profit | 66.8 | 61.2 | 118.1 | 123.3 | 108.2 | -12.2% |
| SG&A | 185.9 | 216.1 | 235.1 | 269.5 | 297.8 | 10.5% |
| EBITDA | 271.0 | 257.5 | 35.7 | -148.7 | -127.4 | -14.3% |
| Net Income | 375.6 | 103.8 | 65.0 | 109.4 | -65.8 | -160.1% |
Balance Sheet
|
|---|
| Cash | 1,345.8 | 747.6 | 669.8 | 1,685.6 | 459.7 | -72.7% |
| Short Term Debt | 416.9 | 451.6 | 856.9 | 1,148.4 | 1,414.6 | 23.2% |
| Long Term Debt | 544.8 | 973.0 | 1,179.9 | 1,471.8 | 1,236.3 | -16.0% |
Cash flow
|
|---|
| Capex | 412.5 | 724.6 | 750.2 | 832.1 | 946.8 | 13.8% |
Ratios
|
|---|
| Revenue growth | 80.9% | 31.6% | -27.9% | 5.0% | -17.3% | |
| EBITDA growth | -19.8% | -5.0% | -86.1% | -516.2% | -14.3% | |
| Gross Margin | 16.3% | 11.4% | 30.4% | 30.3% | 32.1% | 1.8% |
| EBITDA Margin | 66.2% | 47.8% | 9.2% | -36.5% | -37.8% | -1.3% |
| Net Income Margin | 91.7% | 19.3% | 16.7% | 26.8% | -19.5% | -46.3% |
| SG&A, % of revenue | 45.4% | 40.1% | 60.5% | 66.1% | 88.3% | 22.2% |
| CAPEX, % of revenue | 100.8% | 134.5% | 193.1% | 204.1% | 280.7% | 76.7% |
| ROIC | 2.8% | 2.3% | -0.1% | -1.9% | -1.7% | 0.2% |
| ROE | 5.2% | 1.4% | 0.9% | 1.5% | -0.9% | -2.4% |
| Net Debt/EBITDA | -1.4x | 2.6x | 38.3x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 17.3% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 1.3 pp from -36.5% to -37.8% in 2015.
Gross Margin increased slightly on 1.8 pp from 30.3% to 32.1% in 2015. SG&A as a % of Revenue surged on 22.2 pp from 66.1% to 88.3% in 2015.
Net Income marign dropped on 46.3 pp from 26.8% to -19.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
Silver Grant International Industries Ltd's CAPEX/Revenue was 281% in 2015. Silver Grant International Industries Ltd's CAPEX/Revenue jumped on 146 pp from 134% in 2012 to 281% in 2015. It's average level of CAPEX/Revenue for the last three years was 226%.
Return on investment
The company operates at negative ROIC (-1.66%) and ROE (-0.93%). ROIC showed almost no change in 2015. ROE decreased on 2.4 pp from 1.5% to -0.93% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -10.2x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt increased slightly on 1.2% in 2015 while cash dropped on 72.7% in 2015.
Appendix 1: Peers in Real Estate
Below you can find Silver Grant International Industries 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) | 11.0% | 15.4% | 13.1% | 5.2% | 4.5% |
|---|
| Silver Grant International Industries Ltd ($171) | | 31.6% | -27.9% | 5.0% | -17.3% |
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% | 42.6% |
|---|
| Silver Grant International Industries Ltd ($171) | 16.3% | 11.4% | 30.4% | 30.3% | 32.1% |
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% | 28.9% | 28.2% | 27.3% | 28.9% |
|---|
| Silver Grant International Industries Ltd ($171) | 66.2% | 47.8% | 9.2% | -36.5% | -37.8% |
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% | 5.8% |
|---|
| Silver Grant International Industries Ltd ($171) | 100.8% | 134.5% | 193.1% | 204.1% | 280.7% |
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% |
|---|
| Silver Grant International Industries Ltd ($171) | 2.8% | 2.3% | -0.1% | -1.9% | -1.7% |
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 | 38.4x |
| |
|---|
| Median (141 companies) | 2.1x | 2.2x | 2.7x | 3.0x | 3.0x |
|---|
