Allied Properties HK Ltd Net Income surged on 104% in 2015 while EBITDA Margin dropped on 25.0 pp from 44.9% to 20.0%
23/03/2016 • About Allied Properties HK Ltd (
$56) • By InTwits
Allied Properties HK Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Allied Properties HK Ltd doesn't have a profitable business model yet: 2015 ROIC is 1.7%
- Allied Properties HK Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's in pair with industry average of 50.9%.
- CAPEX is quite volatile: 94.2 in 2015, 195 in 2014, 156 in 2013, 89.9 in 2012, 96.7 in 2011
- The company has potentially 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.
Allied Properties HK Ltd ($56) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,048 | 4,079 | 4,949 | 4,572 | 4,595 | 0.5% |
| Gross Profit | 3,819 | 3,873 | 4,666 | 4,273 | 4,226 | -1.1% |
| SG&A | 1,358 | 1,459 | 1,646 | 1,414 | 1,518 | 7.3% |
| EBITDA | 1,960 | 1,854 | 2,191 | 2,054 | 917 | -55.3% |
| Net Income | 1,951 | 1,710 | 1,594 | 2,024 | 4,123 | 103.7% |
Balance Sheet
|
|---|
| Cash | 2,962 | 5,551 | 4,383 | 3,399 | 4,887 | 43.8% |
| Short Term Debt | 3,113 | 4,788 | 3,345 | 4,600 | 2,658 | -42.2% |
| Long Term Debt | 3,961 | 4,729 | 6,652 | 6,923 | 7,757 | 12.0% |
Cash flow
|
|---|
| Capex | 97 | 90 | 156 | 195 | 94 | -51.8% |
Ratios
|
|---|
| Revenue growth | 15.9% | 0.8% | 21.4% | -7.6% | 0.5% | |
| EBITDA growth | 2.0% | -5.4% | 18.2% | -6.3% | -55.3% | |
| Gross Margin | 94.3% | 95.0% | 94.3% | 93.5% | 92.0% | -1.5% |
| EBITDA Margin | 48.4% | 45.5% | 44.3% | 44.9% | 20.0% | -25.0% |
| Net Income Margin | 48.2% | 41.9% | 32.2% | 44.3% | 89.7% | 45.5% |
| SG&A, % of revenue | 33.5% | 35.8% | 33.2% | 30.9% | 33.0% | 2.1% |
| CAPEX, % of revenue | 2.4% | 2.2% | 3.1% | 4.3% | 2.1% | -2.2% |
| ROIC | 5.0% | 4.6% | 5.0% | 4.3% | 1.7% | -2.7% |
| ROE | 10.5% | 8.4% | 7.3% | 8.6% | 15.9% | 7.2% |
| Net Debt/EBITDA | 2.1x | 2.1x | 2.6x | 4.0x | 6.0x | 2.1x |
Revenue and profitability
Allied Properties HK Ltd's Revenue showed almost no change in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 25.0 pp from 44.9% to 20.0% in 2015.
Gross Margin decreased slightly on 1.5 pp from 93.5% to 92.0% in 2015. SG&A as a % of Revenue increased on 2.1 pp from 30.9% to 33.0% in 2015.
Net Income marign jumped on 45.5 pp from 44.3% to 89.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 2.1%. CAPEX/Revenue showed almost no change from 2012 to 2015. Average CAPEX/Revenue for the last three years was 3.2%.
Return on investment
The company operates at good ROE (15.87%) while ROIC is low (1.68%). ROIC decreased on 2.7 pp from 4.3% to 1.7% in 2015. ROE increased on 7.2 pp from 8.6% to 15.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 6.0x and Debt / EBITDA is 11.4x. Net Debt / EBITDA jumped on 2.1x from 4.0x to 6.0x in 2015. Debt decreased on 9.6% in 2015 while cash surged on 43.8% in 2015.
Appendix 1: Peers in Real Estate
Below we provide Allied Properties HK 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% | |
| 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 (175 companies) | 10.1% | 16.4% | 13.1% | 5.2% | 4.5% |
|---|
| Allied Properties HK Ltd ($56) | | 0.8% | 21.4% | -7.6% | 0.5% |
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% | 97.6% |
| ITC Properties Group Ltd ($199) | 29.8% | 22.8% | 92.9% | 95.2% | 62.7% |
| |
|---|
| Median (157 companies) | 43.8% | 41.9% | 41.8% | 39.1% | 42.6% |
|---|
| Allied Properties HK Ltd ($56) | 94.3% | 95.0% | 94.3% | 93.5% | 92.0% |
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 (174 companies) | 35.3% | 29.1% | 28.2% | 26.9% | 28.8% |
|---|
| Allied Properties HK Ltd ($56) | 48.4% | 45.5% | 44.3% | 44.9% | 20.0% |
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 (176 companies) | 5.9% | 5.5% | 6.2% | 4.8% | 3.7% |
|---|
| Allied Properties HK Ltd ($56) | 2.4% | 2.2% | 3.1% | 4.3% | 2.1% |
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 (179 companies) | 4.6% | 4.1% | 3.9% | 3.9% | 2.9% |
|---|
| Allied Properties HK Ltd ($56) | 5.0% | 4.6% | 5.0% | 4.3% | 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 | 3.2x |
|---|
| Allied Properties HK Ltd ($56) | 2.1x | 2.1x | 2.6x | 4.0x | 6.0x |
