C C Land Holdings Ltd reports 45.5% EBITDA growth and 31.1 pp EBITDA Margin growth from 24.6% to 55.7%
23/03/2016 • About C C Land Holdings Ltd (
$1224) • By InTwits
C C Land Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 55.7% in 2015, 24.6% in 2014, 23.6% in 2013, 27.0% in 2012, 22.0% in 2011
- C C Land Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 36.0%. At the same time it's in pair with industry average of 39.0%.
- CAPEX is quite volatile: 610 in 2015, 751 in 2014, 3,448 in 2013, 3,650 in 2012, 3,010 in 2011
- The company has highly profitable business model: ROIC is at 15.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
C C Land Holdings Ltd ($1224) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,702 | 7,433 | 6,845 | 10,300 | 6,620 | -35.7% |
| Gross Profit | 1,304 | 2,499 | 2,124 | 2,712 | 1,862 | -31.3% |
| SG&A | 670 | 740 | 839 | 861 | 694 | -19.4% |
| EBITDA | 1,032 | 2,005 | 1,616 | 2,536 | 3,689 | 45.5% |
| Net Income | 301 | 529 | 505 | 1,068 | 1,367 | 27.9% |
Balance Sheet
|
|---|
| Cash | 3,988 | 3,648 | 5,709 | 6,339 | 2,778 | -56.2% |
| Short Term Debt | 2,187 | 7,519 | 4,103 | 4,489 | 450 | -90.0% |
| Long Term Debt | 5,034 | 2,938 | 7,531 | 7,929 | 350 | -95.6% |
Cash flow
|
|---|
| Capex | 3,010 | 3,650 | 3,448 | 751 | 610 | -18.7% |
Ratios
|
|---|
| Revenue growth | 208.2% | 58.1% | -7.9% | 50.5% | -35.7% | |
| EBITDA growth | 128.8% | 94.2% | -19.4% | 57.0% | 45.5% | |
| Gross Margin | 27.7% | 33.6% | 31.0% | 26.3% | 28.1% | 1.8% |
| EBITDA Margin | 22.0% | 27.0% | 23.6% | 24.6% | 55.7% | 31.1% |
| Net Income Margin | 6.4% | 7.1% | 7.4% | 10.4% | 20.6% | 10.3% |
| SG&A, % of revenue | 14.3% | 10.0% | 12.3% | 8.4% | 10.5% | 2.1% |
| CAPEX, % of revenue | 64.0% | 49.1% | 50.4% | 7.3% | 9.2% | 1.9% |
| ROIC | 4.5% | 7.4% | 5.3% | 7.9% | 15.0% | 7.2% |
| ROE | 2.4% | 4.0% | 3.7% | 7.4% | 9.4% | 2.1% |
| Net Debt/EBITDA | 3.1x | 3.4x | 3.7x | 2.4x | -0.5x | -2.9x |
Revenue and profitability
The company's Revenue dropped on 35.7% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 31.1 pp from 24.6% to 55.7% in 2015.
Gross Margin increased slightly on 1.8 pp from 26.3% to 28.1% in 2015. SG&A as a % of Revenue increased on 2.1 pp from 8.4% to 10.5% in 2015.
Net Income marign surged on 10.3 pp from 10.4% to 20.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
C C Land Holdings Ltd's CAPEX/Revenue was 9.2% in 2015. CAPEX/Revenue dropped on 39.9 pp from 49.1% in 2012 to 9.2% in 2015. It's average CAPEX/Revenue for the last three years was 22.3%.
Return on investment
The company operates at good ROIC (15.02%) while ROE is low (9.45%). ROIC increased on 7.2 pp from 7.9% to 15.0% in 2015. ROE increased on 2.1 pp from 7.4% to 9.4% in 2015.
Leverage (Debt)
Debt level is -0.5x Net Debt / EBITDA and 0.2x Debt / EBITDA. Net Debt / EBITDA dropped on 2.9x from 2.4x to -0.5x in 2015. Debt dropped on 93.6% in 2015 while cash dropped on 56.2% in 2015.
Appendix 1: Peers in Holding Companies-Divers
Below we provide C C Land Holdings Ltd benchmarking against other companies in Holding Companies-Divers 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 |
|---|
| Kong Sun Holdings Ltd ($295) | -18.7% | -88.3% | 5.1% | 7,067.0% | |
| Goldin Properties Holdings Ltd ($283) | | | 126.0% | 2,065.8% | -79.6% |
| China Primary Energy Holdings Ltd ($8117) | -43.1% | -56.3% | -23.6% | 195.4% | |
| Carnival Group International Holdings Ltd ($996) | | | | 159.1% | |
| 21 Holdings Ltd ($1003) | | -57.4% | -12.4% | 106.4% | 31.0% |
| |
|---|
| Median (42 companies) | 11.6% | 11.4% | 4.9% | 12.6% | 8.4% |
|---|
| C C Land Holdings Ltd ($1224) | | 58.1% | -7.9% | 50.5% | -35.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Multifield International Holdings Ltd ($898) | 66.4% | 87.5% | 84.7% | 89.1% | |
| New Century Group Hong Kong Ltd ($234) | 76.7% | 27.3% | 85.2% | 82.8% | 91.5% |
| Emperor International Holdings Ltd ($163) | 74.5% | 71.3% | 64.9% | 79.2% | 75.3% |
| China Renji Medical Group Ltd/Hong Kong ($648) | 54.9% | 70.0% | 67.3% | 78.6% | 22.3% |
| Century Legend Holdings Ltd ($79) | 68.5% | 70.1% | 72.3% | 71.0% | 70.3% |
| |
|---|
| Median (39 companies) | 29.5% | 32.9% | 36.0% | 34.4% | 37.6% |
|---|
| C C Land Holdings Ltd ($1224) | 27.7% | 33.6% | 31.0% | 26.3% | 28.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Emperor International Holdings Ltd ($163) | 224.8% | 180.7% | 131.8% | 100.6% | 73.9% |
| Multifield International Holdings Ltd ($898) | 49.8% | 80.1% | 68.3% | 97.5% | |
| New Century Group Hong Kong Ltd ($234) | 82.5% | -5.5% | 78.8% | 58.3% | 85.0% |
| Magnificent Estates ($201) | 42.1% | 45.5% | 47.8% | 53.0% | 40.6% |
| China Merchants Holdings International Co Ltd ($144) | 63.7% | 56.4% | 50.8% | 45.2% | |
| |
|---|
| Median (44 companies) | 5.2% | 1.7% | 1.9% | 5.6% | 4.3% |
|---|
| C C Land Holdings Ltd ($1224) | 22.0% | 27.0% | 23.6% | 24.6% | 55.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Far East Holdings International Ltd ($36) | 2.7% | 0.1% | 13.2% | 422.1% | 0.8% |
| China Investments Holdings Ltd ($132) | 20.7% | 4.8% | 81.9% | 382.2% | 222.5% |
| Heng Fai Enterprises Ltd ($185) | 217.5% | 4.8% | 77.1% | 310.0% | 458.1% |
| New Century Group Hong Kong Ltd ($234) | 1.0% | 97.2% | 1.0% | 142.7% | 32.2% |
| Chinney Investments Ltd ($216) | 37.6% | 17.5% | 103.4% | 111.3% | 230.9% |
| |
|---|
| Median (44 companies) | 4.1% | 2.2% | 3.6% | 6.1% | 12.3% |
|---|
| C C Land Holdings Ltd ($1224) | 64.0% | 49.1% | 50.4% | 7.3% | 9.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wisdom Holdings Group ($1661) | 62.7% | 68.6% | 42.1% | 28.8% | |
| Chinney Alliance Group Ltd ($385) | 3.4% | 6.4% | 8.1% | 13.6% | |
| Hutchison Whampoa Ltd ($13) | 3.3% | 3.7% | 4.2% | 8.1% | |
| Code Agriculture Holdings Ltd ($8153) | -0.1% | 2.4% | -3.3% | 7.9% | -6.2% |
| Lippo Ltd ($226) | -0.7% | -0.5% | -0.8% | 7.5% | -1.4% |
| |
|---|
| Median (44 companies) | 0.3% | -0.2% | -0.2% | 0.5% | 0.2% |
|---|
| C C Land Holdings Ltd ($1224) | 4.5% | 7.4% | 5.3% | 7.9% | 15.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chinney Investments Ltd ($216) | 111.3x | 10.3x | 63.7x | 48.6x | 93.7x |
| Carnival Group International Holdings Ltd ($996) | | | | 23.7x | |
| Van Shung Chong Holdings Ltd ($1001) | 3.4x | | 0.9x | 12.3x | 7.7x |
| Southeast Asia Properties & Finance Ltd ($252) | 6.8x | 6.7x | 5.7x | 9.2x | 4.3x |
| Code Agriculture Holdings Ltd ($8153) | 24.3x | 11.9x | 42.8x | 8.7x | |
| |
|---|
| Median (26 companies) | 2.7x | 2.4x | 2.9x | 3.2x | 3.3x |
|---|
| C C Land Holdings Ltd ($1224) | 3.1x | 3.4x | 3.7x | 2.4x | -0.5x |
