Synergis Holdings Ltd revenue growth accelerated from 13.5% in 2014 to 28.4% in 2015
23/03/2016 • About Synergis Holdings Ltd (
$2340) • By InTwits
Synergis Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Synergis Holdings Ltd is a fast growth stock: 2015 revenue growth was 28.4%, 5 year revenue CAGR was 33.5% at 2015 ROIC 13.9%
- EBITDA Margin is relatively stable: 3.7% in 2015 vs. 4.1% in 2014 vs. 4.1% in 2011
- Synergis Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has highly profitable business model: ROIC is at 13.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Synergis Holdings Ltd ($2340) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 679 | 908 | 1,680 | 1,906 | 2,447 | 28.4% |
| Gross Profit | 106 | 134 | 180 | 186 | 186 | -0.1% |
| SG&A | | 110 | 122 | 121 | 108 | -10.8% |
| EBITDA | 28 | 34 | 77 | 78 | 90 | 15.5% |
| Net Income | 16 | 19 | 34 | 45 | 55 | 21.9% |
Balance Sheet
|
|---|
| Cash | 58 | 90 | 79 | 91 | 128 | 40.6% |
| Short Term Debt | 0 | 180 | 276 | 247 | 294 | 18.8% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 5 | 4 | 5 | 4 | 3 | -31.6% |
Ratios
|
|---|
| Revenue growth | 17.4% | 33.8% | 84.9% | 13.5% | 28.4% | |
| EBITDA growth | -4.7% | 23.0% | 125.1% | 0.6% | 15.5% | |
| Gross Margin | 15.6% | 14.7% | 10.7% | 9.8% | 7.6% | -2.2% |
| EBITDA Margin | 4.1% | 3.8% | 4.6% | 4.1% | 3.7% | -0.4% |
| Net Income Margin | 2.4% | 2.1% | 2.0% | 2.4% | 2.3% | -0.1% |
| SG&A, % of revenue | | 12.1% | 7.3% | 6.4% | 4.4% | -1.9% |
| CAPEX, % of revenue | 0.7% | 0.5% | 0.3% | 0.2% | 0.1% | -0.1% |
| ROIC | 16.3% | 10.0% | 13.3% | 12.3% | 13.9% | 1.7% |
| ROE | 12.9% | 11.5% | 16.6% | 20.0% | 21.7% | 1.7% |
| Net Debt/EBITDA | -2.1x | 2.6x | 2.6x | 2.0x | 1.8x | -0.2x |
Revenue and profitability
Synergis Holdings Ltd's Revenue surged on 28.4% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.59 pp from 13.1% to 13.7% in 2015.
Gross Margin decreased on 2.2 pp from 9.8% to 7.6% in 2015. SG&A as a % of Revenue decreased slightly on 1.9 pp from 6.4% to 4.4% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Synergis Holdings Ltd had CAPEX/Revenue of 0.11%. Synergis Holdings Ltd's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 0.20%.
Return on investment
The company operates at high and attractive ROE (21.66%) while ROIC is a bit lower (13.94%). ROIC increased slightly on 1.7 pp from 12.3% to 13.9% in 2015. ROE increased slightly on 1.7 pp from 20.0% to 21.7% in 2015.
Leverage (Debt)
Debt level is 1.8x Net Debt / EBITDA and 3.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 2.0x to 1.8x in 2015. Debt jumped on 18.8% in 2015 while cash surged on 40.6% in 2015.
Appendix 1: Peers in Real Estate
Below you can find Synergis 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 (175 companies) | 10.1% | 15.8% | 13.1% | 5.0% | 4.2% |
|---|
| Synergis Holdings Ltd ($2340) | | 33.8% | 84.9% | 13.5% | 28.4% |
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) | 44.2% | 42.2% | 41.9% | 39.3% | 43.0% |
|---|
| Synergis Holdings Ltd ($2340) | 15.6% | 14.7% | 10.7% | 9.8% | 7.6% |
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) | 35.4% | 29.7% | 28.3% | 27.8% | 28.8% |
|---|
| Synergis Holdings Ltd ($2340) | 4.1% | 3.8% | 4.6% | 4.1% | 3.7% |
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% |
|---|
| Synergis Holdings Ltd ($2340) | 0.7% | 0.5% | 0.3% | 0.2% | 0.1% |
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% | 2.7% |
|---|
| Synergis Holdings Ltd ($2340) | 16.3% | 10.0% | 13.3% | 12.3% | 13.9% |
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 |
|---|
| Synergis Holdings Ltd ($2340) | -2.1x | 2.6x | 2.6x | 2.0x | 1.8x |
