YT Realty Group Ltd EBITDA Margin jumped on 93.0 pp from -17.7% to 75.3% in 2015 and Revenue increased on 3.2%
23/03/2016 • About YT Realty Group Ltd (
$75) • By InTwits
YT Realty Group 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: 75.3% in 2015, -17.7% in 2014, -15.8% in 2013, -15.0% in 2012, -16.0% in 2011
- YT Realty Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's in pair with industry average of 3.7%.
- CAPEX is quite volatile: 4.9 in 2015, 2.5 in 2014, 2.0 in 2013, 2.1 in 2012, 3.9 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
YT Realty Group Ltd ($75) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 160.5 | 183.3 | 200.8 | 211.8 | 218.7 | 3.2% |
| Gross Profit | 146.8 | 173.1 | 193.9 | 204.8 | 213.4 | 4.2% |
| SG&A | | | | 46.2 | 49.5 | 7.1% |
| EBITDA | -25.6 | -27.5 | -31.7 | -37.4 | 164.8 | -540.7% |
| Net Income | 430.8 | 475.2 | 584.7 | 482.3 | 534.4 | 10.8% |
Balance Sheet
|
|---|
| Cash | 71.7 | 138.8 | 250.2 | 380.7 | 417.1 | 9.6% |
| Short Term Debt | 73.0 | 43.0 | 31.5 | 20.0 | 81.6 | 308.0% |
| Long Term Debt | 176.1 | 133.1 | 101.6 | 81.6 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 3.9 | 2.1 | 2.0 | 2.5 | 4.9 | 93.3% |
Ratios
|
|---|
| Revenue growth | 10.5% | 14.2% | 9.5% | 5.5% | 3.2% | |
| EBITDA growth | 2.3% | 7.3% | 15.4% | 17.8% | -540.7% | |
| Gross Margin | 91.5% | 94.4% | 96.6% | 96.7% | 97.6% | 0.9% |
| EBITDA Margin | -16.0% | -15.0% | -15.8% | -17.7% | 75.3% | 93.0% |
| Net Income Margin | 268.5% | 259.3% | 291.3% | 227.7% | 244.3% | 16.7% |
| SG&A, % of revenue | | | | 21.8% | 22.6% | 0.8% |
| CAPEX, % of revenue | 2.5% | 1.1% | 1.0% | 1.2% | 2.2% | 1.0% |
| ROIC | -0.5% | -0.6% | -0.6% | -0.6% | 2.5% | 3.2% |
| ROE | 9.9% | 10.0% | 11.0% | 8.3% | 8.4% | 0.1% |
| Net Debt/EBITDA | | | | | -2.0x | -2.0x |
Revenue and profitability
The company's Revenue increased on 3.2% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 93.0 pp from -17.7% to 75.3% in 2015.
Gross Margin increased slightly on 0.88 pp from 96.7% to 97.6% in 2015. SG&A as a % of Revenue increased slightly on 0.82 pp from 21.8% to 22.6% in 2015.
Net Income marign surged on 16.7 pp from 228% to 244% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 YT Realty Group Ltd had CAPEX/Revenue of 2.2%. CAPEX/Revenue increased slightly on 1.1 pp from 1.1% in 2012 to 2.2% in 2015. For the last three years the average CAPEX/Revenue was 1.5%.
Return on investment
The company operates at low ROIC (2.53%) and ROE (8.45%). ROIC increased on 3.2 pp from -0.63% to 2.5% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.0x and Debt / EBITDA is 0.5x. Net Debt / EBITDA dropped2.0x from to -2.0x in 2015. Debt dropped on 19.7% in 2015 while cash increased on 9.6% in 2015.
Appendix 1: Peers in Real Estate
Below we provide YT Realty Group 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% | 14.0% | 5.0% | 4.5% |
|---|
| YT Realty Group Ltd ($75) | | 14.2% | 9.5% | 5.5% | 3.2% |
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% |
| ITC Properties Group Ltd ($199) | 29.8% | 22.8% | 92.9% | 95.2% | 62.7% |
| Allied Properties HK Ltd ($56) | 94.3% | 95.0% | 94.3% | 93.5% | 92.0% |
| |
|---|
| Median (157 companies) | 43.8% | 41.9% | 41.8% | 39.1% | 42.6% |
|---|
| YT Realty Group Ltd ($75) | 91.5% | 94.4% | 96.6% | 96.7% | 97.6% |
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% | 28.7% |
|---|
| YT Realty Group Ltd ($75) | -16.0% | -15.0% | -15.8% | -17.7% | 75.3% |
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% |
|---|
| YT Realty Group Ltd ($75) | 2.5% | 1.1% | 1.0% | 1.2% | 2.2% |
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% | 4.2% | 4.0% | 4.1% | 2.9% |
|---|
| YT Realty Group Ltd ($75) | -0.5% | -0.6% | -0.6% | -0.6% | 2.5% |
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 (142 companies) | 2.1x | 2.2x | 2.7x | 3.0x | 3.2x |
|---|
