Beijing Properties Holdings Ltd reports 54.9% Net Income growth while 37.8 pp EBITDA Margin decline from 224% to 187%
24/03/2016 • About Beijing Properties Holdings Ltd (
$925) • By InTwits
Beijing Properties 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: 186.5% in 2015, 224.3% in 2014, 2,162.6% in 2013, -606.3% in 2012, 33.2% in 2011
- Beijing Properties Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 84.2%. At the same time it's in pair with industry average of 3.9%.
- CAPEX is quite volatile: 296 in 2015, 374 in 2014, 40.1 in 2013, 0.95 in 2012, 258 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Beijing Properties Holdings Ltd ($925) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,541 | 11 | 36 | 203 | 297 | 46.1% |
| Gross Profit | 606 | 7 | 32 | 167 | 231 | 38.8% |
| SG&A | 66 | 87 | 117 | 186 | 209 | 12.6% |
| EBITDA | 512 | -67 | 775 | 455 | 553 | 21.5% |
| Net Income | 115 | -98 | 701 | 167 | 258 | 54.9% |
Balance Sheet
|
|---|
| Cash | 445 | 184 | 49 | 228 | 769 | 237.5% |
| Short Term Debt | 1,732 | 1,470 | 210 | 845 | 1,808 | 114.0% |
| Long Term Debt | 155 | 35 | 905 | 1,851 | 2,896 | 56.5% |
Cash flow
|
|---|
| Capex | 258 | 1 | 40 | 374 | 296 | -20.8% |
Ratios
|
|---|
| Revenue growth | 1,005.2% | -99.3% | 225.7% | 466.2% | 46.1% | |
| EBITDA growth | -418.8% | -113.0% | -1,261.6% | -41.3% | 21.5% | |
| Gross Margin | 39.3% | 66.1% | 89.1% | 82.1% | 78.0% | -4.1% |
| EBITDA Margin | 33.2% | -606.3% | 2,162.6% | 224.3% | 186.5% | -37.8% |
| Net Income Margin | 7.4% | -888.2% | 1,955.4% | 82.2% | 87.1% | 4.9% |
| SG&A, % of revenue | 4.3% | 788.1% | 327.0% | 91.6% | 70.6% | -21.0% |
| CAPEX, % of revenue | 16.8% | 8.7% | 111.9% | 184.0% | 99.7% | -84.3% |
| ROIC | 16.3% | -2.4% | 20.0% | 6.8% | 5.8% | -1.0% |
| ROE | 10.9% | -8.2% | 30.6% | 4.4% | 6.2% | 1.8% |
| Net Debt/EBITDA | 2.8x | | 1.4x | 5.4x | 7.1x | 1.7x |
Revenue and profitability
Beijing Properties Holdings Ltd's Revenue jumped on 46.1% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 18.6 pp from -29.1% to -10.5% in FY2015.
Gross Margin decreased on 4.1 pp from 82.1% to 78.0% in 2015. SG&A as a % of Revenue dropped on 21.0 pp from 91.6% to 70.6% in 2015.
Net Income marign increased on 4.9 pp from 82.2% to 87.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Beijing Properties Holdings Ltd had CAPEX/Revenue of 99.7%. CAPEX/Revenue jumped on 91.1 pp from 8.7% in 2012 to 99.7% in 2015. It's average level of CAPEX/Revenue for the last three years was 132%.The company invested a big chunk of EBITDA (53.5%) to CAPEX to secure its growth.
Return on investment
The company operates at low ROIC (5.80%) and ROE (6.17%). ROIC decreased slightly on 0.98 pp from 6.8% to 5.8% in 2015. ROE increased slightly on 1.8 pp from 4.4% to 6.2% in 2015.
Leverage (Debt)
Debt level is 7.1x Net Debt / EBITDA and 8.5x Debt / EBITDA. Net Debt / EBITDA jumped on 1.7x from 5.4x to 7.1x in 2015. Debt surged on 74.5% in 2015 while cash jumped on 238% in 2015.
Appendix 1: Peers in Real Estate
Below we provide Beijing Properties Holdings 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) | | -27.5% | -21.9% | 3,008.3% | -77.4% |
| 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 (177 companies) | 11.5% | 16.4% | 13.1% | 5.2% | 4.1% |
|---|
| Beijing Properties Holdings Ltd ($925) | | -99.3% | 225.7% | 466.2% | 46.1% |
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 (159 companies) | 44.2% | 41.8% | 41.8% | 39.1% | 42.9% |
|---|
| Beijing Properties Holdings Ltd ($925) | 39.3% | 66.1% | 89.1% | 82.1% | 78.0% |
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% |
| 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% | |
| Sino Land Co Ltd ($83) | 152.4% | 107.7% | 94.3% | 116.3% | 38.3% |
| |
|---|
| Median (176 companies) | 35.5% | 29.7% | 28.3% | 26.9% | 26.9% |
|---|
| Beijing Properties Holdings Ltd ($925) | 33.2% | -606.3% | 2,162.6% | 224.3% | 186.5% |
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 (178 companies) | 5.8% | 5.5% | 6.1% | 4.7% | 3.9% |
|---|
| Beijing Properties Holdings Ltd ($925) | 16.8% | 8.7% | 111.9% | 184.0% | 99.7% |
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% | 1.8% |
| China Vast Industrial Urban Development Co Ltd ($6166) | | 2.2% | 19.7% | 19.8% | 9.1% |
| Zall Development Group Ltd ($2098) | 39.0% | 19.2% | 17.6% | 18.7% | |
| |
|---|
| Median (181 companies) | 4.6% | 4.2% | 4.0% | 4.1% | 2.8% |
|---|
| Beijing Properties Holdings Ltd ($925) | 16.3% | -2.4% | 20.0% | 6.8% | 5.8% |
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 (143 companies) | 2.1x | 2.3x | 2.8x | 3.0x | 3.2x |
|---|
| Beijing Properties Holdings Ltd ($925) | 2.8x | | 1.4x | 5.4x | 7.1x |
