Eye on China Resources Land Ltd as a growth stock: its revenue grew 32.6% and EBITDA 22.1% annually over the last three years
28/03/2016 • About China Resources Land Ltd (
$1109) • By InTwits
China Resources Land Ltd is a fast-growing stock in Real Estate industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
China Resources Land Ltd showed fast growth in the last financial year. The company's revenue surged on 15.3% in FY2015. In addition to revenue China Resources Land Ltd also keeps delivering EBITDA growth. It was 16.4% in FY2015
In the last 3 years the company showed fast revenue growth of 32.6% from 2012 to 2015 annualy. EBITDA surged on 22.1% from 2012 to 2015 annualy.
China Resources Land Ltd ($1109) financials for the last 5 years
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 35,795 | 44,364 | 71,389 | 89,705 | 103,393 |
|---|
| Revenue growth, % | | 23.9% | 60.9% | 25.7% | 15.3% |
|---|
| Gross margin, % | 39.6% | 37.6% | 28.2% | 30.5% | 31.2% |
|---|
| SG&A, % | 10.3% | 8.36% | 5.50% | 5.94% | 6.10% |
|---|
| EBITDA | 15,271 | 17,879 | 24,112 | 27,922 | 32,511 |
|---|
| EBITDA growth, % | | 17.1% | 34.9% | 15.8% | 16.4% |
|---|
| EBITDA margin, % | 42.7% | 40.3% | 33.8% | 31.1% | 31.4% |
|---|
| Net Income | 8,121 | 10,569 | 14,696 | 15,141 | 17,528 |
|---|
| Net Income margin, % | 22.7% | 23.8% | 20.6% | 16.9% | 17.0% |
|---|
| |
| CAPEX | 3,697 | 5,289 | 7,033 | 13,573 | 9,265 |
|---|
| CAPEX/Revenue, % | 10.3% | 11.9% | 9.85% | 15.1% | 8.96% |
|---|
| Debt | 63,767 | 56,569 | 68,036 | 93,920 | 77,616 |
|---|
| Cash | 15,792 | 21,953 | 28,239 | 44,857 | 45,875 |
|---|
| Net Debt/EBITDA | 3.1x | 1.9x | 1.7x | 1.8x | 1.0x |
|---|
| |
| ROIC, % | 12.8% | 12.3% | 14.7% | 13.5% | 13.9% |
|---|
| ROE, % | 15.2% | 16.3% | 19.1% | 15.9% | 15.9% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. China Resources Land Ltd showed small growth in EBITDA margin of 0.300 pp from 31.1% to 31.4% in 2015. In the longer period EBITDA margin dropped on 8.90 pp from 40.3% in 2012 to 31.4% in 2015.
China Resources Land Ltd shows attractive ROIC at 13.9% for the last 12 months which assumes stable development model. During the last three years it surged - it was 12.3% in FY2012. Average ROIC for the last three years was 14.1%.
Net Income margin increased slightly on 0.100 pp from 16.9% to 17% in 2015. In the last 3 years the company's Net Income margin dropped on 6.80 pp from 23.8% in 2012 to 17% in 2015.
China Resources Land Ltd operates at ROE of 15.9%. Average ROE for the last three years was 17.0%.
Capital expenditures (CAPEX)
To fuel this fast growth the company had to invest in CAPEX.The company's CAPEX/Revenue was 8.96% in FY2015. CAPEX/Revenue dropped on 2.96 pp from 11.9% in 2012 to 8.96% in 2015. It's average CAPEX/Revenue for the last three years was 11.3%.
Leverage (Debt)
China Resources Land Ltd has low debt level at 1.0x Net Debt/EBITDA - at the same time with high growth. In the last 3 years China Resources Land Ltd's leverage dropped on 0.96x from 1.94x in 2012 to 0.98x in 2015.
Peers in Real Estate
Below you can find China Resources Land 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 (173 companies) | 11.5% | 15.4% | 13.0% | 5.0% | 4.3% |
|---|
| China Resources Land Ltd ($1109) | | 23.9% | 60.9% | 25.7% | 15.3% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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% | |
| ITC Properties Group Ltd ($199) | 29.8% | 22.8% | 92.9% | 95.2% | 62.7% |
| |
|---|
| Median (155 companies) | 43.8% | 42.2% | 41.8% | 39.3% | 43.3% |
|---|
| China Resources Land Ltd ($1109) | 39.6% | 37.6% | 28.2% | 30.5% | 31.2% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 (173 companies) | 35.1% | 28.9% | 28.0% | 26.4% | 28.8% |
|---|
| China Resources Land Ltd ($1109) | 42.7% | 40.3% | 33.8% | 31.1% | 31.4% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 (174 companies) | 5.8% | 5.4% | 6.1% | 4.6% | 6.2% |
|---|
| China Resources Land Ltd ($1109) | 10.3% | 11.9% | 9.9% | 15.1% | 9.0% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 (177 companies) | 4.6% | 4.0% | 3.8% | 3.8% | 3.0% |
|---|
| China Resources Land Ltd ($1109) | 12.8% | 12.3% | 14.7% | 13.5% | 13.9% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 (140 companies) | 2.1x | 2.4x | 2.8x | 3.0x | 2.8x |
|---|
| China Resources Land Ltd ($1109) | 3.1x | 1.9x | 1.7x | 1.8x | 1.0x |
