Ceneric Holdings Ltd reports 210% Net Income decline while 4.0% Revenue growth
29/03/2016 • About Ceneric Holdings Ltd (
$542) • By InTwits
Ceneric Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ceneric Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -1.7%
- Ceneric Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 21.1%. At the same time it's in pair with industry average of 192.9%.
- CAPEX is quite volatile: 0.26 in 2015, 15.8 in 2014, 1.7 in 2013, 2.5 in 2012, 7.2 in 2011
- The company has unprofitable business model: ROIC is at -1.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ceneric Holdings Ltd ($542) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 33.522 | 8.754 | 4.398 | 88.950 | 92.493 | 4.0% |
| Gross Profit | 8.282 | 0.369 | 2.453 | 76.362 | 84.177 | 10.2% |
| SG&A | | | 57.017 | 91.334 | 122.280 | 33.9% |
| EBITDA | -1.993 | -33.503 | -45.036 | 112.761 | 66.131 | -41.4% |
| Net Income | 6.891 | 94.927 | -42.642 | 44.978 | -49.491 | -210.0% |
Balance Sheet
|
|---|
| Cash | 391.918 | 477.344 | 202.894 | 67.454 | 53.955 | -20.0% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 43.143 | 7.627 | -82.3% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 379.056 | 362.512 | -4.4% |
Cash flow
|
|---|
| Capex | 7.157 | 2.518 | 1.651 | 15.823 | 0.260 | -98.4% |
Ratios
|
|---|
| Revenue growth | -94.0% | -73.9% | -49.8% | 1,922.5% | 4.0% | |
| EBITDA growth | -77.7% | 1,581.0% | 34.4% | -350.4% | -41.4% | |
| Gross Margin | 24.7% | 4.2% | 55.8% | 85.8% | 91.0% | 5.2% |
| EBITDA Margin | -5.9% | -382.7% | -1,024.0% | 126.8% | 71.5% | -55.3% |
| Net Income Margin | 20.6% | 1,084.4% | -969.6% | 50.6% | -53.5% | -104.1% |
| SG&A, % of revenue | | | 1,296.4% | 102.7% | 132.2% | 29.5% |
| CAPEX, % of revenue | 21.4% | 28.8% | 37.5% | 17.8% | 0.3% | -17.5% |
| ROIC | -1.1% | -6.5% | -8.2% | 6.2% | -1.7% | -7.8% |
| ROE | 2.0% | 18.6% | -7.7% | 8.1% | -9.1% | -17.2% |
| Net Debt/EBITDA | | | | 3.1x | 4.8x | 1.6x |
Revenue and profitability
Ceneric Holdings Ltd's Revenue increased on 4.0% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 38.0 pp from 17.5% to 55.5% in FY2015.
Gross Margin increased on 5.2 pp from 85.8% to 91.0% in 2015. SG&A as a % of Revenue jumped on 29.5 pp from 103% to 132% in 2015.
Net Income marign dropped on 104 pp from 50.6% to -53.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.28% in 2015. Ceneric Holdings Ltd's CAPEX/Revenue dropped on 28.5 pp from 28.8% in 2012 to 0.28% in 2015. For the last three years the average CAPEX/Revenue was 18.5%.
Return on investment
The company operates at negative ROIC (-1.69%) and ROE (-9.14%). ROIC decreased on 7.8 pp from 6.2% to -1.7% in 2015. ROE dropped on 17.2 pp from 8.1% to -9.1% in 2015.
Leverage (Debt)
Debt level is 4.8x Net Debt / EBITDA and 5.6x Debt / EBITDA. Net Debt / EBITDA surged on 1.6x from 3.1x to 4.8x in 2015. Debt dropped on 12.3% in 2015 while cash dropped on 20.0% in 2015.
Appendix 1: Peers in Real Estate
Below you can find Ceneric 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 |
|---|
| Guangdong Land Holdings Ltd ($124) | | | | | 24,971.2% |
| Wanda Hotel Development Co Ltd ($169) | | | -51.4% | -86.2% | 1,071.2% |
| Henderson Investment Ltd ($97) | | -78.9% | | | 737.1% |
| ITC Properties Group Ltd ($199) | | -70.5% | -95.2% | 75.7% | 678.6% |
| LT Commercial Real Estate Ltd ($112) | | 30.5% | -53.9% | -83.4% | 662.4% |
| |
|---|
| Median (150 companies) | 12.6% | 16.4% | 14.0% | 5.2% | 3.9% |
|---|
| Ceneric Holdings Ltd ($542) | | -73.9% | -49.8% | 1,922.5% | 4.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Renhe Commercial Holdings Co Ltd ($1387) | 71.1% | 79.0% | 95.2% | 97.9% | 99.9% |
| Tern Properties Co Ltd ($277) | 96.9% | 96.7% | 98.4% | 98.4% | 98.7% |
| YT Realty Group Ltd ($75) | 91.5% | 94.4% | 96.6% | 96.7% | 97.6% |
| Wah Ha Realty Co Ltd ($278) | 88.7% | 96.3% | 96.0% | 93.2% | 95.9% |
| Soundwill Holdings Ltd ($878) | 35.6% | 53.1% | 74.5% | 46.9% | 95.7% |
| |
|---|
| Median (132 companies) | 44.2% | 41.9% | 41.8% | 39.1% | 41.7% |
|---|
| Ceneric Holdings Ltd ($542) | 24.7% | 4.2% | 55.8% | 85.8% | 91.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chinese Estates Holdings Ltd ($127) | 340.9% | 356.2% | 91.6% | 195.5% | 397.4% |
| SOHO China Ltd ($410) | 113.8% | 113.6% | 80.8% | 104.0% | 201.9% |
| Beijing Properties Holdings Ltd ($925) | 33.2% | -606.3% | 2,162.6% | 224.3% | 186.5% |
| Swire Properties Ltd ($1972) | 283.7% | 154.5% | 114.6% | 73.2% | 100.3% |
| Tern Properties Co Ltd ($277) | 82.9% | 103.0% | 112.8% | 78.4% | 86.9% |
| |
|---|
| Median (150 companies) | 35.5% | 29.7% | 28.5% | 26.9% | 26.0% |
|---|
| Ceneric Holdings Ltd ($542) | -5.9% | -382.7% | -1,024.0% | 126.8% | 71.5% |
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% | 4,834.8% |
| China Oceanwide Holdings Ltd ($715) | 0.4% | 0.8% | 0.3% | 2.0% | 880.6% |
| Pacific Century Premium Developments Ltd ($432) | 6.5% | 2.9% | 323.1% | 351.2% | 340.6% |
| Hon Kwok Land Investment Co Ltd ($160) | 90.6% | 20.6% | 157.3% | 144.5% | 296.3% |
| Silver Grant International Industries Ltd ($171) | 100.8% | 134.5% | 193.1% | 204.1% | 280.7% |
| |
|---|
| Median (151 companies) | 5.8% | 5.5% | 6.1% | 4.7% | 4.5% |
|---|
| Ceneric Holdings Ltd ($542) | 21.4% | 28.8% | 37.5% | 17.8% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gemdale Properties & Investment Corp Ltd ($535) | 8.9% | 15.3% | 19.6% | 10.8% | 15.9% |
| China Overseas Land & Investment Ltd ($688) | 18.0% | 18.4% | 15.1% | 18.5% | 15.4% |
| Colour Life Services Group Co Ltd ($1778) | | 44.2% | 47.9% | 29.3% | 14.5% |
| Dalian Wanda Commercial Properties Co Ltd ($3699) | | 26.8% | 19.6% | 12.3% | 14.4% |
| China Vanke Co Ltd ($2202) | 16.8% | 17.8% | 13.5% | 14.6% | 14.1% |
| |
|---|
| Median (152 companies) | 4.6% | 4.2% | 4.1% | 4.1% | 2.9% |
|---|
| Ceneric Holdings Ltd ($542) | -1.1% | -6.5% | -8.2% | 6.2% | -1.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shui On Land Ltd ($272) | 7.9x | 22.1x | 13.2x | 17.1x | 54.2x |
| Beijing Capital Land Ltd ($2868) | 2.9x | 7.1x | 4.6x | 11.7x | 49.1x |
| Sunshine 100 China Holdings Ltd ($2608) | 19.8x | 9.9x | 12.4x | 12.9x | 42.3x |
| Greenland Hong Kong Holdings Ltd ($337) | 3.7x | | 6.2x | 49.3x | 38.4x |
| LVGEM China Real Estate Invest ($95) | 21.5x | 24.4x | | 2.9x | 16.7x |
| |
|---|
| Median (117 companies) | 2.1x | 2.3x | 2.7x | 3.0x | 3.4x |
|---|
| Ceneric Holdings Ltd ($542) | | | | 3.1x | 4.8x |
