Golden Wheel Tiandi Holdings Co Ltd CAPEX surged on 155% in 2015 while Revenue dropped on 72.4%
29/03/2016 • About Golden Wheel Tiandi Holdings Co Ltd (
$1232) • By InTwits
Golden Wheel Tiandi Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Golden Wheel Tiandi Holdings Co Ltd is a company in decline: 2015 revenue growth was -72.4%, 5 years revenue CAGR was -13.8%
- EBITDA Margin is quite volatile: -38.9% in 2015, 27.3% in 2014, 22.7% in 2013, 43.4% in 2012, 35.4% in 2011
- Golden Wheel Tiandi Holdings Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 14.5%. At the same time it's a lot of higher than industry average of 8.5%.
- CAPEX is quite volatile: 62.8 in 2015, 24.6 in 2014, 227 in 2013, 24.7 in 2012, 71.4 in 2011
- The company has unprofitable business model: ROIC is at -1.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Golden Wheel Tiandi Holdings Co Ltd ($1232) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 524.5 | 963.7 | 871.3 | 831.1 | 229.5 | -72.4% |
| Gross Profit | 241.1 | 492.5 | 302.1 | 304.2 | 110.4 | -63.7% |
| SG&A | 59.1 | 70.0 | 103.2 | 114.3 | 138.1 | 20.9% |
| EBITDA | 185.5 | 418.4 | 197.5 | 226.7 | -89.3 | -139.4% |
| Net Income | 498.5 | 276.9 | 316.1 | 234.4 | 13.0 | -94.5% |
Balance Sheet
|
|---|
| Cash | 196.6 | 98.7 | 790.6 | 334.1 | 876.3 | 162.3% |
| Short Term Debt | 109.1 | 192.3 | 475.2 | 1,102.5 | 1,533.5 | 39.1% |
| Long Term Debt | 344.6 | 309.6 | 1,348.4 | 979.9 | 1,497.5 | 52.8% |
Cash flow
|
|---|
| Capex | 71.4 | 24.7 | 227.5 | 24.6 | 62.8 | 155.2% |
Ratios
|
|---|
| Revenue growth | 8.5% | 83.7% | -9.6% | -4.6% | -72.4% | |
| EBITDA growth | 93.1% | 125.6% | -52.8% | 14.8% | -139.4% | |
| Gross Margin | 46.0% | 51.1% | 34.7% | 36.6% | 48.1% | 11.5% |
| EBITDA Margin | 35.4% | 43.4% | 22.7% | 27.3% | -38.9% | -66.2% |
| Net Income Margin | 95.0% | 28.7% | 36.3% | 28.2% | 5.7% | -22.5% |
| SG&A, % of revenue | 11.3% | 7.3% | 11.8% | 13.8% | 60.2% | 46.4% |
| CAPEX, % of revenue | 13.6% | 2.6% | 26.1% | 3.0% | 27.4% | 24.4% |
| ROIC | 6.2% | 11.2% | 3.7% | 3.4% | -1.4% | -4.8% |
| ROE | 28.4% | 11.8% | 10.1% | 6.5% | 0.4% | -6.1% |
| Net Debt/EBITDA | 1.4x | 1.0x | 5.2x | 7.7x | | -7.7x |
Revenue and profitability
The company's Revenue dropped on 72.4% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 66.2 pp from 27.3% to -38.9% in 2015.
Gross Margin jumped on 11.5 pp from 36.6% to 48.1% in 2015. SG&A as a % of Revenue surged on 46.4 pp from 13.8% to 60.2% in 2015.
Net Income marign dropped on 22.5 pp from 28.2% to 5.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
Golden Wheel Tiandi Holdings Co Ltd's CAPEX/Revenue was 27.4% in 2015. CAPEX/Revenue surged on 24.8 pp from 2.6% in 2012 to 27.4% in 2015. For the last three years the average CAPEX/Revenue was 18.8%.
Return on investment
The company operates at negative ROIC (-1.41%) and low but positive ROE (0.35%). ROIC decreased on 4.8 pp from 3.4% to -1.4% in 2015. ROE decreased on 6.1 pp from 6.5% to 0.35% in 2015.
Leverage (Debt)
Debt level is -13.9x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 7.7x from 7.7x to in 2015. Debt surged on 45.5% in 2015 while cash jumped on 162% in 2015.
Appendix 1: Peers in Real Estate
Below you can find Golden Wheel Tiandi Holdings Co 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% | 15.8% | 14.0% | 5.3% | 3.9% |
|---|
| Golden Wheel Tiandi Holdings Co Ltd ($1232) | | 83.7% | -9.6% | -4.6% | -72.4% |
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) | 43.8% | 41.8% | 41.9% | 39.3% | 41.7% |
|---|
| Golden Wheel Tiandi Holdings Co Ltd ($1232) | 46.0% | 51.1% | 34.7% | 36.6% | 48.1% |
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% | 29.1% | 28.5% | 27.4% | 26.5% |
|---|
| Golden Wheel Tiandi Holdings Co Ltd ($1232) | 35.4% | 43.4% | 22.7% | 27.3% | -38.9% |
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% | 5.7% | 6.1% | 4.8% | 3.9% |
|---|
| Golden Wheel Tiandi Holdings Co Ltd ($1232) | 13.6% | 2.6% | 26.1% | 3.0% | 27.4% |
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% | 4.1% | 4.1% | 4.2% | 2.9% |
|---|
| Golden Wheel Tiandi Holdings Co Ltd ($1232) | 6.2% | 11.2% | 3.7% | 3.4% | -1.4% |
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 (118 companies) | 2.2x | 2.4x | 2.7x | 3.0x | 3.6x |
|---|
