Modern Land China Co Ltd's fundamentals demonstrate strong growth profile
29/03/2016 • About Modern Land China Co Ltd (
$1107) • By InTwits
Modern Land China Co Ltd is a growth stock in Home Builders industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Modern Land China Co Ltd showed growth in the last financial year. Modern Land China Co Ltd's revenue surged on 55.7% in FY2015. EBITDA also increased considerably: 20.4% for the same period.
In the last 3 years Modern Land China Co Ltd showed fast revenue growth of 47.8% from 2012 to 2015 annualy. EBITDA surged on 24.5% from 2012 to 2015 annualy.
Modern Land China Co Ltd ($1107) financials for the last 5 years
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 3,153 | 1,965 | 3,469 | 4,079 | 6,350 |
|---|
| Revenue growth, % | | -37.7% | 76.5% | 17.6% | 55.7% |
|---|
| Gross margin, % | 42.8% | 44.4% | 39.5% | 40.6% | 30.9% |
|---|
| SG&A, % | 9.92% | 13.8% | 10.8% | 11.0% | 7.17% |
|---|
| EBITDA | 1,052 | 781 | 1,020 | 1,252 | 1,507 |
|---|
| EBITDA growth, % | | -25.7% | 30.5% | 22.8% | 20.4% |
|---|
| EBITDA margin, % | 33.4% | 39.8% | 29.4% | 30.7% | 23.7% |
|---|
| Net Income | 432 | 471 | 529 | 521 | 578 |
|---|
| Net Income margin, % | 13.7% | 24.0% | 15.2% | 12.8% | 9.10% |
|---|
| |
| CAPEX | 175 | 116 | 112 | 18 | 15 |
|---|
| CAPEX/Revenue, % | 5.54% | 5.91% | 3.24% | 0.439% | 0.242% |
|---|
| Debt | 2,023 | 1,110 | 2,159 | 4,507 | 5,392 |
|---|
| Cash | 283 | 788 | 2,744 | 2,798 | 2,521 |
|---|
| Net Debt/EBITDA | 1.7x | 0.4x | -0.6x | 1.4x | 1.9x |
|---|
| |
| ROIC, % | 28.6% | 20.5% | 21.4% | 16.4% | 14.8% |
|---|
| ROE, % | 40.7% | 37.0% | 26.6% | 19.5% | 17.4% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. In the last 3 years EBITDA margin dropped on 16.1 pp from 39.8% in 2012 to 23.7% in 2015.
Modern Land China Co Ltd shows attractive ROIC at 14.8% for the last 12 months which assumes stable development model. Three years ago it was higher at 20.5%. Average ROIC for the last three years was 17.5%.
Modern Land China Co Ltd's Net Income margin dropped on 3.70 pp from 12.8% to 9.10% in 2015. In the last 3 years the company showed big decline in Net Income margin of 14.9 pp from 24% in 2012 to 9.10% in 2015.
Modern Land China Co Ltd operates at ROE of 17.4%. It's average ROE for the last three years was 21.2%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 0.242% in FY2015. Modern Land China Co Ltd's CAPEX/Revenue dropped on 5.67 pp from 5.91% in 2012 to 0.242% in 2015. It's average CAPEX/Revenue for the last three years was 1.31%.
Leverage (Debt)
Modern Land China Co Ltd has medium debt level at 1.9x Net Debt/EBITDA to maintain high growth. If we look for the longer period Modern Land China Co Ltd showed fast leverage growth of 1.49x from 0.41x in 2012 to 1.91x in 2015.
Peers in Home Builders
Below you can find Modern Land China Co Ltd benchmarking vs. other companies in Home Builders 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 |
|---|
| Baoye Group Co Ltd ($2355) | | 6.7% | 1.6% | 7.7% | -3.6% |
| |
|---|
| Median (1 company) | | 6.7% | 1.6% | 7.7% | -3.6% |
|---|
| Modern Land China Co Ltd ($1107) | | -37.7% | 76.5% | 17.6% | 55.7% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Baoye Group Co Ltd ($2355) | 8.3% | 8.5% | 6.9% | 6.2% | 6.8% |
| |
|---|
| Median (1 company) | 8.3% | 8.5% | 6.9% | 6.2% | 6.8% |
|---|
| Modern Land China Co Ltd ($1107) | 42.8% | 44.4% | 39.5% | 40.6% | 30.9% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Baoye Group Co Ltd ($2355) | 7.3% | 7.6% | 5.6% | 5.1% | 5.5% |
| |
|---|
| Median (1 company) | 7.3% | 7.6% | 5.6% | 5.1% | 5.5% |
|---|
| Modern Land China Co Ltd ($1107) | 33.4% | 39.8% | 29.4% | 30.7% | 23.7% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Baoye Group Co Ltd ($2355) | 1.3% | 1.3% | 1.3% | 0.9% | 0.9% |
| |
|---|
| Median (1 company) | 1.3% | 1.3% | 1.3% | 0.9% | 0.9% |
|---|
| Modern Land China Co Ltd ($1107) | 5.5% | 5.9% | 3.2% | 0.4% | 0.2% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Baoye Group Co Ltd ($2355) | 18.3% | 17.7% | 12.4% | 11.2% | 11.7% |
| |
|---|
| Median (1 company) | 18.3% | 17.7% | 12.4% | 11.2% | 11.7% |
|---|
| Modern Land China Co Ltd ($1107) | 28.6% | 20.5% | 21.4% | 16.4% | 14.8% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Baoye Group Co Ltd ($2355) | -0.2x | -0.6x | -1.2x | -1.4x | -2.6x |
| |
|---|
| Median (1 company) | -0.2x | -0.6x | -1.2x | -1.4x | -2.6x |
|---|
| Modern Land China Co Ltd ($1107) | 1.7x | 0.4x | -0.6x | 1.4x | 1.9x |
