Beijing North Star Co Ltd Debt surged on 34.9% in 2015 and Net Debt / EBITDA jumped on 2.4x from 5.8x to 8.3x
30/03/2016 • About Beijing North Star Co Ltd (
$588) • By InTwits
Beijing North Star Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Beijing North Star Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's a lot of higher than industry average of 3.6%.
- CAPEX is quite volatile: 55.3 in 2015, 194 in 2014, 167 in 2013, 48.7 in 2012, 82.9 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Beijing North Star Co Ltd ($588) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,969 | 5,736 | 5,505 | 6,234 | 7,186 | 15.3% |
| Gross Profit | 1,962 | 2,421 | 2,523 | 2,767 | 2,798 | 1.1% |
| SG&A | 706 | 886 | 886 | 1,018 | 1,092 | 7.2% |
| EBITDA | 2,163 | 1,954 | 1,813 | 2,062 | 1,889 | -8.4% |
| Net Income | 1,173 | 970 | 800 | 780 | 761 | -2.5% |
Balance Sheet
|
|---|
| Cash | 2,808 | 2,577 | 3,196 | 4,053 | 6,104 | 50.6% |
| Short Term Debt | 2,279 | 4,318 | 3,420 | 2,460 | 4,651 | 89.1% |
| Long Term Debt | 9,034 | 7,255 | 9,504 | 13,650 | 17,085 | 25.2% |
Cash flow
|
|---|
| Capex | 83 | 49 | 167 | 194 | 55 | -71.5% |
Ratios
|
|---|
| Revenue growth | -28.7% | 44.5% | -4.0% | 13.2% | 15.3% | |
| EBITDA growth | -4.5% | -9.7% | -7.2% | 13.7% | -8.4% | |
| Gross Margin | 49.4% | 42.2% | 45.8% | 44.4% | 38.9% | -5.4% |
| EBITDA Margin | 54.5% | 34.1% | 32.9% | 33.1% | 26.3% | -6.8% |
| Net Income Margin | 29.5% | 16.9% | 14.5% | 12.5% | 10.6% | -1.9% |
| SG&A, % of revenue | 17.8% | 15.5% | 16.1% | 16.3% | 15.2% | -1.1% |
| CAPEX, % of revenue | 2.1% | 0.8% | 3.0% | 3.1% | 0.8% | -2.3% |
| ROIC | 7.8% | 6.5% | 5.6% | 5.9% | 4.6% | -1.3% |
| ROE | 8.8% | 6.7% | 5.3% | 5.0% | 4.7% | -0.3% |
| Net Debt/EBITDA | 3.9x | 4.6x | 5.4x | 5.8x | 8.3x | 2.4x |
Revenue and profitability
Beijing North Star Co Ltd's Revenue jumped on 15.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.96 pp from 21.9% to 22.8% in 2015.
Gross Margin decreased on 5.4 pp from 44.4% to 38.9% in 2015. SG&A as a % of Revenue decreased slightly on 1.1 pp from 16.3% to 15.2% in 2015.
Net Income marign decreased slightly on 1.9 pp from 12.5% to 10.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.77%. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 2.3%.
Return on investment
The company operates at low ROIC (4.56%) and ROE (4.67%). ROIC decreased slightly on 1.3 pp from 5.9% to 4.6% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 8.3x and Debt / EBITDA is 11.5x. Net Debt / EBITDA jumped on 2.4x from 5.8x to 8.3x in 2015. Debt surged on 34.9% in 2015 while cash jumped on 50.6% in 2015.
Appendix 1: Peers in Real Estate
Below we provide Beijing North Star Co 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 |
|---|
| 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 (167 companies) | 34.7% | 15.8% | 14.0% | 5.2% | 4.0% |
|---|
| Beijing North Star Co Ltd ($588) | | 44.5% | -4.0% | 13.2% | 15.3% |
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 (148 companies) | 43.7% | 41.8% | 41.1% | 38.9% | 41.3% |
|---|
| Beijing North Star Co Ltd ($588) | 49.4% | 42.2% | 45.8% | 44.4% | 38.9% |
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 (167 companies) | 35.4% | 28.9% | 28.3% | 26.4% | 24.5% |
|---|
| Beijing North Star Co Ltd ($588) | 54.5% | 34.1% | 32.9% | 33.1% | 26.3% |
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% |
| Madex International Holdings Ltd ($231) | 586.8% | 174.5% | 519.7% | 205.3% | 350.6% |
| 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% |
| |
|---|
| Median (168 companies) | 5.9% | 5.6% | 6.1% | 4.7% | 3.9% |
|---|
| Beijing North Star Co Ltd ($588) | 2.1% | 0.8% | 3.0% | 3.1% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hydoo International Holding Ltd ($1396) | 88.4% | 44.3% | 62.0% | 12.9% | 16.6% |
| 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% |
| |
|---|
| Median (169 companies) | 4.6% | 4.2% | 4.0% | 4.2% | 2.7% |
|---|
| Beijing North Star Co Ltd ($588) | 7.8% | 6.5% | 5.6% | 5.9% | 4.6% |
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 |
| Wuzhou International Holdings Ltd ($1369) | 1.1x | 1.3x | 1.5x | 4.3x | 36.8x |
| |
|---|
| Median (128 companies) | 2.1x | 2.2x | 2.7x | 2.9x | 3.2x |
|---|
| Beijing North Star Co Ltd ($588) | 3.9x | 4.6x | 5.4x | 5.8x | 8.3x |
