China Properties Group Ltd EBITDA dropped on 753% in 2015 and Revenue dropped on 70.1%
30/03/2016 • About China Properties Group Ltd (
$1838) • By InTwits
China Properties Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Properties Group Ltd is a company in decline: 2015 revenue growth was -70.1%, 5 years revenue CAGR was -15.7%
- EBITDA Margin is quite volatile: -34.1% in 2015, 1.6% in 2014, 30.7% in 2013, 19.5% in 2012, 22.0% in 2011
- China Properties Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 49.5%. At the same time it's in pair with industry average of 57.1%.
- CAPEX is quite volatile: 148 in 2015, 41.8 in 2014, 270 in 2013, 89.8 in 2012, 264 in 2011
- The company has unprofitable business model: ROIC is at -0.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Properties Group Ltd ($1838) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 984 | 693 | 1,045 | 294 | 88 | -70.1% |
| Gross Profit | 357 | 263 | 444 | 144 | 48 | -66.6% |
| SG&A | 144 | 134 | 168 | 147 | 81 | -44.9% |
| EBITDA | 217 | 135 | 321 | 5 | -30 | -753.2% |
| Net Income | 1,999 | 1,757 | 1,132 | 1,910 | 1,531 | -19.9% |
Balance Sheet
|
|---|
| Cash | 1,192 | 49 | 773 | 628 | 218 | -65.3% |
| Short Term Debt | 989 | 3,148 | 3,067 | 2,372 | 1,790 | -24.5% |
| Long Term Debt | 3,859 | 2,699 | 4,574 | 5,258 | 5,796 | 10.2% |
Cash flow
|
|---|
| Capex | 264 | 90 | 270 | 42 | 148 | 253.9% |
Ratios
|
|---|
| Revenue growth | 374.7% | -29.6% | 50.9% | -71.8% | -70.1% | |
| EBITDA growth | 121.3% | -37.8% | 138.0% | -98.6% | -753.2% | |
| Gross Margin | 36.3% | 37.9% | 42.5% | 49.0% | 54.6% | 5.6% |
| EBITDA Margin | 22.0% | 19.5% | 30.7% | 1.6% | -34.1% | -35.6% |
| Net Income Margin | 203.2% | 253.6% | 108.2% | 648.8% | 1,736.3% | 1,087.4% |
| SG&A, % of revenue | 14.7% | 19.3% | 16.1% | 49.8% | 91.6% | 41.8% |
| CAPEX, % of revenue | 26.9% | 13.0% | 25.8% | 14.2% | 167.8% | 153.6% |
| ROIC | 0.4% | 0.2% | 0.5% | 0.0% | -0.0% | -0.1% |
| ROE | 5.6% | 4.5% | 2.7% | 4.4% | 3.5% | -0.9% |
| Net Debt/EBITDA | 16.9x | 43.0x | 21.4x | 1,523.0x | | -1,523.0x |
Revenue and profitability
The company's Revenue dropped on 70.1% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.2 pp from -20.7% to -17.5% in FY2015.
Gross Margin increased on 5.6 pp from 49.0% to 54.6% in 2015. SG&A as a % of Revenue surged on 41.8 pp from 49.8% to 91.6% in 2015.
Net Income marign jumped on 1,087 pp from 649% to 1,736% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 China Properties Group Ltd had CAPEX/Revenue of 168%. China Properties Group Ltd showed fast CAPEX/Revenue growth of 155 pp from 13.0% in 2012 to 168% in 2015. It's average CAPEX/Revenue for the last three years was 69.3%.
Return on investment
The company operates at negative ROIC (-0.05%) and low but positive ROE (3.53%). ROIC showed almost no change in 2015. ROE decreased slightly on 0.89 pp from 4.4% to 3.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -12.7x and Debt / EBITDA is . Net Debt / EBITDA dropped on 1,523.0x from 1,523.0x to in 2015. Debt decreased slightly on 0.56% in 2015 while cash dropped on 65.3% in 2015.
Appendix 1: Peers in Real Estate
Below we provide China Properties Group 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% | 16.1% | 13.5% | 5.4% | 4.2% |
|---|
| China Properties Group Ltd ($1838) | | -29.6% | 50.9% | -71.8% | -70.1% |
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) | 44.0% | 41.9% | 41.1% | 38.9% | 40.8% |
|---|
| China Properties Group Ltd ($1838) | 36.3% | 37.9% | 42.5% | 49.0% | 54.6% |
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) | 35.5% | 29.3% | 28.3% | 27.3% | 24.6% |
|---|
| China Properties Group Ltd ($1838) | 22.0% | 19.5% | 30.7% | 1.6% | -34.1% |
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) | 5.5% | 5.4% | 6.1% | 4.7% | 3.8% |
|---|
| China Properties Group Ltd ($1838) | 26.9% | 13.0% | 25.8% | 14.2% | 167.8% |
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% | 4.2% | 4.3% | 2.9% |
|---|
| China Properties Group Ltd ($1838) | 0.4% | 0.2% | 0.5% | 0.0% | -0.0% |
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 (129 companies) | 2.1x | 2.2x | 2.7x | 2.9x | 3.2x |
|---|
