Dan Form Holdings Co Ltd reports 24.0% EBITDA decline and 6.7 pp EBITDA Margin decline from 26.2% to 19.5%
30/03/2016 • About Dan Form Holdings Co Ltd (
$271) • By InTwits
Dan Form Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dan Form Holdings Co Ltd doesn't have a profitable business model yet: 2015 ROIC is 0.1%
- EBITDA Margin is quite volatile: 19.5% in 2015, 26.2% in 2014, 44.3% in 2013, 15.7% in 2012, 159.2% in 2011
- Dan Form Holdings Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 27.0%. At the same time it's a lot of higher than industry average of 194.4%.
- CAPEX is quite volatile: 0.99 in 2015, 0.13 in 2014, 4.8 in 2013, 13.2 in 2012, 38.5 in 2011
- The company has potentially unprofitable business model: ROIC is at 0.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dan Form Holdings Co Ltd ($271) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 42.087 | 42.538 | 47.505 | 49.745 | 50.759 | 2.0% |
| SG&A | | | | 9.946 | 9.968 | 0.2% |
| EBITDA | 66.986 | 6.659 | 21.049 | 13.019 | 9.894 | -24.0% |
| Net Income | 527.488 | 924.307 | 234.997 | 247.203 | 195.718 | -20.8% |
Balance Sheet
|
|---|
| Cash | 214.922 | 304.561 | 325.906 | 368.887 | 875.190 | 137.3% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 38.529 | 13.177 | 4.785 | 0.126 | 0.991 | 686.5% |
Ratios
|
|---|
| Revenue growth | 9.2% | 1.1% | 11.7% | 4.7% | 2.0% | |
| EBITDA growth | 672.0% | -90.1% | 216.1% | -38.1% | -24.0% | |
| EBITDA Margin | 159.2% | 15.7% | 44.3% | 26.2% | 19.5% | -6.7% |
| Net Income Margin | 1,253.3% | 2,172.9% | 494.7% | 496.9% | 385.6% | -111.4% |
| SG&A, % of revenue | | | | 20.0% | 19.6% | -0.4% |
| CAPEX, % of revenue | 91.5% | 31.0% | 10.1% | 0.3% | 2.0% | 1.7% |
| ROIC | 1.8% | 0.0% | 0.3% | 0.1% | 0.1% | -0.0% |
| ROE | 15.6% | 22.5% | 5.0% | 5.0% | 3.8% | -1.2% |
| Net Debt/EBITDA | -3.2x | -45.7x | -15.5x | -28.3x | -88.5x | -60.1x |
Revenue and profitability
Dan Form Holdings Co Ltd's Revenue increased on 2.0% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 28.4 pp from -16.7% to 11.7% in FY2015.
SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign dropped on 111 pp from 497% to 386% in 2015.
Capital expenditures (CAPEX) and working capital investments
Dan Form Holdings Co Ltd's CAPEX/Revenue was 2.0% in 2015. CAPEX/Revenue dropped on 29.0 pp from 31.0% in 2012 to 2.0% in 2015. For the last three years the average CAPEX/Revenue was 4.1%.
Return on investment
The company operates at low ROIC (0.09%) and ROE (3.81%). ROIC showed almost no change in 2015. ROE decreased slightly on 1.2 pp from 5.0% to 3.8% in 2015.
Leverage (Debt)
The company has no debt. Cash jumped on 137% in 2015.
Appendix 1: Peers in Real Estate
Below we provide Dan Form Holdings 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% | 16.1% | 14.0% | 5.4% | 4.2% |
|---|
| Dan Form Holdings Co Ltd ($271) | | 1.1% | 11.7% | 4.7% | 2.0% |
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 (149 companies) | 43.8% | 41.8% | 41.8% | 39.1% | 41.1% |
|---|
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 (167 companies) | 35.4% | 29.3% | 28.3% | 27.3% | 24.6% |
|---|
| Dan Form Holdings Co Ltd ($271) | 159.2% | 15.7% | 44.3% | 26.2% | 19.5% |
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% |
| 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% | 3.9% |
|---|
| Dan Form Holdings Co Ltd ($271) | 91.5% | 31.0% | 10.1% | 0.3% | 2.0% |
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% |
|---|
| Dan Form Holdings Co Ltd ($271) | 1.8% | 0.0% | 0.3% | 0.1% | 0.1% |
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) | 2.3x | 2.3x | 2.7x | 3.0x | 3.2x |
|---|
| Dan Form Holdings Co Ltd ($271) | -3.2x | -45.7x | -15.5x | -28.3x | -88.5x |
