Dowell Property Holdings Ltd CAPEX jumped on 145% in 2015 and Revenue surged on 83.2%
30/03/2016 • About Dowell Property Holdings Ltd (
$668) • By InTwits
Dowell Property Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dowell Property Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -0.8%
- The company operates at negative EBITDA Margin: -29.2%
- Dowell Property Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -43.2%0
- Dowell Property Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 50.1%. At the same time it's in pair with industry average of 45.9%.
- CAPEX is quite volatile: 6.5 in 2015, 2.6 in 2014, 21.3 in 2013, 46.5 in 2012, 36.8 in 2011
- The company has unprofitable business model: ROIC is at -0.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dowell Property Holdings Ltd ($668) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 72.144 | 58.314 | 25.815 | 16.569 | 30.361 | 83.2% |
| Gross Profit | 49.857 | 40.375 | | | | |
| EBITDA | -30.268 | -35.940 | -2.003 | -10.788 | -8.871 | -17.8% |
| Net Income | -27.775 | -23.420 | 1.818 | -29.793 | -38.014 | 27.6% |
Balance Sheet
|
|---|
| Cash | 722.844 | 699.963 | 720.566 | 217.313 | 213.195 | -1.9% |
| Short Term Debt | 332.872 | 401.184 | 26.121 | 25.381 | 50.150 | 97.6% |
| Long Term Debt | 167.186 | 188.062 | 179.734 | 150.013 | 356.979 | 138.0% |
Cash flow
|
|---|
| Capex | 36.833 | 46.472 | 21.263 | 2.647 | 6.475 | 144.6% |
Ratios
|
|---|
| Revenue growth | -52.5% | -19.2% | -55.7% | -35.8% | 83.2% | |
| EBITDA growth | 73.9% | 18.7% | -94.4% | 438.6% | -17.8% | |
| Gross Margin | 69.1% | 69.2% | | | | 0.0% |
| EBITDA Margin | -42.0% | -61.6% | -7.8% | -65.1% | -29.2% | 35.9% |
| Net Income Margin | -38.5% | -40.2% | 7.0% | -179.8% | -125.2% | 54.6% |
| CAPEX, % of revenue | 51.1% | 79.7% | 82.4% | 16.0% | 21.3% | 5.4% |
| ROIC | -4.9% | -3.2% | -0.4% | -1.1% | -0.8% | 0.3% |
| ROE | -7.5% | -3.4% | 0.2% | -3.7% | -5.0% | -1.3% |
Revenue and profitability
Dowell Property Holdings Ltd's Revenue surged on 83.2% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 1,180 pp from 97.9% to 1,278% in 2015.
Net Income marign jumped on 54.6 pp from -180% to -125% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 21.3%. CAPEX/Revenue dropped on 58.4 pp from 79.7% in 2012 to 21.3% in 2015. For the last three years the average CAPEX/Revenue was 39.9%.
Return on investment
The company operates at negative ROIC (-0.81%) and ROE (-4.97%). ROIC showed almost no change in 2015. ROE decreased slightly on 1.3 pp from -3.7% to -5.0% in 2015.
Leverage (Debt)
Debt level is -0.4x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt jumped on 132% in 2015 while cash decreased slightly on 1.9% in 2015.
Appendix 1: Peers in Coal
Below we provide Dowell Property Holdings Ltd benchmarking against other companies in Coal 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 |
|---|
| Kinetic Mines and Energy Ltd ($1277) | | | 299.9% | 563.4% | 40.0% |
| Feishang Anthracite Resources Ltd ($1738) | | 34.9% | 25.8% | 103.6% | -34.0% |
| Loudong General Nice Resources China Holdings Ltd ($988) | 8.5% | -12.7% | 39.1% | 87.6% | |
| Rosan Resources Holdings Ltd ($578) | -19.9% | -74.1% | 71.1% | 49.1% | |
| Asia Coal Ltd ($835) | | 32.1% | -15.3% | 43.2% | 133.6% |
| |
|---|
| Median (22 companies) | 5.2% | 1.4% | -6.8% | -8.2% | -22.9% |
|---|
| Dowell Property Holdings Ltd ($668) | | -19.2% | -55.7% | -35.8% | 83.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asia Coal Ltd ($835) | 32.4% | 56.7% | 62.6% | 76.7% | 5.8% |
| Shougang Fushan Resources Group Ltd ($639) | 70.4% | 63.5% | 50.9% | 40.1% | 24.5% |
| Agritrade Resources Ltd ($1131) | 7.6% | 22.9% | 29.4% | 31.8% | 30.0% |
| Kinetic Mines and Energy Ltd ($1277) | | 20.6% | 28.8% | 30.3% | 10.9% |
| China Shenhua Energy Co Ltd ($1088) | 39.9% | 31.4% | 28.7% | 29.6% | 35.5% |
| |
|---|
| Median (23 companies) | 30.0% | 19.9% | 17.5% | 10.2% | 6.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Shenhua Energy Co Ltd ($1088) | 41.2% | 35.6% | 31.6% | 34.2% | 33.9% |
| Agritrade Resources Ltd ($1131) | 1.4% | 41.6% | 37.3% | 33.4% | 31.1% |
| Kinetic Mines and Energy Ltd ($1277) | | -277.0% | -51.9% | 29.3% | 15.8% |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 40.9% | 33.1% | 30.7% | 22.8% | 15.0% |
| Feishang Anthracite Resources Ltd ($1738) | -9.2% | -13.1% | -32.9% | 19.0% | 15.9% |
| |
|---|
| Median (23 companies) | 17.4% | 7.2% | 0.2% | -6.5% | 11.9% |
|---|
| Dowell Property Holdings Ltd ($668) | -42.0% | -61.6% | -7.8% | -65.1% | -29.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Up Energy Development Group Ltd ($307) | | | | 279.5% | 75.2% |
| Siberian Mining Group Co Ltd ($1142) | 129.1% | 4.6% | 78.8% | 217.3% | 279.7% |
| King Stone Energy Group Ltd ($663) | 82.7% | 58.5% | 135.3% | 205.7% | |
| Asia Coal Ltd ($835) | 121.4% | 12.5% | 25.8% | 111.0% | 0.3% |
| Hidili Industry International Development Ltd ($1393) | 74.1% | 82.3% | 144.6% | 92.3% | |
| |
|---|
| Median (23 companies) | 21.9% | 13.7% | 23.0% | 20.5% | 22.6% |
|---|
| Dowell Property Holdings Ltd ($668) | 51.1% | 79.7% | 82.4% | 16.0% | 21.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Shenhua Energy Co Ltd ($1088) | 21.0% | 19.5% | 17.4% | 14.6% | 7.7% |
| Loudong General Nice Resources China Holdings Ltd ($988) | 11.5% | 4.1% | 8.2% | 9.6% | |
| Kinetic Mines and Energy Ltd ($1277) | -2.6% | -6.6% | -5.7% | 8.5% | 3.2% |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 37.6% | 28.5% | 15.2% | 8.5% | 2.0% |
| Agritrade Resources Ltd ($1131) | -2.3% | 2.7% | 5.8% | 6.4% | 6.9% |
| |
|---|
| Median (23 companies) | 4.8% | -1.3% | -2.1% | -5.2% | -0.9% |
|---|
| Dowell Property Holdings Ltd ($668) | -4.9% | -3.2% | -0.4% | -1.1% | -0.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Feishang Anthracite Resources Ltd ($1738) | | | | 24.3x | 32.6x |
| China Coal Energy Co Ltd ($1898) | 0.5x | 1.9x | 4.9x | 9.7x | 14.4x |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 0.4x | 0.4x | 1.7x | 3.5x | 9.8x |
| Yanzhou Coal Mining Co Ltd ($1171) | 1.1x | 2.9x | 6.2x | 4.9x | 9.0x |
| Kinetic Mines and Energy Ltd ($1277) | | | | 4.5x | 5.9x |
| |
|---|
| Median (9 companies) | 1.1x | 2.4x | 4.4x | 4.5x | 5.9x |
|---|
