Great China Properties Holdings Ltd revenue decline accelerated from 12.1% in 2014 to 25.6% in 2015
30/03/2016 • About Great China Properties Holdings Ltd (
$21) • By InTwits
Great China Properties Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Great China Properties Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -0.4%
- The company operates at negative EBITDA Margin: -9.8%
- Great China Properties 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 -63.8%0
- Great China Properties Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.8%. At the same time it's a lot of higher than industry average of 5.8%.
- CAPEX is quite volatile: 0.84 in 2015, 10.0 in 2014, 0.34 in 2013, 0.90 in 2012, 0.27 in 2011
- The company has unprofitable business model: ROIC is at -0.4%
- It operates with high leverage: Net Debt/EBITDA is -0.8x while industry average is -32.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Great China Properties Holdings Ltd ($21) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 16.189 | 13.191 | 36.967 | 32.508 | 24.184 | -25.6% |
| EBITDA | -4.776 | -5.934 | -35.715 | -29.683 | -2.370 | -92.0% |
| Net Income | -23.191 | -10.065 | -29.042 | -35.194 | -7.241 | -79.4% |
Balance Sheet
|
|---|
| Cash | 85.000 | 22.955 | 15.604 | 6.549 | 6.171 | -5.8% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 44.633 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 46.731 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 0.274 | 0.903 | 0.339 | 10.031 | 0.835 | -91.7% |
Ratios
|
|---|
| Revenue growth | -13.9% | -18.5% | 180.2% | -12.1% | -25.6% | |
| EBITDA growth | 95.4% | 24.2% | 501.9% | -16.9% | -92.0% | |
| EBITDA Margin | -29.5% | -45.0% | -96.6% | -91.3% | -9.8% | 81.5% |
| Net Income Margin | -143.3% | -76.3% | -78.6% | -108.3% | -29.9% | 78.3% |
| CAPEX, % of revenue | 1.7% | 6.8% | 0.9% | 30.9% | 3.5% | -27.4% |
| ROIC | -2.7% | -1.9% | -4.1% | -2.4% | -0.4% | 2.0% |
| ROE | -10.8% | -3.0% | -3.7% | -3.1% | -0.7% | 2.4% |
Revenue and profitability
Great China Properties Holdings Ltd's Revenue dropped on 25.6% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 81.5 pp from -91.3% to -9.8% in 2015.
Net Income marign surged on 78.3 pp from -108% to -29.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Great China Properties Holdings Ltd had CAPEX/Revenue of 3.5%. The company's CAPEX/Revenue decreased on 3.4 pp from 6.8% in 2012 to 3.5% in 2015. Average CAPEX/Revenue for the last three years was 11.7%.
Return on investment
The company operates at negative ROIC (-0.39%) and ROE (-0.68%). ROIC increased on 2.0 pp from -2.4% to -0.39% in 2015. ROE increased on 2.4 pp from -3.1% to -0.68% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.8x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt decreased on 4.5% in 2015 while cash decreased on 5.8% in 2015.
Appendix 1: Peers in Investment Companies
Below we provide Great China Properties Holdings Ltd benchmarking against other companies in Investment Companies 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 |
|---|
| DT Capital Ltd ($356) | | | -49.8% | 1,065.5% | 132.7% |
| China New Economy Fund Ltd ($80) | | | 47.7% | 655.2% | |
| Capital VC Ltd ($2324) | | | | 489.2% | 861.9% |
| Oriental Explorer Holdings Ltd ($430) | | | -62.7% | 414.5% | |
| China Merchants China Direct Investments Ltd ($133) | | | 59.1% | 255.9% | |
| |
|---|
| Median (25 companies) | 4.1% | 14.9% | 4.1% | 25.4% | 131.4% |
|---|
| Great China Properties Holdings Ltd ($21) | | -18.5% | 180.2% | -12.1% | -25.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Eternity Investment Ltd ($764) | 100.0% | | | 86.6% | |
| City e-Solutions Ltd ($557) | 69.0% | 81.1% | 81.5% | 81.6% | 79.1% |
| China Properties Investment Holdings Ltd ($736) | 10.6% | 47.5% | 40.8% | 46.2% | 87.2% |
| Infinity Financial Group Holdings Ltd ($1152) | 24.3% | 19.0% | 17.5% | 22.4% | 15.8% |
| AVIC Joy Holdings HK Ltd ($260) | 20.4% | 19.5% | 20.9% | 14.0% | 16.3% |
| |
|---|
| Median (7 companies) | 22.4% | 30.2% | 19.2% | 22.4% | 16.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Capital VC Ltd ($2324) | -2,944.6% | | 36.7% | 93.1% | 99.3% |
| China New Economy Fund Ltd ($80) | | 39.2% | 58.0% | 92.5% | |
| Unity Investments Holdings Ltd ($913) | | | 89.0% | 90.8% | 95.7% |
| Oriental Explorer Holdings Ltd ($430) | | 93.6% | 100.5% | 90.4% | |
| China Merchants China Direct Investments Ltd ($133) | | 68.6% | 82.2% | 89.3% | |
| |
|---|
| Median (28 companies) | 6.2% | 8.6% | -5.5% | 2.1% | 19.3% |
|---|
| Great China Properties Holdings Ltd ($21) | -29.5% | -45.0% | -96.6% | -91.3% | -9.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CK Hutchison Holdings Ltd ($1) | 3.9% | 0.7% | 1.0% | 503.6% | 13.5% |
| Opes Asia Development Ltd ($810) | | | 11.3% | 76.1% | 25.0% |
| Cosmopolitan International Holdings Ltd ($120) | 0.0% | 0.4% | 1.8% | 55.2% | |
| China Properties Investment Holdings Ltd ($736) | 215.9% | 55.3% | 3.0% | 20.8% | 58.1% |
| Langham Hospitality Investments and Langham Hospitality Investments Ltd ($1270) | 2.2% | | 13.7% | 17.1% | 39.8% |
| |
|---|
| Median (30 companies) | 2.5% | 0.7% | 0.6% | 0.2% | 0.3% |
|---|
| Great China Properties Holdings Ltd ($21) | 1.7% | 6.8% | 0.9% | 30.9% | 3.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Capital VC Ltd ($2324) | -5.0% | | | 21.8% | 100.7% |
| Harmony Asset Ltd ($428) | -14.0% | 3.2% | -13.7% | -15.4% | 88.0% |
| Build King Holdings Ltd ($240) | 11.0% | -2.5% | 3.5% | 13.4% | 18.3% |
| Unity Investments Holdings Ltd ($913) | -69.6% | -36.2% | 26.4% | 47.4% | 17.5% |
| UBA Investments Ltd ($768) | 11.0% | -22.2% | -1.9% | -8.6% | 13.2% |
| |
|---|
| Median (32 companies) | -5.0% | -3.1% | -2.0% | -5.2% | -1.1% |
|---|
| Great China Properties Holdings Ltd ($21) | -2.7% | -1.9% | -4.1% | -2.4% | -0.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Langham Hospitality Investments and Langham Hospitality Investments Ltd ($1270) | 9.3x | | 12.5x | 9.5x | 11.2x |
| CK Hutchison Holdings Ltd ($1) | 1.8x | 1.9x | 0.6x | 7.2x | 5.5x |
| China Financial International Investments Ltd ($721) | -2.0x | | | | 2.4x |
| Harmony Asset Ltd ($428) | | -3.2x | | | -0.1x |
| Capital VC Ltd ($2324) | | | 2.2x | -1.2x | -0.2x |
| |
|---|
| Median (14 companies) | -0.6x | -1.2x | 0.0x | -0.6x | -0.9x |
|---|
