Hydoo International Holding Ltd EBITDA jumped on 61.9% in 2015 while Revenue decreased on 5.8%
30/03/2016 • About Hydoo International Holding Ltd (
$1396) • By InTwits
Hydoo International Holding Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hydoo International Holding Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's a lot of higher than industry average of 8.4%.
- CAPEX is quite volatile: 23.2 in 2015, 426 in 2014, 30.9 in 2013, 27.3 in 2012, 19.9 in 2011
- The company has highly profitable business model: ROIC is at 16.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hydoo International Holding Ltd ($1396) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 833 | 1,607 | 4,756 | 3,360 | 3,166 | -5.8% |
| Gross Profit | 434 | 776 | 2,932 | 1,399 | 1,634 | 16.8% |
| SG&A | 129 | 250 | 442 | 610 | 654 | 7.2% |
| EBITDA | 305 | 529 | 2,500 | 849 | 1,374 | 61.9% |
| Net Income | 229 | 217 | 1,178 | 512 | 557 | 8.8% |
Balance Sheet
|
|---|
| Cash | 437 | 584 | 4,293 | 1,819 | 1,689 | -7.2% |
| Short Term Debt | 60 | 689 | 282 | 370 | 1,784 | 382.7% |
| Long Term Debt | 43 | 60 | 602 | 1,193 | 2,091 | 75.4% |
Cash flow
|
|---|
| Capex | 20 | 27 | 31 | 426 | 23 | -94.6% |
Ratios
|
|---|
| Revenue growth | 770.0% | 93.0% | 196.0% | -29.4% | -5.8% | |
| EBITDA growth | 1,114.7% | 73.4% | 372.3% | -66.0% | 61.9% | |
| Gross Margin | 52.1% | 48.3% | 61.6% | 41.6% | 51.6% | 10.0% |
| EBITDA Margin | 36.7% | 32.9% | 52.6% | 25.3% | 43.4% | 18.1% |
| Net Income Margin | 27.5% | 13.5% | 24.8% | 15.2% | 17.6% | 2.3% |
| SG&A, % of revenue | 15.4% | 15.6% | 9.3% | 18.2% | 20.7% | 2.5% |
| CAPEX, % of revenue | 2.4% | 1.7% | 0.6% | 12.7% | 0.7% | -11.9% |
| ROIC | 88.4% | 44.3% | 62.0% | 12.9% | 16.6% | 3.7% |
| ROE | 81.5% | 32.7% | 43.9% | 11.8% | 12.5% | 0.7% |
| Net Debt/EBITDA | -1.1x | 0.3x | -1.4x | -0.3x | 1.6x | 1.9x |
Revenue and profitability
The company's Revenue decreased on 5.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 18.1 pp from 25.3% to 43.4% in 2015.
Gross Margin increased on 10.0 pp from 41.6% to 51.6% in 2015. SG&A as a % of Revenue increased on 2.5 pp from 18.2% to 20.7% in 2015.
Net Income marign increased on 2.3 pp from 15.2% to 17.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.73% in 2015. Hydoo International Holding Ltd showed small CAPEX/Revenue decline of 0.96 pp from 1.7% in 2012 to 0.73% in 2015. For the last three years the average CAPEX/Revenue was 4.7%.
Return on investment
The company operates at good ROIC (16.56%) and ROE (12.47%). ROIC increased on 3.7 pp from 12.9% to 16.6% in 2015. ROE increased slightly on 0.72 pp from 11.8% to 12.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.6x and Debt / EBITDA is 2.8x. Net Debt / EBITDA jumped on 1.9x from -0.3x to 1.6x in 2015. Debt jumped on 148% in 2015 while cash decreased on 7.2% in 2015.
Appendix 1: Peers in Real Estate
Below we provide Hydoo International Holding 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% | 13.5% | 5.4% | 4.2% |
|---|
| Hydoo International Holding Ltd ($1396) | | 93.0% | 196.0% | -29.4% | -5.8% |
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% | 40.8% |
|---|
| Hydoo International Holding Ltd ($1396) | 52.1% | 48.3% | 61.6% | 41.6% | 51.6% |
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) | 35.4% | 28.9% | 28.3% | 27.3% | 24.5% |
|---|
| Hydoo International Holding Ltd ($1396) | 36.7% | 32.9% | 52.6% | 25.3% | 43.4% |
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% |
|---|
| Hydoo International Holding Ltd ($1396) | 2.4% | 1.7% | 0.6% | 12.7% | 0.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% |
| China Vanke Co Ltd ($2202) | 16.8% | 17.8% | 13.5% | 14.6% | 14.1% |
| |
|---|
| Median (169 companies) | 4.6% | 4.2% | 4.0% | 4.2% | 2.7% |
|---|
| Hydoo International Holding Ltd ($1396) | 88.4% | 44.3% | 62.0% | 12.9% | 16.6% |
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) | 2.3x | 2.3x | 2.7x | 3.0x | 3.2x |
|---|
| Hydoo International Holding Ltd ($1396) | -1.1x | 0.3x | -1.4x | -0.3x | 1.6x |
