Madex International Holdings Ltd reports 160% CAPEX growth and 52.4% Revenue growth
30/03/2016 • About Madex International Holdings Ltd (
$231) • By InTwits
Madex International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Madex International Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -2.6%
- The company operates at negative EBITDA Margin: -131.9%
- Madex International 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 -91.9%0
- Madex International Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 367.4%. At the same time it's a lot of higher than industry average of 57.1%.
- CAPEX is quite volatile: 177 in 2015, 68.0 in 2014, 166 in 2013, 46.6 in 2012, 160 in 2011
- The company has unprofitable business model: ROIC is at -2.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Madex International Holdings Ltd ($231) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 27.310 | 26.702 | 31.881 | 33.107 | 50.465 | 52.4% |
| Gross Profit | 20.279 | 19.769 | 24.825 | 29.482 | 30.266 | 2.7% |
| SG&A | | | | 73.201 | 100.827 | 37.7% |
| EBITDA | -10.467 | -6.622 | -39.198 | -32.861 | -66.555 | 102.5% |
| Net Income | 49.824 | 16.925 | -304.086 | -573.620 | -232.007 | -59.6% |
Balance Sheet
|
|---|
| Cash | 11.646 | 6.909 | 41.283 | 149.576 | 357.857 | 139.2% |
| Short Term Debt | 96.161 | 148.413 | 123.046 | 264.548 | 16.155 | -93.9% |
| Long Term Debt | 732.242 | 576.230 | 746.360 | 702.816 | 2,034.548 | 189.5% |
Cash flow
|
|---|
| Capex | 160.245 | 46.600 | 165.674 | 67.963 | 176.939 | 160.3% |
Ratios
|
|---|
| Revenue growth | 10.1% | -2.2% | 19.4% | 3.8% | 52.4% | |
| EBITDA growth | -443.5% | -36.7% | 491.9% | -16.2% | 102.5% | |
| Gross Margin | 74.3% | 74.0% | 77.9% | 89.1% | 60.0% | -29.1% |
| EBITDA Margin | -38.3% | -24.8% | -123.0% | -99.3% | -131.9% | -32.6% |
| Net Income Margin | 182.4% | 63.4% | -953.8% | -1,732.6% | -459.7% | 1,272.9% |
| SG&A, % of revenue | | | | 221.1% | 199.8% | -21.3% |
| CAPEX, % of revenue | 586.8% | 174.5% | 519.7% | 205.3% | 350.6% | 145.3% |
| ROIC | -1.2% | -0.4% | -1.7% | -1.6% | -2.6% | -0.9% |
| ROE | 7.1% | 1.3% | -21.5% | -49.8% | -18.0% | 31.8% |
Revenue and profitability
The company's Revenue jumped on 52.4% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 28.4 pp from -16.7% to 11.7% in FY2015.
Gross Margin dropped on 29.1 pp from 89.1% to 60.0% in 2015. SG&A as a % of Revenue dropped on 21.3 pp from 221% to 200% in 2015.
Net Income marign jumped on 1,273 pp from -1,733% to -460% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 351% in 2015. CAPEX/Revenue surged on 176 pp from 175% in 2012 to 351% in 2015. Average CAPEX/Revenue for the last three years was 359%.
Return on investment
The company operates at negative ROIC (-2.56%) and ROE (-18.04%). ROIC decreased slightly on 0.94 pp from -1.6% to -2.6% in 2015. ROE jumped on 31.8 pp from -49.8% to -18.0% in 2015.
Leverage (Debt)
Debt level is -88.5x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt surged on 112% in 2015 while cash jumped on 139% in 2015.
Appendix 1: Peers in Real Estate
Below you can find Madex International Holdings Ltd benchmarking vs. other companies in Real Estate industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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% | 4.0% |
|---|
| Madex International Holdings Ltd ($231) | | -2.2% | 19.4% | 3.8% | 52.4% |
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% |
|---|
| Madex International Holdings Ltd ($231) | 74.3% | 74.0% | 77.9% | 89.1% | 60.0% |
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% | 28.4% | 27.3% | 24.6% |
|---|
| Madex International Holdings Ltd ($231) | -38.3% | -24.8% | -123.0% | -99.3% | -131.9% |
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% |
| 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% |
| Silver Grant International Industries Ltd ($171) | 100.8% | 134.5% | 193.1% | 204.1% | 280.7% |
| |
|---|
| Median (168 companies) | 5.5% | 5.4% | 6.1% | 4.7% | 3.8% |
|---|
| Madex International Holdings Ltd ($231) | 586.8% | 174.5% | 519.7% | 205.3% | 350.6% |
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% |
|---|
| Madex International Holdings Ltd ($231) | -1.2% | -0.4% | -1.7% | -1.6% | -2.6% |
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 (129 companies) | 2.2x | 2.2x | 2.7x | 3.0x | 3.2x |
|---|
