Shimao Property Holdings Ltd Net Income dropped on 24.5% in 2015 and EBITDA Margin decreased slightly on 1.2 pp from 29.1% to 27.9%
30/03/2016 • About Shimao Property Holdings Ltd (
$813) • By InTwits
Shimao Property Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 27.9% in 2015 vs. 29.1% in 2014 vs. 41.6% in 2011
- Shimao Property Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.5%. At the same time it's a lot of higher than industry average of 8.5%.
- CAPEX is quite volatile: 12,347 in 2015, 12,873 in 2014, 6,930 in 2013, 2,087 in 2012, 2,998 in 2011
- The company has business model with average profitability: ROIC is at 10.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shimao Property Holdings Ltd ($813) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 26,031 | 28,652 | 41,503 | 56,081 | 57,733 | 2.9% |
| Gross Profit | 10,000 | 9,606 | 14,641 | 18,225 | 16,448 | -9.7% |
| SG&A | 2,119 | 2,863 | 3,589 | 4,304 | 4,894 | 13.7% |
| EBITDA | 10,828 | 10,398 | 12,272 | 16,335 | 16,118 | -1.3% |
| Net Income | 5,723 | 5,765 | 7,390 | 8,104 | 6,116 | -24.5% |
Balance Sheet
|
|---|
| Cash | 12,313 | 15,894 | 17,026 | 20,472 | 22,592 | 10.4% |
| Short Term Debt | 14,983 | 12,381 | 11,775 | 18,725 | 17,140 | -8.5% |
| Long Term Debt | 27,578 | 28,613 | 37,554 | 43,269 | 53,254 | 23.1% |
Cash flow
|
|---|
| Capex | 2,591 | 4,275 | 4,784 | 4,297 | 4,812 | 12.0% |
Ratios
|
|---|
| Revenue growth | 19.5% | 10.1% | 44.8% | 35.1% | 2.9% | |
| EBITDA growth | 16.0% | -4.0% | 18.0% | 33.1% | -1.3% | |
| Gross Margin | 38.4% | 33.5% | 35.3% | 32.5% | 28.5% | -4.0% |
| EBITDA Margin | 41.6% | 36.3% | 29.6% | 29.1% | 27.9% | -1.2% |
| Net Income Margin | 22.0% | 20.1% | 17.8% | 14.5% | 10.6% | -3.9% |
| SG&A, % of revenue | 8.1% | 10.0% | 8.6% | 7.7% | 8.5% | 0.8% |
| CAPEX, % of revenue | 10.0% | 14.9% | 11.5% | 7.7% | 8.3% | 0.7% |
| ROIC | 13.3% | 11.2% | 11.6% | 12.4% | 10.3% | -2.1% |
| ROE | 20.0% | 17.3% | 19.0% | 18.3% | 12.6% | -5.7% |
| Net Debt/EBITDA | 2.8x | 2.4x | 2.6x | 2.5x | 3.0x | 0.4x |
Revenue and profitability
Shimao Property Holdings Ltd's Revenue increased on 2.9% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.2 pp from 29.1% to 27.9% in 2015.
Gross Margin decreased on 4.0 pp from 32.5% to 28.5% in 2015. SG&A as a % of Revenue increased slightly on 0.80 pp from 7.7% to 8.5% in 2015.
Net Income marign decreased on 3.9 pp from 14.5% to 10.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 8.3%. Shimao Property Holdings Ltd's CAPEX/Revenue decreased on 6.6 pp from 14.9% in 2012 to 8.3% in 2015. It's average CAPEX/Revenue for the last three years was 9.2%.
Return on investment
The company operates at good ROE (12.61%) while ROIC is low (10.34%). ROIC decreased on 2.1 pp from 12.4% to 10.3% in 2015. ROE decreased on 5.7 pp from 18.3% to 12.6% in 2015.
Leverage (Debt)
Debt level is 3.0x Net Debt / EBITDA and 4.4x Debt / EBITDA. Net Debt / EBITDA jumped on 0.4x from 2.5x to 3.0x in 2015. Debt surged on 13.5% in 2015 while cash jumped on 10.4% in 2015.
Appendix 1: Peers in Real Estate
Below you can find Shimao Property 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% | 5.2% | 4.2% |
|---|
| Shimao Property Holdings Ltd ($813) | | 10.1% | 44.8% | 35.1% | 2.9% |
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) | 44.0% | 41.9% | 41.9% | 39.2% | 41.3% |
|---|
| Shimao Property Holdings Ltd ($813) | 38.4% | 33.5% | 35.3% | 32.5% | 28.5% |
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% | 26.4% | 24.5% |
|---|
| Shimao Property Holdings Ltd ($813) | 41.6% | 36.3% | 29.6% | 29.1% | 27.9% |
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% |
| 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% | 3.8% |
|---|
| Shimao Property Holdings Ltd ($813) | 10.0% | 14.9% | 11.5% | 7.7% | 8.3% |
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% | 4.0% | 4.2% | 2.7% |
|---|
| Shimao Property Holdings Ltd ($813) | 13.3% | 11.2% | 11.6% | 12.4% | 10.3% |
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) | 2.1x | 2.2x | 2.7x | 3.0x | 3.2x |
|---|
| Shimao Property Holdings Ltd ($813) | 2.8x | 2.4x | 2.6x | 2.5x | 3.0x |
