Common Splendor International Health Industry Group Ltd reports 81.4% EBITDA growth and 47.4% Revenue growth
31/03/2016 • About Common Splendor International Health Industry Group Ltd (
$286) • By InTwits
Common Splendor International Health Industry Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 7.7% in 2015 vs. 6.3% in 2014 vs. in 2011
- Common Splendor International Health Industry Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's a lot of higher than industry average of 8.2%.
- CAPEX is quite volatile: 5.4 in 2015, 13.3 in 2014, 0.010 in 2013, 0.59 in 2012, 0 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Common Splendor International Health Industry Group Ltd ($286) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8.4 | 8.4 | 8.5 | 359.8 | 530.3 | 47.4% |
| Gross Profit | 8.2 | 8.3 | | 57.4 | 67.7 | 17.9% |
| SG&A | | | 12.3 | 35.0 | 32.2 | -8.0% |
| EBITDA | | -30.2 | -3.6 | 22.6 | 40.9 | 81.4% |
| Net Income | 13.1 | -11.6 | 9.1 | 27.5 | 34.0 | 23.6% |
Balance Sheet
|
|---|
| Cash | 75.7 | 86.8 | 52.3 | 6.8 | 29.4 | 332.7% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -35.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 15.7 | |
Cash flow
|
|---|
| Capex | 0.0 | 0.6 | 0.0 | 13.3 | 5.4 | -59.7% |
Ratios
|
|---|
| Revenue growth | -0.9% | -0.5% | 1.9% | 4,120.2% | 47.4% | |
| EBITDA growth | | | -88.0% | -722.3% | 81.4% | |
| Gross Margin | 98.1% | 98.6% | | 16.0% | 12.8% | -3.2% |
| EBITDA Margin | 0.0% | -360.9% | -42.5% | 6.3% | 7.7% | 1.4% |
| Net Income Margin | 155.7% | -138.4% | 106.2% | 7.6% | 6.4% | -1.2% |
| SG&A, % of revenue | | | 144.5% | 9.7% | 6.1% | -3.7% |
| CAPEX, % of revenue | 0.0% | 7.0% | 0.1% | 3.7% | 1.0% | -2.7% |
| ROIC | 1.3% | -6.8% | -0.9% | 5.0% | 6.9% | 1.9% |
| ROE | 2.7% | -2.6% | 2.2% | 6.5% | 7.2% | 0.7% |
| Net Debt/EBITDA | | | | -0.3x | -0.3x | -0.0x |
Revenue and profitability
Common Splendor International Health Industry Group Ltd's Revenue surged on 47.4% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 19.3 pp from 37.3% to 56.5% in 2015.
Gross Margin decreased on 3.2 pp from 16.0% to 12.8% in 2015. SG&A as a % of Revenue decreased on 3.7 pp from 9.7% to 6.1% in 2015.
Net Income marign decreased slightly on 1.2 pp from 7.6% to 6.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Common Splendor International Health Industry Group Ltd had CAPEX/Revenue of 1.0%. The company showed decline in CAPEX/Revenue of 6.0 pp from 7.0% in 2012 to 1.0% in 2015. It's average CAPEX/Revenue for the last three years was 1.6%.
Return on investment
The company operates at low ROIC (6.91%) and ROE (7.19%). ROIC increased slightly on 1.9 pp from 5.0% to 6.9% in 2015. ROE increased slightly on 0.68 pp from 6.5% to 7.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.3x and Debt / EBITDA is 0.4x. Net Debt / EBITDA decreased on 0.033x from -0.3x to -0.3x in 2015. Debt surged on 78,635% in 2015 while cash surged on 333% in 2015.
Appendix 1: Peers in Real Estate
Below we provide Common Splendor International Health Industry Group 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% |
| GR Properties Ltd ($108) | | 21.6% | -82.9% | 14.6% | 1,203.6% |
| 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% |
| |
|---|
| Median (176 companies) | 32.1% | 16.1% | 14.0% | 5.2% | 4.3% |
|---|
| Common Splendor International Health Industry Group Ltd ($286) | | -0.5% | 1.9% | 4,120.2% | 47.4% |
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 (157 companies) | 43.7% | 41.8% | 41.8% | 39.2% | 38.9% |
|---|
| Common Splendor International Health Industry Group Ltd ($286) | 98.1% | 98.6% | | 16.0% | 12.8% |
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% |
| Zall Development Group Ltd ($2098) | 73.6% | 105.3% | 133.1% | 143.2% | 213.9% |
| 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% |
| |
|---|
| Median (176 companies) | 35.4% | 29.3% | 28.4% | 27.3% | 23.8% |
|---|
| Common Splendor International Health Industry Group Ltd ($286) | | -360.9% | -42.5% | 6.3% | 7.7% |
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 (177 companies) | 5.9% | 5.4% | 6.1% | 4.7% | 3.3% |
|---|
| Common Splendor International Health Industry Group Ltd ($286) | 0.0% | 7.0% | 0.1% | 3.7% | 1.0% |
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 (178 companies) | 4.6% | 4.2% | 4.2% | 4.2% | 2.8% |
|---|
| Common Splendor International Health Industry Group Ltd ($286) | 1.3% | -6.8% | -0.9% | 5.0% | 6.9% |
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 |
| Talent Property Group Ltd ($760) | | | | | 43.0x |
| 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 |
| |
|---|
| Median (134 companies) | 2.2x | 2.2x | 2.7x | 3.0x | 3.2x |
|---|
| Common Splendor International Health Industry Group Ltd ($286) | | | | -0.3x | -0.3x |
