GR Properties Ltd revenue jumped on 1,204% in 2015 and EBITDA Margin jumped on 249 pp from -256% to -7.1%
31/03/2016 • About GR Properties Ltd (
$108) • By InTwits
GR Properties Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- GR Properties Ltd doesn't have a profitable business model yet: 2015 ROIC is -2.5%
- The company operates at negative EBITDA Margin: -7.1%
- EBITDA Margin is quite volatile: -7.1% in 2015, -256.1% in 2014, 574.7% in 2013, -19.1% in 2012, 69.6% in 2011
- GR Properties Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 14.3%. At the same time it's a lot of higher than industry average of 38.8%.
- CAPEX is quite volatile: 0.11 in 2015, 2.2 in 2014, 1.0 in 2013, 2.8 in 2012, 1.2 in 2011
- The company has unprofitable business model: ROIC is at -2.5%
- It operates with high leverage: Net Debt/EBITDA is 55.9x while industry average is 3.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
GR Properties Ltd ($108) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 24.738 | 30.080 | 5.141 | 5.892 | 76.809 | 1,203.6% |
| Gross Profit | 9.251 | 11.830 | | 5.786 | 23.047 | 298.3% |
| SG&A | | | 9.558 | 16.615 | 30.585 | 84.1% |
| EBITDA | 17.219 | -5.753 | 29.544 | -15.092 | -5.445 | -63.9% |
| Net Income | -46.725 | 29.055 | 2.463 | -33.491 | -18.152 | -45.8% |
Balance Sheet
|
|---|
| Cash | 13.046 | 6.199 | 2.837 | 2.534 | 243.060 | 9,490.8% |
| Short Term Debt | 189.732 | 462.179 | 220.343 | 490.502 | 0.000 | -100.0% |
| Long Term Debt | 300.480 | 2.988 | 242.950 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 1.156 | 2.781 | 1.047 | 2.174 | 0.110 | -94.9% |
Ratios
|
|---|
| Revenue growth | 154.9% | 21.6% | -82.9% | 14.6% | 1,203.6% | |
| EBITDA growth | -400.3% | -133.4% | -613.5% | -151.1% | -63.9% | |
| Gross Margin | 37.4% | 39.3% | | 98.2% | 30.0% | -68.2% |
| EBITDA Margin | 69.6% | -19.1% | 574.7% | -256.1% | -7.1% | 249.1% |
| Net Income Margin | -188.9% | 96.6% | 47.9% | -568.4% | -23.6% | 544.8% |
| SG&A, % of revenue | | | 185.9% | 282.0% | 39.8% | -242.2% |
| CAPEX, % of revenue | 4.7% | 9.2% | 20.4% | 36.9% | 0.1% | -36.7% |
| ROIC | 15.1% | -7.1% | 25.3% | -15.7% | -2.5% | 13.2% |
| Net Debt/EBITDA | 27.7x | | 15.6x | | | 0.0x |
Revenue and profitability
GR Properties Ltd's Revenue jumped on 1,204% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.6 pp from -6.1% to -4.6% in 2015.
Gross Margin dropped on 68.2 pp from 98.2% to 30.0% in 2015. SG&A as a % of Revenue dropped on 242 pp from 282% to 39.8% in 2015.
Net Income marign surged on 545 pp from -568% to -23.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.14%. CAPEX/Revenue decreased on 9.1 pp from 9.2% in 2012 to 0.14% in 2015. It's average CAPEX/Revenue for the last three years was 19.1%.
Leverage (Debt)
The company paid down all the debt in 2015. Cash surged on 9,491% in 2015.
Appendix 1: Peers in Real Estate
Below you can find GR Properties 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 (176 companies) | 32.1% | 15.8% | 14.0% | 5.2% | 4.3% |
|---|
| GR Properties Ltd ($108) | | 21.6% | -82.9% | 14.6% | 1,203.6% |
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) | 44.0% | 41.9% | 41.8% | 38.9% | 38.9% |
|---|
| GR Properties Ltd ($108) | 37.4% | 39.3% | | 98.2% | 30.0% |
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% |
| 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% | 28.3% | 27.3% | 23.8% |
|---|
| GR Properties Ltd ($108) | 69.6% | -19.1% | 574.7% | -256.1% | -7.1% |
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% |
|---|
| GR Properties Ltd ($108) | 4.7% | 9.2% | 20.4% | 36.9% | 0.1% |
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% | 4.0% | 4.3% | 2.9% |
|---|
| GR Properties Ltd ($108) | 15.1% | -7.1% | 25.3% | -15.7% | -2.5% |
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 (135 companies) | 2.1x | 2.2x | 2.7x | 3.0x | 3.2x |
|---|
