Jingrui Holdings Ltd Net Income dropped on 210% in 2015 and EBITDA Margin dropped on 11.6 pp from 9.9% to -1.7%
31/03/2016 • About Jingrui Holdings Ltd (
$1862) • By InTwits
Jingrui Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jingrui Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -0.7%
- EBITDA Margin is quite volatile: -1.7% in 2015, 9.9% in 2014, 18.2% in 2013, 13.9% in 2012, 21.8% in 2011
- Jingrui Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has unprofitable business model: ROIC is at -0.7%
- It operates with high leverage: Net Debt/EBITDA is 5.1x 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.
Jingrui Holdings Ltd ($1862) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,454 | 4,059 | 3,939 | 5,273 | 5,759 | 9.2% |
| Gross Profit | 1,091 | 898 | 868 | 964 | 173 | -82.0% |
| SG&A | 344 | 318 | 396 | 463 | 500 | 8.0% |
| EBITDA | 754 | 565 | 717 | 521 | -98 | -118.9% |
| Net Income | 160 | 272 | 476 | 275 | -303 | -209.9% |
Balance Sheet
|
|---|
| Cash | 863 | 674 | 2,444 | 2,358 | 1,603 | -32.0% |
| Short Term Debt | 2,344 | 2,101 | 3,122 | 5,398 | 5,813 | 7.7% |
| Long Term Debt | 1,939 | 1,972 | 4,071 | 4,560 | 4,523 | -0.8% |
Cash flow
|
|---|
| Capex | 6 | 3 | 17 | 9 | 15 | 63.7% |
Ratios
|
|---|
| Revenue growth | 36.4% | 17.5% | -3.0% | 33.9% | 9.2% | |
| EBITDA growth | 11.9% | -25.0% | 26.8% | -27.4% | -118.9% | |
| Gross Margin | 31.6% | 22.1% | 22.0% | 18.3% | 3.0% | -15.3% |
| EBITDA Margin | 21.8% | 13.9% | 18.2% | 9.9% | -1.7% | -11.6% |
| Net Income Margin | 4.6% | 6.7% | 12.1% | 5.2% | -5.3% | -10.5% |
| SG&A, % of revenue | 10.0% | 7.8% | 10.1% | 8.8% | 8.7% | -0.1% |
| CAPEX, % of revenue | 0.2% | 0.1% | 0.4% | 0.2% | 0.3% | 0.1% |
| ROIC | 12.1% | 8.2% | 7.9% | 3.9% | -0.7% | -4.6% |
| ROE | 10.1% | 15.5% | 19.2% | 8.1% | -10.0% | -18.0% |
| Net Debt/EBITDA | 4.5x | 6.0x | 6.6x | 14.6x | | -14.6x |
Revenue and profitability
Jingrui Holdings Ltd's Revenue increased on 9.2% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.2 pp from 9.1% to 10.3% in 2015.
Gross Margin dropped on 15.3 pp from 18.3% to 3.0% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign dropped on 10.5 pp from 5.2% to -5.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
Jingrui Holdings Ltd's CAPEX/Revenue was 0.26% in 2015. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 0.28%.
Return on investment
The company operates at negative ROIC (-0.71%) and ROE (-9.98%). ROIC decreased on 4.6 pp from 3.9% to -0.71% in 2015. ROE dropped on 18.0 pp from 8.1% to -10.0% in 2015.
Leverage (Debt)
Debt level is 5.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 14.6x from 14.6x to in 2015. Debt increased on 3.8% in 2015 while cash dropped on 32.0% in 2015.
Appendix 1: Peers in Real Estate
Below you can find Jingrui 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% |
| 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% | 15.8% | 14.0% | 5.2% | 4.3% |
|---|
| Jingrui Holdings Ltd ($1862) | | 17.5% | -3.0% | 33.9% | 9.2% |
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% | 41.9% | 39.2% | 38.9% |
|---|
| Jingrui Holdings Ltd ($1862) | 31.6% | 22.1% | 22.0% | 18.3% | 3.0% |
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) | 35.5% | 29.3% | 28.4% | 27.3% | 23.8% |
|---|
| Jingrui Holdings Ltd ($1862) | 21.8% | 13.9% | 18.2% | 9.9% | -1.7% |
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% | 5.6% | 6.1% | 4.7% | 3.3% |
|---|
| Jingrui Holdings Ltd ($1862) | 0.2% | 0.1% | 0.4% | 0.2% | 0.3% |
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 (178 companies) | 4.6% | 4.2% | 4.0% | 4.3% | 2.9% |
|---|
| Jingrui Holdings Ltd ($1862) | 12.1% | 8.2% | 7.9% | 3.9% | -0.7% |
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 | 2.9x | 3.2x |
|---|
