Talent Property Group Ltd Net Income dropped on 749% in 2015 while EBITDA Margin surged on 41.2 pp from -28.3% to 12.9%
31/03/2016 • About Talent Property Group Ltd (
$760) • By InTwits
Talent Property Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Talent Property Group Ltd doesn't have a profitable business model yet: 2015 ROIC is 1.7%
- Talent Property Group Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -9.9% for the sames years0
- Talent Property Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.2%. At the same time it's a lot of higher than industry average of 11.3%.
- CAPEX is quite volatile: 0.38 in 2015, 1.0 in 2014, 38.6 in 2013, 56.6 in 2012, 219 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.7%
- It operates with high leverage: Net Debt/EBITDA is 43.0x 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.
Talent Property Group Ltd ($760) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 578.2 | 437.9 | 397.4 | 185.7 | 366.0 | 97.1% |
| Gross Profit | 65.3 | 12.7 | 25.6 | 19.7 | 77.1 | 290.8% |
| SG&A | 254.6 | 144.0 | 144.8 | 106.4 | 66.5 | -37.5% |
| EBITDA | -89.7 | -52.7 | -47.7 | -52.5 | 47.2 | -189.8% |
| Net Income | -799.9 | -544.7 | -238.0 | 17.7 | -115.1 | -749.4% |
Balance Sheet
|
|---|
| Cash | 259.8 | 136.9 | 399.9 | 247.5 | 127.4 | -48.5% |
| Short Term Debt | 850.2 | 609.3 | 847.3 | 2,100.4 | 1,979.1 | -5.8% |
| Long Term Debt | 2,370.5 | 2,620.2 | 1,926.5 | 0.0 | 174.0 | |
Cash flow
|
|---|
| Capex | 219.4 | 56.6 | 38.6 | 1.0 | 0.4 | -63.6% |
Ratios
|
|---|
| Revenue growth | 62.1% | -24.3% | -9.3% | -53.3% | 97.1% | |
| EBITDA growth | 988.6% | -41.3% | -9.4% | 10.0% | -189.8% | |
| Gross Margin | 11.3% | 2.9% | 6.4% | 10.6% | 21.1% | 10.4% |
| EBITDA Margin | -15.5% | -12.0% | -12.0% | -28.3% | 12.9% | 41.2% |
| Net Income Margin | -138.3% | -124.4% | -59.9% | 9.5% | -31.5% | -41.0% |
| SG&A, % of revenue | 44.0% | 32.9% | 36.4% | 57.3% | 18.2% | -39.1% |
| CAPEX, % of revenue | 37.9% | 12.9% | 9.7% | 0.6% | 0.1% | -0.5% |
| ROIC | -2.6% | -3.0% | -2.2% | -1.8% | 1.7% | 3.5% |
| ROE | -66.5% | -89.7% | -77.9% | 8.3% | -62.9% | -71.2% |
| Net Debt/EBITDA | | | | | 43.0x | 43.0x |
Revenue and profitability
Talent Property Group Ltd's Revenue surged on 97.1% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 41.2 pp from -28.3% to 12.9% in 2015.
Gross Margin jumped on 10.4 pp from 10.6% to 21.1% in 2015. SG&A as a % of Revenue dropped on 39.1 pp from 57.3% to 18.2% in 2015.
Net Income marign dropped on 41.0 pp from 9.5% to -31.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.10%. CAPEX/Revenue dropped on 12.8 pp from 12.9% in 2012 to 0.10% in 2015. It's average CAPEX/Revenue for the last three years was 3.5%.
Return on investment
The company operates at low but positive ROIC (1.71%) and negative ROE (-62.86%). ROIC increased on 3.5 pp from -1.8% to 1.7% in 2015. ROE dropped on 71.2 pp from 8.3% to -62.9% in 2015.
Leverage (Debt)
Debt level is 43.0x Net Debt / EBITDA and 45.7x Debt / EBITDA. Net Debt / EBITDA jumped43.0x from to 43.0x in 2015. Debt increased on 2.5% in 2015 while cash dropped on 48.5% in 2015.
Appendix 1: Peers in Real Estate
Below you can find Talent Property Group 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% | 16.1% | 14.0% | 5.4% | 4.3% |
|---|
| Talent Property Group Ltd ($760) | | -24.3% | -9.3% | -53.3% | 97.1% |
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% |
|---|
| Talent Property Group Ltd ($760) | 11.3% | 2.9% | 6.4% | 10.6% | 21.1% |
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% |
|---|
| Talent Property Group Ltd ($760) | -15.5% | -12.0% | -12.0% | -28.3% | 12.9% |
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 (177 companies) | 5.5% | 5.4% | 6.1% | 4.7% | 3.3% |
|---|
| Talent Property Group Ltd ($760) | 37.9% | 12.9% | 9.7% | 0.6% | 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% | 4.2% | 4.3% | 2.9% |
|---|
| Talent Property Group Ltd ($760) | -2.6% | -3.0% | -2.2% | -1.8% | 1.7% |
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 |
| 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 (134 companies) | 2.2x | 2.2x | 2.7x | 3.0x | 3.2x |
|---|
| Talent Property Group Ltd ($760) | | | | | 43.0x |
