Mingfa Group International Co Ltd Net Debt / EBITDA jumped on 36.7x from 6.3x to 42.9x in 2015 while EBITDA dropped on 83.2%
01/04/2016 • About Mingfa Group International Co Ltd (
$846) • By InTwits
Mingfa Group International Co Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mingfa Group International Co Ltd is a company in decline: FY2015 revenue growth was -40.8%, 5 years revenue CAGR was -5.7%
- EBITDA Margin is quite volatile: 13.7% in FY2015, 48.3% in FY2014, 40.4% in FY2013, 74.4% in FY2012, 91.7% in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.8%
- It operates with high leverage: Net Debt/EBITDA is 42.9x while industry average is 3.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mingfa Group International Co Ltd ($846) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,979 | 3,741 | 6,269 | 3,793 | 2,246 | -40.8% |
| Gross Profit | 1,520 | 1,191 | 2,202 | 986 | 276 | -72.0% |
| SG&A | 367 | 426 | 509 | 519 | 590 | 13.6% |
| EBITDA | 2,733 | 2,785 | 2,530 | 1,832 | 308 | -83.2% |
| Net Income | 1,597 | 1,765 | 1,399 | 829 | 26 | -96.9% |
Balance Sheet
|
|---|
| Cash | 128 | 222 | 971 | 732 | 1,915 | 161.6% |
| Short Term Debt | 1,865 | 5,647 | 6,610 | 8,218 | 9,659 | 17.5% |
| Long Term Debt | 4,597 | 1,541 | 2,032 | 3,984 | 5,489 | 37.8% |
Cash flow
|
|---|
| Capex | 202 | 103 | 228 | 93 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -1.0% | 25.6% | 67.6% | -39.5% | -40.8% | |
| EBITDA growth | 51.2% | 1.9% | -9.1% | -27.6% | -83.2% | |
| Gross Margin | 51.0% | 31.8% | 35.1% | 26.0% | 12.3% | -13.7% |
| EBITDA Margin | 91.7% | 74.4% | 40.4% | 48.3% | 13.7% | -34.6% |
| Net Income Margin | 53.6% | 47.2% | 22.3% | 21.9% | 1.2% | -20.7% |
| SG&A, % of revenue | 12.3% | 11.4% | 8.1% | 13.7% | 26.3% | 12.6% |
| CAPEX, % of revenue | 6.8% | 2.7% | 3.6% | 2.5% | | -2.5% |
| ROIC | 18.7% | 15.0% | 11.3% | 7.0% | 0.8% | -6.2% |
| ROE | 25.5% | 22.2% | 14.6% | 7.8% | 0.2% | -7.5% |
| Net Debt/EBITDA | 2.3x | 2.5x | 3.0x | 6.3x | 42.9x | 36.7x |
Revenue and profitability
Mingfa Group International Co Ltd's Revenue dropped on 40.8% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 34.6 pp from 48.3% to 13.7% in FY2015.
Gross Margin dropped on 13.7 pp from 26.0% to 12.3% in FY2015. SG&A as a % of Revenue surged on 12.6 pp from 13.7% to 26.3% in FY2015.
Net Income marign dropped on 20.7 pp from 21.9% to 1.2% in FY2015.
Return on investment
The company operates at low ROIC (0.79%) and ROE (0.24%). ROIC decreased on 6.2 pp from 7.0% to 0.79% in FY2015. ROE decreased on 7.5 pp from 7.8% to 0.24% in FY2015.
Leverage (Debt)
Debt level is 42.9x Net Debt / EBITDA and 49.1x Debt / EBITDA. Net Debt / EBITDA jumped on 36.7x from 6.3x to 42.9x in FY2015. Debt surged on 24.1% in FY2015 while cash jumped on 162% in FY2015.
Appendix 1: Peers in Real Estate
Below you can find Mingfa Group International Co 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 (177 companies) | 34.7% | 15.8% | 13.5% | 5.4% | 4.5% |
|---|
| Mingfa Group International Co Ltd ($846) | | 25.6% | 67.6% | -39.5% | -40.8% |
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 (158 companies) | 43.7% | 41.9% | 41.9% | 39.2% | 38.8% |
|---|
| Mingfa Group International Co Ltd ($846) | 51.0% | 31.8% | 35.1% | 26.0% | 12.3% |
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 (177 companies) | 35.4% | 28.9% | 28.3% | 26.4% | 23.5% |
|---|
| Mingfa Group International Co Ltd ($846) | 91.7% | 74.4% | 40.4% | 48.3% | 13.7% |
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 (178 companies) | 5.5% | 5.6% | 6.1% | 4.7% | 3.3% |
|---|
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 (179 companies) | 4.6% | 4.2% | 4.0% | 4.2% | 2.9% |
|---|
| Mingfa Group International Co Ltd ($846) | 18.7% | 15.0% | 11.3% | 7.0% | 0.8% |
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 |
|---|
| Mingfa Group International Co Ltd ($846) | 2.3x | 2.5x | 3.0x | 6.3x | 42.9x |
