Glorious Property Holdings Ltd revenue dropped on 45.1% in 2015 and EBITDA Margin dropped on 52.8 pp from -58.1% to -111%
15/04/2016 • About Glorious Property Holdings Ltd (
$845) • By InTwits
Glorious Property Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Glorious Property Holdings Ltd is a company in decline: 2015 revenue growth was -45.1%, 5 years revenue CAGR was -19.9%
- The company operates at negative EBITDA Margin: -110.9%
- Glorious Property Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.5%. At the same time it's in pair with industry average of 3.5%.
- CAPEX is quite volatile: 155 in FY2015, 62.8 in FY2014, 37.7 in FY2013, 111 in FY2012, 23.6 in FY2011
- The company has unprofitable business model: ROIC is at -5.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Glorious Property Holdings Ltd ($845) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 9,585 | 8,385 | 8,217 | 4,263 | 2,340 | -45.1% |
| Gross Profit | 3,797 | 1,921 | 1,051 | -956 | -1,981 | 107.3% |
| SG&A | 657 | 615 | 720 | 1,415 | 615 | -56.5% |
| EBITDA | 3,830 | 1,853 | 550 | -2,477 | -2,595 | 4.8% |
| Net Income | 2,216 | 1,082 | 292 | -2,996 | -3,878 | 29.4% |
Balance Sheet
|
|---|
| Cash | 1,021 | 993 | 1,547 | 449 | 385 | -14.3% |
| Short Term Debt | 9,304 | 6,095 | 5,317 | 15,675 | 25,456 | 62.4% |
| Long Term Debt | 5,601 | 9,707 | 13,787 | 6,614 | 667 | -89.9% |
Cash flow
|
|---|
| Capex | 828 | 814 | 1,102 | 1,146 | 915 | -20.1% |
Ratios
|
|---|
| Revenue growth | 34.7% | -12.5% | -2.0% | -48.1% | -45.1% | |
| EBITDA growth | -35.5% | -51.6% | -70.3% | -550.0% | 4.8% | |
| Gross Margin | 39.6% | 22.9% | 12.8% | -22.4% | -84.6% | -62.2% |
| EBITDA Margin | 40.0% | 22.1% | 6.7% | -58.1% | -110.9% | -52.8% |
| Net Income Margin | 23.1% | 12.9% | 3.6% | -70.3% | -165.7% | -95.4% |
| SG&A, % of revenue | 6.9% | 7.3% | 8.8% | 33.2% | 26.3% | -6.9% |
| CAPEX, % of revenue | 8.6% | 9.7% | 13.4% | 26.9% | 39.1% | 12.2% |
| ROIC | 10.6% | 4.6% | 1.2% | -5.6% | -5.7% | -0.2% |
| ROE | 13.9% | 6.1% | 1.6% | -17.7% | -27.7% | -10.0% |
| Net Debt/EBITDA | 3.6x | 8.0x | 31.9x | | | 0.0x |
Revenue and profitability
Glorious Property Holdings Ltd's Revenue dropped on 45.1% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 52.8 pp from -58.1% to -111% in 2015.
Gross Margin dropped on 62.2 pp from -22.4% to -84.6% in 2015. SG&A as a % of Revenue decreased on 6.9 pp from 33.2% to 26.3% in 2015.
Net Income marign dropped on 95.4 pp from -70.3% to -166% in 2015.
Capital expenditures (CAPEX) and working capital investments
Glorious Property Holdings Ltd's CAPEX/Revenue was 39.1% in 2015. Glorious Property Holdings Ltd's CAPEX/Revenue jumped on 29.4 pp from 9.7% in 2012 to 39.1% in 2015. For the last three years the average CAPEX/Revenue was 26.5%.
Return on investment
The company operates at negative ROIC (-5.74%) and ROE (-27.72%). ROIC showed almost no change in 2015. ROE dropped on 10.0 pp from -17.7% to -27.7% in 2015.
Leverage (Debt)
Debt level is 1.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt surged on 17.2% in 2015 while cash dropped on 14.3% in 2015.
Appendix 1: Peers in Real Estate
Below you can find Glorious Property 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 (178 companies) | 333.2% | 16.1% | 14.0% | 5.4% | 4.3% |
|---|
| Glorious Property Holdings Ltd ($845) | | -12.5% | -2.0% | -48.1% | -45.1% |
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 (159 companies) | 44.0% | 41.9% | 41.9% | 39.2% | 38.7% |
|---|
| Glorious Property Holdings Ltd ($845) | 39.6% | 22.9% | 12.8% | -22.4% | -84.6% |
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 (178 companies) | 35.4% | 29.3% | 28.4% | 27.3% | 23.5% |
|---|
| Glorious Property Holdings Ltd ($845) | 40.0% | 22.1% | 6.7% | -58.1% | -110.9% |
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 (178 companies) | 5.5% | 5.4% | 6.1% | 4.7% | 3.3% |
|---|
| Glorious Property Holdings Ltd ($845) | 8.6% | 9.7% | 13.4% | 26.9% | 39.1% |
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 (180 companies) | 4.6% | 4.2% | 4.2% | 4.3% | 2.8% |
|---|
| Glorious Property Holdings Ltd ($845) | 10.6% | 4.6% | 1.2% | -5.6% | -5.7% |
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 |
| Mingfa Group International Co Ltd ($846) | 2.3x | 2.5x | 3.0x | 6.3x | 42.9x |
| Sunshine 100 China Holdings Ltd ($2608) | 19.8x | 9.9x | 12.4x | 12.9x | 42.3x |
| |
|---|
| Median (136 companies) | 2.1x | 2.2x | 2.7x | 3.0x | 3.2x |
|---|
