Sino Harbour Property Group Ltd Net Debt / EBITDA jumped on 5.6x from 9.8x to 15.3x in 2016 while EBITDA dropped on 55.5%
27/05/2016 • About Sino Harbour Property Group Ltd (
$1663) • By InTwits
Sino Harbour Property Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sino Harbour Property Group Ltd doesn't have a profitable business model yet: FY2016 ROIC is 1.6%
- EBITDA Margin is declining: 7.6% in FY2016 vs. 20.4% in FY2015 vs. 40.5% in FY2012
- EBITDA Margin is quite volatile: 7.6% in FY2016, 20.4% in FY2015, 22.9% in FY2014, 34.2% in FY2013, 40.5% in FY2012
- Sino Harbour Property Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has potentially unprofitable business model: ROIC is at 1.6%
- It operates with high leverage: Net Debt/EBITDA is 15.3x while industry average is 3.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sino Harbour Property Group Ltd ($1663) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 515.2 | 559.9 | 476.3 | 500.9 | 597.0 | 19.2% |
| Gross Profit | 215.0 | 190.7 | 152.2 | 135.5 | 80.3 | -40.8% |
| SG&A | 18.9 | 33.4 | 45.2 | 52.5 | 58.0 | 10.5% |
| EBITDA | 208.9 | 191.5 | 108.9 | 102.0 | 45.4 | -55.5% |
| Net Income | 101.3 | 126.4 | 143.8 | 92.9 | 95.0 | 2.2% |
Balance Sheet
|
|---|
| Cash | 92.8 | 240.9 | 67.8 | 183.7 | 119.5 | -34.9% |
| Short Term Debt | 0.0 | 99.0 | 375.2 | 697.8 | 366.7 | -47.5% |
| Long Term Debt | 80.0 | 434.5 | 748.5 | 480.0 | 448.5 | -6.6% |
Cash flow
|
|---|
| Capex | 3.0 | 0.2 | 2.0 | 1.0 | 3.1 | 221.6% |
Ratios
|
|---|
| Revenue growth | 51.4% | 8.7% | -14.9% | 5.2% | 19.2% | |
| EBITDA growth | 23.7% | -8.3% | -43.1% | -6.4% | -55.5% | |
| Gross Margin | 41.7% | 34.1% | 31.9% | 27.1% | 13.4% | -13.6% |
| EBITDA Margin | 40.5% | 34.2% | 22.9% | 20.4% | 7.6% | -12.8% |
| Net Income Margin | 19.7% | 22.6% | 30.2% | 18.6% | 15.9% | -2.6% |
| SG&A, % of revenue | 3.7% | 6.0% | 9.5% | 10.5% | 9.7% | -0.8% |
| CAPEX, % of revenue | 0.6% | 0.0% | 0.4% | 0.2% | 0.5% | 0.3% |
| ROIC | 17.8% | 12.1% | 4.9% | 3.8% | 1.6% | -2.2% |
| ROE | 14.2% | 13.4% | 13.8% | 8.1% | 7.6% | -0.6% |
| Net Debt/EBITDA | -0.1x | 1.5x | 9.7x | 9.8x | 15.3x | 5.6x |
Revenue and profitability
The company's Revenue surged on 19.2%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.0 pp from 8.3% to 12.3% in FY2016.
Gross Margin dropped on 13.6 pp from 27.1% to 13.4% in FY2016. SG&A as a % of Revenue decreased slightly on 0.77 pp from 10.5% to 9.7% in FY2016.
Net Income marign decreased on 2.6 pp from 18.6% to 15.9% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Sino Harbour Property Group Ltd's CAPEX/Revenue was 0.53% in FY2016. The company showed almost no change in CAPEX/Revenue from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 0.38%.
Return on investment
The company operates at low ROIC (1.63%) and ROE (7.57%). ROIC decreased on 2.2 pp from 3.8% to 1.6% in FY2016. ROE decreased slightly on 0.56 pp from 8.1% to 7.6% in FY2016.
Leverage (Debt)
Debt level is 15.3x Net Debt / EBITDA and 18.0x Debt / EBITDA. Net Debt / EBITDA surged on 5.6x from 9.8x to 15.3x in FY2016. Debt dropped on 30.8% while cash dropped on 34.9%.
Appendix 1: Peers in Real Estate
Below you can find Sino Harbour 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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 (179 companies) | 15.6% | 13.5% | 5.3% | 4.2% | 13.3% |
|---|
| Sino Harbour Property Group Ltd ($1663) | | 8.7% | -14.9% | 5.2% | 19.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Renhe Commercial Holdings Co Ltd ($1387) | 79.0% | 95.2% | 97.9% | 99.9% | |
| Tern Properties Co Ltd ($277) | 96.7% | 98.4% | 98.4% | 98.7% | |
| YT Realty Group Ltd ($75) | 94.4% | 96.6% | 96.7% | 97.6% | |
| Wah Ha Realty Co Ltd ($278) | 96.3% | 96.0% | 93.2% | 95.9% | |
| Soundwill Holdings Ltd ($878) | 53.1% | 74.5% | 46.9% | 95.7% | |
| |
|---|
| Median (160 companies) | 42.1% | 41.9% | 39.3% | 38.4% | 28.8% |
|---|
| Sino Harbour Property Group Ltd ($1663) | 41.7% | 34.1% | 31.9% | 27.1% | 13.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chinese Estates Holdings Ltd ($127) | 356.2% | 91.6% | 195.5% | 397.4% | |
| Zall Development Group Ltd ($2098) | 105.3% | 133.1% | 143.2% | 213.9% | |
| SOHO China Ltd ($410) | 113.6% | 80.8% | 104.0% | 201.9% | |
| Beijing Properties Holdings Ltd ($925) | -606.3% | 2,162.6% | 224.3% | 186.5% | |
| Swire Properties Ltd ($1972) | 154.5% | 114.6% | 73.2% | 100.3% | |
| |
|---|
| Median (179 companies) | 28.9% | 28.3% | 27.8% | 23.5% | 36.1% |
|---|
| Sino Harbour Property Group Ltd ($1663) | 40.5% | 34.2% | 22.9% | 20.4% | 7.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| LT Commercial Real Estate Ltd ($112) | 0.0% | 18.0% | 27,965.5% | 4,834.8% | |
| China Oceanwide Holdings Ltd ($715) | 0.8% | 0.3% | 2.0% | 880.6% | |
| Madex International Holdings Ltd ($231) | 174.5% | 519.7% | 205.3% | 350.6% | |
| Pacific Century Premium Developments Ltd ($432) | 2.9% | 323.1% | 351.2% | 340.6% | |
| Hon Kwok Land Investment Co Ltd ($160) | 20.6% | 157.3% | 144.5% | 296.3% | |
| |
|---|
| Median (179 companies) | 5.9% | 6.2% | 4.8% | 3.3% | 2.1% |
|---|
| Sino Harbour Property Group Ltd ($1663) | 0.6% | 0.0% | 0.4% | 0.2% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hydoo International Holding Ltd ($1396) | 44.3% | 62.0% | 12.9% | 16.6% | |
| Gemdale Properties & Investment Corp Ltd ($535) | 15.3% | 19.6% | 10.8% | 15.9% | |
| China Overseas Land & Investment Ltd ($688) | | 15.1% | 18.5% | 15.4% | 13.0% |
| 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 (181 companies) | 4.0% | 4.0% | 4.1% | 2.4% | 13.0% |
|---|
| Sino Harbour Property Group Ltd ($1663) | 17.8% | 12.1% | 4.9% | 3.8% | 1.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shui On Land Ltd ($272) | 22.1x | 13.2x | 17.1x | 54.2x | |
| Beijing Capital Land Ltd ($2868) | 7.1x | 4.6x | 11.7x | 49.1x | |
| Talent Property Group Ltd ($760) | | | | 43.0x | |
| Mingfa Group International Co Ltd ($846) | 2.5x | 3.0x | 6.3x | 42.9x | |
| Sunshine 100 China Holdings Ltd ($2608) | 9.9x | 12.4x | 12.9x | 42.3x | |
| |
|---|
| Median (136 companies) | 2.4x | 2.8x | 3.0x | 3.2x | 0.3x |
|---|
| Sino Harbour Property Group Ltd ($1663) | -0.1x | 1.5x | 9.7x | 9.8x | 15.3x |
