Southeast Asia Properties & Finance Ltd reports 77.0% Net Income decline in 2016 and 3.3% Revenue decline
03/06/2016 • About Southeast Asia Properties & Finance Ltd (
$252) • By InTwits
Southeast Asia Properties & Finance Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Southeast Asia Properties & Finance Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.7%. At the same time it's a lot of higher than industry average of 8.8%.
- CAPEX is quite volatile: 16.7 in FY2016, 81.7 in FY2015, 6.9 in FY2014, 3.8 in FY2013, 8.9 in FY2012
- The company has potentially unprofitable business model: ROIC is at 3.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Southeast Asia Properties & Finance Ltd ($252) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 400.0 | 392.9 | 430.6 | 522.2 | 505.0 | -3.3% |
| Gross Profit | 77.8 | 96.7 | 94.5 | 102.4 | 111.5 | 8.8% |
| SG&A | | 71.0 | 71.8 | 75.2 | 67.2 | -10.7% |
| EBITDA | 32.9 | 50.8 | 38.4 | 43.3 | 62.2 | 43.6% |
| Net Income | 80.3 | 145.3 | 95.3 | 161.3 | 37.2 | -77.0% |
Balance Sheet
|
|---|
| Cash | 60.9 | 25.1 | 32.8 | 101.0 | 81.4 | -19.5% |
| Short Term Debt | 215.8 | 153.3 | 240.0 | 192.4 | 106.1 | -44.8% |
| Long Term Debt | 65.4 | 160.4 | 145.8 | 96.4 | 243.4 | 152.4% |
Cash flow
|
|---|
| Capex | 8.9 | 3.8 | 6.9 | 81.7 | 16.7 | -79.6% |
Ratios
|
|---|
| Revenue growth | 14.4% | -1.8% | 9.6% | 21.3% | -3.3% | |
| EBITDA growth | -17.0% | 54.7% | -24.5% | 12.9% | 43.6% | |
| Gross Margin | 19.4% | 24.6% | 21.9% | 19.6% | 22.1% | 2.5% |
| EBITDA Margin | 8.2% | 12.9% | 8.9% | 8.3% | 12.3% | 4.0% |
| Net Income Margin | 20.1% | 37.0% | 22.1% | 30.9% | 7.4% | -23.5% |
| SG&A, % of revenue | | 18.1% | 16.7% | 14.4% | 13.3% | -1.1% |
| CAPEX, % of revenue | 2.2% | 1.0% | 1.6% | 15.6% | 3.3% | -12.3% |
| ROIC | 1.7% | 3.2% | 1.9% | 2.1% | 3.3% | 1.2% |
| ROE | 10.8% | 17.0% | 9.8% | 15.1% | 3.3% | -11.8% |
| Net Debt/EBITDA | 6.7x | 5.7x | 9.2x | 4.3x | 4.3x | -0.0x |
Revenue and profitability
The company's Revenue decreased on 3.3%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.0 pp from 8.3% to 12.3% in FY2016.
Gross Margin increased on 2.5 pp from 19.6% to 22.1% in FY2016. SG&A as a % of Revenue decreased slightly on 1.1 pp from 14.4% to 13.3% in FY2016.
Net Income marign dropped on 23.5 pp from 30.9% to 7.4% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 3.3%. CAPEX/Revenue increased on 2.3 pp from 0.98% in FY2013 to 3.3% in FY2016. It's average level of CAPEX/Revenue for the last three years was 6.9%.
Return on investment
The company operates at low ROIC (3.31%) and ROE (3.27%). ROIC increased slightly on 1.2 pp from 2.1% to 3.3% in FY2016. ROE dropped on 11.8 pp from 15.1% to 3.3% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.3x and Debt / EBITDA is 5.6x. Net Debt / EBITDA decreased on 0.023x from 4.3x to 4.3x in FY2016. Debt jumped on 21.0% while cash dropped on 19.5%.
Appendix 1: Peers in Holding Companies-Divers
Below you can find Southeast Asia Properties & Finance Ltd benchmarking vs. other companies in Holding Companies-Divers 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 |
|---|
| Beijing Development HK Ltd ($154) | 12.5% | | | 1,048.9% | |
| CIAM Group Ltd ($378) | -62.2% | 47.9% | -40.0% | 211.5% | |
| Melco International Development Ltd ($200) | 16.5% | 21.7% | 3.0% | 134.9% | |
| New Century Group Hong Kong Ltd ($234) | -68.9% | 326.7% | -70.3% | 118.2% | |
| Greater China Holdings Ltd ($431) | -35.8% | -72.1% | 67.3% | 110.3% | |
| |
|---|
| Median (43 companies) | 11.4% | 5.0% | 15.5% | 0.5% | -5.8% |
|---|
| Southeast Asia Properties & Finance Ltd ($252) | | -1.8% | 9.6% | 21.3% | -3.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Century Group Hong Kong Ltd ($234) | 27.3% | 85.2% | 82.8% | 91.5% | |
| Melco International Development Ltd ($200) | 63.1% | 52.9% | 54.5% | 79.4% | |
| CIAM Group Ltd ($378) | | | | 75.8% | |
| Emperor International Holdings Ltd ($163) | 71.3% | 64.9% | 79.2% | 75.3% | |
| Heng Fai Enterprises Ltd ($185) | 89.0% | 89.5% | 58.3% | 74.7% | |
| |
|---|
| Median (38 companies) | 33.4% | 36.0% | 34.4% | 37.6% | |
|---|
| Southeast Asia Properties & Finance Ltd ($252) | 19.4% | 24.6% | 21.9% | 19.6% | 22.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Century Group Hong Kong Ltd ($234) | -5.5% | 78.8% | 58.3% | 85.0% | |
| Emperor International Holdings Ltd ($163) | 180.7% | 131.8% | 100.6% | 73.9% | |
| Pioneer Global Group Ltd ($224) | -0.5% | -9.9% | -11.6% | 64.3% | |
| C C Land Holdings Ltd ($1224) | 27.0% | 23.6% | 24.6% | 55.7% | |
| China Merchants Holdings International Co Ltd ($144) | 56.4% | 50.8% | 45.2% | 55.7% | |
| |
|---|
| Median (43 companies) | 2.2% | 2.0% | 5.8% | 6.2% | 11.7% |
|---|
| Southeast Asia Properties & Finance Ltd ($252) | 8.2% | 12.9% | 8.9% | 8.3% | 12.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Heng Fai Enterprises Ltd ($185) | 4.8% | 77.1% | 310.0% | 458.1% | |
| Chinney Investments Ltd ($216) | 17.5% | 103.4% | 111.3% | 230.9% | |
| China Investments Holdings Ltd ($132) | 4.8% | 81.9% | 382.2% | 222.5% | |
| Goldin Properties Holdings Ltd ($283) | 2,178.4% | 1,190.0% | 50.1% | 202.4% | |
| Carnival Group International Holdings Ltd ($996) | | 137.9% | 61.0% | 133.3% | |
| |
|---|
| Median (43 companies) | 2.6% | 3.7% | 6.6% | 6.0% | 7.0% |
|---|
| Southeast Asia Properties & Finance Ltd ($252) | 2.2% | 1.0% | 1.6% | 15.6% | 3.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| C C Land Holdings Ltd ($1224) | 7.4% | 5.3% | 7.9% | 15.0% | |
| Chinney Alliance Group Ltd ($385) | 6.4% | 8.1% | 13.6% | 15.0% | |
| Niraku GC Holdings Inc ($1245) | | 19.0% | 18.8% | 13.1% | 2.7% |
| Top Spring International Holdings Ltd ($3688) | 15.6% | 6.9% | 7.3% | 8.0% | |
| New Century Group Hong Kong Ltd ($234) | -1.7% | 11.7% | 1.7% | 7.3% | |
| |
|---|
| Median (43 companies) | -0.2% | 0.0% | 0.7% | 0.2% | 2.7% |
|---|
| Southeast Asia Properties & Finance Ltd ($252) | 1.7% | 3.2% | 1.9% | 2.1% | 3.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chinney Investments Ltd ($216) | 10.3x | 63.7x | 48.6x | 93.7x | |
| Carnival Group International Holdings Ltd ($996) | | | 23.7x | 92.3x | |
| Multifield International Holdings Ltd ($898) | 3.2x | 7.3x | 3.0x | 55.9x | |
| CIAM Group Ltd ($378) | | | | 32.6x | |
| Chuang's Consortium International Ltd ($367) | 0.7x | 5.0x | | 23.9x | |
| |
|---|
| Median (24 companies) | 2.4x | 2.7x | 2.8x | 2.4x | 2.0x |
|---|
| Southeast Asia Properties & Finance Ltd ($252) | 6.7x | 5.7x | 9.2x | 4.3x | 4.3x |
