Rykadan Capital Ltd Net Income dropped on 174% and EBITDA Margin dropped on 37.1 pp from -18.7% to -55.8%
16/06/2016 • About Rykadan Capital Ltd (
$2288) • By InTwits
Rykadan Capital Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Rykadan Capital Ltd is a company in decline: FY2016 revenue growth was -52.4%, 5 years revenue CAGR was -35.4%
- The company operates at negative EBITDA Margin: -55.8%
- Rykadan Capital Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.9%. At the same time it's a lot of higher than industry average of 57.3%.
- CAPEX is quite volatile: 2.1 in FY2016, 9.6 in FY2015, 6.3 in FY2014, 5.8 in FY2013, 13.3 in FY2012
- 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.
Rykadan Capital Ltd ($2288) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 82 | 156 | 2,116 | 322 | 153 | -52.4% |
| Gross Profit | 15 | 42 | 1,006 | 88 | 38 | -56.6% |
| SG&A | 42 | 76 | 183 | 153 | 131 | -14.5% |
| EBITDA | -12 | -35 | 824 | -60 | -85 | |
| Net Income | 110 | 138 | 422 | 113 | -83 | -173.5% |
Balance Sheet
|
|---|
| Cash | 371 | 230 | 958 | 280 | 132 | -52.7% |
| Short Term Debt | 64 | 312 | 161 | 127 | 296 | 132.5% |
| Long Term Debt | 596 | 97 | 162 | 151 | 151 | -0.1% |
Cash flow
|
|---|
| Capex | 13 | 6 | 6 | 10 | 2 | -78.4% |
Ratios
|
|---|
| Revenue growth | -94.0% | 91.5% | 1,252.9% | -84.8% | -52.4% | |
| EBITDA growth | -106.4% | 197.4% | -2,448.1% | -107.3% | 42.2% | |
| Gross Margin | 17.9% | 26.8% | 47.5% | 27.3% | 24.8% | -2.4% |
| EBITDA Margin | -14.5% | -22.4% | 39.0% | -18.7% | -55.8% | -37.1% |
| Net Income Margin | 134.2% | 88.3% | 19.9% | 35.3% | -54.4% | -89.7% |
| SG&A, % of revenue | 52.0% | 48.4% | 8.7% | 47.5% | 85.4% | 37.9% |
| CAPEX, % of revenue | 16.2% | 3.7% | 0.3% | 3.0% | 1.4% | -1.6% |
| ROIC | -1.8% | -2.6% | 48.4% | -3.7% | -5.7% | -2.0% |
| ROE | 12.1% | 15.2% | 40.1% | 9.3% | -7.3% | -16.6% |
| Net Debt/EBITDA | | | -0.8x | | | 0.0x |
Revenue and profitability
Rykadan Capital Ltd's Revenue dropped on 52.4%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 37.1 pp from -18.7% to -55.8% in FY2016.
Gross Margin decreased on 2.4 pp from 27.3% to 24.8% in FY2016. SG&A as a % of Revenue surged on 37.9 pp from 47.5% to 85.4% in FY2016.
Net Income marign dropped on 89.7 pp from 35.3% to -54.4% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.4% in FY2016. Rykadan Capital Ltd's CAPEX/Revenue decreased on 2.3 pp from 3.7% in FY2013 to 1.4% in FY2016. For the last three years the average CAPEX/Revenue was 1.5%.
Return on investment
The company operates at negative ROIC (-5.72%) and ROE (-7.32%). ROIC decreased on 2.0 pp from -3.7% to -5.7% in FY2016. ROE dropped on 16.6 pp from 9.3% to -7.3% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.4x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt jumped on 60.5% while cash dropped on 52.7%.
Appendix 1: Peers in Real Estate
Below we provide Rykadan Capital Ltd benchmarking against other companies in Real Estate industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
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) | 16.1% | 13.1% | 5.2% | 4.5% | 13.3% |
|---|
| Rykadan Capital Ltd ($2288) | | 91.5% | 1,252.9% | -84.8% | -52.4% |
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% | 98.8% |
| 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% | 39.1% | 38.4% | 28.8% |
|---|
| Rykadan Capital Ltd ($2288) | 17.9% | 26.8% | 47.5% | 27.3% | 24.8% |
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) | 29.3% | 28.5% | 26.9% | 23.5% | 12.1% |
|---|
| Rykadan Capital Ltd ($2288) | -14.5% | -22.4% | 39.0% | -18.7% | -55.8% |
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) | 5.6% | 6.2% | 4.8% | 3.3% | 2.1% |
|---|
| Rykadan Capital Ltd ($2288) | 16.2% | 3.7% | 0.3% | 3.0% | 1.4% |
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) | 4.2% | 4.1% | 4.1% | 2.5% | 1.6% |
|---|
| Rykadan Capital Ltd ($2288) | -1.8% | -2.6% | 48.4% | -3.7% | -5.7% |
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 (137 companies) | 2.4x | 2.7x | 3.0x | 3.2x | 0.3x |
|---|
