Asia Standard International Group Ltd CAPEX dropped on 86.2% while Revenue increased on 4.8%
24/06/2016 • About Asia Standard International Group Ltd (
$129) • By InTwits
Asia Standard International Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Asia Standard International Group Ltd doesn't have a profitable business model yet: FY2016 ROIC is 0.4%
- EBITDA Margin is quite volatile: 13.3% in FY2016, -53.4% in FY2015, 73.7% in FY2014, 93.8% in FY2013, -72.1% in FY2012
- Asia Standard International Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 30.9%. At the same time it's in pair with industry average of 14.0%.
- CAPEX is quite volatile: 180 in FY2016, 1,304 in FY2015, 149 in FY2014, 223 in FY2013, 17.2 in FY2012
- The company has potentially unprofitable business model: ROIC is at 0.4%
- It operates with high leverage: Net Debt/EBITDA is 38.3x while industry average is 3.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Asia Standard International Group Ltd ($129) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,174 | 962 | 1,220 | 1,256 | 1,316 | 4.8% |
| Gross Profit | 811 | 779 | 976 | 1,024 | 1,074 | 4.9% |
| SG&A | | 199 | 185 | 203 | 223 | 9.8% |
| EBITDA | -846 | 902 | 900 | -671 | 175 | |
| Net Income | 383 | 2,476 | 1,400 | 967 | 721 | -25.4% |
Balance Sheet
|
|---|
| Cash | 398 | 409 | 1,461 | 1,066 | 735 | -31.1% |
| Short Term Debt | 1,527 | 479 | 938 | 1,038 | 1,105 | 6.5% |
| Long Term Debt | 2,364 | 2,899 | 4,460 | 5,499 | 6,308 | 14.7% |
Cash flow
|
|---|
| Capex | 17 | 223 | 149 | 1,304 | 180 | -86.2% |
Ratios
|
|---|
| Revenue growth | 10.2% | -18.1% | 26.8% | 2.9% | 4.8% | |
| EBITDA growth | -172.5% | -206.6% | -0.3% | -174.6% | -126.0% | |
| Gross Margin | 69.1% | 81.0% | 80.0% | 81.5% | 81.6% | 0.1% |
| EBITDA Margin | -72.1% | 93.8% | 73.7% | -53.4% | 13.3% | 66.7% |
| Net Income Margin | 32.6% | 257.3% | 114.8% | 77.0% | 54.8% | -22.2% |
| SG&A, % of revenue | | 20.7% | 15.2% | 16.2% | 16.9% | 0.8% |
| CAPEX, % of revenue | 1.5% | 23.2% | 12.2% | 103.8% | 13.6% | -90.1% |
| ROIC | -6.4% | 5.1% | 4.3% | -3.5% | 0.4% | 3.9% |
| ROE | 3.8% | 21.7% | 10.5% | 6.7% | 4.7% | -1.9% |
| Net Debt/EBITDA | | 3.3x | 4.4x | | 38.3x | 38.3x |
Revenue and profitability
The company's Revenue increased on 4.8%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.4 pp from 3.2% to 5.6% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue increased slightly on 0.77 pp from 16.2% to 16.9% in FY2016.
Net Income marign dropped on 22.2 pp from 77.0% to 54.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 13.6% in FY2016. CAPEX/Revenue decreased on 9.5 pp from 23.2% in FY2013 to 13.6% in FY2016. It's average CAPEX/Revenue for the last three years was 43.2%.The company maintained rich investment policy and has spent a lot to CAPEX (103% of EBITDA).
Return on investment
The company operates at low ROIC (0.38%) and ROE (4.73%). ROIC increased on 3.9 pp from -3.5% to 0.38% in FY2016. ROE decreased slightly on 1.9 pp from 6.7% to 4.7% in FY2016.
Leverage (Debt)
Debt level is 38.3x Net Debt / EBITDA and 42.5x Debt / EBITDA. Net Debt / EBITDA jumped38.3x from to 38.3x in FY2016. Debt jumped on 13.4% while cash dropped on 31.1%.
Appendix 1: Peers in Real Estate
Below you can find Asia Standard International 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) | 16.4% | 13.5% | 5.2% | 4.5% | 6.0% |
|---|
| Asia Standard International Group Ltd ($129) | | -18.1% | 26.8% | 2.9% | 4.8% |
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) | 41.9% | 41.8% | 39.1% | 38.2% | 32.5% |
|---|
| Asia Standard International Group Ltd ($129) | 69.1% | 81.0% | 80.0% | 81.5% | 81.6% |
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% | 28.3% | 26.9% | 23.5% | 12.1% |
|---|
| Asia Standard International Group Ltd ($129) | -72.1% | 93.8% | 73.7% | -53.4% | 13.3% |
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% | 6.1% | 4.7% | 3.2% | 1.4% |
|---|
| Asia Standard International Group Ltd ($129) | 1.5% | 23.2% | 12.2% | 103.8% | 13.6% |
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% | 4.0% | 4.1% | 2.5% | 1.5% |
|---|
| Asia Standard International Group Ltd ($129) | -6.4% | 5.1% | 4.3% | -3.5% | 0.4% |
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 | 1.4x |
|---|
