Henry Group Holdings Ltd EBITDA jumped on 120% and EBITDA Margin jumped on 11.3 pp from 11.7% to 23.0%
24/06/2016 • About Henry Group Holdings Ltd (
$859) • By InTwits
Henry Group Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Henry Group Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is 0.4%
- EBITDA Margin is quite volatile: 23.0% in FY2016, 11.7% in FY2015, -16.7% in FY2014, 12.9% in FY2013, 35.8% in FY2012
- Henry Group Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 248.8%. At the same time it's a lot of higher than industry average of 59.7%.
- CAPEX is quite volatile: 0.034 in FY2016, 0.0060 in FY2015, 105 in FY2014, 308 in FY2013, 170 in FY2012
- The company has potentially unprofitable business model: ROIC is at 0.4%
- It operates with high leverage: Net Debt/EBITDA is 65.0x 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.
Henry Group Holdings Ltd ($859) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 39.330 | 49.977 | 53.555 | 51.270 | 57.247 | 11.7% |
| EBITDA | 14.080 | 6.429 | -8.966 | 5.973 | 13.148 | 120.1% |
| Net Income | 377.623 | 354.080 | 123.600 | 486.169 | 1.571 | -99.7% |
Balance Sheet
|
|---|
| Cash | 143.337 | 379.202 | 964.792 | 1,146.096 | 299.680 | -73.9% |
| Short Term Debt | 51.896 | 109.036 | 26.750 | 26.750 | 26.750 | 0.0% |
| Long Term Debt | 2,063.983 | 933.103 | 973.124 | 981.374 | 1,127.793 | 14.9% |
Cash flow
|
|---|
| Capex | 169.891 | 308.267 | 104.505 | 0.006 | 0.034 | 466.7% |
Ratios
|
|---|
| Revenue growth | 17.5% | 27.1% | 7.2% | -4.3% | 11.7% | |
| EBITDA growth | 1,080.2% | -54.3% | -239.5% | -166.6% | 120.1% | |
| EBITDA Margin | 35.8% | 12.9% | -16.7% | 11.7% | 23.0% | 11.3% |
| Net Income Margin | 960.1% | 708.5% | 230.8% | 948.3% | 2.7% | -945.5% |
| CAPEX, % of revenue | 432.0% | 616.8% | 195.1% | 0.0% | 0.1% | 0.0% |
| ROIC | 0.3% | 0.1% | -0.3% | 0.2% | 0.4% | 0.2% |
| ROE | 32.7% | 21.5% | 6.5% | 21.2% | 0.1% | -21.2% |
| Net Debt/EBITDA | 140.1x | 103.1x | | -23.1x | 65.0x | 88.1x |
Revenue and profitability
Henry Group Holdings Ltd's Revenue surged on 11.7%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 11.3 pp from 11.7% to 23.0% in FY2016.
Net Income marign dropped on 946 pp from 948% to 2.7% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Henry Group Holdings Ltd's CAPEX/Revenue was 0.059% in FY2016. The company showed big decline in CAPEX/Revenue of 617 pp from 617% in FY2013 to 0.059% in FY2016. It's average CAPEX/Revenue for the last three years was 65.1%.
Return on investment
The company operates at low ROIC (0.37%) and ROE (0.07%). ROIC showed almost no change in FY2016. ROE dropped on 21.2 pp from 21.2% to 0.066% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 65.0x and Debt / EBITDA is 87.8x. Net Debt / EBITDA surged on 88.1x from -23.1x to 65.0x in FY2016. Debt surged on 14.5% while cash dropped on 73.9%.
Appendix 1: Peers in Real Estate
Below we provide Henry Group Holdings 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) | 16.4% | 13.1% | 5.2% | 4.5% | 5.4% |
|---|
| Henry Group Holdings Ltd ($859) | | 27.1% | 7.2% | -4.3% | 11.7% |
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 (161 companies) | 41.9% | 41.9% | 39.2% | 38.2% | 35.2% |
|---|
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% | 28.5% | 27.8% | 23.5% | 12.1% |
|---|
| Henry Group Holdings Ltd ($859) | 35.8% | 12.9% | -16.7% | 11.7% | 23.0% |
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% | 6.1% | 4.7% | 3.3% | 2.1% |
|---|
| Henry Group Holdings Ltd ($859) | 432.0% | 616.8% | 195.1% | 0.0% | 0.1% |
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% | 4.2% | 2.5% | 1.5% |
|---|
| Henry Group Holdings Ltd ($859) | 0.3% | 0.1% | -0.3% | 0.2% | 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 (136 companies) | 2.3x | 2.7x | 3.0x | 3.3x | 1.4x |
|---|
| Henry Group Holdings Ltd ($859) | 140.1x | 103.1x | | -23.1x | 65.0x |
