ITC Properties Group Ltd revenue jumped on 206% and EBITDA Margin jumped on 315 pp from -525% to -210%
27/06/2016 • About ITC Properties Group Ltd (
$199) • By InTwits
ITC Properties Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- ITC Properties Group Ltd doesn't have a profitable business model yet: FY2016 ROIC is -4.4%
- The company operates at negative EBITDA Margin: -210.5%
- ITC Properties Group Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -235.5% for the sames years0
- ITC Properties Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 1,163.8%. At the same time it's a lot of higher than industry average of 58.8%.
- CAPEX is quite volatile: 82.7 in FY2016, 77.5 in FY2015, 68.5 in FY2014, 126 in FY2013, 35.1 in FY2012
- The company has unprofitable business model: ROIC is at -4.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
ITC Properties Group Ltd ($199) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 62.4 | 3.0 | 5.3 | 40.9 | 125.2 | 206.4% |
| Gross Profit | 14.2 | 2.8 | 5.0 | 25.6 | 73.9 | 188.3% |
| SG&A | | | | 229.6 | 380.2 | 65.6% |
| EBITDA | -78.3 | -89.5 | 88.5 | -214.7 | -263.6 | |
| Net Income | 162.3 | 579.6 | 386.9 | 803.6 | 1,460.1 | 81.7% |
Balance Sheet
|
|---|
| Cash | 759.7 | 415.4 | 470.8 | 318.4 | 615.4 | 93.3% |
| Short Term Debt | 148.7 | 919.0 | 453.3 | 393.5 | 998.2 | 153.7% |
| Long Term Debt | 1,097.3 | 374.1 | 0.2 | 593.4 | 250.2 | -57.8% |
Cash flow
|
|---|
| Capex | 35.1 | 125.6 | 68.5 | 77.5 | 82.7 | 6.6% |
Ratios
|
|---|
| Revenue growth | -70.5% | -95.2% | 75.7% | 678.6% | 206.4% | |
| EBITDA growth | -254.4% | 14.4% | -198.8% | -342.6% | 22.8% | |
| Gross Margin | 22.8% | 92.9% | 95.2% | 62.7% | 59.0% | -3.7% |
| EBITDA Margin | -125.5% | -2,995.7% | 1,685.3% | -525.1% | -210.5% | 314.7% |
| Net Income Margin | 260.2% | 19,397.6% | 7,368.6% | 1,965.8% | 1,165.8% | -800.0% |
| SG&A, % of revenue | | | | 561.7% | 303.6% | -258.1% |
| CAPEX, % of revenue | 56.2% | 4,202.4% | 1,304.7% | 189.7% | 66.0% | -123.7% |
| ROIC | -2.5% | -2.6% | 1.8% | -4.7% | -4.4% | 0.2% |
| ROE | 7.0% | 22.8% | 11.7% | 20.3% | 30.1% | 9.8% |
| Net Debt/EBITDA | | | -0.2x | | | 0.0x |
Revenue and profitability
ITC Properties Group Ltd's Revenue jumped on 206%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 590 pp from 13.2% to -577% in FY2016.
Gross Margin decreased on 3.7 pp from 62.7% to 59.0% in FY2016. SG&A as a % of Revenue dropped on 258 pp from 562% to 304% in FY2016.
Net Income marign dropped on 800 pp from 1,966% to 1,166% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 ITC Properties Group Ltd had CAPEX/Revenue of 66.0%. ITC Properties Group Ltd showed big decline in CAPEX/Revenue of 4,136 pp from 4,202% in FY2013 to 66.0% in FY2016. For the last three years the average CAPEX/Revenue was 520%.
Return on investment
The company operates at negative ROIC (-4.45%) and low but positive ROE (30.07%). ROIC showed almost no change in FY2016. ROE increased on 9.8 pp from 20.3% to 30.1% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.0x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt surged on 26.5% while cash surged on 93.3%.
Appendix 1: Peers in Real Estate
Below you can find ITC Properties 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% | |
| LT Commercial Real Estate Ltd ($112) | 30.5% | -53.9% | -83.4% | 662.4% | |
| |
|---|
| Median (179 companies) | 15.9% | 13.5% | 5.2% | 4.2% | 4.8% |
|---|
| ITC Properties Group Ltd ($199) | | -95.2% | 75.7% | 678.6% | 206.4% |
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% | 41.8% | 39.1% | 38.2% | 48.2% |
|---|
| ITC Properties Group Ltd ($199) | 22.8% | 92.9% | 95.2% | 62.7% | 59.0% |
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% | 13.9% |
|---|
| ITC Properties Group Ltd ($199) | -125.5% | -2,995.7% | 1,685.3% | -525.1% | -210.5% |
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% | 3.2% | 1.4% |
|---|
| ITC Properties Group Ltd ($199) | 56.2% | 4,202.4% | 1,304.7% | 189.7% | 66.0% |
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% | 1.6% |
|---|
| ITC Properties Group Ltd ($199) | -2.5% | -2.6% | 1.8% | -4.7% | -4.4% |
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 |
|---|
