Coastal Greenland Ltd revenue dropped on 63.3% and EBITDA Margin dropped on 42.8 pp from -16.3% to -59.0%
28/06/2016 • About Coastal Greenland Ltd (
$1124) • By InTwits
Coastal Greenland Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Coastal Greenland Ltd is a company in decline: FY2016 revenue growth was -63.3%, 5 years revenue CAGR was -26.8%
- The company operates at negative EBITDA Margin: -59.0%
- Coastal Greenland Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has unprofitable business model: ROIC is at -3.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Coastal Greenland Ltd ($1124) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 7,178 | 3,717 | 2,781 | 2,141 | 786 | -63.3% |
| Gross Profit | 2,342 | 887 | 517 | 224 | -32 | -114.1% |
| SG&A | 353 | 472 | 461 | 391 | 267 | -31.7% |
| EBITDA | 1,973 | 563 | 206 | -348 | -464 | |
| Net Income | 604 | 93 | 65 | -508 | -123 | |
Balance Sheet
|
|---|
| Cash | 1,913 | 1,793 | 1,947 | 844 | 434 | -48.6% |
| Short Term Debt | 5,037 | 1,063 | 1,945 | 4,671 | 3,310 | -29.1% |
| Long Term Debt | 1,310 | 4,736 | 5,489 | 4,140 | 4,307 | 4.1% |
Cash flow
|
|---|
| Capex | 26 | 16 | 11 | 10 | 13 | 32.1% |
Ratios
|
|---|
| Revenue growth | 91.2% | -48.2% | -25.2% | -23.0% | -63.3% | |
| EBITDA growth | 109.9% | -71.4% | -63.4% | -268.6% | 33.4% | |
| Gross Margin | 32.6% | 23.9% | 18.6% | 10.5% | -4.0% | -14.5% |
| EBITDA Margin | 27.5% | 15.2% | 7.4% | -16.3% | -59.0% | -42.8% |
| Net Income Margin | 8.4% | 2.5% | 2.3% | -23.7% | -15.7% | 8.1% |
| SG&A, % of revenue | 4.9% | 12.7% | 16.6% | 18.3% | 34.0% | 15.7% |
| CAPEX, % of revenue | 0.4% | 0.4% | 0.4% | 0.5% | 1.6% | 1.2% |
| ROIC | 15.5% | 4.1% | 1.5% | -2.6% | -3.5% | -1.0% |
| ROE | 15.0% | 2.1% | 1.4% | -10.9% | -2.9% | 8.0% |
| Net Debt/EBITDA | 2.2x | 7.1x | 26.6x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 63.3%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 42.8 pp from -16.3% to -59.0% in FY2016.
Gross Margin dropped on 14.5 pp from 10.5% to -4.0% in FY2016. SG&A as a % of Revenue jumped on 15.7 pp from 18.3% to 34.0% in FY2016.
Net Income marign increased on 8.1 pp from -23.7% to -15.7% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Coastal Greenland Ltd had CAPEX/Revenue of 1.6%. CAPEX/Revenue increased slightly on 1.2 pp from 0.43% in FY2013 to 1.6% in FY2016. It's average CAPEX/Revenue for the last three years was 0.83%.
Return on investment
The company operates at negative ROIC (-3.55%) and ROE (-2.88%). ROIC decreased slightly on 0.99 pp from -2.6% to -3.5% in FY2016. ROE increased on 8.0 pp from -10.9% to -2.9% in FY2016.
Leverage (Debt)
Debt level is -0.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt dropped on 13.5% while cash dropped on 48.6%.
Appendix 1: Peers in Real Estate
Below we provide Coastal Greenland 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) | | -95.2% | 75.7% | 678.6% | 206.4% |
| |
|---|
| Median (179 companies) | 15.8% | 13.5% | 5.3% | 4.5% | 5.4% |
|---|
| Coastal Greenland Ltd ($1124) | | -48.2% | -25.2% | -23.0% | -63.3% |
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% | 39.3% | 38.4% | 48.2% |
|---|
| Coastal Greenland Ltd ($1124) | 32.6% | 23.9% | 18.6% | 10.5% | -4.0% |
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% | 27.8% | 23.5% | 13.9% |
|---|
| Coastal Greenland Ltd ($1124) | 27.5% | 15.2% | 7.4% | -16.3% | -59.0% |
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% | 28.1% |
| |
|---|
| Median (179 companies) | 5.9% | 6.2% | 4.8% | 3.3% | 2.1% |
|---|
| Coastal Greenland Ltd ($1124) | 0.4% | 0.4% | 0.4% | 0.5% | 1.6% |
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) | 4.0% | 4.0% | 4.2% | 2.5% | 1.6% |
|---|
| Coastal Greenland Ltd ($1124) | 15.5% | 4.1% | 1.5% | -2.6% | -3.5% |
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 | 2.0x |
|---|
