CSI Properties Ltd Net Income surged on 526% and EBITDA Margin jumped on 12.2 pp from 40.6% to 52.7%
29/06/2016 • About CSI Properties Ltd (
$497) • By InTwits
CSI Properties Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CSI Properties Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has business model with low profitability: ROIC is at 7.4%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.9x 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.
CSI Properties Ltd ($497) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,218 | 1,162 | 2,578 | 746 | 2,201 | 195.3% |
| Gross Profit | 1,666 | 738 | 940 | 360 | 1,172 | 225.1% |
| SG&A | | | | 152 | 214 | 40.7% |
| EBITDA | 1,605 | 732 | 948 | 302 | 1,161 | 283.8% |
| Net Income | 1,754 | 903 | 815 | 263 | 1,645 | 525.6% |
Balance Sheet
|
|---|
| Cash | 2,424 | 3,112 | 1,791 | 1,274 | 3,525 | 176.6% |
| Short Term Debt | 736 | 752 | 802 | 710 | 561 | -21.0% |
| Long Term Debt | 1,928 | 3,125 | 2,958 | 3,216 | 7,450 | 131.7% |
Cash flow
|
|---|
| Capex | 41 | 2 | 48 | 6 | 4 | -36.9% |
Ratios
|
|---|
| Revenue growth | 17.2% | -63.9% | 121.8% | -71.1% | 195.3% | |
| EBITDA growth | 77.7% | -54.4% | 29.6% | -68.1% | 283.8% | |
| Gross Margin | 51.8% | 63.5% | 36.4% | 48.3% | 53.2% | 4.9% |
| EBITDA Margin | 49.9% | 62.9% | 36.8% | 40.6% | 52.7% | 12.2% |
| Net Income Margin | 54.5% | 77.7% | 31.6% | 35.3% | 74.7% | 39.5% |
| SG&A, % of revenue | | | | 20.4% | 9.7% | -10.7% |
| CAPEX, % of revenue | 1.3% | 0.1% | 1.9% | 0.9% | 0.2% | -0.7% |
| ROIC | 19.6% | 6.7% | 7.8% | 2.2% | 7.4% | 5.2% |
| ROE | 34.4% | 13.9% | 11.0% | 3.3% | 18.3% | 15.1% |
| Net Debt/EBITDA | 0.1x | 1.0x | 2.1x | 8.8x | 3.9x | -4.9x |
Revenue and profitability
The company's Revenue surged on 195%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.8 pp from -10.1% to -6.3% in FY2016.
Gross Margin increased on 4.9 pp from 48.3% to 53.2% in FY2016. SG&A as a % of Revenue dropped on 10.7 pp from 20.4% to 9.7% in FY2016.
Net Income marign jumped on 39.5 pp from 35.3% to 74.7% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 CSI Properties Ltd had CAPEX/Revenue of 0.19%. CAPEX/Revenue showed almost no change from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 0.98%.
Return on investment
The company operates at good ROE (18.35%) while ROIC is low (7.38%). ROIC increased on 5.2 pp from 2.2% to 7.4% in FY2016. ROE jumped on 15.1 pp from 3.3% to 18.3% in FY2016.
Leverage (Debt)
Debt level is 3.9x Net Debt / EBITDA and 6.9x Debt / EBITDA. Net Debt / EBITDA dropped on 4.9x from 8.8x to 3.9x in FY2016. Debt surged on 104% while cash jumped on 177%.
Appendix 1: Peers in Real Estate
Below we provide CSI Properties 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) | 15.6% | 13.5% | 5.2% | 4.5% | 5.7% |
|---|
| CSI Properties Ltd ($497) | | -63.9% | 121.8% | -71.1% | 195.3% |
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% | 92.9% |
| Soundwill Holdings Ltd ($878) | 53.1% | 74.5% | 46.9% | 95.7% | |
| |
|---|
| Median (160 companies) | 41.9% | 41.8% | 39.3% | 38.2% | 45.2% |
|---|
| CSI Properties Ltd ($497) | 51.8% | 63.5% | 36.4% | 48.3% | 53.2% |
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% | 28.3% | 26.9% | 23.4% | 13.9% |
|---|
| CSI Properties Ltd ($497) | 49.9% | 62.9% | 36.8% | 40.6% | 52.7% |
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% | 1.8% |
|---|
| CSI Properties Ltd ($497) | 1.3% | 0.1% | 1.9% | 0.9% | 0.2% |
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% | 4.1% | 2.5% | 1.8% |
|---|
| CSI Properties Ltd ($497) | 19.6% | 6.7% | 7.8% | 2.2% | 7.4% |
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) | 2.4x | 2.8x | 3.0x | 3.2x | 3.4x |
|---|
| CSI Properties Ltd ($497) | 0.1x | 1.0x | 2.1x | 8.8x | 3.9x |
