Wah Ha Realty Co Ltd revenue returned to growth in FY2016: increased 137% vs. 1.1% decline a year earliner
29/06/2016 • About Wah Ha Realty Co Ltd (
$278) • By InTwits
Wah Ha Realty Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company has potentially unprofitable business model: ROIC is at 2.9%
- It operates with high leverage: Net Debt/EBITDA is 10.7x 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.
Wah Ha Realty Co Ltd ($278) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 10.200 | 12.920 | 19.938 | 19.717 | 46.805 | 137.4% |
| Gross Profit | 9.827 | 12.409 | 18.590 | 18.899 | 43.463 | 130.0% |
| Net Income | 138.683 | 113.222 | 45.131 | 78.447 | 65.385 | -16.7% |
Balance Sheet
|
|---|
| Cash | 361.041 | 357.110 | 358.650 | 363.545 | 285.398 | -21.5% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.000 | 0.000 | | 0.000 | 135.351 | |
Ratios
|
|---|
| Revenue growth | -4.5% | 26.7% | 54.3% | -1.1% | 137.4% | |
| Gross Margin | 96.3% | 96.0% | 93.2% | 95.9% | 92.9% | -3.0% |
| Net Income Margin | 1,359.6% | 876.3% | 226.4% | 397.9% | 139.7% | -258.2% |
| CAPEX, % of revenue | 0.0% | 0.0% | | 0.0% | 289.2% | 289.2% |
| ROIC | 0.4% | 0.5% | 1.0% | 1.0% | 2.9% | 1.9% |
| ROE | 13.8% | 10.1% | 3.9% | 6.7% | 5.4% | -1.2% |
Revenue and profitability
Wah Ha Realty Co Ltd's Revenue jumped on 137%.
Gross Margin decreased on 3.0 pp from 95.9% to 92.9% in FY2016.
Net Income marign dropped on 258 pp from 398% to 140% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 289% in FY2016. The company showed fast CAPEX/Revenue growth289 pp from 0% in FY2013 to 289% in FY2016.
Return on investment
The company operates at low ROIC (2.89%) and ROE (5.43%). ROIC increased slightly on 1.9 pp from 0.96% to 2.9% in FY2016. ROE decreased slightly on 1.2 pp from 6.7% to 5.4% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 21.5%.
Appendix 1: Peers in Real Estate
Below we provide Wah Ha Realty Co 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% | 13.1% | 5.2% | 4.5% | 5.7% |
|---|
| Wah Ha Realty Co Ltd ($278) | | 26.7% | 54.3% | -1.1% | 137.4% |
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% | |
| Soundwill Holdings Ltd ($878) | 53.1% | 74.5% | 46.9% | 95.7% | |
| Allied Properties HK Ltd ($56) | 95.0% | 94.3% | 93.5% | 92.0% | |
| |
|---|
| Median (160 companies) | 41.9% | 41.8% | 39.1% | 38.2% | 45.2% |
|---|
| Wah Ha Realty Co Ltd ($278) | 96.3% | 96.0% | 93.2% | 95.9% | 92.9% |
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 (180 companies) | 29.1% | 28.4% | 27.3% | 23.4% | 18.1% |
|---|
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% | 4.7% | 3.3% | 1.5% |
|---|
| Wah Ha Realty Co Ltd ($278) | 0.0% | 0.0% | | 0.0% | 289.2% |
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) | 4.2% | 4.1% | 4.2% | 2.5% | 1.8% |
|---|
| Wah Ha Realty Co Ltd ($278) | 0.4% | 0.5% | 1.0% | 1.0% | 2.9% |
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 | 3.9x |
|---|
