China Sandi Holdings Ltd reports 160% Net Income growth in 2016 while 17.5% Revenue decline
30/06/2016 • About China Sandi Holdings Ltd (
$910) • By InTwits
China Sandi Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Sandi Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is 1.5%
- EBITDA Margin is quite volatile: 59.5% in FY2016, 67.8% in FY2015, 73.4% in FY2014, 91.6% in FY2013, -48.2% in FY2012
- China Sandi Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's in pair with industry average of 6.5%.
- CAPEX is quite volatile: 1.4 in FY2016, 0.16 in FY2015, 3.5 in FY2014, 5.9 in FY2013, 3.2 in FY2012
- The company has potentially unprofitable business model: ROIC is at 1.5%
- It operates with high leverage: Net Debt/EBITDA is 5.4x 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.
China Sandi Holdings Ltd ($910) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 23.9 | 118.7 | 130.8 | 133.0 | 109.8 | -17.5% |
| Gross Profit | 22.5 | | | | | |
| EBITDA | -11.5 | 108.6 | 96.0 | 90.2 | 65.3 | -27.6% |
| Net Income | -632.5 | 155.6 | -439.3 | -266.5 | 161.1 | |
Balance Sheet
|
|---|
| Cash | 24.4 | 120.7 | 449.2 | 15.6 | 387.2 | 2,377.8% |
| Short Term Debt | 0.0 | 34.6 | 41.2 | 115.6 | 227.8 | 97.0% |
| Long Term Debt | 934.4 | 1,066.5 | 1,063.2 | 629.9 | 515.2 | -18.2% |
Cash flow
|
|---|
| Capex | 3.2 | 5.9 | 3.5 | 0.2 | 1.4 | 780.6% |
Ratios
|
|---|
| Revenue growth | 764.3% | 397.2% | 10.2% | 1.7% | -17.5% | |
| EBITDA growth | -86.2% | -1,045.4% | -11.7% | -6.0% | -27.6% | |
| Gross Margin | 94.5% | | | | | 0.0% |
| EBITDA Margin | -48.2% | 91.6% | 73.4% | 67.8% | 59.5% | -8.3% |
| Net Income Margin | -2,650.4% | 131.1% | -335.8% | -200.4% | 146.8% | 347.2% |
| CAPEX, % of revenue | 13.5% | 5.0% | 2.7% | 0.1% | 1.3% | 1.2% |
| ROIC | -1.2% | 1.2% | 1.4% | 1.9% | 1.5% | -0.5% |
| ROE | -16.4% | 4.2% | -13.5% | -10.4% | 6.2% | 16.6% |
| Net Debt/EBITDA | | 9.0x | 6.8x | 8.1x | 5.4x | -2.6x |
Revenue and profitability
China Sandi Holdings Ltd's Revenue dropped on 17.5%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 8.3 pp from 67.8% to 59.5% in FY2016.
Net Income marign surged on 347 pp from -200% to 147% in FY2016.
Capital expenditures (CAPEX) and working capital investments
China Sandi Holdings Ltd's CAPEX/Revenue was 1.3% in FY2016. China Sandi Holdings Ltd's CAPEX/Revenue decreased on 3.7 pp from 5.0% in FY2013 to 1.3% in FY2016. It's average CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at low ROIC (1.45%) and ROE (6.17%). ROIC showed almost no change in FY2016. ROE surged on 16.6 pp from -10.4% to 6.2% in FY2016.
Leverage (Debt)
Debt level is 5.4x Net Debt / EBITDA and 11.4x Debt / EBITDA. Net Debt / EBITDA dropped on 2.6x from 8.1x to 5.4x in FY2016. Debt showed almost no change in FY2016 while cash jumped on 2,378%.
Appendix 1: Peers in Real Estate
Below we provide China Sandi 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) | | -95.2% | 75.7% | 678.6% | 206.4% |
| |
|---|
| Median (179 companies) | 15.8% | 13.1% | 5.2% | 4.5% | 6.0% |
|---|
| China Sandi Holdings Ltd ($910) | | 397.2% | 10.2% | 1.7% | -17.5% |
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 (161 companies) | 41.9% | 41.9% | 39.2% | 38.2% | 45.2% |
|---|
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) | 29.3% | 28.3% | 26.9% | 23.4% | 18.1% |
|---|
| China Sandi Holdings Ltd ($910) | -48.2% | 91.6% | 73.4% | 67.8% | 59.5% |
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% | 28.1% |
| |
|---|
| Median (179 companies) | 5.6% | 6.2% | 4.8% | 3.3% | 1.4% |
|---|
| China Sandi Holdings Ltd ($910) | 13.5% | 5.0% | 2.7% | 0.1% | 1.3% |
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% | 2.0% |
|---|
| China Sandi Holdings Ltd ($910) | -1.2% | 1.2% | 1.4% | 1.9% | 1.5% |
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 (136 companies) | 2.4x | 2.7x | 3.0x | 3.2x | 3.0x |
|---|
| China Sandi Holdings Ltd ($910) | | 9.0x | 6.8x | 8.1x | 5.4x |
