Ground Properties Co Ltd revenue surged on 97.4% and EBITDA Margin surged on 16.1 pp from -31.2% to -15.1%
30/06/2016 • About Ground Properties Co Ltd (
$989) • By InTwits
Ground Properties Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ground Properties Co Ltd doesn't have a profitable business model yet: FY2016 ROIC is -3.7%
- The company operates at negative EBITDA Margin: -15.1%
- Ground Properties Co Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -20.4% for the sames years0
- Ground Properties Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's in pair with industry average of 24.2%.
- CAPEX is quite volatile: 3.0 in FY2016, 0.49 in FY2015, 1.7 in FY2014, 1.1 in FY2013, 1.6 in FY2012
- The company has unprofitable business model: ROIC is at -3.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ground Properties Co Ltd ($989) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 62.8 | 51.6 | 44.3 | 103.5 | 204.2 | 97.4% |
| Gross Profit | 28.0 | 28.5 | 31.1 | 44.7 | 85.1 | 90.2% |
| SG&A | 40.4 | 36.1 | 52.8 | 78.5 | 130.8 | 66.6% |
| EBITDA | -9.2 | -3.4 | -19.6 | -32.3 | -30.8 | |
| Net Income | -38.4 | 67.5 | -3.0 | -18.1 | -62.2 | |
Balance Sheet
|
|---|
| Cash | 83.3 | 81.7 | 31.2 | 57.6 | 68.2 | 18.4% |
| Short Term Debt | 0.0 | 0.0 | 116.2 | 255.6 | 86.7 | -66.1% |
| Long Term Debt | 0.0 | 0.0 | 120.3 | 142.4 | 121.5 | -14.7% |
Cash flow
|
|---|
| Capex | 1.6 | 1.1 | 1.7 | 0.5 | 3.0 | 498.4% |
Ratios
|
|---|
| Revenue growth | -55.0% | -17.8% | -14.1% | 133.4% | 97.4% | |
| EBITDA growth | -275.5% | -63.0% | 477.0% | 64.8% | -4.7% | |
| Gross Margin | 44.6% | 55.1% | 70.1% | 43.3% | 41.7% | -1.6% |
| EBITDA Margin | -14.6% | -6.6% | -44.2% | -31.2% | -15.1% | 16.1% |
| Net Income Margin | -61.1% | 130.7% | -6.8% | -17.5% | -30.5% | -12.9% |
| SG&A, % of revenue | 64.4% | 69.9% | 119.2% | 75.9% | 64.0% | -11.8% |
| CAPEX, % of revenue | 2.6% | 2.2% | 3.8% | 0.5% | 1.4% | 1.0% |
| ROIC | -3.4% | -1.6% | -4.3% | -4.2% | -3.7% | 0.5% |
| ROE | -12.3% | 20.9% | -0.9% | -3.9% | -11.0% | -7.1% |
Revenue and profitability
Ground Properties Co Ltd's Revenue jumped on 97.4%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 16.1 pp from -31.2% to -15.1% in FY2016.
Gross Margin decreased slightly on 1.6 pp from 43.3% to 41.7% in FY2016. SG&A as a % of Revenue dropped on 11.8 pp from 75.9% to 64.0% in FY2016.
Net Income marign dropped on 12.9 pp from -17.5% to -30.5% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Ground Properties Co Ltd had CAPEX/Revenue of 1.4%. CAPEX/Revenue decreased slightly on 0.75 pp from 2.2% in FY2013 to 1.4% in FY2016. It's average CAPEX/Revenue for the last three years was 1.9%.
Return on investment
The company operates at negative ROIC (-3.71%) and ROE (-10.96%). ROIC increased slightly on 0.52 pp from -4.2% to -3.7% in FY2016. ROE decreased on 7.1 pp from -3.9% to -11.0% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.9x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt dropped on 47.7% while cash jumped on 18.4%.
Appendix 1: Peers in Real Estate
Below we provide Ground Properties 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) | 15.8% | 13.5% | 5.3% | 4.2% | 5.4% |
|---|
| Ground Properties Co Ltd ($989) | | -17.8% | -14.1% | 133.4% | 97.4% |
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% | 92.9% |
| Soundwill Holdings Ltd ($878) | 53.1% | 74.5% | 46.9% | 95.7% | |
| |
|---|
| Median (160 companies) | 41.9% | 41.8% | 39.1% | 38.2% | 48.2% |
|---|
| Ground Properties Co Ltd ($989) | 44.6% | 55.1% | 70.1% | 43.3% | 41.7% |
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% | 22.6% |
|---|
| Ground Properties Co Ltd ($989) | -14.6% | -6.6% | -44.2% | -31.2% | -15.1% |
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% | 4.8% | 3.3% | 1.4% |
|---|
| Ground Properties Co Ltd ($989) | 2.6% | 2.2% | 3.8% | 0.5% | 1.4% |
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% |
|---|
| Ground Properties Co Ltd ($989) | -3.4% | -1.6% | -4.3% | -4.2% | -3.7% |
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 |
|---|
