Winfair Investment Co Ltd Net Income dropped on 94.9% and EBITDA Margin decreased on 3.6 pp from 78.1% to 74.4%
30/06/2016 • About Winfair Investment Co Ltd (
$287) • By InTwits
Winfair Investment Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 74.4% in FY2016, 78.1% in FY2015, 64.3% in FY2014, 307.2% in FY2013, -3.6% in FY2012
- Winfair Investment Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 63.4%. At the same time it's in pair with industry average of 58.6%.
- CAPEX is quite volatile: 0.11 in FY2016, 0.022 in FY2015, 32.8 in FY2014, 36.2 in FY2013, 0.051 in FY2012
- The company has potentially unprofitable business model: ROIC is at 2.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Winfair Investment Co Ltd ($287) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 18.473 | 21.395 | 22.276 | 29.557 | 25.596 | -13.4% |
| SG&A | 5.875 | 5.732 | 6.405 | 6.809 | 6.742 | -1.0% |
| EBITDA | -0.658 | 65.725 | 14.323 | 23.074 | 19.056 | -17.4% |
| Net Income | 38.819 | 177.733 | 29.146 | 73.142 | 3.723 | -94.9% |
Balance Sheet
|
|---|
| Cash | 12.681 | 95.508 | 35.381 | 53.215 | 33.801 | -36.5% |
| Short Term Debt | 0.000 | 16.388 | 30.173 | 28.244 | 26.314 | -6.8% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.051 | 36.168 | 32.818 | 0.022 | 0.108 | 396.4% |
Ratios
|
|---|
| Revenue growth | -0.5% | 15.8% | 4.1% | 32.7% | -13.4% | |
| EBITDA growth | -103.9% | -10,085.2% | -78.2% | 61.1% | -17.4% | |
| EBITDA Margin | -3.6% | 307.2% | 64.3% | 78.1% | 74.4% | -3.6% |
| Net Income Margin | 210.1% | 830.7% | 130.8% | 247.5% | 14.5% | -232.9% |
| SG&A, % of revenue | 31.8% | 26.8% | 28.8% | 23.0% | 26.3% | 3.3% |
| CAPEX, % of revenue | 0.3% | 169.0% | 147.3% | 0.1% | 0.4% | 0.3% |
| ROIC | -0.2% | 11.1% | 2.0% | 3.0% | 2.4% | -0.6% |
| ROE | 8.2% | 30.5% | 4.3% | 10.1% | 0.5% | -9.6% |
| Net Debt/EBITDA | | -1.2x | -0.4x | -1.1x | -0.4x | 0.7x |
Revenue and profitability
The company's Revenue dropped on 13.4%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.6 pp from 78.1% to 74.4% in FY2016.
SG&A as a % of Revenue increased on 3.3 pp from 23.0% to 26.3% in FY2016.
Net Income marign dropped on 233 pp from 247% to 14.5% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.42% in FY2016. The company showed big decline in CAPEX/Revenue of 169 pp from 169% in FY2013 to 0.42% in FY2016. Average CAPEX/Revenue for the last three years was 49.3%.
Return on investment
The company operates at low ROIC (2.41%) and ROE (0.49%). ROIC decreased slightly on 0.63 pp from 3.0% to 2.4% in FY2016. ROE decreased on 9.6 pp from 10.1% to 0.49% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.4x and Debt / EBITDA is 1.4x. Net Debt / EBITDA jumped on 0.7x from -1.1x to -0.4x in FY2016. Debt decreased on 6.8% while cash dropped on 36.5%.
Appendix 1: Peers in Real Estate
Below we provide Winfair Investment 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% | 13.1% | 5.3% | 4.2% | 6.0% |
|---|
| Winfair Investment Co Ltd ($287) | | 15.8% | 4.1% | 32.7% | -13.4% |
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 (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% |
|---|
| Winfair Investment Co Ltd ($287) | -3.6% | 307.2% | 64.3% | 78.1% | 74.4% |
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% | 6.1% | 4.7% | 3.3% | 1.4% |
|---|
| Winfair Investment Co Ltd ($287) | 0.3% | 169.0% | 147.3% | 0.1% | 0.4% |
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% | 4.0% | 4.2% | 2.4% | 1.6% |
|---|
| Winfair Investment Co Ltd ($287) | -0.2% | 11.1% | 2.0% | 3.0% | 2.4% |
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 | 3.3x | 4.3x |
|---|
| Winfair Investment Co Ltd ($287) | | -1.2x | -0.4x | -1.1x | -0.4x |
