China Properties Investment Holdings Ltd revenue jumped on 171% and EBITDA Margin surged on 238 pp from -339% to -101%
04/07/2016 • About China Properties Investment Holdings Ltd (
$736) • By InTwits
China Properties Investment Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Properties Investment Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -6.3%
- The company operates at negative EBITDA Margin: -100.6%
- China Properties Investment Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -282.2%0
- China Properties Investment Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 32.2%. At the same time it's a lot of higher than industry average of 4.6%.
- CAPEX is quite volatile: 6.8 in FY2016, 6.1 in FY2015, 0.96 in FY2014, 0.28 in FY2013, 4.0 in FY2012
- The company has unprofitable business model: ROIC is at -6.3%
- It operates with high leverage: Net Debt/EBITDA is 6.1x while industry average is -50.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Properties Investment Holdings Ltd ($736) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 7.243 | 9.416 | 4.596 | 10.580 | 28.669 | 171.0% |
| Gross Profit | 3.437 | 3.841 | 2.125 | 9.225 | 12.839 | 39.2% |
| SG&A | | 44.161 | 46.176 | 44.655 | 51.209 | 14.7% |
| EBITDA | -29.705 | -34.746 | -41.593 | -35.875 | -28.844 | |
| Net Income | -306.607 | -120.430 | -123.403 | -20.380 | -104.673 | |
Balance Sheet
|
|---|
| Cash | 64.819 | 21.308 | 30.645 | 34.934 | 52.435 | 50.1% |
| Short Term Debt | 4.000 | 4.500 | 5.000 | 11.500 | 18.000 | 56.5% |
| Long Term Debt | 48.000 | 51.571 | 62.246 | 42.756 | 25.628 | -40.1% |
Cash flow
|
|---|
| Capex | 4.008 | 0.280 | 0.958 | 6.145 | 6.814 | 10.9% |
Ratios
|
|---|
| Revenue growth | 93.9% | 30.0% | -51.2% | 130.2% | 171.0% | |
| EBITDA growth | 7.3% | 17.0% | 19.7% | -13.7% | -19.6% | |
| Gross Margin | 47.5% | 40.8% | 46.2% | 87.2% | 44.8% | -42.4% |
| EBITDA Margin | -410.1% | -369.0% | -905.0% | -339.1% | -100.6% | 238.5% |
| Net Income Margin | -4,233.1% | -1,279.0% | -2,685.0% | -192.6% | -365.1% | -172.5% |
| SG&A, % of revenue | | 469.0% | 1,004.7% | 422.1% | 178.6% | -243.4% |
| CAPEX, % of revenue | 55.3% | 3.0% | 20.8% | 58.1% | 23.8% | -34.3% |
| ROIC | -4.6% | -6.8% | -9.9% | -9.6% | -6.3% | 3.3% |
| ROE | -55.4% | -24.4% | -32.4% | -5.7% | -19.6% | -13.9% |
Revenue and profitability
The company's Revenue surged on 171%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 6,789 pp from -346% to 6,443% in FY2016.
Gross Margin dropped on 42.4 pp from 87.2% to 44.8% in FY2016. SG&A as a % of Revenue dropped on 243 pp from 422% to 179% in FY2016.
Net Income marign dropped on 172 pp from -193% to -365% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 23.8%. The company showed fast CAPEX/Revenue growth of 20.8 pp from 3.0% in FY2013 to 23.8% in FY2016. For the last three years the average CAPEX/Revenue was 34.2%.
Return on investment
The company operates at negative ROIC (-6.33%) and ROE (-19.61%). ROIC increased on 3.3 pp from -9.6% to -6.3% in FY2016. ROE dropped on 13.9 pp from -5.7% to -19.6% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 6.1x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt dropped on 19.6% while cash jumped on 50.1%.
Appendix 1: Peers in Investment Companies
Below we provide China Properties Investment Holdings Ltd benchmarking against other companies in Investment Companies 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 |
|---|
| CK Hutchison Holdings Ltd ($1) | -41.8% | -11.4% | -90.8% | 10,576.1% | |
| UBA Investments Ltd ($768) | | | -32.2% | 4,559.4% | |
| Capital VC Ltd ($2324) | | | 489.2% | 861.9% | |
| Prosperity Investment Holdings Ltd ($310) | | 20.9% | -48.8% | 559.5% | |
| China Innovation Investment Ltd ($1217) | | | | 517.9% | |
| |
|---|
| Median (21 companies) | -10.9% | 4.1% | 25.4% | 103.3% | 1,243.6% |
|---|
| China Properties Investment Holdings Ltd ($736) | | 30.0% | -51.2% | 130.2% | 171.0% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| City e-Solutions Ltd ($557) | 81.1% | 81.5% | 81.6% | 79.1% | |
| Eternity Investment Ltd ($764) | | | 86.6% | 48.2% | |
| AVIC Joy Holdings HK Ltd ($260) | 19.5% | 20.9% | 14.0% | 16.3% | |
| Infinity Financial Group Holdings Ltd ($1152) | 19.0% | 17.5% | 22.4% | 15.8% | |
| Harmonic Strait Financial Holdings Ltd ($33) | 40.8% | 8.4% | 11.8% | 9.0% | |
| |
|---|
| Median (6 companies) | 19.5% | 17.5% | 18.2% | 16.1% | 55.4% |
|---|
| China Properties Investment Holdings Ltd ($736) | 47.5% | 40.8% | 46.2% | 87.2% | 44.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Capital VC Ltd ($2324) | | 36.7% | 93.1% | 99.3% | |
| Harmony Asset Ltd ($428) | 39.8% | | | 95.7% | |
| Unity Investments Holdings Ltd ($913) | | 89.0% | 90.8% | 95.7% | |
| Langham Hospitality Investments and Langham Hospitality Investments Ltd ($1270) | | 101.3% | 85.9% | 85.8% | |
| China Development Bank International Investment Ltd ($1062) | -74.4% | 26.1% | 69.2% | 85.6% | |
| |
|---|
| Median (24 companies) | 8.6% | -5.5% | 2.1% | 11.1% | 2.0% |
|---|
| China Properties Investment Holdings Ltd ($736) | -410.1% | -369.0% | -905.0% | -339.1% | -100.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Langham Hospitality Investments and Langham Hospitality Investments Ltd ($1270) | | 13.7% | 17.1% | 39.8% | |
| Heritage International Holdings Ltd ($412) | | 10.9% | 7.4% | 37.9% | 3.5% |
| Opes Asia Development Ltd ($810) | | 11.3% | 76.1% | 25.0% | |
| CK Hutchison Holdings Ltd ($1) | 0.7% | 1.0% | 503.6% | 13.5% | |
| Infinity Financial Group Holdings Ltd ($1152) | 0.5% | 0.6% | 7.7% | 8.0% | |
| |
|---|
| Median (24 companies) | 0.7% | 0.6% | 0.2% | 0.6% | 1.8% |
|---|
| China Properties Investment Holdings Ltd ($736) | 55.3% | 3.0% | 20.8% | 58.1% | 23.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Capital VC Ltd ($2324) | | | 21.8% | 100.7% | |
| Harmony Asset Ltd ($428) | 3.2% | -13.7% | -15.4% | 88.0% | |
| Build King Holdings Ltd ($240) | -2.5% | 3.5% | 13.4% | 18.3% | |
| Unity Investments Holdings Ltd ($913) | -36.2% | 26.4% | 47.4% | 17.5% | |
| UBA Investments Ltd ($768) | -22.2% | -1.9% | -8.6% | 13.2% | -6.1% |
| |
|---|
| Median (38 companies) | -3.0% | -2.0% | -4.5% | -2.0% | -3.5% |
|---|
| China Properties Investment Holdings Ltd ($736) | -4.6% | -6.8% | -9.9% | -9.6% | -6.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Langham Hospitality Investments and Langham Hospitality Investments Ltd ($1270) | | 12.5x | 9.5x | 11.2x | |
| CK Hutchison Holdings Ltd ($1) | 1.9x | 0.6x | 7.2x | 5.5x | |
| China Financial International Investments Ltd ($721) | | | | 2.4x | |
| Harmony Asset Ltd ($428) | -3.2x | | | -0.1x | |
| Capital VC Ltd ($2324) | | 2.2x | -1.2x | -0.2x | |
| |
|---|
| Median (15 companies) | -1.2x | 0.0x | -0.6x | -0.9x | -43.2x |
|---|
