Hopewell Holdings Ltd Debt dropped on 45.2% and Revenue decreased slightly on 0.80%
23/08/2016 • About Hopewell Holdings Ltd (
$54) • By InTwits
Hopewell Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hopewell Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is 1.3%
- EBITDA Margin is quite volatile: 41.5% in FY2016, 57.1% in FY2015, 41.4% in FY2014, 172.2% in FY2013, 43.1% in FY2012
- Hopewell Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 65.3%. At the same time it's in pair with industry average of 58.5%.
- CAPEX is quite volatile: 318 in FY2016, 398 in FY2015, 686 in FY2014, 4,094 in FY2013, 318 in FY2012
- The company has potentially unprofitable business model: ROIC is at 1.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hopewell Holdings Ltd ($54) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,758 | 1,725 | 2,093 | 1,865 | 1,850 | -0.8% |
| Gross Profit | 1,056 | 1,053 | 1,182 | 1,092 | 1,079 | -1.1% |
| SG&A | 422 | 430 | 416 | 433 | 416 | -3.9% |
| EBITDA | 757 | 2,971 | 866 | 1,065 | 768 | -27.9% |
| Net Income | 3,631 | 12,206 | 1,358 | 2,835 | 2,762 | -2.6% |
Balance Sheet
|
|---|
| Cash | 7,976 | 4,489 | 4,061 | 4,087 | 761 | -81.4% |
| Short Term Debt | 1,754 | 2,965 | 2,625 | 296 | 200 | -32.4% |
| Long Term Debt | 3,698 | 4,212 | 3,498 | 4,360 | 2,350 | -46.1% |
Cash flow
|
|---|
| Capex | 318 | 4,094 | 686 | 398 | 318 | -20.1% |
Ratios
|
|---|
| Revenue growth | 14.0% | -1.9% | 21.3% | -10.9% | -0.8% | |
| EBITDA growth | 33.8% | 292.3% | -70.8% | 23.0% | -27.9% | |
| Gross Margin | 60.1% | 61.0% | 56.5% | 58.5% | 58.3% | -0.2% |
| EBITDA Margin | 43.1% | 172.2% | 41.4% | 57.1% | 41.5% | -15.6% |
| Net Income Margin | 206.5% | 707.5% | 64.9% | 152.0% | 149.3% | -2.7% |
| SG&A, % of revenue | 24.0% | 24.9% | 19.9% | 23.2% | 22.5% | -0.7% |
| CAPEX, % of revenue | 18.1% | 237.3% | 32.8% | 21.3% | 17.2% | -4.1% |
| ROIC | 1.8% | 6.1% | 1.5% | 1.8% | 1.3% | -0.5% |
| ROE | 11.9% | 32.5% | 3.1% | 6.3% | 6.0% | -0.3% |
| Net Debt/EBITDA | -3.3x | 0.9x | 2.4x | 0.5x | 2.3x | 1.8x |
Revenue and profitability
Hopewell Holdings Ltd's Revenue decreased slightly on 0.80%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 15.6 pp from 57.1% to 41.5% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue decreased slightly on 0.72 pp from 23.2% to 22.5% in FY2016.
Net Income marign decreased on 2.7 pp from 152% to 149% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Hopewell Holdings Ltd's CAPEX/Revenue was 17.2% in FY2016. The company's CAPEX/Revenue dropped on 220 pp from 237% in FY2013 to 17.2% in FY2016. It's average CAPEX/Revenue for the last three years was 23.8%.
Return on investment
The company operates at low ROIC (1.31%) and ROE (6.00%). ROIC decreased slightly on 0.53 pp from 1.8% to 1.3% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.3x and Debt / EBITDA is 3.3x. Net Debt / EBITDA jumped on 1.8x from 0.5x to 2.3x in FY2016. Debt dropped on 45.2% while cash dropped on 81.4%.
Appendix 1: Peers in Real Estate
Below you can find Hopewell Holdings Ltd benchmarking vs. other companies in Real Estate industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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% | 5.2% | 4.5% | 5.7% |
|---|
| Hopewell Holdings Ltd ($54) | | -1.9% | 21.3% | -10.9% | -0.8% |
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% | 45.2% |
|---|
| Hopewell Holdings Ltd ($54) | 60.1% | 61.0% | 56.5% | 58.5% | 58.3% |
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) | 28.9% | 28.3% | 26.9% | 23.4% | 22.2% |
|---|
| Hopewell Holdings Ltd ($54) | 43.1% | 172.2% | 41.4% | 57.1% | 41.5% |
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% | 6.1% | 4.7% | 3.2% | 1.4% |
|---|
| Hopewell Holdings Ltd ($54) | 18.1% | 237.3% | 32.8% | 21.3% | 17.2% |
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% | 4.0% | 4.2% | 2.5% | 1.8% |
|---|
| Hopewell Holdings Ltd ($54) | 1.8% | 6.1% | 1.5% | 1.8% | 1.3% |
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 | 3.9x |
|---|
| Hopewell Holdings Ltd ($54) | -3.3x | 0.9x | 2.4x | 0.5x | 2.3x |
