Sino Land Co Ltd revenue started to decline in FY2016: dropped 50.7% vs. 197% growth a year earliner
24/08/2016 • About Sino Land Co Ltd (
$83) • By InTwits
Sino Land 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: 51.3% in FY2016, 38.3% in FY2015, 116.3% in FY2014, 94.3% in FY2013, 107.7% in FY2012
- Sino Land Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's a lot of higher than industry average of 8.2%.
- CAPEX is quite volatile: 2,146 in 2016, 5,856 in 2015, 9,841 in 2014, 8,456 in 2013, 3,643 in 2012
- The company has potentially unprofitable business model: ROIC is at 4.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sino Land Co Ltd ($83) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 8,329 | 7,756 | 7,344 | 21,778 | 10,737 | -50.7% |
| Gross Profit | 4,393 | 3,322 | 4,496 | 5,740 | 4,667 | -18.7% |
| SG&A | 630 | 644 | 665 | 684 | 957 | 39.9% |
| EBITDA | 8,967 | 7,317 | 8,538 | 8,344 | 5,513 | -33.9% |
| Net Income | 10,673 | 11,687 | 8,921 | 9,372 | 7,090 | -24.3% |
Balance Sheet
|
|---|
| Cash | 5,042 | 11,620 | 13,999 | 19,503 | 26,896 | 37.9% |
| Short Term Debt | 1,847 | 4,553 | 121 | 801 | 0 | -100.0% |
| Long Term Debt | 8,143 | 5,766 | 7,949 | 5,263 | 4,459 | -15.3% |
Cash flow
|
|---|
| Capex | 260 | 330 | 428 | 318 | 186 | -41.6% |
Ratios
|
|---|
| Revenue growth | 41.7% | -6.9% | -5.3% | 196.6% | -50.7% | |
| EBITDA growth | 0.1% | -18.4% | 16.7% | -2.3% | -33.9% | |
| Gross Margin | 52.7% | 42.8% | 61.2% | 26.4% | 43.5% | 17.1% |
| EBITDA Margin | 107.7% | 94.3% | 116.3% | 38.3% | 51.3% | 13.0% |
| Net Income Margin | 128.1% | 150.7% | 121.5% | 43.0% | 66.0% | 23.0% |
| SG&A, % of revenue | 7.6% | 8.3% | 9.1% | 3.1% | 8.9% | 5.8% |
| CAPEX, % of revenue | 3.1% | 4.3% | 5.8% | 1.5% | 1.7% | 0.3% |
| ROIC | 8.5% | 6.4% | 7.0% | 6.5% | 4.2% | -2.3% |
| ROE | 12.2% | 11.7% | 8.2% | 8.1% | 5.9% | -2.2% |
| Net Debt/EBITDA | 0.6x | -0.2x | -0.7x | -1.6x | -4.1x | -2.5x |
Revenue and profitability
Sino Land Co Ltd's Revenue dropped on 50.7%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 13.0 pp from 38.3% to 51.3% in FY2016.
Gross Margin jumped on 17.1 pp from 26.4% to 43.5% in FY2016. SG&A as a % of Revenue increased on 5.8 pp from 3.1% to 8.9% in FY2016.
Net Income marign jumped on 23.0 pp from 43.0% to 66.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.7% in FY2016. Sino Land Co Ltd's CAPEX/Revenue decreased on 2.5 pp from 4.3% in FY2013 to 1.7% in FY2016. It's average CAPEX/Revenue for the last three years was 3.0%.
Return on investment
The company operates at low ROIC (4.19%) and ROE (5.89%). ROIC decreased on 2.3 pp from 6.5% to 4.2% in FY2016. ROE decreased on 2.2 pp from 8.1% to 5.9% in FY2016.
Leverage (Debt)
Debt level is -4.1x Net Debt / EBITDA and 0.8x Debt / EBITDA. Net Debt / EBITDA dropped on 2.5x from -1.6x to -4.1x in FY2016. Debt dropped on 26.5% while cash jumped on 37.9%.
Appendix 1: Peers in Real Estate
Below we provide Sino Land 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) | 15.6% | 13.5% | 5.3% | 4.2% | 5.1% |
|---|
| Sino Land Co Ltd ($83) | | -6.9% | -5.3% | 196.6% | -50.7% |
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% | 38.4% | 46.0% |
|---|
| Sino Land Co Ltd ($83) | 52.7% | 42.8% | 61.2% | 26.4% | 43.5% |
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% | 23.0% |
|---|
| Sino Land Co Ltd ($83) | 107.7% | 94.3% | 116.3% | 38.3% | 51.3% |
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% | 4.7% | 3.3% | 1.5% |
|---|
| Sino Land Co Ltd ($83) | 3.1% | 4.3% | 5.8% | 1.5% | 1.7% |
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) | 4.0% | 4.0% | 4.1% | 2.4% | 1.8% |
|---|
| Sino Land Co Ltd ($83) | 8.5% | 6.4% | 7.0% | 6.5% | 4.2% |
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 | 2.3x |
|---|
| Sino Land Co Ltd ($83) | 0.6x | -0.2x | -0.7x | -1.6x | -4.1x |
