Tsim Sha Tsui Properties Ltd revenue started to decline in FY2016: dropped 50.4% vs. 192% growth a year earliner
24/08/2016 • About Tsim Sha Tsui Properties Ltd (
$247) • By InTwits
Tsim Sha Tsui Properties 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: 35.2% in FY2016, 23.5% in FY2015, 71.7% in FY2014, 44.4% in FY2013, 45.0% in FY2012
- Tsim Sha Tsui Properties Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. 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 2.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tsim Sha Tsui Properties Ltd ($247) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 8,461 | 7,880 | 7,511 | 21,896 | 10,857 | -50.4% |
| Gross Profit | 4,500 | 3,419 | 4,631 | 5,826 | 4,756 | -18.4% |
| SG&A | | | | 695 | 967 | 39.0% |
| EBITDA | 3,804 | 3,500 | 5,385 | 5,140 | 3,821 | -25.7% |
| Net Income | 5,381 | 5,977 | 4,513 | 4,747 | 3,622 | -23.7% |
Balance Sheet
|
|---|
| Cash | 5,046 | 11,625 | 14,091 | 19,608 | 26,993 | 37.7% |
| Short Term Debt | 2,984 | 5,062 | 310 | 899 | 108 | -88.0% |
| Long Term Debt | 14,047 | 11,217 | 12,590 | 7,375 | 5,792 | -21.5% |
Cash flow
|
|---|
| Capex | 260 | 330 | 428 | 319 | 188 | -41.1% |
Ratios
|
|---|
| Revenue growth | 40.8% | -6.9% | -4.7% | 191.5% | -50.4% | |
| EBITDA growth | 22.9% | -8.0% | 53.9% | -4.5% | -25.7% | |
| Gross Margin | 53.2% | 43.4% | 61.7% | 26.6% | 43.8% | 17.2% |
| EBITDA Margin | 45.0% | 44.4% | 71.7% | 23.5% | 35.2% | 11.7% |
| Net Income Margin | 63.6% | 75.9% | 60.1% | 21.7% | 33.4% | 11.7% |
| SG&A, % of revenue | | | | 3.2% | 8.9% | 5.7% |
| CAPEX, % of revenue | 3.1% | 4.2% | 5.7% | 1.5% | 1.7% | 0.3% |
| ROIC | 3.5% | 2.9% | 4.3% | 3.9% | 2.9% | -1.1% |
| ROE | 13.6% | 12.8% | 8.7% | 8.4% | 6.0% | -2.4% |
| Net Debt/EBITDA | 3.2x | 1.3x | -0.2x | -2.2x | -5.5x | -3.3x |
Revenue and profitability
The company's Revenue dropped on 50.4%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 11.7 pp from 23.5% to 35.2% in FY2016.
Gross Margin jumped on 17.2 pp from 26.6% to 43.8% in FY2016. SG&A as a % of Revenue increased on 5.7 pp from 3.2% to 8.9% in FY2016.
Net Income marign jumped on 11.7 pp from 21.7% to 33.4% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 1.7%. CAPEX/Revenue decreased on 2.5 pp from 4.2% 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 (2.86%) and ROE (5.98%). ROIC decreased slightly on 1.1 pp from 3.9% to 2.9% in FY2016. ROE decreased on 2.4 pp from 8.4% to 6.0% in FY2016.
Leverage (Debt)
Debt level is -5.5x Net Debt / EBITDA and 1.5x Debt / EBITDA. Net Debt / EBITDA dropped on 3.3x from -2.2x to -5.5x in FY2016. Debt dropped on 28.7% while cash surged on 37.7%.
Appendix 1: Peers in Real Estate
Below we provide Tsim Sha Tsui Properties 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% |
|---|
| Tsim Sha Tsui Properties Ltd ($247) | | -6.9% | -4.7% | 191.5% | -50.4% |
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% | 38.4% | 45.8% |
|---|
| Tsim Sha Tsui Properties Ltd ($247) | 53.2% | 43.4% | 61.7% | 26.6% | 43.8% |
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% |
|---|
| Tsim Sha Tsui Properties Ltd ($247) | 45.0% | 44.4% | 71.7% | 23.5% | 35.2% |
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% |
|---|
| Tsim Sha Tsui Properties Ltd ($247) | 3.1% | 4.2% | 5.7% | 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) | 4.2% | 4.1% | 4.1% | 2.4% | 1.8% |
|---|
| Tsim Sha Tsui Properties Ltd ($247) | 3.5% | 2.9% | 4.3% | 3.9% | 2.9% |
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) | 2.3x | 2.8x | 3.0x | 3.3x | 2.3x |
|---|
| Tsim Sha Tsui Properties Ltd ($247) | 3.2x | 1.3x | -0.2x | -2.2x | -5.5x |
