China Motor Bus Co Ltd EBITDA surged on 27.8% while Revenue decreased on 5.2%
21/09/2016 • About China Motor Bus Co Ltd (
$26) • By InTwits
China Motor Bus Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Motor Bus Co Ltd is a company in decline: FY2016 revenue growth was -5.2%, 5 years revenue CAGR was -18.9%
- China Motor Bus Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has potentially unprofitable business model: ROIC is at 1.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Motor Bus Co Ltd ($26) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 83.757 | 90.068 | 93.508 | 96.683 | 91.644 | -5.2% |
| Gross Profit | | 89.080 | | | | |
| SG&A | | | | 8.679 | 7.185 | -17.2% |
| EBITDA | 57.784 | 63.113 | 68.657 | 63.766 | 81.472 | 27.8% |
| Net Income | 358.882 | 443.465 | 666.441 | 465.094 | 349.383 | -24.9% |
Balance Sheet
|
|---|
| Cash | 2,523.355 | 2,504.786 | 2,024.900 | 1,906.222 | 1,895.592 | -0.6% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.075 | 0.029 | 0.490 | 0.271 | 0.293 | 8.1% |
Ratios
|
|---|
| Revenue growth | -67.9% | 7.5% | 3.8% | 3.4% | -5.2% | |
| EBITDA growth | -59.4% | 9.2% | 8.8% | -7.1% | 27.8% | |
| Gross Margin | | 98.9% | | | | 0.0% |
| EBITDA Margin | 69.0% | 70.1% | 73.4% | 66.0% | 88.9% | 22.9% |
| Net Income Margin | 428.5% | 492.4% | 712.7% | 481.1% | 381.2% | -99.8% |
| SG&A, % of revenue | | | | 9.0% | 7.8% | -1.1% |
| CAPEX, % of revenue | 0.1% | 0.0% | 0.5% | 0.3% | 0.3% | 0.0% |
| ROIC | 0.9% | 1.0% | 1.0% | 0.8% | 1.1% | 0.2% |
| ROE | 6.0% | 7.1% | 9.5% | 6.2% | 4.6% | -1.6% |
| Net Debt/EBITDA | -43.7x | -39.7x | -29.5x | -29.9x | -23.3x | 6.6x |
Revenue and profitability
The company's Revenue decreased on 5.2%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 22.9 pp from 66.0% to 88.9% in FY2016.
SG&A as a % of Revenue decreased slightly on 1.1 pp from 9.0% to 7.8% in FY2016.
Net Income marign dropped on 99.8 pp from 481% to 381% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.32%. CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 0.37%.
Return on investment
The company operates at low ROIC (1.06%) and ROE (4.61%). ROIC showed almost no change in FY2016. ROE decreased slightly on 1.6 pp from 6.2% to 4.6% in FY2016.
Leverage (Debt)
The company has no debt. Cash decreased slightly on 0.56%.
Appendix 1: Peers in Real Estate
Below you can find China Motor Bus Co 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) | 15.9% | 13.5% | 5.3% | 4.5% | 5.4% |
|---|
| China Motor Bus Co Ltd ($26) | | 7.5% | 3.8% | 3.4% | -5.2% |
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% | 41.8% | 39.2% | 38.2% | 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% | 29.2% |
|---|
| China Motor Bus Co Ltd ($26) | 69.0% | 70.1% | 73.4% | 66.0% | 88.9% |
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% | 4.8% | 3.3% | 1.7% |
|---|
| China Motor Bus Co Ltd ($26) | 0.1% | 0.0% | 0.5% | 0.3% | 0.3% |
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% | 4.2% | 2.5% | 2.4% |
|---|
| China Motor Bus Co Ltd ($26) | 0.9% | 1.0% | 1.0% | 0.8% | 1.1% |
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 | 2.2x |
|---|
| China Motor Bus Co Ltd ($26) | -43.7x | -39.7x | -29.5x | -29.9x | -23.3x |
