Dynamic Holdings Ltd reports 6.4% Net Income decline in 2016 and almost no change in Revenue of 104
30/09/2016 • About Dynamic Holdings Ltd (
$29) • By InTwits
Dynamic Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dynamic Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.1%.
- The company has potentially unprofitable business model: ROIC is at 2.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dynamic Holdings Ltd ($29) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 94.2 | 124.5 | 106.2 | 103.4 | 103.9 | 0.4% |
| Gross Profit | 69.2 | 94.3 | 81.9 | 82.5 | 84.0 | 1.8% |
| SG&A | 32.1 | 24.7 | 27.7 | 24.2 | 26.5 | 9.6% |
| EBITDA | 41.5 | 72.1 | 58.2 | 60.3 | 59.5 | -1.3% |
| Net Income | 85.0 | 123.2 | 95.0 | 101.6 | 95.1 | -6.4% |
Balance Sheet
|
|---|
| Cash | 174.6 | 203.1 | 223.8 | 252.8 | 244.7 | -3.2% |
| Short Term Debt | 24.5 | 205.7 | 7.6 | 7.6 | 149.6 | 1,868.3% |
| Long Term Debt | 205.7 | 0.0 | 191.2 | 164.6 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 0.1 | 0.1 | 0.1 | 0.2 | 0.1 | -54.8% |
Ratios
|
|---|
| Revenue growth | -5.9% | 32.1% | -14.7% | -2.6% | 0.4% | |
| EBITDA growth | -13.1% | 73.6% | -19.3% | 3.5% | -1.3% | |
| Gross Margin | 73.4% | 75.8% | 77.1% | 79.7% | 80.8% | 1.1% |
| EBITDA Margin | 44.1% | 57.9% | 54.8% | 58.3% | 57.3% | -1.0% |
| Net Income Margin | 90.2% | 98.9% | 89.4% | 98.2% | 91.5% | -6.7% |
| SG&A, % of revenue | 34.1% | 19.8% | 26.1% | 23.4% | 25.5% | 2.1% |
| CAPEX, % of revenue | 0.1% | 0.1% | 0.1% | 0.2% | 0.1% | -0.1% |
| ROIC | 1.9% | 3.1% | 2.4% | 2.4% | 2.4% | -0.0% |
| ROE | 5.2% | 7.2% | 5.2% | 5.3% | 4.9% | -0.4% |
| Net Debt/EBITDA | 1.3x | 0.0x | -0.4x | -1.3x | -1.6x | -0.3x |
Revenue and profitability
Dynamic Holdings Ltd's Revenue showed almost no change in FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 165 pp from 22.3% to -143% in FY2016.
Gross Margin increased slightly on 1.1 pp from 79.7% to 80.8% in FY2016. SG&A as a % of Revenue increased on 2.1 pp from 23.4% to 25.5% in FY2016.
Net Income marign decreased on 6.7 pp from 98.2% to 91.5% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.081%. The company's CAPEX/Revenue showed almost no change from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 0.11%.
Return on investment
The company operates at low ROIC (2.35%) and ROE (4.90%). ROIC showed almost no change in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt level is -1.6x Net Debt / EBITDA and 2.5x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from -1.3x to -1.6x in FY2016. Debt dropped on 13.1% while cash decreased on 3.2%.
Appendix 1: Peers in Real Estate
Below you can find Dynamic 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) | 16.6% | 13.1% | 5.3% | 4.5% | 5.1% |
|---|
| Dynamic Holdings Ltd ($29) | | 32.1% | -14.7% | -2.6% | 0.4% |
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% | 38.2% | 43.5% |
|---|
| Dynamic Holdings Ltd ($29) | 73.4% | 75.8% | 77.1% | 79.7% | 80.8% |
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% | 25.5% |
|---|
| Dynamic Holdings Ltd ($29) | 44.1% | 57.9% | 54.8% | 58.3% | 57.3% |
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% | 4.8% | 3.3% | 1.7% |
|---|
| Dynamic Holdings Ltd ($29) | 0.1% | 0.1% | 0.1% | 0.2% | 0.1% |
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% | 1.8% |
|---|
| Dynamic Holdings Ltd ($29) | 1.9% | 3.1% | 2.4% | 2.4% | 2.4% |
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 | 2.0x |
|---|
| Dynamic Holdings Ltd ($29) | 1.3x | 0.0x | -0.4x | -1.3x | -1.6x |
