Winfull Group Holdings Ltd revenue jumped on 60.4% and EBITDA Margin surged on 193 pp from -212% to -19.0%
30/09/2016 • About Winfull Group Holdings Ltd (
$183) • By InTwits
Winfull Group Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Winfull Group Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -0.2%
- The company operates at negative EBITDA Margin: -19.0%
- Winfull Group Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.4%. At the same time it's a lot of higher than industry average of 60.7%.
- CAPEX is quite volatile: 0.057 in FY2016, 0.026 in FY2015, 2.8 in FY2014, 2.8 in FY2013, 81.1 in FY2012
- The company has unprofitable business model: ROIC is at -0.2%
- It operates with high leverage: Net Debt/EBITDA is 7.0x while industry average is 3.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Winfull Group Holdings Ltd ($183) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 153.8 | 100.4 | 497.0 | 7.2 | 11.6 | 60.4% |
| Gross Profit | 84.3 | 62.6 | 156.9 | 6.0 | 4.0 | -32.5% |
| SG&A | | 71.9 | 28.4 | 22.4 | 28.0 | 25.0% |
| EBITDA | 27.2 | 6.1 | 103.6 | -15.4 | -2.2 | |
| Net Income | 24.2 | -195.4 | 10.5 | -28.6 | -41.3 | |
Balance Sheet
|
|---|
| Cash | 513.3 | 215.7 | 442.8 | 467.2 | 217.5 | -53.4% |
| Short Term Debt | 141.2 | 136.4 | 131.2 | 0.0 | 2.9 | |
| Long Term Debt | 235.4 | 235.8 | 1.4 | 0.0 | 26.2 | |
Cash flow
|
|---|
| Capex | 81.1 | 2.8 | 2.8 | 0.0 | 0.1 | 119.2% |
Ratios
|
|---|
| Revenue growth | -68.3% | -34.7% | 394.8% | -98.5% | 60.4% | |
| EBITDA growth | -86.4% | -77.4% | 1,587.7% | -114.8% | -85.7% | |
| Gross Margin | 54.8% | 62.3% | 31.6% | 82.7% | 34.8% | -47.9% |
| EBITDA Margin | 17.7% | 6.1% | 20.8% | -212.4% | -19.0% | 193.5% |
| Net Income Margin | 15.7% | -194.5% | 2.1% | -395.0% | -355.5% | 39.5% |
| SG&A, % of revenue | | 71.6% | 5.7% | 309.7% | 241.4% | -68.3% |
| CAPEX, % of revenue | 52.7% | 2.8% | 0.6% | 0.4% | 0.5% | 0.1% |
| ROIC | 1.0% | -0.1% | 5.4% | -1.4% | -0.2% | 1.2% |
| ROE | 1.4% | -12.3% | 0.7% | -2.1% | -3.3% | -1.2% |
| Net Debt/EBITDA | -5.0x | 25.5x | -3.0x | | | 0.0x |
Revenue and profitability
The company's Revenue surged on 60.4%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 91.4 pp from -514% to -423% in FY2016.
Gross Margin dropped on 47.9 pp from 82.7% to 34.8% in FY2016. SG&A as a % of Revenue dropped on 68.3 pp from 310% to 241% in FY2016.
Net Income marign surged on 39.5 pp from -395% to -355% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Winfull Group Holdings Ltd had CAPEX/Revenue of 0.49%. The company's CAPEX/Revenue decreased on 2.3 pp from 2.8% in FY2013 to 0.49% in FY2016. For the last three years the average CAPEX/Revenue was 0.47%.
Return on investment
The company operates at negative ROIC (-0.24%) and ROE (-3.29%). ROIC increased slightly on 1.2 pp from -1.4% to -0.24% in FY2016. ROE decreased slightly on 1.2 pp from -2.1% to -3.3% in FY2016.
Leverage (Debt)
Debt level is 7.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt surged while cash dropped on 53.4%.
Appendix 1: Peers in Real Estate
Below you can find Winfull Group 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% | 13.5% | 5.2% | 4.5% | 4.2% |
|---|
| Winfull Group Holdings Ltd ($183) | | -34.7% | 394.8% | -98.5% | 60.4% |
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% | 39.3% | 38.2% | 43.8% |
|---|
| Winfull Group Holdings Ltd ($183) | 54.8% | 62.3% | 31.6% | 82.7% | 34.8% |
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) | 29.3% | 28.5% | 27.8% | 23.5% | 32.8% |
|---|
| Winfull Group Holdings Ltd ($183) | 17.7% | 6.1% | 20.8% | -212.4% | -19.0% |
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% | 6.2% | 4.8% | 3.3% | 1.7% |
|---|
| Winfull Group Holdings Ltd ($183) | 52.7% | 2.8% | 0.6% | 0.4% | 0.5% |
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% | 2.5% | 2.2% |
|---|
| Winfull Group Holdings Ltd ($183) | 1.0% | -0.1% | 5.4% | -1.4% | -0.2% |
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 (137 companies) | 2.4x | 2.7x | 3.0x | 3.2x | 1.7x |
|---|
