Melbourne Enterprises Ltd reports 49.8% Net Income decline in 2016 while 3.9% Revenue growth
12/12/2016 • About Melbourne Enterprises Ltd (
$158) • By InTwits
Melbourne Enterprises Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Melbourne Enterprises Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has potentially unprofitable business model: ROIC is at 3.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Melbourne Enterprises Ltd ($158) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 186.7 | 201.4 | 211.9 | 223.4 | 232.1 | 3.9% |
| SG&A | | | 10.4 | 10.8 | 11.1 | 2.5% |
| EBITDA | 149.9 | 152.4 | 150.9 | 177.2 | 185.2 | 4.5% |
| Net Income | 537.8 | 575.5 | 11.7 | 560.6 | 281.5 | -49.8% |
Balance Sheet
|
|---|
| Cash | 107.6 | 124.6 | 139.7 | 175.8 | 220.0 | 25.1% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 4.5 | 0.8 | 0.0 | 0.0 | 0.0 | -73.3% |
Ratios
|
|---|
| Revenue growth | 17.1% | 7.9% | 5.2% | 5.4% | 3.9% | |
| EBITDA growth | 17.9% | 1.6% | -1.0% | 17.4% | 4.5% | |
| EBITDA Margin | 80.3% | 75.6% | 71.2% | 79.3% | 79.8% | 0.5% |
| Net Income Margin | 288.1% | 285.7% | 5.5% | 250.9% | 121.3% | -129.7% |
| SG&A, % of revenue | | | 4.9% | 4.8% | 4.8% | -0.1% |
| CAPEX, % of revenue | 2.4% | 0.4% | 0.0% | 0.0% | 0.0% | -0.0% |
| ROIC | 3.0% | 2.8% | 2.7% | 3.0% | 3.0% | -0.0% |
| ROE | 10.7% | 10.6% | 0.2% | 9.7% | 4.6% | -5.1% |
| Net Debt/EBITDA | -0.7x | -0.8x | -0.9x | -1.0x | -1.2x | -0.2x |
Revenue and profitability
Melbourne Enterprises Ltd's Revenue increased on 3.9%. EBITDA Margin showed almost no change in FY2016.
SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign dropped on 130 pp from 251% to 121% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Melbourne Enterprises Ltd had CAPEX/Revenue of 0.0017%. Melbourne Enterprises Ltd's CAPEX/Revenue showed almost no change from FY2013 to FY2016.
Return on investment
The company operates at low ROIC (2.99%) and ROE (4.58%). ROIC showed almost no change in FY2016. ROE decreased on 5.1 pp from 9.7% to 4.6% in FY2016.
Leverage (Debt)
The company has no debt. Cash surged on 25.1%.
Appendix 1: Peers in Real Estate
Below you can find Melbourne Enterprises 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) | 17.9% | 13.5% | 5.3% | 4.2% | 5.7% |
|---|
| Melbourne Enterprises Ltd ($158) | | 7.9% | 5.2% | 5.4% | 3.9% |
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% | 41.9% | 39.2% | 38.2% | 48.2% |
|---|
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% | 31.2% |
|---|
| Melbourne Enterprises Ltd ($158) | 80.3% | 75.6% | 71.2% | 79.3% | 79.8% |
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% | 1.9% |
|---|
| Melbourne Enterprises Ltd ($158) | 2.4% | 0.4% | 0.0% | 0.0% | 0.0% |
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% | 2.4% | 1.7% |
|---|
| Melbourne Enterprises Ltd ($158) | 3.0% | 2.8% | 2.7% | 3.0% | 3.0% |
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 |
|---|
| Melbourne Enterprises Ltd ($158) | -0.7x | -0.8x | -0.9x | -1.0x | -1.2x |
