Pacific Century Premium Developments Ltd CAPEX surged on 76.7% and Revenue increased on 5.5%
16/01/2017 • About Pacific Century Premium Developments Ltd (
$432) • By InTwits
Pacific Century Premium Developments Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pacific Century Premium Developments Ltd doesn't have a profitable business model yet: 2016 ROIC is -6.7%
- The company operates at negative EBITDA Margin: -194.3%
- Pacific Century Premium Developments Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2012-2016 is 0.0%. Average EBITDA Margin for the same period was -44.7%0
- Pacific Century Premium Developments Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 317.7%. At the same time it's a lot of higher than industry average of 58.1%.
- CAPEX is quite volatile: 993 in 2016, 562 in 2015, 583 in 2014, 1,415 in 2013, 34 in 2012
- The company has unprofitable business model: ROIC is at -6.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pacific Century Premium Developments Ltd ($432) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,184 | 438 | 166 | 165 | 174 | 5.5% |
| Gross Profit | 553 | 158 | 108 | 111 | 118 | 6.3% |
| SG&A | 491 | 389 | 376 | 389 | 418 | 7.5% |
| EBITDA | 111 | -210 | -252 | -261 | -338 | |
| Net Income | 67 | 77 | 1,491 | -81 | -364 | |
Balance Sheet
|
|---|
| Cash | 829 | 866 | 2,466 | 1,815 | 868 | -52.2% |
| Short Term Debt | 24 | 2,844 | 0 | 0 | 457 | |
| Long Term Debt | 2,657 | 1,467 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 34 | 1,415 | 583 | 562 | 993 | 76.7% |
Ratios
|
|---|
| Revenue growth | -44.3% | -63.0% | -62.1% | -0.6% | 5.5% | |
| EBITDA growth | -67.1% | -289.2% | 20.0% | 3.6% | 29.5% | |
| Gross Margin | 46.7% | 36.1% | 65.1% | 67.3% | 67.8% | 0.5% |
| EBITDA Margin | 9.4% | -47.9% | -151.8% | -158.2% | -194.3% | -36.1% |
| Net Income Margin | 5.7% | 17.6% | 898.2% | -49.1% | -209.2% | -160.1% |
| SG&A, % of revenue | 41.5% | 88.8% | 226.5% | 235.8% | 240.2% | 4.5% |
| CAPEX, % of revenue | 2.9% | 323.1% | 351.2% | 340.6% | 570.7% | 230.1% |
| ROIC | 0.7% | -2.3% | -3.1% | -4.8% | -6.7% | -1.9% |
| ROE | 1.0% | 1.4% | 27.0% | -1.5% | -7.1% | -5.6% |
| Net Debt/EBITDA | 16.7x | | | | | 0.0x |
Revenue and profitability
The company's Revenue increased on 5.5%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.7 pp from -1.7% to -3.4% in FY2016.
Gross Margin increased slightly on 0.54 pp from 67.3% to 67.8% in 2016. SG&A as a % of Revenue increased on 4.5 pp from 236% to 240% in 2016.
Net Income marign dropped on 160 pp from -49.1% to -209% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 Pacific Century Premium Developments Ltd had CAPEX/Revenue of 571%. Pacific Century Premium Developments Ltd showed fast CAPEX/Revenue growth of 248 pp from 323% in 2013 to 571% in 2016. It's average level of CAPEX/Revenue for the last three years was 421%.
Return on investment
The company operates at negative ROIC (-6.67%) and ROE (-7.14%). ROIC decreased slightly on 1.9 pp from -4.8% to -6.7% in 2016. ROE decreased on 5.6 pp from -1.5% to -7.1% in 2016.
Leverage (Debt)
Debt level is -7.5x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2016. Debt jumped while cash dropped on 52.2%.
Appendix 1: Peers in Real Estate
Below we provide Pacific Century Premium Developments 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) | 18.3% | 13.5% | 5.3% | 4.5% | 5.4% |
|---|
| Pacific Century Premium Developments Ltd ($432) | | -63.0% | -62.1% | -0.6% | 5.5% |
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% | 41.9% | 39.1% | 38.2% | 48.2% |
|---|
| Pacific Century Premium Developments Ltd ($432) | 46.7% | 36.1% | 65.1% | 67.3% | 67.8% |
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% | 31.7% |
|---|
| Pacific Century Premium Developments Ltd ($432) | 9.4% | -47.9% | -151.8% | -158.2% | -194.3% |
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% | |
| Hon Kwok Land Investment Co Ltd ($160) | 20.6% | 157.3% | 144.5% | 296.3% | 28.1% |
| Silver Grant International Industries Ltd ($171) | 134.5% | 193.1% | 204.1% | 280.7% | |
| |
|---|
| Median (179 companies) | 5.9% | 6.1% | 4.7% | 3.2% | 1.7% |
|---|
| Pacific Century Premium Developments Ltd ($432) | 2.9% | 323.1% | 351.2% | 340.6% | 570.7% |
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% | 4.2% | 2.5% | 1.7% |
|---|
| Pacific Century Premium Developments Ltd ($432) | 0.7% | -2.3% | -3.1% | -4.8% | -6.7% |
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) | 2.3x | 2.7x | 3.0x | 3.2x | 2.2x |
|---|
