Yuexiu Real Estate Investment Trust EBITDA jumped on 28.3% and EBITDA Margin increased on 9.1 pp from 46.9% to 56.0%
14/02/2017 • About Yuexiu Real Estate Investment Trust (
$405) • By InTwits
Yuexiu Real Estate Investment Trust reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Yuexiu Real Estate Investment Trust has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's in pair with industry average of 4.8%.
- CAPEX is quite volatile: 51.1 in FY2016, 50.1 in FY2015, 21.8 in FY2014, 8.2 in FY2013, 12.5 in FY2012
- The company has potentially unprofitable business model: ROIC is at 3.0%
- It operates with high leverage: Net Debt/EBITDA is 10.4x while industry average is 5.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Yuexiu Real Estate Investment Trust ($405) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 712 | 1,371 | 1,571 | 1,710 | 1,838 | 7.5% |
| EBITDA | 399 | 691 | 797 | 803 | 1,030 | 28.3% |
| Net Income | 688 | 524 | 928 | 741 | 712 | -3.9% |
Balance Sheet
|
|---|
| Cash | 774 | 640 | 986 | 683 | 1,181 | 73.0% |
| Short Term Debt | 300 | 300 | 300 | 2,842 | 1,503 | -47.1% |
| Long Term Debt | 8,058 | 7,542 | 7,809 | 8,136 | 10,422 | 28.1% |
Cash flow
|
|---|
| Capex | 12 | 8 | 22 | 50 | 51 | 2.0% |
Ratios
|
|---|
| Revenue growth | 36.4% | 92.5% | 14.6% | 8.8% | 7.5% | |
| EBITDA growth | 29.0% | 73.2% | 15.3% | 0.7% | 28.3% | |
| EBITDA Margin | 56.0% | 50.4% | 50.7% | 46.9% | 56.0% | 9.1% |
| Net Income Margin | 96.6% | 38.2% | 59.1% | 43.3% | 38.8% | -4.6% |
| CAPEX, % of revenue | 1.8% | 0.6% | 1.4% | 2.9% | 2.8% | -0.1% |
| ROIC | 2.4% | 2.4% | 2.8% | 2.5% | 3.0% | 0.5% |
| ROE | 7.8% | 4.2% | 7.2% | 5.6% | 5.3% | -0.3% |
| Net Debt/EBITDA | 19.0x | 10.4x | 8.9x | 12.8x | 10.4x | -2.4x |
Revenue and profitability
The company's Revenue increased on 7.5%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.5 pp from 14.1% to 15.6% in FY2016.
Net Income marign decreased on 4.6 pp from 43.3% to 38.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Yuexiu Real Estate Investment Trust had CAPEX/Revenue of 2.8%. CAPEX/Revenue increased on 2.2 pp from 0.60% in FY2013 to 2.8% in FY2016. For the last three years the average CAPEX/Revenue was 2.4%.
Return on investment
The company operates at low ROIC (3.03%) and ROE (5.29%). ROIC increased slightly on 0.53 pp from 2.5% to 3.0% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 10.4x and Debt / EBITDA is 11.6x. Net Debt / EBITDA dropped on 2.4x from 12.8x to 10.4x in FY2016. Debt increased on 8.6% while cash jumped on 73.0%.
Appendix 1: Peers in REITS
Below we provide Yuexiu Real Estate Investment Trust benchmarking against other companies in REITS 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 |
|---|
| New Century Real Estate Investment Trust ($1275) | 1.2% | -41.7% | -41.7% | 16.5% | |
| Fortune Real Estate Investment Trust ($778) | | 28.6% | 15.6% | 13.7% | 5.0% |
| Sunlight Real Estate Investment Trust ($435) | | 8.3% | 9.3% | 9.5% | 2.1% |
| Prosperity REIT ($808) | 10.8% | 10.8% | 18.0% | 8.8% | |
| Link REIT/The ($823) | | 9.7% | 10.0% | 7.9% | 13.2% |
| |
|---|
| Median (8 companies) | 10.8% | 9.0% | 11.9% | 8.3% | 5.0% |
|---|
| Yuexiu Real Estate Investment Trust ($405) | | 92.5% | 14.6% | 8.8% | 7.5% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Link REIT/The ($823) | 179.0% | 340.1% | 257.8% | 362.0% | 199.4% |
| Sunlight Real Estate Investment Trust ($435) | 202.4% | 293.6% | 203.4% | 275.0% | 131.7% |
| New Century Real Estate Investment Trust ($1275) | 31.3% | 33.2% | 82.5% | 77.8% | |
| Regal Real Estate Investment Trust ($1881) | 447.8% | 73.8% | 56.7% | -118.2% | |
| |
|---|
| Median (4 companies) | 190.7% | 73.8% | 142.9% | 176.4% | 165.5% |
|---|
| Yuexiu Real Estate Investment Trust ($405) | 56.0% | 50.4% | 50.7% | 46.9% | 56.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Link REIT/The ($823) | 43.9% | 13.4% | 14.0% | 107.2% | 129.0% |
| Fortune Real Estate Investment Trust ($778) | 180.5% | 400.4% | 9.4% | 99.9% | 3.7% |
| Regal Real Estate Investment Trust ($1881) | 8.3% | 19.8% | 322.0% | 10.1% | |
| Sunlight Real Estate Investment Trust ($435) | 1.4% | 0.7% | 5.1% | 3.1% | 2.5% |
| Prosperity REIT ($808) | 4.3% | 4.5% | 6.4% | 3.0% | |
| |
|---|
| Median (8 companies) | 2.9% | 4.5% | 6.1% | 3.1% | 3.7% |
|---|
| Yuexiu Real Estate Investment Trust ($405) | 1.8% | 0.6% | 1.4% | 2.9% | 2.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Link REIT/The ($823) | 14.8% | 25.5% | 17.7% | 22.3% | 11.6% |
| Sunlight Real Estate Investment Trust ($435) | 9.2% | 13.3% | 9.2% | 12.6% | 5.8% |
| Fortune Real Estate Investment Trust ($778) | 13.6% | 16.0% | 14.0% | 8.6% | 4.6% |
| Champion REIT ($2778) | 8.9% | 4.0% | 4.0% | 6.2% | |
| New Century Real Estate Investment Trust ($1275) | 6.5% | 3.0% | 4.4% | 4.8% | |
| |
|---|
| Median (9 companies) | 8.9% | 3.7% | 4.0% | 4.8% | 5.8% |
|---|
| Yuexiu Real Estate Investment Trust ($405) | 2.4% | 2.4% | 2.8% | 2.5% | 3.0% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Century Real Estate Investment Trust ($1275) | 4.3x | 6.5x | 6.1x | 8.0x | |
| Sunlight Real Estate Investment Trust ($435) | 3.3x | 2.1x | 2.7x | 1.9x | 3.4x |
| Link REIT/The ($823) | 1.2x | 0.5x | 0.6x | 0.6x | 1.7x |
| |
|---|
| Median (3 companies) | 2.3x | 4.3x | 4.4x | 1.9x | 2.5x |
|---|
| Yuexiu Real Estate Investment Trust ($405) | 19.0x | 10.4x | 8.9x | 12.8x | 10.4x |
