Beijing Capital Land Ltd Net Debt / EBITDA dropped on 12.1x from 49.1x to 37.0x in 2016 while Debt surged on 11.5%
20/02/2017 • About Beijing Capital Land Ltd (
$2868) • By InTwits
Beijing Capital Land Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Beijing Capital Land Ltd doesn't have a profitable business model yet: 2016 ROIC is 1.2%
- EBITDA Margin is quite volatile: 5.2% in 2016, 4.0% in 2015, 16.9% in 2014, 20.0% in 2013, 17.2% in 2012
- Beijing Capital Land Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.4%. At the same time it's a lot of higher than industry average of 5.5%.
- CAPEX is quite volatile: 1,348 in 2016, 1,027 in 2015, 749 in 2014, 547 in 2013, 799 in 2012
- The company has potentially unprofitable business model: ROIC is at 1.2%
- It operates with high leverage: Net Debt/EBITDA is 37.0x while industry average is 3.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Beijing Capital Land Ltd ($2868) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 8,128 | 10,252 | 9,413 | 14,873 | 18,916 | 27.2% |
| Gross Profit | 1,940 | 2,696 | 2,356 | 1,793 | 2,052 | 14.4% |
| SG&A | 576 | 690 | 819 | 1,109 | 1,084 | -2.3% |
| EBITDA | 1,397 | 2,050 | 1,590 | 588 | 987 | 67.9% |
| Net Income | 1,111 | 1,522 | 1,690 | 2,079 | 2,032 | -2.3% |
Balance Sheet
|
|---|
| Cash | 8,617 | 11,345 | 13,897 | 19,937 | 17,909 | -10.2% |
| Short Term Debt | 3,498 | 8,161 | 11,624 | 9,807 | 16,903 | 72.3% |
| Long Term Debt | 15,077 | 12,717 | 20,948 | 38,986 | 37,506 | -3.8% |
Cash flow
|
|---|
| Capex | 799 | 547 | 749 | 1,027 | 1,348 | 31.2% |
Ratios
|
|---|
| Revenue growth | 21.2% | 26.1% | -8.2% | 58.0% | 27.2% | |
| EBITDA growth | -12.6% | 46.8% | -22.5% | -63.0% | 67.9% | |
| Gross Margin | 23.9% | 26.3% | 25.0% | 12.1% | 10.8% | -1.2% |
| EBITDA Margin | 17.2% | 20.0% | 16.9% | 4.0% | 5.2% | 1.3% |
| Net Income Margin | 13.7% | 14.8% | 18.0% | 14.0% | 10.7% | -3.2% |
| SG&A, % of revenue | 7.1% | 6.7% | 8.7% | 7.5% | 5.7% | -1.7% |
| CAPEX, % of revenue | 9.8% | 5.3% | 8.0% | 6.9% | 7.1% | 0.2% |
| ROIC | 5.2% | 5.9% | 3.3% | 0.8% | 1.2% | 0.4% |
| ROE | 16.7% | 18.6% | 19.0% | 17.0% | 12.7% | -4.3% |
| Net Debt/EBITDA | 7.1x | 4.6x | 11.7x | 49.1x | 37.0x | -12.1x |
Revenue and profitability
The company's Revenue jumped on 27.2%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.2 pp from 23.8% to 26.0% in FY2016.
Gross Margin decreased slightly on 1.2 pp from 12.1% to 10.8% in 2016. SG&A as a % of Revenue decreased slightly on 1.7 pp from 7.5% to 5.7% in 2016.
Net Income marign decreased on 3.2 pp from 14.0% to 10.7% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 7.1% in 2016. CAPEX/Revenue increased slightly on 1.8 pp from 5.3% in 2013 to 7.1% in 2016. Average CAPEX/Revenue for the last three years was 7.3%.Beijing Capital Land Ltd has spent a lot to CAPEX (137% of EBITDA) to secure its growth.
Return on investment
The company operates at good ROE (12.69%) while ROIC is low (1.18%). ROIC showed almost no change in 2016. ROE decreased on 4.3 pp from 17.0% to 12.7% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 37.0x and Debt / EBITDA is 55.1x. Net Debt / EBITDA dropped on 12.1x from 49.1x to 37.0x in 2016. Debt jumped on 11.5% while cash dropped on 10.2%.
Appendix 1: Peers in Real Estate
Below you can find Beijing Capital Land 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) | 16.9% | 13.1% | 5.3% | 4.2% | 6.0% |
|---|
| Beijing Capital Land Ltd ($2868) | | 26.1% | -8.2% | 58.0% | 27.2% |
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) | 42.1% | 41.9% | 39.3% | 38.4% | 53.2% |
|---|
| Beijing Capital Land Ltd ($2868) | 23.9% | 26.3% | 25.0% | 12.1% | 10.8% |
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% |
|---|
| Beijing Capital Land Ltd ($2868) | 17.2% | 20.0% | 16.9% | 4.0% | 5.2% |
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% | 570.7% |
| Hon Kwok Land Investment Co Ltd ($160) | 20.6% | 157.3% | 144.5% | 296.3% | 28.1% |
| |
|---|
| Median (179 companies) | 5.6% | 6.2% | 4.7% | 3.2% | 3.8% |
|---|
| Beijing Capital Land Ltd ($2868) | 9.8% | 5.3% | 8.0% | 6.9% | 7.1% |
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) | 4.0% | 4.0% | 4.2% | 2.5% | 1.7% |
|---|
| Beijing Capital Land Ltd ($2868) | 5.2% | 5.9% | 3.3% | 0.8% | 1.2% |
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 | |
| 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 | |
| Greenland Hong Kong Holdings Ltd ($337) | | 6.2x | 49.3x | 38.4x | |
| |
|---|
| Median (136 companies) | 2.3x | 2.7x | 3.0x | 3.2x | 2.0x |
|---|
| Beijing Capital Land Ltd ($2868) | 7.1x | 4.6x | 11.7x | 49.1x | 37.0x |
