Hysan Development Co Ltd Net Income dropped on 58.0% in 2016 and EBITDA Margin increased slightly on 0.60 pp from 81.7% to 82.3%
22/02/2017 • About Hysan Development Co Ltd (
$14) • By InTwits
Hysan Development Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has potentially unprofitable business model: ROIC is at 3.7%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hysan Development Co Ltd ($14) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,486 | 3,063 | 3,224 | 3,430 | 3,535 | 3.1% |
| Gross Profit | 2,063 | 2,658 | 2,820 | 3,016 | 3,107 | 3.0% |
| SG&A | 187 | 208 | 214 | 234 | 219 | -6.4% |
| EBITDA | 1,905 | 2,467 | 2,621 | 2,803 | 2,910 | 3.8% |
| Net Income | 9,955 | 6,158 | 4,902 | 2,903 | 1,218 | -58.0% |
Balance Sheet
|
|---|
| Cash | 963 | 621 | 576 | 584 | 2,630 | 350.3% |
| Short Term Debt | 699 | 1,055 | 1,589 | 250 | 1,180 | 372.0% |
| Long Term Debt | 5,242 | 6,449 | 4,858 | 4,609 | 5,113 | 10.9% |
Cash flow
|
|---|
| Capex | 1,626 | 704 | 359 | 414 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 29.3% | 23.2% | 5.3% | 6.4% | 3.1% | |
| EBITDA growth | 30.4% | 29.5% | 6.2% | 6.9% | 3.8% | |
| Gross Margin | 83.0% | 86.8% | 87.5% | 87.9% | 87.9% | -0.0% |
| EBITDA Margin | 76.6% | 80.5% | 81.3% | 81.7% | 82.3% | 0.6% |
| Net Income Margin | 400.4% | 201.0% | 152.0% | 84.6% | 34.5% | -50.2% |
| SG&A, % of revenue | 7.5% | 6.8% | 6.6% | 6.8% | 6.2% | -0.6% |
| CAPEX, % of revenue | 65.4% | 23.0% | 11.1% | 12.1% | | -12.1% |
| ROIC | 3.0% | 3.5% | 3.4% | 3.6% | 3.7% | 0.1% |
| ROE | 18.6% | 10.1% | 7.5% | 4.3% | 1.8% | -2.5% |
| Net Debt/EBITDA | 2.6x | 2.8x | 2.2x | 1.5x | 1.3x | -0.3x |
Revenue and profitability
The company's Revenue increased on 3.1%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 88.4 pp from -34.6% to 53.8% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue decreased slightly on 0.63 pp from 6.8% to 6.2% in FY2016.
Net Income marign dropped on 50.2 pp from 84.6% to 34.5% in FY2016.
Return on investment
The company operates at low ROIC (3.73%) and ROE (1.80%). ROIC showed almost no change in FY2016. ROE decreased on 2.5 pp from 4.3% to 1.8% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is 2.2x. Net Debt / EBITDA dropped on 0.3x from 1.5x to 1.3x in FY2016. Debt surged on 29.5% while cash jumped on 350%.
Appendix 1: Peers in Real Estate
Below we provide Hysan Development Co 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) | 16.4% | 13.1% | 5.2% | 4.2% | 6.0% |
|---|
| Hysan Development Co Ltd ($14) | | 23.2% | 5.3% | 6.4% | 3.1% |
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% | 39.1% | 38.2% | 53.2% |
|---|
| Hysan Development Co Ltd ($14) | 83.0% | 86.8% | 87.5% | 87.9% | 87.9% |
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% | 31.7% |
|---|
| Hysan Development Co Ltd ($14) | 76.6% | 80.5% | 81.3% | 81.7% | 82.3% |
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% | |
| 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% | 6.1% | 4.7% | 3.2% | 4.0% |
|---|
| Hysan Development Co Ltd ($14) | 65.4% | 23.0% | 11.1% | 12.1% | |
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) | 4.2% | 4.1% | 4.2% | 2.4% | 1.7% |
|---|
| Hysan Development Co Ltd ($14) | 3.0% | 3.5% | 3.4% | 3.6% | 3.7% |
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 | 37.0x |
| 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) | 2.3x | 2.7x | 3.0x | 3.3x | 2.0x |
|---|
| Hysan Development Co Ltd ($14) | 2.6x | 2.8x | 2.2x | 1.5x | 1.3x |
