Yuexiu Property Co Ltd reports 52.1% Net Income growth while 5.6% Revenue decline
23/02/2017 • About Yuexiu Property Co Ltd (
$123) • By InTwits
Yuexiu Property Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 17.6% in FY2016, 17.0% in FY2015, 29.2% in FY2014, 35.5% in FY2013, 60.1% in FY2012
- The company has potentially unprofitable business model: ROIC is at 4.5%
- It operates with high leverage: Net Debt/EBITDA is 6.1x while industry average is 3.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Yuexiu Property Co Ltd ($123) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 8,120 | 14,209 | 15,702 | 22,116 | 20,871 | -5.6% |
| Gross Profit | 3,858 | 4,104 | 4,138 | 4,659 | 4,340 | -6.9% |
| SG&A | 1,249 | 1,310 | 1,492 | 1,613 | 1,498 | -7.2% |
| EBITDA | 4,881 | 5,048 | 4,583 | 3,752 | 3,678 | -2.0% |
| Net Income | 2,482 | 2,880 | 2,471 | 1,013 | 1,540 | 52.1% |
Balance Sheet
|
|---|
| Cash | 7,060 | 5,055 | 7,883 | 9,546 | 17,691 | 85.3% |
| Short Term Debt | 6,829 | 8,331 | 8,415 | 5,512 | 6,778 | 23.0% |
| Long Term Debt | 13,302 | 15,535 | 23,644 | 32,653 | 33,515 | 2.6% |
Cash flow
|
|---|
| Capex | 932 | 486 | 456 | 1,505 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -15.1% | 75.0% | 10.5% | 40.8% | -5.6% | |
| EBITDA growth | -40.1% | 3.4% | -9.2% | -18.1% | -2.0% | |
| Gross Margin | 47.5% | 28.9% | 26.4% | 21.1% | 20.8% | -0.3% |
| EBITDA Margin | 60.1% | 35.5% | 29.2% | 17.0% | 17.6% | 0.7% |
| Net Income Margin | 30.6% | 20.3% | 15.7% | 4.6% | 7.4% | 2.8% |
| SG&A, % of revenue | 15.4% | 9.2% | 9.5% | 7.3% | 7.2% | -0.1% |
| CAPEX, % of revenue | 11.5% | 3.4% | 2.9% | 6.8% | | -6.8% |
| ROIC | 9.7% | 9.3% | 7.1% | 5.0% | 4.5% | -0.5% |
| ROE | 11.7% | 12.4% | 9.3% | 3.4% | 5.1% | 1.7% |
| Net Debt/EBITDA | 2.7x | 3.7x | 5.3x | 7.6x | 6.1x | -1.5x |
Revenue and profitability
The company's Revenue decreased on 5.6%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.66 pp from 17.0% to 17.6% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased on 2.8 pp from 4.6% to 7.4% in FY2016.
Return on investment
The company operates at low ROIC (4.55%) and ROE (5.11%). ROIC showed almost no change in FY2016. ROE increased slightly on 1.7 pp from 3.4% to 5.1% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 6.1x and Debt / EBITDA is 11.0x. Net Debt / EBITDA dropped on 1.5x from 7.6x to 6.1x in FY2016. Debt increased on 5.6% while cash jumped on 85.3%.
Appendix 1: Peers in Real Estate
Below you can find Yuexiu Property Co 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% | 5.2% | 4.2% | 5.7% |
|---|
| Yuexiu Property Co Ltd ($123) | | 75.0% | 10.5% | 40.8% | -5.6% |
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% | 39.3% | 38.4% | 53.3% |
|---|
| Yuexiu Property Co Ltd ($123) | 47.5% | 28.9% | 26.4% | 21.1% | 20.8% |
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) | 28.9% | 28.3% | 26.9% | 23.5% | 32.2% |
|---|
| Yuexiu Property Co Ltd ($123) | 60.1% | 35.5% | 29.2% | 17.0% | 17.6% |
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% | 4.8% | 3.2% | 4.0% |
|---|
| Yuexiu Property Co Ltd ($123) | 11.5% | 3.4% | 2.9% | 6.8% | |
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% | 4.1% | 2.4% | 1.7% |
|---|
| Yuexiu Property Co Ltd ($123) | 9.7% | 9.3% | 7.1% | 5.0% | 4.5% |
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 | 3.2x | 1.7x |
|---|
| Yuexiu Property Co Ltd ($123) | 2.7x | 3.7x | 5.3x | 7.6x | 6.1x |
