China Chengtong Development Group Ltd EBITDA surged on 102% and EBITDA Margin increased on 2.6 pp from 4.8% to 7.5%
24/02/2017 • About China Chengtong Development Group Ltd (
$217) • By InTwits
China Chengtong Development Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Chengtong Development Group Ltd doesn't have a profitable business model yet: FY2016 ROIC is 1.0%
- EBITDA Margin is quite volatile: 7.5% in FY2016, 4.8% in FY2015, -3.3% in FY2014, -0.4% in FY2013, 1.1% in FY2012
- The company has potentially unprofitable business model: ROIC is at 1.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Chengtong Development Group Ltd ($217) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 8,627 | 15,500 | 3,224 | 548 | 717 | 30.8% |
| Gross Profit | 182 | 89 | -15 | 83 | 132 | 58.6% |
| SG&A | 113 | 167 | 145 | 123 | 99 | -19.6% |
| EBITDA | 94 | -60 | -107 | 27 | 54 | 101.9% |
| Net Income | 185 | 51 | -51 | 82 | 64 | -22.0% |
Balance Sheet
|
|---|
| Cash | 1,973 | 2,557 | 728 | 1,404 | 1,358 | -3.3% |
| Short Term Debt | 7,949 | 17,113 | 2,671 | 0 | 745 | |
| Long Term Debt | 732 | 0 | 722 | 695 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 2 | 70 | 2 | 2 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 1,956.5% | 79.7% | -79.2% | -83.0% | 30.8% | |
| EBITDA growth | 385.5% | -164.1% | 77.2% | -124.9% | 101.9% | |
| Gross Margin | 2.1% | 0.6% | -0.5% | 15.2% | 18.5% | 3.2% |
| EBITDA Margin | 1.1% | -0.4% | -3.3% | 4.8% | 7.5% | 2.6% |
| Net Income Margin | 2.1% | 0.3% | -1.6% | 14.9% | 8.9% | -6.0% |
| SG&A, % of revenue | 1.3% | 1.1% | 4.5% | 22.4% | 13.8% | -8.6% |
| CAPEX, % of revenue | 0.0% | 0.5% | 0.1% | 0.3% | | -0.3% |
| ROIC | 1.3% | -0.5% | -1.0% | 0.2% | 1.0% | 0.8% |
| ROE | 11.1% | 2.7% | -2.7% | 3.5% | 2.3% | -1.2% |
| Net Debt/EBITDA | 71.5x | | | -26.7x | -11.4x | 15.3x |
Revenue and profitability
China Chengtong Development Group Ltd's Revenue surged on 30.8%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 19.7 pp from 20.5% to 0.73% in FY2016.
Gross Margin increased on 3.2 pp from 15.2% to 18.5% in FY2016. SG&A as a % of Revenue decreased on 8.6 pp from 22.4% to 13.8% in FY2016.
Net Income marign decreased on 6.0 pp from 14.9% to 8.9% in FY2016.
Return on investment
The company operates at low ROIC (0.97%) and ROE (2.34%). ROIC increased slightly on 0.79 pp from 0.18% to 0.97% in FY2016. ROE decreased slightly on 1.2 pp from 3.5% to 2.3% in FY2016.
Leverage (Debt)
Debt level is -11.4x Net Debt / EBITDA and 13.9x Debt / EBITDA. Net Debt / EBITDA jumped on 15.3x from -26.7x to -11.4x in FY2016. Debt increased on 7.2% while cash decreased on 3.3%.
Appendix 1: Peers in Holding Companies-Divers
Below we provide China Chengtong Development Group Ltd benchmarking against other companies in Holding Companies-Divers 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 |
|---|
| Beijing Development HK Ltd ($154) | 12.5% | | | 1,048.9% | |
| Kong Sun Holdings Ltd ($295) | -88.3% | 5.1% | 7,067.0% | 231.2% | |
| CIAM Group Ltd ($378) | -62.2% | 47.9% | -40.0% | 211.5% | |
| Melco International Development Ltd ($200) | 16.5% | 21.7% | 3.0% | 134.9% | |
| New Century Group Hong Kong Ltd ($234) | | 326.7% | -70.3% | 118.2% | -78.2% |
| |
|---|
| Median (45 companies) | 6.1% | 4.9% | 15.7% | 7.2% | -5.8% |
|---|
| China Chengtong Development Group Ltd ($217) | | 79.7% | -79.2% | -83.0% | 30.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Century Group Hong Kong Ltd ($234) | 27.3% | 85.2% | 82.8% | 91.5% | 43.4% |
| Melco International Development Ltd ($200) | 63.1% | 52.9% | 54.5% | 79.4% | |
| CIAM Group Ltd ($378) | | | | 75.8% | |
| Emperor International Holdings Ltd ($163) | 71.3% | 64.9% | 79.2% | 75.3% | 55.3% |
| Heng Fai Enterprises Ltd ($185) | 89.0% | 89.5% | 58.3% | 74.7% | |
| |
|---|
| Median (39 companies) | 33.4% | 36.0% | 34.4% | 37.5% | 36.8% |
|---|
| China Chengtong Development Group Ltd ($217) | 2.1% | 0.6% | -0.5% | 15.2% | 18.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Century Group Hong Kong Ltd ($234) | -5.5% | 78.8% | 58.3% | 85.0% | 33.8% |
| Emperor International Holdings Ltd ($163) | 180.7% | 131.8% | 100.6% | 73.9% | -20.1% |
| Pioneer Global Group Ltd ($224) | -0.5% | -9.9% | -11.6% | 64.3% | 66.8% |
| C C Land Holdings Ltd ($1224) | 27.0% | 23.6% | 24.6% | 55.7% | |
| China Merchants Holdings International Co Ltd ($144) | 56.4% | 50.8% | 45.2% | 55.7% | |
| |
|---|
| Median (45 companies) | 3.3% | 3.8% | 9.3% | 6.8% | 9.1% |
|---|
| China Chengtong Development Group Ltd ($217) | 1.1% | -0.4% | -3.3% | 4.8% | 7.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Heng Fai Enterprises Ltd ($185) | 4.8% | 77.1% | 310.0% | 458.1% | |
| Chinney Investments Ltd ($216) | 17.5% | 103.4% | 111.3% | 230.9% | 26.6% |
| China Investments Holdings Ltd ($132) | 4.8% | 81.9% | 382.2% | 222.5% | |
| Goldin Properties Holdings Ltd ($283) | 2,178.4% | 1,190.0% | 50.1% | 202.4% | 128.8% |
| Carnival Group International Holdings Ltd ($996) | | 137.9% | 61.0% | 133.3% | |
| |
|---|
| Median (45 companies) | 2.7% | 3.8% | 6.1% | 9.2% | 8.5% |
|---|
| China Chengtong Development Group Ltd ($217) | 0.0% | 0.5% | 0.1% | 0.3% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Fulum Group Holdings Ltd ($1443) | | 116.3% | 55.5% | 29.8% | 12.9% |
| C C Land Holdings Ltd ($1224) | 7.4% | 5.3% | 7.9% | 15.0% | |
| Chinney Alliance Group Ltd ($385) | 6.4% | 8.1% | 13.6% | 15.0% | |
| Niraku GC Holdings Inc ($1245) | | 19.0% | 18.8% | 13.1% | 2.7% |
| Top Spring International Holdings Ltd ($3688) | 15.6% | 6.9% | 7.3% | 8.0% | |
| |
|---|
| Median (45 companies) | -0.2% | 0.6% | 1.2% | 0.3% | 2.1% |
|---|
| China Chengtong Development Group Ltd ($217) | 1.3% | -0.5% | -1.0% | 0.2% | 1.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chinney Investments Ltd ($216) | 10.3x | 63.7x | 48.6x | 93.7x | 13.5x |
| Carnival Group International Holdings Ltd ($996) | | | 23.7x | 92.3x | |
| Multifield International Holdings Ltd ($898) | 3.2x | 7.3x | 3.0x | 55.9x | |
| Kong Sun Holdings Ltd ($295) | | | -23.0x | 34.0x | |
| CIAM Group Ltd ($378) | | | | 32.6x | |
| |
|---|
| Median (26 companies) | 2.4x | 2.7x | 2.8x | 2.9x | 4.2x |
|---|
| China Chengtong Development Group Ltd ($217) | 71.5x | | | -26.7x | -11.4x |
