Wing Lee Property Investments Ltd Net Income dropped on 104% while EBITDA Margin increased on 2.9 pp from 56.5% to 59.4%
24/02/2017 • About Wing Lee Property Investments Ltd (
$864) • By InTwits
Wing Lee Property Investments Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Wing Lee Property Investments Ltd doesn't have a profitable business model yet: FY2016 ROIC is 1.7%
- EBITDA Margin is quite volatile: 59.4% in FY2016, 56.5% in FY2015, 60.9% in FY2014, 37.9% in FY2013, 7.3% in FY2012
- The company has potentially unprofitable business model: ROIC is at 1.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Wing Lee Property Investments Ltd ($864) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 24.213 | 25.237 | 27.751 | 29.704 | 32.585 | 9.7% |
| SG&A | | | 12.556 | 12.272 | | -100.0% |
| EBITDA | 1.771 | 9.556 | 16.912 | 16.770 | 19.342 | 15.3% |
| Net Income | 306.289 | 40.965 | 82.955 | 25.991 | -1.058 | -104.1% |
Balance Sheet
|
|---|
| Cash | 61.342 | 60.626 | 56.618 | 27.824 | 38.921 | 39.9% |
| Short Term Debt | 32.007 | 44.169 | 28.082 | 25.980 | 22.960 | -11.6% |
| Long Term Debt | 94.227 | 71.140 | 69.717 | 54.573 | 35.779 | -34.4% |
Cash flow
|
|---|
| Capex | 24.744 | 20.950 | 0.000 | 21.745 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 18.5% | 4.2% | 10.0% | 7.0% | 9.7% | |
| EBITDA growth | -82.8% | 439.6% | 77.0% | -0.8% | 15.3% | |
| EBITDA Margin | 7.3% | 37.9% | 60.9% | 56.5% | 59.4% | 2.9% |
| Net Income Margin | 1,265.0% | 162.3% | 298.9% | 87.5% | -3.2% | -90.7% |
| SG&A, % of revenue | | | 45.2% | 41.3% | | -41.3% |
| CAPEX, % of revenue | 102.2% | 83.0% | 0.0% | 73.2% | | -73.2% |
| ROIC | 0.3% | 1.1% | 1.5% | 1.5% | 1.7% | 0.2% |
| ROE | 77.2% | 5.6% | 8.7% | 2.6% | -0.1% | -2.7% |
| Net Debt/EBITDA | 36.6x | 5.7x | 2.4x | 3.1x | 1.0x | -2.1x |
Revenue and profitability
Wing Lee Property Investments Ltd's Revenue increased on 9.7%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 44.8 pp from 44.2% to 89.0% in FY2016.
Net Income marign dropped on 90.7 pp from 87.5% to -3.2% in FY2016.
Return on investment
The company operates at low but positive ROIC (1.69%) and negative ROE (-0.10%). ROIC showed almost no change in FY2016. ROE decreased on 2.7 pp from 2.6% to -0.10% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.0x and Debt / EBITDA is 3.0x. Net Debt / EBITDA dropped on 2.1x from 3.1x to 1.0x in FY2016. Debt dropped on 27.1% while cash jumped on 39.9%.
Appendix 1: Peers in Real Estate
Below we provide Wing Lee Property Investments 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% | 13.5% | 5.2% | 4.2% | 5.5% |
|---|
| Wing Lee Property Investments Ltd ($864) | | 4.2% | 10.0% | 7.0% | 9.7% |
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 (161 companies) | 41.9% | 41.9% | 39.2% | 38.2% | 53.2% |
|---|
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% | 28.3% | 26.9% | 23.4% | 31.7% |
|---|
| Wing Lee Property Investments Ltd ($864) | 7.3% | 37.9% | 60.9% | 56.5% | 59.4% |
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% | 4.8% | 3.2% | 4.0% |
|---|
| Wing Lee Property Investments Ltd ($864) | 102.2% | 83.0% | 0.0% | 73.2% | |
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% | 2.5% | 1.8% |
|---|
| Wing Lee Property Investments Ltd ($864) | 0.3% | 1.1% | 1.5% | 1.5% | 1.7% |
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 |
|---|
| Wing Lee Property Investments Ltd ($864) | 36.6x | 5.7x | 2.4x | 3.1x | 1.0x |
