Future Land Development Holdings Ltd Debt jumped on 43.4% in 2016 and Revenue surged on 18.4%
26/02/2017 • About Future Land Development Holdings Ltd (
$1030) • By InTwits
Future Land Development Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Future Land Development Holdings Ltd is a growth stock: FY2016 revenue growth was 18.4%, 5 year revenue CAGR was 21.3% at FY2016 ROIC 11.9%
- The company has business model with average profitability: ROIC is at 11.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.1x 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.
Future Land Development Holdings Ltd ($1030) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 17,517 | 20,771 | 20,719 | 23,836 | 28,232 | 18.4% |
| Gross Profit | 3,930 | 4,683 | 3,874 | 4,856 | 6,607 | 36.1% |
| SG&A | 1,023 | 1,250 | 1,288 | 1,807 | 2,706 | 49.7% |
| EBITDA | 2,951 | 3,658 | 3,095 | 3,939 | 4,963 | 26.0% |
| Net Income | 931 | 981 | 1,026 | 1,031 | 1,384 | 34.2% |
Balance Sheet
|
|---|
| Cash | 4,852 | 7,412 | 4,818 | 6,479 | 11,905 | 83.8% |
| Short Term Debt | 5,130 | 2,175 | 3,376 | 3,976 | 10,176 | 156.0% |
| Long Term Debt | 4,510 | 11,715 | 10,555 | 15,005 | 17,036 | 13.5% |
Cash flow
|
|---|
| Capex | 572 | 198 | 2,226 | 3,443 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 62.7% | 18.6% | -0.3% | 15.0% | 18.4% | |
| EBITDA growth | 16.4% | 23.9% | -15.4% | 27.3% | 26.0% | |
| Gross Margin | 22.4% | 22.5% | 18.7% | 20.4% | 23.4% | 3.0% |
| EBITDA Margin | 16.8% | 17.6% | 14.9% | 16.5% | 17.6% | 1.1% |
| Net Income Margin | 5.3% | 4.7% | 5.0% | 4.3% | 4.9% | 0.6% |
| SG&A, % of revenue | 5.8% | 6.0% | 6.2% | 7.6% | 9.6% | 2.0% |
| CAPEX, % of revenue | 3.3% | 1.0% | 10.7% | 14.4% | | -14.4% |
| ROIC | 16.1% | 16.0% | 11.3% | 12.3% | 11.9% | -0.4% |
| ROE | 20.8% | 15.7% | 14.3% | 13.0% | 15.9% | 2.9% |
| Net Debt/EBITDA | 1.6x | 1.8x | 2.9x | 3.2x | 3.1x | -0.1x |
Revenue and profitability
Future Land Development Holdings Ltd's Revenue surged on 18.4%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.0 pp from 17.5% to 20.5% in FY2016.
Gross Margin increased on 3.0 pp from 20.4% to 23.4% in FY2016. SG&A as a % of Revenue increased on 2.0 pp from 7.6% to 9.6% in FY2016.
Net Income marign increased slightly on 0.58 pp from 4.3% to 4.9% in FY2016.
Return on investment
The company operates at good ROE (15.90%) while ROIC is low (11.92%). ROIC showed almost no change in FY2016. ROE increased on 2.9 pp from 13.0% to 15.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.1x and Debt / EBITDA is 5.5x. Net Debt / EBITDA decreased on 0.1x from 3.2x to 3.1x in FY2016. Debt surged on 43.4% while cash jumped on 83.8%.
Appendix 1: Peers in Real Estate
Below you can find Future Land Development Holdings 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) | 16.1% | 13.1% | 5.3% | 4.2% | 5.7% |
|---|
| Future Land Development Holdings Ltd ($1030) | | 18.6% | -0.3% | 15.0% | 18.4% |
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% |
|---|
| Future Land Development Holdings Ltd ($1030) | 22.4% | 22.5% | 18.7% | 20.4% | 23.4% |
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% | 32.2% |
|---|
| Future Land Development Holdings Ltd ($1030) | 16.8% | 17.6% | 14.9% | 16.5% | 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) | 5.9% | 6.2% | 4.7% | 3.2% | 4.0% |
|---|
| Future Land Development Holdings Ltd ($1030) | 3.3% | 1.0% | 10.7% | 14.4% | |
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% |
|---|
| Future Land Development Holdings Ltd ($1030) | 16.1% | 16.0% | 11.3% | 12.3% | 11.9% |
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) | 2.4x | 2.8x | 3.0x | 3.3x | 1.7x |
|---|
| Future Land Development Holdings Ltd ($1030) | 1.6x | 1.8x | 2.9x | 3.2x | 3.1x |
