Champion REIT revenue growth accelerated from 0.047% in FY2015 to 11.7% in FY2016
27/02/2017 • About Champion REIT (
$2778) • By InTwits
Champion REIT 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 5.8%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Champion REIT ($2778) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,059 | 2,179 | 2,288 | 2,289 | 2,557 | 11.7% |
| Net Income | 4,160 | 2,199 | 1,929 | 3,305 | 3,182 | -3.7% |
Balance Sheet
|
|---|
| Cash | 1,397 | 1,066 | 1,005 | 693 | 958 | 38.2% |
| Short Term Debt | 5,504 | 6,993 | 0 | 2,197 | 0 | -100.0% |
| Long Term Debt | 7,472 | 7,629 | 14,584 | 12,309 | 14,739 | 19.7% |
Cash flow
|
|---|
| Capex | 4 | 2,311 | 39 | 66 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 6.1% | 5.8% | 5.0% | 0.0% | 11.7% | |
| Net Income Margin | 202.0% | 100.9% | 84.3% | 144.4% | 124.4% | -19.9% |
| CAPEX, % of revenue | 0.2% | 106.1% | 1.7% | 2.9% | | -2.9% |
| ROIC | 8.9% | 4.0% | 4.0% | 6.2% | 5.8% | -0.3% |
| ROE | 10.0% | 4.9% | 4.2% | 7.0% | 6.4% | -0.5% |
Revenue and profitability
The company's Revenue surged on 11.7%.
Net Income marign dropped on 19.9 pp from 144% to 124% in FY2016.
Return on investment
The company operates at low ROIC (5.82%) and ROE (6.43%). ROIC showed almost no change in FY2016. ROE decreased slightly on 0.55 pp from 7.0% to 6.4% in FY2016.
Leverage (Debt)
Debt increased slightly on 1.6% while cash surged on 38.2%.
Management team
The company's CEO Wong Ka Ki "Ada" has spent 2 years at the company.
Appendix 1: Peers in REITS
Below we provide Champion REIT benchmarking against other companies in REITS 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 |
|---|
| New Century Real Estate Investment Trust ($1275) | 1.2% | -41.7% | -41.7% | 16.5% | |
| Fortune Real Estate Investment Trust ($778) | | 28.6% | 15.6% | 13.7% | 5.0% |
| Sunlight Real Estate Investment Trust ($435) | | 8.3% | 9.3% | 9.5% | 2.1% |
| Yuexiu Real Estate Investment Trust ($405) | | 92.5% | 14.6% | 8.8% | 7.5% |
| Prosperity REIT ($808) | 10.8% | 10.8% | 18.0% | 8.8% | |
| |
|---|
| Median (8 companies) | 12.2% | 10.3% | 14.2% | 8.8% | 6.2% |
|---|
| Champion REIT ($2778) | | 5.8% | 5.0% | 0.0% | 11.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Link REIT/The ($823) | 179.0% | 340.1% | 257.8% | 362.0% | 199.4% |
| Sunlight Real Estate Investment Trust ($435) | 202.4% | 293.6% | 203.4% | 275.0% | 131.7% |
| New Century Real Estate Investment Trust ($1275) | 31.3% | 33.2% | 82.5% | 77.8% | |
| Yuexiu Real Estate Investment Trust ($405) | 56.0% | 50.4% | 50.7% | 46.9% | 56.0% |
| Regal Real Estate Investment Trust ($1881) | 447.8% | 73.8% | 56.7% | -118.2% | |
| |
|---|
| Median (5 companies) | 179.0% | 62.1% | 82.5% | 77.8% | 131.7% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Link REIT/The ($823) | 43.9% | 13.4% | 14.0% | 107.2% | 129.0% |
| Fortune Real Estate Investment Trust ($778) | 180.5% | 400.4% | 9.4% | 99.9% | 3.7% |
| Regal Real Estate Investment Trust ($1881) | 8.3% | 19.8% | 322.0% | 10.1% | |
| Sunlight Real Estate Investment Trust ($435) | 1.4% | 0.7% | 5.1% | 3.1% | 2.5% |
| Prosperity REIT ($808) | 4.3% | 4.5% | 6.4% | 3.0% | |
| |
|---|
| Median (8 companies) | 3.0% | 3.5% | 6.1% | 3.1% | 3.2% |
|---|
| Champion REIT ($2778) | 0.2% | 106.1% | 1.7% | 2.9% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Link REIT/The ($823) | 14.8% | 25.5% | 17.7% | 22.3% | 11.6% |
| Sunlight Real Estate Investment Trust ($435) | 9.2% | 13.3% | 9.2% | 12.6% | 5.8% |
| Fortune Real Estate Investment Trust ($778) | 13.6% | 16.0% | 14.0% | 8.6% | 4.6% |
| New Century Real Estate Investment Trust ($1275) | 6.5% | 3.0% | 4.4% | 4.8% | |
| Spring Real Estate Investment Trust ($1426) | 3.4% | 3.7% | 3.8% | 3.9% | |
| |
|---|
| Median (9 companies) | 6.5% | 3.0% | 3.8% | 3.9% | 5.2% |
|---|
| Champion REIT ($2778) | 8.9% | 4.0% | 4.0% | 6.2% | 5.8% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Yuexiu Real Estate Investment Trust ($405) | 19.0x | 10.4x | 8.9x | 12.8x | 10.4x |
| New Century Real Estate Investment Trust ($1275) | 4.3x | 6.5x | 6.1x | 8.0x | |
| Sunlight Real Estate Investment Trust ($435) | 3.3x | 2.1x | 2.7x | 1.9x | 3.4x |
| Link REIT/The ($823) | 1.2x | 0.5x | 0.6x | 0.6x | 1.7x |
| |
|---|
| Median (4 companies) | 3.3x | 6.5x | 6.1x | 4.9x | 3.4x |
|---|
