Times Property Holdings Ltd Net Income surged on 37.6% in 2016 and Revenue surged on 18.8%
27/02/2017 • About Times Property Holdings Ltd (
$1233) • By InTwits
Times Property Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company has business model with low profitability: ROIC is at 9.7%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.6x 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.
Times Property Holdings Ltd ($1233) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,197 | 9,695 | 10,419 | 13,638 | 16,206 | 18.8% |
| Gross Profit | 909 | 2,340 | 3,186 | 3,546 | 4,250 | 19.8% |
| SG&A | 349 | 697 | 788 | 831 | 1,195 | 43.8% |
| EBITDA | 659 | 1,752 | 2,500 | 2,837 | 3,316 | 16.9% |
| Net Income | 363 | 987 | 1,279 | 1,421 | 1,955 | 37.6% |
Balance Sheet
|
|---|
| Cash | 936 | 1,721 | 2,726 | 4,841 | 8,923 | 84.3% |
| Short Term Debt | 3,177 | 1,977 | 1,786 | 359 | 1,956 | 444.7% |
| Long Term Debt | 2,500 | 5,425 | 9,323 | 15,609 | 18,845 | 20.7% |
Cash flow
|
|---|
| Capex | 18 | 204 | 49 | 79 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 29.6% | 203.2% | 7.5% | 30.9% | 18.8% | |
| EBITDA growth | 75.1% | 166.0% | 42.7% | 13.5% | 16.9% | |
| Gross Margin | 28.4% | 24.1% | 30.6% | 26.0% | 26.2% | 0.2% |
| EBITDA Margin | 20.6% | 18.1% | 24.0% | 20.8% | 20.5% | -0.3% |
| Net Income Margin | 11.4% | 10.2% | 12.3% | 10.4% | 12.1% | 1.6% |
| SG&A, % of revenue | 10.9% | 7.2% | 7.6% | 6.1% | 7.4% | 1.3% |
| CAPEX, % of revenue | 0.6% | 2.1% | 0.5% | 0.6% | | -0.6% |
| ROIC | 6.9% | 14.6% | 15.5% | 12.0% | 9.7% | -2.3% |
| ROE | 14.3% | 29.4% | 27.1% | 22.7% | 24.1% | 1.4% |
| Net Debt/EBITDA | 7.2x | 3.2x | 3.4x | 3.9x | 3.6x | -0.3x |
Revenue and profitability
Times Property Holdings Ltd's Revenue surged on 18.8%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.2 pp from 23.8% to 26.0% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue increased slightly on 1.3 pp from 6.1% to 7.4% in FY2016.
Net Income marign increased slightly on 1.6 pp from 10.4% to 12.1% in FY2016.
Return on investment
The company operates at good ROE (24.09%) while ROIC is low (9.73%). ROIC decreased on 2.3 pp from 12.0% to 9.7% in FY2016. ROE increased slightly on 1.4 pp from 22.7% to 24.1% in FY2016.
Leverage (Debt)
Debt level is 3.6x Net Debt / EBITDA and 6.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from 3.9x to 3.6x in FY2016. Debt jumped on 30.3% while cash surged on 84.3%.
Appendix 1: Peers in Real Estate
Below you can find Times Property 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% | 5.2% | 4.2% | 6.7% |
|---|
| Times Property Holdings Ltd ($1233) | | 203.2% | 7.5% | 30.9% | 18.8% |
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% | 48.2% |
|---|
| Times Property Holdings Ltd ($1233) | 28.4% | 24.1% | 30.6% | 26.0% | 26.2% |
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% | 28.5% | 27.8% | 23.5% | 31.2% |
|---|
| Times Property Holdings Ltd ($1233) | 20.6% | 18.1% | 24.0% | 20.8% | 20.5% |
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% | 4.8% | 3.3% | 3.8% |
|---|
| Times Property Holdings Ltd ($1233) | 0.6% | 2.1% | 0.5% | 0.6% | |
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% | 1.9% |
|---|
| Times Property Holdings Ltd ($1233) | 6.9% | 14.6% | 15.5% | 12.0% | 9.7% |
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 | 3.2x | 2.2x |
|---|
| Times Property Holdings Ltd ($1233) | 7.2x | 3.2x | 3.4x | 3.9x | 3.6x |
