China Merchants Land Ltd Net Income jumped on 338% in 2016 and Revenue jumped on 81.5%
07/03/2017 • About China Merchants Land Ltd (
$978) • By InTwits
China Merchants Land Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Merchants Land Ltd is a growth stock: FY2016 revenue growth was 81.5%, 5 year revenue CAGR was 181% at FY2016 ROIC 10.7%
- EBITDA Margin is quite volatile: 25.4% in FY2016, 19.7% in FY2015, 24.4% in FY2014, 38.4% in FY2013, -20.9% in FY2012
- The company has business model with average profitability: ROIC is at 10.7%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.8x 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.
China Merchants Land Ltd ($978) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 147 | 6,928 | 7,440 | 6,395 | 11,606 | 81.5% |
| Gross Profit | -3 | 2,803 | 2,073 | 1,557 | 3,337 | 114.3% |
| SG&A | 26 | 220 | 265 | 318 | 400 | 25.7% |
| EBITDA | -31 | 2,658 | 1,818 | 1,262 | 2,948 | 133.7% |
| Net Income | -51 | 459 | 380 | 185 | 811 | 337.6% |
Balance Sheet
|
|---|
| Cash | 27 | 6,618 | 4,184 | 3,697 | 5,811 | 57.2% |
| Short Term Debt | 151 | 2,000 | 1,745 | 2,923 | 9,015 | 208.4% |
| Long Term Debt | 15 | 5,043 | 7,838 | 8,874 | 8,055 | -9.2% |
Cash flow
|
|---|
| Capex | 0 | 1 | 7 | 4 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 119.5% | 4,627.1% | 7.4% | -14.1% | 81.5% | |
| EBITDA growth | -108.1% | -8,767.4% | -31.6% | -30.6% | 133.7% | |
| Gross Margin | -1.7% | 40.5% | 27.9% | 24.3% | 28.8% | 4.4% |
| EBITDA Margin | -20.9% | 38.4% | 24.4% | 19.7% | 25.4% | 5.7% |
| Net Income Margin | -35.1% | 6.6% | 5.1% | 2.9% | 7.0% | 4.1% |
| SG&A, % of revenue | 17.8% | 3.2% | 3.6% | 5.0% | 3.4% | -1.5% |
| CAPEX, % of revenue | 0.2% | 0.0% | 0.1% | 0.1% | | -0.1% |
| ROIC | -17.3% | 28.4% | 9.3% | 5.7% | 10.7% | 5.0% |
| ROE | -199.2% | 17.6% | 7.8% | 3.8% | 14.5% | 10.7% |
| Net Debt/EBITDA | | 0.2x | 3.0x | 6.4x | 3.8x | -2.6x |
Revenue and profitability
China Merchants Land Ltd's Revenue surged on 81.5%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 5.7 pp from 19.7% to 25.4% in FY2016.
Gross Margin increased on 4.4 pp from 24.3% to 28.8% in FY2016. SG&A as a % of Revenue decreased slightly on 1.5 pp from 5.0% to 3.4% in FY2016.
Net Income marign increased on 4.1 pp from 2.9% to 7.0% in FY2016.
Return on investment
The company operates at good ROE (14.53%) while ROIC is low (10.71%). ROIC increased on 5.0 pp from 5.7% to 10.7% in FY2016. ROE surged on 10.7 pp from 3.8% to 14.5% in FY2016.
Leverage (Debt)
Debt level is 3.8x Net Debt / EBITDA and 5.8x Debt / EBITDA. Net Debt / EBITDA dropped on 2.6x from 6.4x to 3.8x in FY2016. Debt jumped on 44.7% while cash jumped on 57.2%.
Appendix 1: Peers in Real Estate
Below we provide China Merchants Land 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) | 15.8% | 13.1% | 5.2% | 4.5% | 6.7% |
|---|
| China Merchants Land Ltd ($978) | | 4,627.1% | 7.4% | -14.1% | 81.5% |
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% | 45.1% |
|---|
| China Merchants Land Ltd ($978) | -1.7% | 40.5% | 27.9% | 24.3% | 28.8% |
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% | 27.8% | 23.5% | 31.2% |
|---|
| China Merchants Land Ltd ($978) | -20.9% | 38.4% | 24.4% | 19.7% | 25.4% |
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) | 5.9% | 6.2% | 4.8% | 3.3% | 3.8% |
|---|
| China Merchants Land Ltd ($978) | 0.2% | 0.0% | 0.1% | 0.1% | |
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% | 4.0% | 4.1% | 2.4% | 2.1% |
|---|
| China Merchants Land Ltd ($978) | -17.3% | 28.4% | 9.3% | 5.7% | 10.7% |
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) | 2.4x | 2.8x | 3.0x | 3.2x | 2.7x |
|---|
| China Merchants Land Ltd ($978) | | 0.2x | 3.0x | 6.4x | 3.8x |
