CIFI Holdings Group Co Ltd reports 31.6% Net Income growth and 21.9% Revenue growth
08/03/2017 • About CIFI Holdings Group Co Ltd (
$884) • By InTwits
CIFI Holdings Group Co Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CIFI Holdings Group Co Ltd is a growth stock: 2016 revenue growth was 21.9%, 5 year revenue CAGR was 40.9% at 2016 ROIC 10.1%
- EBITDA Margin is declining: 20.1% in 2016 vs. 22.2% in 2015 vs. 35.4% in 2012
- CIFI Holdings Group Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's a lot of higher than industry average of 5.5%.
- CAPEX is quite volatile: 610 in 2016, 510 in 2015, 301 in 2014, 63.1 in 2013, 44.6 in 2012
- The company has business model with average profitability: ROIC is at 10.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CIFI Holdings Group Co Ltd ($884) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 8,144 | 11,909 | 16,179 | 18,231 | 22,224 | 21.9% |
| Gross Profit | 1,926 | 3,069 | 4,187 | 4,144 | 5,646 | 36.2% |
| SG&A | 531 | 822 | 849 | 978 | 1,403 | 43.5% |
| EBITDA | 2,884 | 3,150 | 3,808 | 4,054 | 4,466 | 10.1% |
| Net Income | 1,937 | 1,894 | 1,861 | 2,133 | 2,808 | 31.6% |
Balance Sheet
|
|---|
| Cash | 4,591 | 7,061 | 7,094 | 14,874 | 20,328 | 36.7% |
| Short Term Debt | 3,372 | 2,935 | 3,035 | 2,794 | 4,457 | 59.5% |
| Long Term Debt | 5,493 | 10,357 | 10,825 | 21,161 | 24,935 | 17.8% |
Cash flow
|
|---|
| Capex | 45 | 63 | 301 | 510 | 610 | 19.7% |
Ratios
|
|---|
| Revenue growth | 103.2% | 46.2% | 35.9% | 12.7% | 21.9% | |
| EBITDA growth | 29.0% | 9.2% | 20.9% | 6.5% | 10.1% | |
| Gross Margin | 23.7% | 25.8% | 25.9% | 22.7% | 25.4% | 2.7% |
| EBITDA Margin | 35.4% | 26.5% | 23.5% | 22.2% | 20.1% | -2.1% |
| Net Income Margin | 23.8% | 15.9% | 11.5% | 11.7% | 12.6% | 0.9% |
| SG&A, % of revenue | 6.5% | 6.9% | 5.2% | 5.4% | 6.3% | 0.9% |
| CAPEX, % of revenue | 0.5% | 0.5% | 1.9% | 2.8% | 2.7% | -0.0% |
| ROIC | 20.4% | 15.8% | 15.3% | 12.1% | 10.1% | -2.0% |
| ROE | 39.5% | 25.0% | 19.8% | 18.2% | 20.2% | 2.0% |
| Net Debt/EBITDA | 1.5x | 2.0x | 1.8x | 2.2x | 2.0x | -0.2x |
Revenue and profitability
The company's Revenue surged on 21.9%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.1 pp from 22.2% to 20.1% in 2016.
Gross Margin increased on 2.7 pp from 22.7% to 25.4% in 2016. SG&A as a % of Revenue increased slightly on 0.95 pp from 5.4% to 6.3% in 2016.
Net Income marign increased slightly on 0.93 pp from 11.7% to 12.6% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 2.7%. CAPEX/Revenue increased on 2.2 pp from 0.53% in 2013 to 2.7% in 2016. For the last three years the average CAPEX/Revenue was 2.5%.
Return on investment
The company operates at good ROE (20.19%) while ROIC is low (10.12%). ROIC decreased on 2.0 pp from 12.1% to 10.1% in 2016. ROE increased slightly on 2.0 pp from 18.2% to 20.2% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.0x and Debt / EBITDA is 6.6x. Net Debt / EBITDA dropped on 0.2x from 2.2x to 2.0x in 2016. Debt surged on 22.7% while cash surged on 36.7%.
Management team
Lin Feng is a CIFI Holdings Group Co Ltd's CEO. Lin Feng has spent 7 years at the company. The company's CFO Yau Sze Ka "Albert" has spent 7 years at the company.
Appendix 1: Peers in Real Estate
Below we provide CIFI Holdings Group Co 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% | -82.8% |
| 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% | 4.2% | 6.0% |
|---|
| CIFI Holdings Group Co Ltd ($884) | | 46.2% | 35.9% | 12.7% | 21.9% |
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% |
|---|
| CIFI Holdings Group Co Ltd ($884) | 23.7% | 25.8% | 25.9% | 22.7% | 25.4% |
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) | 28.9% | 28.5% | 27.8% | 23.5% | 31.2% |
|---|
| CIFI Holdings Group Co Ltd ($884) | 35.4% | 26.5% | 23.5% | 22.2% | 20.1% |
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% |
|---|
| CIFI Holdings Group Co Ltd ($884) | 0.5% | 0.5% | 1.9% | 2.8% | 2.7% |
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% | 2.4% |
|---|
| CIFI Holdings Group Co Ltd ($884) | 20.4% | 15.8% | 15.3% | 12.1% | 10.1% |
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 | 3.3x |
|---|
| CIFI Holdings Group Co Ltd ($884) | 1.5x | 2.0x | 1.8x | 2.2x | 2.0x |
