Lee Hing Development Ltd EBITDA Margin jumped on 891 pp from -26.8% to 864% in 2016 and Revenue jumped on 78.0%
08/03/2017 • About Lee Hing Development Ltd (
$68) • By InTwits
Lee Hing Development Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 863.9% in 2016, -26.8% in 2015, 66.1% in 2014, -79.6% in 2013, 79.4% in 2012
- Lee Hing Development Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's a lot of higher than industry average of 58.8%.
- CAPEX is quite volatile: 1.9 in 2016, 0.11 in 2015, 0.11 in 2014, 2.1 in 2013, 1.7 in 2012
- The company has highly profitable business model: ROIC is at 26.9%
- It operates with high leverage: Net Debt/EBITDA is 0.6x while industry average is -57.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Lee Hing Development Ltd ($68) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 110.2 | 37.2 | 101.1 | 37.4 | 66.6 | 78.0% |
| EBITDA | 87.5 | -29.6 | 66.8 | -10.0 | 575.2 | |
| Net Income | 95.6 | -24.5 | 63.0 | -5.5 | -515.9 | |
Balance Sheet
|
|---|
| Cash | 585.1 | 65.7 | 46.9 | 5.6 | 16.4 | 195.9% |
| Short Term Debt | 520.7 | 104.5 | 226.7 | 190.3 | 232.2 | 22.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 182.7 | 156.9 | -14.1% |
Cash flow
|
|---|
| Capex | 1.7 | 2.1 | 0.1 | 0.1 | 1.9 | 1,744.8% |
Ratios
|
|---|
| Revenue growth | 96.1% | -66.2% | 171.5% | -63.0% | 78.0% | |
| EBITDA growth | 345.1% | -133.9% | -325.6% | -115.0% | -5,829.2% | |
| EBITDA Margin | 79.4% | -79.6% | 66.1% | -26.8% | 863.9% | 890.7% |
| Net Income Margin | 86.8% | -65.9% | 62.3% | -14.7% | -774.9% | -760.1% |
| CAPEX, % of revenue | 1.5% | 5.7% | 0.1% | 0.3% | 2.9% | 2.6% |
| ROIC | 3.8% | -1.0% | 1.9% | -0.4% | 26.9% | 27.3% |
| ROE | 4.8% | -0.9% | 1.9% | -0.2% | -29.5% | -29.3% |
| Net Debt/EBITDA | -0.7x | | 2.7x | | 0.6x | 0.6x |
Revenue and profitability
The company's Revenue surged on 78.0%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 32.8 pp from -7.9% to -40.7% in FY2016.
Net Income marign dropped on 760 pp from -14.7% to -775% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 2.9%. CAPEX/Revenue decreased on 2.8 pp from 5.7% in 2013 to 2.9% in 2016. It's average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at low but positive ROIC (26.93%) and negative ROE (-29.47%). ROIC surged on 27.3 pp from -0.37% to 26.9% in 2016. ROE dropped on 29.3 pp from -0.21% to -29.5% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.6x and Debt / EBITDA is 0.7x. Net Debt / EBITDA surged0.6x from to 0.6x in 2016. Debt increased on 4.3% while cash jumped on 196%.
Appendix 1: Peers in Investment Companies
Below you can find Lee Hing Development Ltd benchmarking vs. other companies in Investment Companies 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 |
|---|
| CK Hutchison Holdings Ltd ($1) | -41.8% | -11.4% | -90.8% | 10,576.1% | |
| UBA Investments Ltd ($768) | | | -32.2% | 4,559.4% | |
| Capital VC Ltd ($2324) | | | 489.2% | 861.9% | |
| Prosperity Investment Holdings Ltd ($310) | | 20.9% | -48.8% | 559.5% | |
| China Innovation Investment Ltd ($1217) | | | | 517.9% | |
| |
|---|
| Median (22 companies) | -12.8% | 5.5% | 9.5% | 105.9% | 59.6% |
|---|
| Lee Hing Development Ltd ($68) | | -66.2% | 171.5% | -63.0% | 78.0% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Properties Investment Holdings Ltd ($736) | 47.5% | 40.8% | 46.2% | 87.2% | 44.8% |
| City e-Solutions Ltd ($557) | 81.1% | 81.5% | 81.6% | 79.1% | |
| Eternity Investment Ltd ($764) | | | 86.6% | 48.2% | |
| AVIC Joy Holdings HK Ltd ($260) | 19.5% | 20.9% | 14.0% | 16.3% | |
| Infinity Financial Group Holdings Ltd ($1152) | 19.0% | 17.5% | 22.4% | 15.8% | |
| |
|---|
| Median (7 companies) | 30.2% | 19.2% | 22.4% | 16.3% | 50.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Capital VC Ltd ($2324) | | 36.7% | 93.1% | 99.3% | |
| Harmony Asset Ltd ($428) | 39.8% | | | 95.7% | |
| Unity Investments Holdings Ltd ($913) | | 89.0% | 90.8% | 95.7% | |
| Langham Hospitality Investments and Langham Hospitality Investments Ltd ($1270) | | 101.3% | 85.9% | 85.8% | 90.3% |
| China Development Bank International Investment Ltd ($1062) | -74.4% | 26.1% | 69.2% | 85.6% | |
| |
|---|
| Median (25 companies) | 7.1% | -5.5% | 1.9% | 19.3% | -17.2% |
|---|
| Lee Hing Development Ltd ($68) | 79.4% | -79.6% | 66.1% | -26.8% | 863.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Properties Investment Holdings Ltd ($736) | 55.3% | 3.0% | 20.8% | 58.1% | 23.8% |
| Langham Hospitality Investments and Langham Hospitality Investments Ltd ($1270) | | 13.7% | 17.1% | 39.8% | 9.3% |
| Heritage International Holdings Ltd ($412) | | 10.9% | 7.4% | 37.9% | 3.5% |
| Opes Asia Development Ltd ($810) | | 11.3% | 76.1% | 25.0% | |
| CK Hutchison Holdings Ltd ($1) | 0.7% | 1.0% | 503.6% | 13.5% | |
| |
|---|
| Median (25 companies) | 0.7% | 0.6% | 1.0% | 1.8% | 5.5% |
|---|
| Lee Hing Development Ltd ($68) | 1.5% | 5.7% | 0.1% | 0.3% | 2.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Capital VC Ltd ($2324) | | | 21.8% | 100.7% | -17.2% |
| Harmony Asset Ltd ($428) | 3.2% | -13.7% | -15.4% | 88.0% | |
| Build King Holdings Ltd ($240) | -2.5% | 3.5% | 13.4% | 18.3% | |
| Unity Investments Holdings Ltd ($913) | -36.2% | 26.4% | 47.4% | 17.5% | |
| UBA Investments Ltd ($768) | -22.2% | -1.9% | -8.6% | 13.2% | -6.1% |
| |
|---|
| Median (39 companies) | -3.1% | -2.4% | -4.8% | -2.2% | -6.3% |
|---|
| Lee Hing Development Ltd ($68) | 3.8% | -1.0% | 1.9% | -0.4% | 26.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Langham Hospitality Investments and Langham Hospitality Investments Ltd ($1270) | | 12.5x | 9.5x | 11.2x | 10.2x |
| CK Hutchison Holdings Ltd ($1) | 1.9x | 0.6x | 7.2x | 5.5x | |
| COL Capital Ltd ($383) | | | 2.4x | 3.8x | |
| China Financial International Investments Ltd ($721) | | | | 2.4x | |
| Harmony Asset Ltd ($428) | -3.2x | | | -0.1x | |
| |
|---|
| Median (16 companies) | -1.7x | 0.0x | -0.6x | -0.9x | -9.3x |
|---|
