China Aoyuan Property Group Ltd EBITDA jumped on 32.5% in 2016 and Revenue jumped on 23.6%
12/03/2017 • About China Aoyuan Property Group Ltd (
$3883) • By InTwits
China Aoyuan Property Group 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 7.0%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.8x while industry average is 4.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Aoyuan Property Group Ltd ($3883) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,943 | 5,729 | 6,976 | 9,572 | 11,827 | 23.6% |
| Gross Profit | 1,187 | 1,759 | 2,067 | 2,646 | 3,277 | 23.8% |
| SG&A | 607 | 670 | 770 | 890 | 1,082 | 21.5% |
| EBITDA | 636 | 1,162 | 1,361 | 1,827 | 2,421 | 32.5% |
| Net Income | 930 | 736 | 809 | 812 | 881 | 8.5% |
Balance Sheet
|
|---|
| Cash | 2,381 | 2,812 | 1,989 | 7,769 | 10,471 | 34.8% |
| Short Term Debt | 1,675 | 2,411 | 4,464 | 2,570 | 4,506 | 75.3% |
| Long Term Debt | 3,248 | 7,113 | 7,033 | 13,727 | 15,062 | 9.7% |
Cash flow
|
|---|
| Capex | 419 | 476 | 325 | 885 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 30.5% | 45.3% | 21.8% | 37.2% | 23.6% | |
| EBITDA growth | 36.8% | 82.7% | 17.2% | 34.2% | 32.5% | |
| Gross Margin | 30.1% | 30.7% | 29.6% | 27.6% | 27.7% | 0.1% |
| EBITDA Margin | 16.1% | 20.3% | 19.5% | 19.1% | 20.5% | 1.4% |
| Net Income Margin | 23.6% | 12.8% | 11.6% | 8.5% | 7.4% | -1.0% |
| SG&A, % of revenue | 15.4% | 11.7% | 11.0% | 9.3% | 9.1% | -0.2% |
| CAPEX, % of revenue | 10.6% | 8.3% | 4.7% | 9.2% | | -9.2% |
| ROIC | 4.7% | 7.0% | 6.5% | 6.8% | 7.0% | 0.3% |
| ROE | 14.2% | 10.4% | 10.8% | 10.2% | 10.3% | 0.1% |
| Net Debt/EBITDA | 4.0x | 5.8x | 7.0x | 4.7x | 3.8x | -0.9x |
Revenue and profitability
China Aoyuan Property Group Ltd's Revenue surged on 23.6%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 23.0 pp from 62.1% to 85.1% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign decreased slightly on 1.0 pp from 8.5% to 7.4% in FY2016.
Return on investment
The company operates at low ROIC (7.04%) and ROE (10.27%). ROIC showed almost no change in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt level is 3.8x Net Debt / EBITDA and 8.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.9x from 4.7x to 3.8x in FY2016. Debt surged on 20.1% while cash surged on 34.8%.
Appendix 1: Peers in Real Estate
Below you can find China Aoyuan Property Group 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% | -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) | 15.9% | 13.1% | 5.2% | 4.2% | 6.9% |
|---|
| China Aoyuan Property Group Ltd ($3883) | | 45.3% | 21.8% | 37.2% | 23.6% |
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% | 44.5% |
|---|
| China Aoyuan Property Group Ltd ($3883) | 30.1% | 30.7% | 29.6% | 27.6% | 27.7% |
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% | 56.8% |
| 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% | 28.5% |
|---|
| China Aoyuan Property Group Ltd ($3883) | 16.1% | 20.3% | 19.5% | 19.1% | 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) | 5.6% | 6.1% | 4.8% | 3.2% | 3.3% |
|---|
| China Aoyuan Property Group Ltd ($3883) | 10.6% | 8.3% | 4.7% | 9.2% | |
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% | 2.5% |
|---|
| China Aoyuan Property Group Ltd ($3883) | 4.7% | 7.0% | 6.5% | 6.8% | 7.0% |
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 | 3.3x |
|---|
| China Aoyuan Property Group Ltd ($3883) | 4.0x | 5.8x | 7.0x | 4.7x | 3.8x |
