Magnificent Estates EBITDA surged on 29.7% and Revenue increased on 7.2%
13/03/2017 • About Magnificent Estates (
$201) • By InTwits
Magnificent Estates reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has potentially unprofitable business model: ROIC is at 3.5%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Magnificent Estates ($201) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 520.5 | 688.7 | 538.6 | 444.5 | 476.3 | 7.2% |
| Gross Profit | 362.7 | 456.7 | 311.6 | 211.5 | 230.7 | 9.1% |
| SG&A | | 24.4 | 27.1 | 26.3 | | -100.0% |
| EBITDA | 236.8 | 329.4 | 285.4 | 180.5 | 234.2 | 29.7% |
| Net Income | 536.3 | 622.8 | 905.7 | 144.1 | 133.2 | -7.5% |
Balance Sheet
|
|---|
| Cash | 179.8 | 314.3 | 1,164.8 | 778.1 | 331.1 | -57.4% |
| Short Term Debt | 1,269.6 | 759.3 | 779.9 | 414.7 | 688.7 | 66.1% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 155.5 | 53.2 | 121.3 | 56.4 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 29.6% | 32.3% | -21.8% | -17.5% | 7.2% | |
| EBITDA growth | 40.2% | 39.1% | -13.4% | -36.7% | 29.7% | |
| Gross Margin | 69.7% | 66.3% | 57.9% | 47.6% | 48.4% | 0.9% |
| EBITDA Margin | 45.5% | 47.8% | 53.0% | 40.6% | 49.2% | 8.6% |
| Net Income Margin | 103.0% | 90.4% | 168.2% | 32.4% | 28.0% | -4.4% |
| SG&A, % of revenue | | 3.5% | 5.0% | 5.9% | | -5.9% |
| CAPEX, % of revenue | 29.9% | 7.7% | 22.5% | 12.7% | | -12.7% |
| ROIC | 3.5% | 4.2% | 3.3% | 1.9% | 3.5% | 1.6% |
| ROE | 12.1% | 12.5% | 15.8% | 2.9% | 3.5% | 0.6% |
| Net Debt/EBITDA | 4.6x | 1.4x | -1.3x | -2.0x | 1.5x | 3.5x |
Revenue and profitability
The company's Revenue increased on 7.2%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 8.6 pp from 40.6% to 49.2% in FY2016.
Gross Margin increased slightly on 0.87 pp from 47.6% to 48.4% in FY2016.
Net Income marign decreased on 4.4 pp from 32.4% to 28.0% in FY2016.
Return on investment
The company operates at low ROIC (3.55%) and ROE (3.52%). ROIC increased slightly on 1.6 pp from 1.9% to 3.5% in FY2016. ROE increased slightly on 0.63 pp from 2.9% to 3.5% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.5x and Debt / EBITDA is 2.9x. Net Debt / EBITDA surged on 3.5x from -2.0x to 1.5x in FY2016. Debt surged on 66.1% while cash dropped on 57.4%.
Appendix 1: Peers in Holding Companies-Divers
Below you can find Magnificent Estates benchmarking vs. other companies in Holding Companies-Divers 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 |
|---|
| Beijing Development HK Ltd ($154) | 12.5% | | | 1,048.9% | |
| Kong Sun Holdings Ltd ($295) | -88.3% | 5.1% | 7,067.0% | 231.2% | |
| CIAM Group Ltd ($378) | -62.2% | 47.9% | -40.0% | 211.5% | |
| Melco International Development Ltd ($200) | 16.5% | 21.7% | 3.0% | 134.9% | |
| New Century Group Hong Kong Ltd ($234) | | 326.7% | -70.3% | 118.2% | -78.2% |
| |
|---|
| Median (45 companies) | 4.2% | 4.9% | 15.7% | 7.2% | -4.5% |
|---|
| Magnificent Estates ($201) | | 32.3% | -21.8% | -17.5% | 7.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Century Group Hong Kong Ltd ($234) | 27.3% | 85.2% | 82.8% | 91.5% | 43.4% |
| Melco International Development Ltd ($200) | 63.1% | 52.9% | 54.5% | 79.4% | |
| CIAM Group Ltd ($378) | | | | 75.8% | |
| Emperor International Holdings Ltd ($163) | 71.3% | 64.9% | 79.2% | 75.3% | 55.3% |
| Heng Fai Enterprises Ltd ($185) | 89.0% | 89.5% | 58.3% | 74.7% | |
| |
|---|
| Median (39 companies) | 32.9% | 34.6% | 30.8% | 30.8% | 32.9% |
|---|
| Magnificent Estates ($201) | 69.7% | 66.3% | 57.9% | 47.6% | 48.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Century Group Hong Kong Ltd ($234) | -5.5% | 78.8% | 58.3% | 85.0% | 33.8% |
| Emperor International Holdings Ltd ($163) | 180.7% | 131.8% | 100.6% | 73.9% | -20.1% |
| Pioneer Global Group Ltd ($224) | -0.5% | -9.9% | -11.6% | 64.3% | 66.8% |
| C C Land Holdings Ltd ($1224) | 27.0% | 23.6% | 24.6% | 55.7% | |
| China Merchants Holdings International Co Ltd ($144) | 56.4% | 50.8% | 45.2% | 55.7% | |
| |
|---|
| Median (45 companies) | 2.8% | 2.8% | 7.4% | 6.2% | 9.1% |
|---|
| Magnificent Estates ($201) | 45.5% | 47.8% | 53.0% | 40.6% | 49.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Heng Fai Enterprises Ltd ($185) | 4.8% | 77.1% | 310.0% | 458.1% | |
| Chinney Investments Ltd ($216) | 17.5% | 103.4% | 111.3% | 230.9% | 26.6% |
| China Investments Holdings Ltd ($132) | 4.8% | 81.9% | 382.2% | 222.5% | |
| Goldin Properties Holdings Ltd ($283) | 2,178.4% | 1,190.0% | 50.1% | 202.4% | 128.8% |
| Carnival Group International Holdings Ltd ($996) | | 137.9% | 61.0% | 133.3% | |
| |
|---|
| Median (45 companies) | 2.5% | 3.6% | 5.4% | 6.0% | 8.5% |
|---|
| Magnificent Estates ($201) | 29.9% | 7.7% | 22.5% | 12.7% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Fulum Group Holdings Ltd ($1443) | | 116.3% | 55.5% | 29.8% | 12.9% |
| C C Land Holdings Ltd ($1224) | 7.4% | 5.3% | 7.9% | 15.0% | |
| Chinney Alliance Group Ltd ($385) | 6.4% | 8.1% | 13.6% | 15.0% | |
| Niraku GC Holdings Inc ($1245) | | 19.0% | 18.8% | 13.1% | 2.7% |
| Top Spring International Holdings Ltd ($3688) | 15.6% | 6.9% | 7.3% | 8.0% | |
| |
|---|
| Median (45 companies) | -0.2% | 0.2% | 0.8% | 0.2% | 2.1% |
|---|
| Magnificent Estates ($201) | 3.5% | 4.2% | 3.3% | 1.9% | 3.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chinney Investments Ltd ($216) | 10.3x | 63.7x | 48.6x | 93.7x | 13.5x |
| Carnival Group International Holdings Ltd ($996) | | | 23.7x | 92.3x | |
| Multifield International Holdings Ltd ($898) | 3.2x | 7.3x | 3.0x | 55.9x | |
| Kong Sun Holdings Ltd ($295) | | | -23.0x | 34.0x | |
| CIAM Group Ltd ($378) | | | | 32.6x | |
| |
|---|
| Median (26 companies) | 2.4x | 2.9x | 2.9x | 2.9x | 3.0x |
|---|
| Magnificent Estates ($201) | 4.6x | 1.4x | -1.3x | -2.0x | 1.5x |
