Shun Ho Resources Holdings Ltd reports 127% Net Income growth in 2016 and 5.1% Revenue growth
13/03/2017 • About Shun Ho Resources Holdings Ltd (
$253) • By InTwits
Shun Ho Resources Holdings Ltd 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 3.4%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shun Ho Resources Holdings Ltd ($253) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 520.5 | 688.7 | 648.4 | 561.8 | 590.7 | 5.1% |
| Gross Profit | 362.7 | 456.7 | 420.4 | 327.3 | 267.5 | -18.3% |
| SG&A | | | 33.4 | 34.2 | | -100.0% |
| EBITDA | 332.6 | 430.1 | 387.8 | 300.7 | 338.0 | 12.4% |
| Net Income | 197.3 | 229.7 | 344.8 | 85.4 | 193.9 | 127.1% |
Balance Sheet
|
|---|
| Cash | 180.7 | 316.1 | 1,166.2 | 1,065.4 | 434.8 | -59.2% |
| Short Term Debt | 1,135.6 | 730.5 | 678.3 | 606.2 | 857.7 | 41.5% |
| 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% | -5.9% | -13.4% | 5.1% | |
| EBITDA growth | 28.2% | 29.3% | -9.8% | -22.5% | 12.4% | |
| Gross Margin | 69.7% | 66.3% | 64.8% | 58.3% | 45.3% | -13.0% |
| EBITDA Margin | 63.9% | 62.5% | 59.8% | 53.5% | 57.2% | 3.7% |
| Net Income Margin | 37.9% | 33.3% | 53.2% | 15.2% | 32.8% | 17.6% |
| SG&A, % of revenue | | | 5.1% | 6.1% | | -6.1% |
| CAPEX, % of revenue | 29.9% | 7.7% | 18.7% | 10.0% | | -10.0% |
| ROIC | 5.0% | 5.7% | 4.7% | 3.1% | 3.4% | 0.3% |
| ROE | 10.1% | 10.6% | 13.8% | 3.0% | 6.4% | 3.4% |
| Net Debt/EBITDA | 2.9x | 1.0x | -1.3x | -1.5x | 1.3x | 2.8x |
Revenue and profitability
Shun Ho Resources Holdings Ltd's Revenue increased on 5.1%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.1 pp from 2.0% to 6.1% in FY2016.
Gross Margin dropped on 13.0 pp from 58.3% to 45.3% in FY2016.
Net Income marign surged on 17.6 pp from 15.2% to 32.8% in FY2016.
Return on investment
The company operates at low ROIC (3.43%) and ROE (6.43%). ROIC showed almost no change in FY2016. ROE increased on 3.4 pp from 3.0% to 6.4% in FY2016.
Leverage (Debt)
Debt level is 1.3x Net Debt / EBITDA and 2.5x Debt / EBITDA. Net Debt / EBITDA jumped on 2.8x from -1.5x to 1.3x in FY2016. Debt jumped on 41.5% while cash dropped on 59.2%.
Appendix 1: Peers in Real Estate
Below you can find Shun Ho Resources Holdings 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) | 15.4% | 13.1% | 5.3% | 4.5% | 7.5% |
|---|
| Shun Ho Resources Holdings Ltd ($253) | | 32.3% | -5.9% | -13.4% | 5.1% |
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) | 41.9% | 41.8% | 39.1% | 38.2% | 43.8% |
|---|
| Shun Ho Resources Holdings Ltd ($253) | 69.7% | 66.3% | 64.8% | 58.3% | 45.3% |
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) | 28.9% | 28.3% | 26.9% | 23.4% | 25.8% |
|---|
| Shun Ho Resources Holdings Ltd ($253) | 63.9% | 62.5% | 59.8% | 53.5% | 57.2% |
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% | 4.7% | 3.2% | 3.3% |
|---|
| Shun Ho Resources Holdings Ltd ($253) | 29.9% | 7.7% | 18.7% | 10.0% | |
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% | 2.7% |
|---|
| Shun Ho Resources Holdings Ltd ($253) | 5.0% | 5.7% | 4.7% | 3.1% | 3.4% |
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 | 2.8x | 3.0x | 3.3x | 3.1x |
|---|
| Shun Ho Resources Holdings Ltd ($253) | 2.9x | 1.0x | -1.3x | -1.5x | 1.3x |
