China Oceanwide Holdings Ltd EBITDA surged on 214% and Revenue increased on 6.1%
14/03/2017 • About China Oceanwide Holdings Ltd (
$715) • By InTwits
China Oceanwide Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Oceanwide Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is 1.8%
- EBITDA Margin is quite volatile: 204.5% in FY2016, 69.2% in FY2015, 48.4% in FY2014, 110.5% in FY2013, 137.5% in FY2012
- The company has potentially unprofitable business model: ROIC is at 1.8%
- It operates with high leverage: Net Debt/EBITDA is 11.9x while industry average is 4.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Oceanwide Holdings Ltd ($715) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 87.8 | 88.4 | 94.4 | 96.7 | 102.6 | 6.1% |
| Gross Profit | 72.4 | 71.8 | 77.5 | 78.2 | 92.3 | 18.1% |
| SG&A | 24.5 | 26.5 | 32.4 | 94.8 | 74.8 | -21.1% |
| EBITDA | 120.8 | 97.7 | 45.7 | 66.9 | 209.8 | 213.7% |
| Net Income | 182.2 | 174.7 | 85.8 | 122.5 | 136.2 | 11.2% |
Balance Sheet
|
|---|
| Cash | 4,013.6 | 3,599.2 | 2,678.7 | 1,079.4 | 615.6 | -43.0% |
| Short Term Debt | 0.0 | 0.0 | 138.0 | 1,317.7 | 2,359.9 | 79.1% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 240.3 | 756.1 | 214.7% |
Cash flow
|
|---|
| Capex | 0.7 | 0.3 | 1.9 | 851.2 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 1.7% | 0.7% | 6.8% | 2.4% | 6.1% | |
| EBITDA growth | 158.6% | -19.1% | -53.3% | 46.5% | 213.7% | |
| Gross Margin | 82.4% | 81.2% | 82.0% | 80.9% | 90.0% | 9.1% |
| EBITDA Margin | 137.5% | 110.5% | 48.4% | 69.2% | 204.5% | 135.3% |
| Net Income Margin | 207.4% | 197.6% | 90.9% | 126.7% | 132.8% | 6.0% |
| SG&A, % of revenue | 27.9% | 29.9% | 34.3% | 98.1% | 73.0% | -25.1% |
| CAPEX, % of revenue | 0.8% | 0.3% | 2.0% | 880.6% | | -880.6% |
| ROIC | 1.8% | 1.5% | 0.7% | 0.9% | 1.8% | 0.9% |
| ROE | 3.0% | 2.9% | 1.4% | 2.0% | 1.6% | -0.4% |
| Net Debt/EBITDA | -33.2x | -36.8x | -55.6x | 7.2x | 11.9x | 4.8x |
Revenue and profitability
China Oceanwide Holdings Ltd's Revenue increased on 6.1%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 22.9 pp from 66.0% to 88.9% in FY2016.
Gross Margin increased on 9.1 pp from 80.9% to 90.0% in FY2016. SG&A as a % of Revenue dropped on 25.1 pp from 98.1% to 73.0% in FY2016.
Net Income marign increased on 6.0 pp from 127% to 133% in FY2016.
Return on investment
The company operates at low ROIC (1.81%) and ROE (1.62%). ROIC increased slightly on 0.93 pp from 0.88% to 1.8% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt level is 11.9x Net Debt / EBITDA and 14.8x Debt / EBITDA. Net Debt / EBITDA surged on 4.8x from 7.2x to 11.9x in FY2016. Debt surged on 100% while cash dropped on 43.0%.
Appendix 1: Peers in Real Estate
Below you can find China Oceanwide 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) | 15.8% | 13.5% | 5.2% | 4.5% | 7.5% |
|---|
| China Oceanwide Holdings Ltd ($715) | | 0.7% | 6.8% | 2.4% | 6.1% |
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% |
|---|
| China Oceanwide Holdings Ltd ($715) | 82.4% | 81.2% | 82.0% | 80.9% | 90.0% |
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% | 31.2% |
|---|
| China Oceanwide Holdings Ltd ($715) | 137.5% | 110.5% | 48.4% | 69.2% | 204.5% |
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% | |
| 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% |
| Silver Grant International Industries Ltd ($171) | 134.5% | 193.1% | 204.1% | 280.7% | |
| |
|---|
| Median (179 companies) | 5.9% | 6.2% | 4.8% | 3.2% | 3.3% |
|---|
| China Oceanwide Holdings Ltd ($715) | 0.8% | 0.3% | 2.0% | 880.6% | |
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) | 4.2% | 4.1% | 4.2% | 2.5% | 2.8% |
|---|
| China Oceanwide Holdings Ltd ($715) | 1.8% | 1.5% | 0.7% | 0.9% | 1.8% |
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 | 3.2x | 2.7x |
|---|
| China Oceanwide Holdings Ltd ($715) | -33.2x | -36.8x | -55.6x | 7.2x | 11.9x |
