Gemdale Properties & Investment Corp Ltd revenue jumped on 105% in 2016 while EBITDA Margin decreased on 5.0 pp from 45.8% to 40.8%
16/03/2017 • About Gemdale Properties & Investment Corp Ltd (
$535) • By InTwits
Gemdale Properties & Investment Corp Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gemdale Properties & Investment Corp Ltd is a fast growth stock: FY2016 revenue growth was 105%, 5 year revenue CAGR was 103% at FY2016 ROIC 17.9%
- EBITDA Margin is declining: 40.8% in FY2016 vs. 45.8% in FY2015 vs. 390.0% in FY2012
- EBITDA Margin is quite volatile: 40.8% in FY2016, 45.8% in FY2015, 46.3% in FY2014, 579.5% in FY2013, 390.0% in FY2012
- The company has highly profitable business model: ROIC is at 17.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Gemdale Properties & Investment Corp Ltd ($535) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 163 | 233 | 2,168 | 4,241 | 8,707 | 105.3% |
| Gross Profit | 154 | 217 | 841 | 2,062 | 3,850 | 86.7% |
| SG&A | 28 | 95 | 79 | 100 | 91 | -9.0% |
| EBITDA | 634 | 1,350 | 1,004 | 1,942 | 3,551 | 82.9% |
| Net Income | 406 | 1,042 | 361 | 1,056 | 1,367 | 29.4% |
Balance Sheet
|
|---|
| Cash | 1,035 | 1,427 | 1,782 | 1,725 | 2,893 | 67.7% |
| Short Term Debt | 955 | 3,198 | 1,059 | 4,147 | 10,109 | 143.7% |
| Long Term Debt | 211 | 0 | 1,111 | 0 | 115 | |
Cash flow
|
|---|
| Capex | 2 | 30 | 196 | 325 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -36.0% | 43.2% | 831.0% | 95.6% | 105.3% | |
| EBITDA growth | 94.8% | 112.8% | -25.6% | 93.3% | 82.9% | |
| Gross Margin | 95.0% | 93.0% | 38.8% | 48.6% | 44.2% | -4.4% |
| EBITDA Margin | 390.0% | 579.5% | 46.3% | 45.8% | 40.8% | -5.0% |
| Net Income Margin | 249.5% | 447.5% | 16.6% | 24.9% | 15.7% | -9.2% |
| SG&A, % of revenue | 17.0% | 40.8% | 3.6% | 2.3% | 1.0% | -1.3% |
| CAPEX, % of revenue | 1.0% | 12.8% | 9.0% | 7.7% | | -7.7% |
| ROIC | 15.3% | 19.6% | 10.8% | 15.9% | 17.9% | 2.0% |
| ROE | 19.4% | 30.2% | 7.6% | 15.6% | 14.9% | -0.7% |
| Net Debt/EBITDA | 0.2x | 1.3x | 0.4x | 1.2x | 2.1x | 0.8x |
Revenue and profitability
The company's Revenue surged on 105%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.1 pp from 17.7% to 21.7% in FY2016.
Gross Margin decreased on 4.4 pp from 48.6% to 44.2% in FY2016. SG&A as a % of Revenue decreased slightly on 1.3 pp from 2.3% to 1.0% in FY2016.
Net Income marign decreased on 9.2 pp from 24.9% to 15.7% in FY2016.
Return on investment
The company operates at good ROIC (17.86%) and ROE (14.91%). ROIC increased slightly on 2.0 pp from 15.9% to 17.9% in FY2016. ROE decreased slightly on 0.66 pp from 15.6% to 14.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.1x and Debt / EBITDA is 2.9x. Net Debt / EBITDA surged on 0.8x from 1.2x to 2.1x in FY2016. Debt surged on 147% while cash surged on 67.7%.
Appendix 1: Peers in Real Estate
Below we provide Gemdale Properties & Investment Corp Ltd benchmarking against other companies in Real Estate industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
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% | 13.1% | 5.2% | 4.2% | 7.5% |
|---|
| Gemdale Properties & Investment Corp Ltd ($535) | | 43.2% | 831.0% | 95.6% | 105.3% |
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% | 39.3% | 38.2% | 45.2% |
|---|
| Gemdale Properties & Investment Corp Ltd ($535) | 95.0% | 93.0% | 38.8% | 48.6% | 44.2% |
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% | 105.1% |
| |
|---|
| Median (179 companies) | 28.9% | 28.3% | 26.9% | 23.4% | 32.8% |
|---|
| Gemdale Properties & Investment Corp Ltd ($535) | 390.0% | 579.5% | 46.3% | 45.8% | 40.8% |
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) | 5.9% | 6.1% | 4.7% | 3.2% | 3.8% |
|---|
| Gemdale Properties & Investment Corp Ltd ($535) | 1.0% | 12.8% | 9.0% | 7.7% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hydoo International Holding Ltd ($1396) | 44.3% | 62.0% | 12.9% | 16.6% | |
| 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% | |
| China Resources Land Ltd ($1109) | 12.3% | 14.7% | 13.5% | 13.9% | |
| |
|---|
| Median (181 companies) | 4.0% | 4.0% | 4.1% | 2.4% | 2.9% |
|---|
| Gemdale Properties & Investment Corp Ltd ($535) | 15.3% | 19.6% | 10.8% | 15.9% | 17.9% |
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 | 3.3x | 2.7x |
|---|
| Gemdale Properties & Investment Corp Ltd ($535) | 0.2x | 1.3x | 0.4x | 1.2x | 2.1x |
