Sinolink Worldwide Holdings Ltd reports 510% EBITDA growth in 2016 and 81.5 pp EBITDA Margin growth from 15.8% to 97.2%
16/03/2017 • About Sinolink Worldwide Holdings Ltd (
$1168) • By InTwits
Sinolink Worldwide Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 97.2% in FY2016, 15.8% in FY2015, 28.8% in FY2014, 42.2% in FY2013, 26.0% in FY2012
- The company has potentially unprofitable business model: ROIC is at 2.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sinolink Worldwide Holdings Ltd ($1168) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 314.6 | 348.8 | 301.4 | 336.0 | 331.9 | -1.2% |
| Gross Profit | 156.4 | 206.1 | 160.9 | 144.5 | 151.3 | 4.7% |
| SG&A | 83.4 | 94.2 | 107.7 | 162.0 | 110.5 | -31.8% |
| EBITDA | 81.8 | 147.1 | 86.9 | 52.9 | 322.7 | 509.6% |
| Net Income | 289.2 | -75.4 | 27.7 | -409.5 | -245.5 | |
Balance Sheet
|
|---|
| Cash | 4,002.2 | 4,154.8 | 3,721.4 | 2,745.6 | 2,463.8 | -10.3% |
| Short Term Debt | 25.4 | 39.4 | 40.1 | 35.9 | 33.6 | -6.4% |
| Long Term Debt | 270.3 | 240.6 | 199.4 | 96.5 | 56.7 | -41.2% |
Cash flow
|
|---|
| Capex | 61.3 | 119.5 | 27.2 | 42.6 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -9.9% | 10.9% | -13.6% | 11.5% | -1.2% | |
| EBITDA growth | -18.0% | 79.9% | -40.9% | -39.1% | 509.6% | |
| Gross Margin | 49.7% | 59.1% | 53.4% | 43.0% | 45.6% | 2.6% |
| EBITDA Margin | 26.0% | 42.2% | 28.8% | 15.8% | 97.2% | 81.5% |
| Net Income Margin | 91.9% | -21.6% | 9.2% | -121.9% | -74.0% | 47.9% |
| SG&A, % of revenue | 26.5% | 27.0% | 35.7% | 48.2% | 33.3% | -14.9% |
| CAPEX, % of revenue | 19.5% | 34.2% | 9.0% | 12.7% | | -12.7% |
| ROIC | 0.7% | 1.4% | 0.6% | -0.2% | 2.8% | 3.0% |
| ROE | 3.9% | -1.0% | 0.4% | -5.7% | -3.7% | 1.9% |
| Net Debt/EBITDA | -45.3x | -26.3x | -40.1x | -49.4x | -7.4x | 42.0x |
Revenue and profitability
The company's Revenue decreased slightly on 1.2%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 81.5 pp from 15.8% to 97.2% in FY2016.
Gross Margin increased on 2.6 pp from 43.0% to 45.6% in FY2016. SG&A as a % of Revenue dropped on 14.9 pp from 48.2% to 33.3% in FY2016.
Net Income marign jumped on 47.9 pp from -122% to -74.0% in FY2016.
Return on investment
The company operates at low but positive ROIC (2.81%) and negative ROE (-3.72%). ROIC increased on 3.0 pp from -0.24% to 2.8% in FY2016. ROE increased slightly on 1.9 pp from -5.7% to -3.7% in FY2016.
Leverage (Debt)
Debt level is -7.4x Net Debt / EBITDA and 0.3x Debt / EBITDA. Net Debt / EBITDA jumped on 42.0x from -49.4x to -7.4x in FY2016. Debt dropped on 31.7% while cash dropped on 10.3%.
Appendix 1: Peers in Real Estate
Below we provide Sinolink Worldwide Holdings 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% | 13.5% | 5.3% | 4.2% | 7.8% |
|---|
| Sinolink Worldwide Holdings Ltd ($1168) | | 10.9% | -13.6% | 11.5% | -1.2% |
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% | 44.7% |
|---|
| Sinolink Worldwide Holdings Ltd ($1168) | 49.7% | 59.1% | 53.4% | 43.0% | 45.6% |
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) | 29.3% | 28.3% | 26.9% | 23.5% | 32.8% |
|---|
| Sinolink Worldwide Holdings Ltd ($1168) | 26.0% | 42.2% | 28.8% | 15.8% | 97.2% |
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% | 3.8% |
|---|
| Sinolink Worldwide Holdings Ltd ($1168) | 19.5% | 34.2% | 9.0% | 12.7% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hydoo International Holding Ltd ($1396) | 44.3% | 62.0% | 12.9% | 16.6% | |
| Gemdale Properties & Investment Corp Ltd ($535) | 15.3% | 19.6% | 10.8% | 15.9% | 17.9% |
| 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% | 2.9% |
|---|
| Sinolink Worldwide Holdings Ltd ($1168) | 0.7% | 1.4% | 0.6% | -0.2% | 2.8% |
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 | 3.3x | 2.7x |
|---|
| Sinolink Worldwide Holdings Ltd ($1168) | -45.3x | -26.3x | -40.1x | -49.4x | -7.4x |
