Colour Life Services Group Co Ltd revenue jumped on 62.2% while EBITDA Margin decreased on 5.3 pp from 33.1% to 27.8%
19/03/2017 • About Colour Life Services Group Co Ltd (
$1778) • By InTwits
Colour Life Services Group Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Colour Life Services Group Co Ltd is a fast growth stock: FY2016 revenue growth was 62.2%, 5 year revenue CAGR was 55.7% at FY2016 ROIC 13.1%
- EBITDA Margin is quite volatile: 27.8% in FY2016, 33.1% in FY2015, 60.8% in FY2014, 41.0% in FY2013, 31.4% in FY2012
- The company has highly profitable business model: ROIC is at 13.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Colour Life Services Group Co Ltd ($1778) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 197 | 233 | 389 | 828 | 1,342 | 62.2% |
| Gross Profit | 94 | 144 | 310 | 454 | 586 | 28.9% |
| SG&A | 50 | 60 | 95 | 233 | 311 | 33.4% |
| EBITDA | 62 | 95 | 237 | 274 | 373 | 36.1% |
| Net Income | 43 | 44 | 146 | 168 | 188 | 11.5% |
Balance Sheet
|
|---|
| Cash | 25 | 146 | 687 | 419 | 755 | 79.9% |
| Short Term Debt | 1 | 2 | 134 | 333 | 209 | -37.3% |
| Long Term Debt | 1 | 8 | 2 | 291 | 887 | 205.0% |
Cash flow
|
|---|
| Capex | 11 | 17 | 50 | 51 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 34.1% | 18.6% | 67.0% | 112.6% | 62.2% | |
| EBITDA growth | 51.1% | 54.8% | 148.0% | 15.8% | 36.1% | |
| Gross Margin | 47.9% | 61.6% | 79.6% | 54.9% | 43.6% | -11.3% |
| EBITDA Margin | 31.4% | 41.0% | 60.8% | 33.1% | 27.8% | -5.3% |
| Net Income Margin | 22.1% | 19.0% | 37.4% | 20.4% | 14.0% | -6.4% |
| SG&A, % of revenue | 25.3% | 25.7% | 24.3% | 28.2% | 23.2% | -5.0% |
| CAPEX, % of revenue | 5.4% | 7.4% | 12.8% | 6.2% | | -6.2% |
| ROIC | 44.2% | 47.9% | 29.3% | 14.5% | 13.1% | -1.4% |
| ROE | 51.4% | 31.1% | 23.3% | 14.5% | 13.8% | -0.6% |
| Net Debt/EBITDA | -0.4x | -1.4x | -2.3x | 0.7x | 0.9x | 0.2x |
Revenue and profitability
The company's Revenue surged on 62.2%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.95 pp from 2.4% to 1.5% in FY2016.
Gross Margin dropped on 11.3 pp from 54.9% to 43.6% in FY2016. SG&A as a % of Revenue decreased on 5.0 pp from 28.2% to 23.2% in FY2016.
Net Income marign decreased on 6.4 pp from 20.4% to 14.0% in FY2016.
Return on investment
The company operates at good ROIC (13.10%) and ROE (13.82%). ROIC decreased slightly on 1.4 pp from 14.5% to 13.1% in FY2016. ROE decreased slightly on 0.64 pp from 14.5% to 13.8% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.9x and Debt / EBITDA is 2.9x. Net Debt / EBITDA jumped on 0.2x from 0.7x to 0.9x in FY2016. Debt surged on 75.6% while cash jumped on 79.9%.
Appendix 1: Peers in Real Estate
Below you can find Colour Life Services Group Co 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) | 15.9% | 13.1% | 5.2% | 4.2% | 8.5% |
|---|
| Colour Life Services Group Co Ltd ($1778) | | 18.6% | 67.0% | 112.6% | 62.2% |
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% | 44.2% |
|---|
| Colour Life Services Group Co Ltd ($1778) | 47.9% | 61.6% | 79.6% | 54.9% | 43.6% |
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) | 28.9% | 28.3% | 26.9% | 23.4% | 32.8% |
|---|
| Colour Life Services Group Co Ltd ($1778) | 31.4% | 41.0% | 60.8% | 33.1% | 27.8% |
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% |
|---|
| Colour Life Services Group Co Ltd ($1778) | 5.4% | 7.4% | 12.8% | 6.2% | |
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% |
| 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% | 3.0% |
|---|
| Colour Life Services Group Co Ltd ($1778) | 44.2% | 47.9% | 29.3% | 14.5% | 13.1% |
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 |
|---|
| Colour Life Services Group Co Ltd ($1778) | -0.4x | -1.4x | -2.3x | 0.7x | 0.9x |
