Tian An China Investment Co Ltd Net Income jumped on 120% and Revenue surged on 84.0%
19/03/2017 • About Tian An China Investment Co Ltd (
$28) • By InTwits
Tian An China Investment Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tian An China Investment Co Ltd doesn't have a profitable business model yet: FY2016 ROIC is 1.3%
- EBITDA Margin is quite volatile: 22.5% in FY2016, -4.8% in FY2015, 0.6% in FY2014, 14.9% in FY2013, 11.5% in FY2012
- The company has potentially unprofitable business model: ROIC is at 1.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tian An China Investment Co Ltd ($28) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,410 | 1,030 | 1,032 | 1,029 | 1,894 | 84.0% |
| Gross Profit | 488 | 530 | 433 | 446 | 666 | 49.4% |
| SG&A | 349 | 330 | 340 | 356 | 373 | 4.6% |
| EBITDA | 163 | 153 | 6 | -49 | 425 | |
| Net Income | 401 | 338 | 1,285 | 2,600 | 5,713 | 119.7% |
Balance Sheet
|
|---|
| Cash | 1,207 | 1,939 | 1,515 | 4,135 | 4,330 | 4.7% |
| Short Term Debt | 1,398 | 2,162 | 1,776 | 2,184 | 1,065 | -51.2% |
| Long Term Debt | 1,966 | 2,099 | 2,649 | 2,902 | 2,451 | -15.5% |
Cash flow
|
|---|
| Capex | 363 | 113 | 164 | 20 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -29.0% | -27.0% | 0.2% | -0.2% | 84.0% | |
| EBITDA growth | -65.8% | -5.9% | -96.1% | -917.7% | -969.9% | |
| Gross Margin | 34.6% | 51.5% | 42.0% | 43.3% | 35.2% | -8.1% |
| EBITDA Margin | 11.5% | 14.9% | 0.6% | -4.8% | 22.5% | 27.2% |
| Net Income Margin | 28.5% | 32.8% | 124.5% | 252.6% | 301.6% | 49.0% |
| SG&A, % of revenue | 24.8% | 32.1% | 33.0% | 34.6% | 19.7% | -14.9% |
| CAPEX, % of revenue | 25.7% | 11.0% | 15.9% | 2.0% | | -2.0% |
| ROIC | 0.1% | -0.1% | -0.6% | -0.6% | 1.3% | 1.9% |
| ROE | 3.0% | 2.5% | 8.7% | 16.0% | 29.6% | 13.6% |
| Net Debt/EBITDA | 13.2x | 15.1x | 486.6x | | -1.9x | -1.9x |
Revenue and profitability
The company's Revenue jumped on 84.0%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.1 pp from 35.4% to 36.5% in FY2016.
Gross Margin decreased on 8.1 pp from 43.3% to 35.2% in FY2016. SG&A as a % of Revenue dropped on 14.9 pp from 34.6% to 19.7% in FY2016.
Net Income marign surged on 49.0 pp from 253% to 302% in FY2016.
Return on investment
The company operates at good ROE (29.56%) while ROIC is low (1.27%). ROIC increased slightly on 1.9 pp from -0.64% to 1.3% in FY2016. ROE surged on 13.6 pp from 16.0% to 29.6% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.9x and Debt / EBITDA is 8.3x. Net Debt / EBITDA dropped1.9x from to -1.9x in FY2016. Debt dropped on 30.9% while cash increased on 4.7%.
Appendix 1: Peers in Real Estate
Below we provide Tian An China Investment Co 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) | 15.9% | 13.5% | 5.3% | 4.5% | 8.5% |
|---|
| Tian An China Investment Co Ltd ($28) | | -27.0% | 0.2% | -0.2% | 84.0% |
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) | 42.1% | 41.8% | 39.1% | 38.2% | 44.2% |
|---|
| Tian An China Investment Co Ltd ($28) | 34.6% | 51.5% | 42.0% | 43.3% | 35.2% |
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) | 29.3% | 28.5% | 27.8% | 23.5% | 32.8% |
|---|
| Tian An China Investment Co Ltd ($28) | 11.5% | 14.9% | 0.6% | -4.8% | 22.5% |
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% | |
| 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% | 3.3% | 3.8% |
|---|
| Tian An China Investment Co Ltd ($28) | 25.7% | 11.0% | 15.9% | 2.0% | |
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% | 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% | 13.1% |
| 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% | 3.0% |
|---|
| Tian An China Investment Co Ltd ($28) | 0.1% | -0.1% | -0.6% | -0.6% | 1.3% |
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 (137 companies) | 2.3x | 2.7x | 3.0x | 3.2x | 2.7x |
|---|
