Beijing North Star Co Ltd revenue growth accelerated from 15.3% in FY2015 to 36.8% in FY2016
22/03/2017 • About Beijing North Star Co Ltd (
$588) • By InTwits
Beijing North Star Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company has potentially unprofitable business model: ROIC is at 4.3%
- It operates with high leverage: Net Debt/EBITDA is 8.5x while industry average is 4.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Beijing North Star Co Ltd ($588) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,736 | 5,505 | 6,234 | 7,186 | 9,830 | 36.8% |
| Gross Profit | 2,421 | 2,523 | 2,767 | 2,798 | 2,864 | 2.4% |
| SG&A | 886 | 886 | 1,018 | 1,092 | 1,238 | 13.3% |
| EBITDA | 1,954 | 1,813 | 2,062 | 1,889 | 2,002 | 6.0% |
| Net Income | 970 | 800 | 780 | 761 | 807 | 6.1% |
Balance Sheet
|
|---|
| Cash | 2,577 | 3,196 | 4,053 | 6,104 | 7,520 | 23.2% |
| Short Term Debt | 4,318 | 3,420 | 2,460 | 4,651 | 3,682 | -20.8% |
| Long Term Debt | 7,255 | 9,504 | 13,650 | 17,085 | 20,824 | 21.9% |
Cash flow
|
|---|
| Capex | 49 | 167 | 194 | 55 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 44.5% | -4.0% | 13.2% | 15.3% | 36.8% | |
| EBITDA growth | -9.7% | -7.2% | 13.7% | -8.4% | 6.0% | |
| Gross Margin | 42.2% | 45.8% | 44.4% | 38.9% | 29.1% | -9.8% |
| EBITDA Margin | 34.1% | 32.9% | 33.1% | 26.3% | 20.4% | -5.9% |
| Net Income Margin | 16.9% | 14.5% | 12.5% | 10.6% | 8.2% | -2.4% |
| SG&A, % of revenue | 15.5% | 16.1% | 16.3% | 15.2% | 12.6% | -2.6% |
| CAPEX, % of revenue | 0.8% | 3.0% | 3.1% | 0.8% | | -0.8% |
| ROIC | 6.5% | 5.6% | 5.9% | 4.6% | 4.3% | -0.3% |
| ROE | 6.7% | 5.3% | 5.0% | 4.7% | 4.8% | 0.1% |
| Net Debt/EBITDA | 4.6x | 5.4x | 5.8x | 8.3x | 8.5x | 0.2x |
Revenue and profitability
Beijing North Star Co Ltd's Revenue jumped on 36.8%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.7 pp from 19.2% to 23.9% in FY2016.
Gross Margin decreased on 9.8 pp from 38.9% to 29.1% in FY2016. SG&A as a % of Revenue decreased on 2.6 pp from 15.2% to 12.6% in FY2016.
Net Income marign decreased on 2.4 pp from 10.6% to 8.2% in FY2016.
Return on investment
The company operates at low ROIC (4.29%) and ROE (4.77%). ROIC showed almost no change in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt level is 8.5x Net Debt / EBITDA and 12.2x Debt / EBITDA. Net Debt / EBITDA jumped on 0.2x from 8.3x to 8.5x in FY2016. Debt jumped on 12.7% while cash surged on 23.2%.
Appendix 1: Peers in Real Estate
Below you can find Beijing North Star 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) | | | | 737.1% | -0.9% |
| ITC Properties Group Ltd ($199) | | -95.2% | 75.7% | 678.6% | 206.4% |
| |
|---|
| Median (179 companies) | 17.9% | 13.5% | 5.2% | 4.2% | 8.3% |
|---|
| Beijing North Star Co Ltd ($588) | | -4.0% | 13.2% | 15.3% | 36.8% |
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% | 43.6% |
|---|
| Beijing North Star Co Ltd ($588) | 42.2% | 45.8% | 44.4% | 38.9% | 29.1% |
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% | 31.7% |
|---|
| Beijing North Star Co Ltd ($588) | 34.1% | 32.9% | 33.1% | 26.3% | 20.4% |
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% | 6.2% | 4.8% | 3.3% | 3.8% |
|---|
| Beijing North Star Co Ltd ($588) | 0.8% | 3.0% | 3.1% | 0.8% | |
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) | 4.0% | 4.0% | 4.1% | 2.4% | 3.3% |
|---|
| Beijing North Star Co Ltd ($588) | 6.5% | 5.6% | 5.9% | 4.6% | 4.3% |
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 | 7.3x |
| 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) | 2.3x | 2.7x | 3.0x | 3.2x | 2.7x |
|---|
| Beijing North Star Co Ltd ($588) | 4.6x | 5.4x | 5.8x | 8.3x | 8.5x |
