Country Garden Holdings Co Ltd reports 37.4% EBITDA growth and 35.2% Revenue growth
22/03/2017 • About Country Garden Holdings Co Ltd (
$2007) • By InTwits
Country Garden Holdings Co Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Country Garden Holdings Co Ltd is a growth stock: 2016 revenue growth was 35.2%, 5 year revenue CAGR was 34.5% at 2016 ROIC 10.5%
- Country Garden Holdings Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.6%. At the same time it's in pair with industry average of 4.9%.
- CAPEX is quite volatile: 0.80 in 2016, 44,757 in 2015, 44,005 in 2014, 20,932 in 2013, 24,279 in 2012
- The company has business model with average profitability: ROIC is at 10.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Country Garden Holdings Co Ltd ($2007) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 41,891 | 62,725 | 84,549 | 113,223 | 153,087 | 35.2% |
| Gross Profit | 15,340 | 19,011 | 22,055 | 22,863 | 32,236 | 41.0% |
| SG&A | 3,754 | 6,337 | 7,516 | 7,919 | 12,354 | 56.0% |
| EBITDA | 12,115 | 13,287 | 17,388 | 16,833 | 22,901 | 36.0% |
| Net Income | 6,853 | 8,514 | 10,229 | 9,276 | 11,517 | 24.2% |
Balance Sheet
|
|---|
| Cash | 11,809 | 18,910 | 18,761 | 36,241 | 84,647 | 133.6% |
| Short Term Debt | 9,096 | 12,434 | 14,929 | 22,778 | 38,720 | 70.0% |
| Long Term Debt | 27,817 | 43,815 | 46,139 | 66,966 | 97,477 | 45.6% |
Cash flow
|
|---|
| Capex | 3,896 | 5,311 | 5,106 | 2,617 | 2,559 | -2.2% |
Ratios
|
|---|
| Revenue growth | 20.6% | 49.7% | 34.8% | 33.9% | 35.2% | |
| EBITDA growth | 22.3% | 9.7% | 30.9% | -3.2% | 36.0% | |
| Gross Margin | 36.6% | 30.3% | 26.1% | 20.2% | 21.1% | 0.9% |
| EBITDA Margin | 28.9% | 21.2% | 20.6% | 14.9% | 15.0% | 0.1% |
| Net Income Margin | 16.4% | 13.6% | 12.1% | 8.2% | 7.5% | -0.7% |
| SG&A, % of revenue | 9.0% | 10.1% | 8.9% | 7.0% | 8.1% | 1.1% |
| CAPEX, % of revenue | 9.3% | 8.5% | 6.0% | 2.3% | 1.7% | -0.6% |
| ROIC | 15.9% | 13.2% | 13.7% | 10.1% | 10.5% | 0.4% |
| ROE | 20.6% | 20.9% | 20.3% | 15.2% | 17.0% | 1.8% |
| Net Debt/EBITDA | 2.1x | 2.8x | 2.4x | 3.2x | 2.3x | -0.9x |
Revenue and profitability
Country Garden Holdings Co Ltd's Revenue surged on 35.2%. EBITDA Margin showed almost no change in 2016.
Gross Margin increased slightly on 0.86 pp from 20.2% to 21.1% in 2016. SG&A as a % of Revenue increased slightly on 1.1 pp from 7.0% to 8.1% in 2016.
Net Income marign decreased slightly on 0.67 pp from 8.2% to 7.5% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 1.7%. CAPEX/Revenue decreased on 6.8 pp from 8.5% in 2013 to 1.7% in 2016. Average CAPEX/Revenue for the last three years was 3.3%.
Return on investment
The company operates at good ROE (17.01%) while ROIC is low (10.47%). ROIC showed almost no change in 2016. ROE increased slightly on 1.8 pp from 15.2% to 17.0% in 2016.
Leverage (Debt)
Debt level is 2.3x Net Debt / EBITDA and 5.9x Debt / EBITDA. Net Debt / EBITDA dropped on 0.9x from 3.2x to 2.3x in 2016. Debt surged on 51.8% while cash surged on 134%.
Appendix 1: Peers in Real Estate
Below we provide Country Garden Holdings 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) | | | | 737.1% | -0.9% |
| ITC Properties Group Ltd ($199) | | -95.2% | 75.7% | 678.6% | 206.4% |
| |
|---|
| Median (179 companies) | 17.9% | 13.1% | 5.2% | 4.2% | 8.3% |
|---|
| Country Garden Holdings Co Ltd ($2007) | | 49.7% | 34.8% | 33.9% | 35.2% |
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) | 42.1% | 41.9% | 39.3% | 38.4% | 43.6% |
|---|
| Country Garden Holdings Co Ltd ($2007) | 36.6% | 30.3% | 26.1% | 20.2% | 21.1% |
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) | 29.3% | 28.5% | 27.8% | 23.5% | 31.7% |
|---|
| Country Garden Holdings Co Ltd ($2007) | 28.9% | 21.2% | 20.6% | 14.9% | 15.0% |
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% | 4.0% |
|---|
| Country Garden Holdings Co Ltd ($2007) | 9.3% | 8.5% | 6.0% | 2.3% | 1.7% |
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% | 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% |
|---|
| Country Garden Holdings Co Ltd ($2007) | 15.9% | 13.2% | 13.7% | 10.1% | 10.5% |
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) | 2.4x | 2.7x | 3.0x | 3.3x | 3.1x |
|---|
| Country Garden Holdings Co Ltd ($2007) | 2.1x | 2.8x | 2.4x | 3.2x | 2.3x |
