Tai Sang Land Development Ltd Net Income surged on 41.9% while Revenue decreased slightly on 1.0%
22/03/2017 • About Tai Sang Land Development Ltd (
$89) • By InTwits
Tai Sang Land Development Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tai Sang Land Development Ltd doesn't have a profitable business model yet: FY2016 ROIC is 0.9%
- The company has potentially unprofitable business model: ROIC is at 0.9%
- It operates with high leverage: Net Debt/EBITDA is 11.6x 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.
Tai Sang Land Development Ltd ($89) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 216.1 | 228.8 | 251.0 | 278.9 | 276.0 | -1.0% |
| Gross Profit | 154.2 | 155.8 | 172.3 | 196.3 | 192.1 | -2.1% |
| SG&A | | | 94.2 | 104.5 | 110.3 | 5.6% |
| EBITDA | 71.6 | 64.8 | 85.8 | 99.8 | 91.7 | -8.2% |
| Net Income | 580.2 | 415.0 | 620.3 | 263.3 | 373.6 | 41.9% |
Balance Sheet
|
|---|
| Cash | 40.8 | 60.8 | 41.6 | 57.5 | 72.4 | 25.9% |
| Short Term Debt | 513.4 | 311.0 | 470.4 | 444.6 | 195.8 | -56.0% |
| Long Term Debt | 0.0 | 294.5 | 265.9 | 519.4 | 942.4 | 81.5% |
Cash flow
|
|---|
| Capex | 66.6 | 76.9 | 190.1 | 237.9 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 14.5% | 5.9% | 9.7% | 11.1% | -1.0% | |
| EBITDA growth | 60.1% | -9.5% | 32.4% | 16.4% | -8.2% | |
| Gross Margin | 71.4% | 68.1% | 68.7% | 70.4% | 69.6% | -0.8% |
| EBITDA Margin | 33.1% | 28.3% | 34.2% | 35.8% | 33.2% | -2.6% |
| Net Income Margin | 268.4% | 181.3% | 247.1% | 94.4% | 135.3% | 41.0% |
| SG&A, % of revenue | | | 37.5% | 37.5% | 40.0% | 2.5% |
| CAPEX, % of revenue | 30.8% | 33.6% | 75.8% | 85.3% | | -85.3% |
| ROIC | 1.1% | 0.9% | 1.1% | 1.2% | 0.9% | -0.2% |
| ROE | 13.2% | 8.6% | 11.7% | 4.4% | 5.7% | 1.3% |
| Net Debt/EBITDA | 6.6x | 8.4x | 8.1x | 9.1x | 11.6x | 2.5x |
Revenue and profitability
The company's Revenue decreased slightly on 1.0%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 56.0 pp from -48.2% to 7.8% in FY2016.
Gross Margin decreased slightly on 0.78 pp from 70.4% to 69.6% in FY2016. SG&A as a % of Revenue increased on 2.5 pp from 37.5% to 40.0% in FY2016.
Net Income marign surged on 41.0 pp from 94.4% to 135% in FY2016.
Return on investment
The company operates at low ROIC (0.91%) and ROE (5.71%). ROIC showed almost no change in FY2016. ROE increased slightly on 1.3 pp from 4.4% to 5.7% in FY2016.
Leverage (Debt)
Debt level is 11.6x Net Debt / EBITDA and 12.4x Debt / EBITDA. Net Debt / EBITDA surged on 2.5x from 9.1x to 11.6x in FY2016. Debt jumped on 18.1% while cash jumped on 25.9%.
Appendix 1: Peers in Real Estate
Below you can find Tai Sang Land Development 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% | 9.1% |
|---|
| Tai Sang Land Development Ltd ($89) | | 5.9% | 9.7% | 11.1% | -1.0% |
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) | 41.9% | 41.8% | 39.1% | 38.2% | 43.0% |
|---|
| Tai Sang Land Development Ltd ($89) | 71.4% | 68.1% | 68.7% | 70.4% | 69.6% |
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% | 28.5% | 26.9% | 23.4% | 30.3% |
|---|
| Tai Sang Land Development Ltd ($89) | 33.1% | 28.3% | 34.2% | 35.8% | 33.2% |
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% |
|---|
| Tai Sang Land Development Ltd ($89) | 30.8% | 33.6% | 75.8% | 85.3% | |
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% | 3.4% |
|---|
| Tai Sang Land Development Ltd ($89) | 1.1% | 0.9% | 1.1% | 1.2% | 0.9% |
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 |
|---|
| Tai Sang Land Development Ltd ($89) | 6.6x | 8.4x | 8.1x | 9.1x | 11.6x |
