Looking for a growth stock? Pay attention to Gemdale Properties & Investment Corp Ltd
23/03/2017 • About Gemdale Properties & Investment Corp Ltd (
$535) • By InTwits
Gemdale Properties & Investment Corp Ltd is a growth stock in Real Estate industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Gemdale Properties & Investment Corp Ltd showed growth in the last financial year. Gemdale Properties & Investment Corp Ltd's revenue surged on 105% in FY2016. The growth also happened in EBITDA of 82.9% for the same period.
If we look for the longer period the company showed fast revenue growth of 234% from FY2013 to FY2016 annualy. EBITDA surged on 38.0% from FY2013 to FY2016 annualy.
Gemdale Properties & Investment Corp Ltd ($535) financials for the last 5 years
| mln. CNY | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Revenue | 163 | 233 | 2,168 | 4,241 | 8,707 |
|---|
| Revenue growth, % | | 43.2% | 831.0% | 95.6% | 105.3% |
|---|
| Gross margin, % | 95.0% | 93.0% | 38.8% | 48.6% | 44.2% |
|---|
| SG&A, % | 17.0% | 40.8% | 3.65% | 2.35% | 1.04% |
|---|
| EBITDA | 634 | 1,350 | 1,004 | 1,942 | 3,551 |
|---|
| EBITDA growth, % | | 112.8% | -25.6% | 93.3% | 82.9% |
|---|
| EBITDA margin, % | 390% | 580% | 46.3% | 45.8% | 40.8% |
|---|
| Net Income | 406 | 1,042 | 361 | 1,056 | 1,367 |
|---|
| Net Income margin, % | 249% | 448% | 16.6% | 24.9% | 15.7% |
|---|
| |
| CAPEX | 2 | 30 | 196 | 325 | 0 |
|---|
| CAPEX/Revenue, % | 0.985% | 12.8% | 9.02% | 7.67% | 0% |
|---|
| Debt | 1,166 | 3,198 | 2,170 | 4,147 | 10,224 |
|---|
| Cash | 1,035 | 1,427 | 1,782 | 1,725 | 2,893 |
|---|
| Net Debt/EBITDA | 0.2x | 1.3x | 0.4x | 1.2x | 2.1x |
|---|
| |
| ROIC, % | 15.3% | 19.6% | 10.8% | 15.9% | 17.9% |
|---|
| ROE, % | 19.4% | 30.2% | 7.6% | 15.6% | 14.9% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. If we look for the longer period EBITDA margin dropped on 539 pp from 580% in FY2013 to 40.8% in FY2016.
We call Gemdale Properties & Investment Corp Ltd an attractive growth stock as together with the growth it delivers high ROIC at 17.9%. During the last three years it decreased - it was 19.6% in FY2013. It's average ROIC for the last three years was 14.9%.
Gemdale Properties & Investment Corp Ltd showed big decline in Net Income margin of 9.20 pp from 24.9% to 15.7% in FY2016. In the last 3 years Net Income margin dropped on 432 pp from 448% in FY2013 to 15.7% in FY2016.
Gemdale Properties & Investment Corp Ltd operates at ROE of 14.9%. For the last three years the average ROE was 12.7%.
Capital expenditures (CAPEX)
In FY2016 Gemdale Properties & Investment Corp Ltd had CAPEX/Revenue of 0%. The company showed big decline in CAPEX/Revenue of 12.8 pp from 12.8% in FY2013 to 0% in FY2016.
Leverage (Debt)
The company has medium debt level at 2.1x Net Debt/EBITDA to maintain high growth. In the last 3 years the company showed fast leverage growth of 0.75x from 1.31x in FY2013 to 2.06x in FY2016.
Peers in Real Estate
Below you can find Gemdale Properties & Investment Corp 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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 (180 companies) | 15.9% | 13.5% | 5.2% | 4.3% | 6.9% |
|---|
| Gemdale Properties & Investment Corp Ltd ($535) | | 43.2% | 831.0% | 95.6% | 105.3% |
Top companies by Gross margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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 (161 companies) | 41.8% | 41.1% | 39.2% | 38.2% | 45.3% |
|---|
| Gemdale Properties & Investment Corp Ltd ($535) | 95.0% | 93.0% | 38.8% | 48.6% | 44.2% |
Top companies by EBITDA margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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 (180 companies) | 28.9% | 28.3% | 26.4% | 23.2% | 32.5% |
|---|
| Gemdale Properties & Investment Corp Ltd ($535) | 390.0% | 579.5% | 46.3% | 45.8% | 40.8% |
Top companies by CAPEX/Revenue, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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 (180 companies) | 5.6% | 6.1% | 4.7% | 3.2% | 4.0% |
|---|
| Gemdale Properties & Investment Corp Ltd ($535) | 1.0% | 12.8% | 9.0% | 7.7% | |
Top companies by ROIC, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Hydoo International Holding Ltd ($1396) | 44.3% | 62.0% | 12.9% | 16.6% | |
| China Overseas Land & Investment Ltd ($688) | 18.4% | 15.1% | 18.5% | 15.4% | |
| Colour Life Services Group Co Ltd ($1778) | 44.2% | 47.9% | 29.3% | 14.5% | |
| Dalian Wanda Commercial Properties Co Ltd ($3699) | 26.8% | 19.6% | 12.3% | 14.4% | |
| China Vanke Co Ltd ($2202) | 17.8% | 13.5% | 14.6% | 14.1% | |
| |
|---|
| Median (182 companies) | 4.2% | 4.0% | 4.2% | 2.5% | 2.8% |
|---|
| Gemdale Properties & Investment Corp Ltd ($535) | 15.3% | 19.6% | 10.8% | 15.9% | 17.9% |
Top companies by Net Debt / EBITDA
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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 | 2.9x |
|---|
| Gemdale Properties & Investment Corp Ltd ($535) | 0.2x | 1.3x | 0.4x | 1.2x | 2.1x |
