Central China Real Estate Ltd reports 49.7% Net Income decline
24/03/2017 • About Central China Real Estate Ltd (
$832) • By InTwits
Central China Real Estate Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: EBITDA Margin is declining: in FY2016 vs. 15.9% in FY2015 vs. 26.7% in FY2012.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Central China Real Estate Ltd ($832) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6,346 | 6,951 | 9,229 | 12,563 | 9,495 | -24.4% |
| Gross Profit | 2,246 | 2,369 | 3,097 | 2,788 | | -100.0% |
| SG&A | 620 | 849 | 1,111 | 1,281 | | -100.0% |
| EBITDA | 1,694 | 1,979 | 2,318 | 2,002 | | -100.0% |
| Net Income | 823 | 1,026 | 883 | 801 | 403 | -49.7% |
Balance Sheet
|
|---|
| Cash | 3,950 | 4,813 | 5,019 | 7,422 | | -100.0% |
| Short Term Debt | 1,415 | 2,248 | 1,410 | 2,541 | | -100.0% |
| Long Term Debt | 5,156 | 5,934 | 8,147 | 8,050 | | -100.0% |
Cash flow
|
|---|
| Capex | 609 | 780 | 609 | 386 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -4.4% | 9.5% | 32.8% | 36.1% | -24.4% | |
| EBITDA growth | -19.6% | 16.8% | 17.2% | -13.6% | | |
| Gross Margin | 35.4% | 34.1% | 33.6% | 22.2% | | -22.2% |
| EBITDA Margin | 26.7% | 28.5% | 25.1% | 15.9% | 0.0% | -15.9% |
| Net Income Margin | 13.0% | 14.8% | 9.6% | 6.4% | 4.2% | -2.1% |
| SG&A, % of revenue | 9.8% | 12.2% | 12.0% | 10.2% | | -10.2% |
| CAPEX, % of revenue | 9.6% | 11.2% | 6.6% | 3.1% | | -3.1% |
| ROIC | 13.6% | 13.0% | 12.8% | 9.9% | | -9.9% |
| ROE | 16.8% | 18.3% | 14.2% | 12.1% | | -12.1% |
| Net Debt/EBITDA | 1.5x | 1.7x | 2.0x | 1.6x | | -1.6x |
Revenue and profitability
The company's Revenue dropped on 24.4%.
Net Income marign decreased on 2.1 pp from 6.4% to 4.2% in FY2016.
Appendix 1: Peers in Real Estate
Below we provide Central China Real Estate 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% | 27.3% |
| 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) | 18.3% | 13.5% | 5.2% | 4.2% | 9.7% |
|---|
| Central China Real Estate Ltd ($832) | | 9.5% | 32.8% | 36.1% | -24.4% |
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% | 42.5% |
|---|
| Central China Real Estate Ltd ($832) | 35.4% | 34.1% | 33.6% | 22.2% | |
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% | 175.0% |
| 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% | 28.3% | 27.8% | 23.5% | 29.4% |
|---|
| Central China Real Estate Ltd ($832) | 26.7% | 28.5% | 25.1% | 15.9% | |
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% |
|---|
| Central China Real Estate Ltd ($832) | 9.6% | 11.2% | 6.6% | 3.1% | |
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% | 3.4% |
|---|
| Central China Real Estate Ltd ($832) | 13.6% | 13.0% | 12.8% | 9.9% | |
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) | 2.4x | 2.8x | 3.0x | 3.3x | 2.7x |
|---|
| Central China Real Estate Ltd ($832) | 1.5x | 1.7x | 2.0x | 1.6x | |
