Longfor Properties Co Ltd revenue returned to growth in FY2016: increased 15.6% vs. 7.0% decline a year earliner
24/03/2017 • About Longfor Properties Co Ltd (
$960) • By InTwits
Longfor Properties Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Longfor Properties Co Ltd is a growth stock: FY2016 revenue growth was 15.6%, 5 year revenue CAGR was 17.9% at FY2016 ROIC 10.7%
- The company has business model with average profitability: ROIC is at 10.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Longfor Properties Co Ltd ($960) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 27,893 | 41,510 | 50,991 | 47,423 | 54,799 | 15.6% |
| Gross Profit | 11,183 | 11,538 | 13,516 | 13,015 | 15,935 | 22.4% |
| SG&A | 1,561 | 1,972 | 2,363 | 2,453 | 3,450 | 40.6% |
| EBITDA | 11,012 | 12,563 | 13,477 | 14,300 | 14,783 | 3.4% |
| Net Income | 6,301 | 8,037 | 8,354 | 8,988 | 9,153 | 1.8% |
Balance Sheet
|
|---|
| Cash | 18,384 | 14,399 | 18,794 | 17,920 | 17,258 | -3.7% |
| Short Term Debt | 5,109 | 9,067 | 7,973 | 6,178 | 5,333 | -13.7% |
| Long Term Debt | 27,728 | 28,636 | 39,769 | 46,088 | 52,539 | 14.0% |
Cash flow
|
|---|
| Capex | 14,260 | 15,072 | 17,630 | 9,374 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 15.8% | 48.8% | 22.8% | -7.0% | 15.6% | |
| EBITDA growth | -0.8% | 14.1% | 7.3% | 6.1% | 3.4% | |
| Gross Margin | 40.1% | 27.8% | 26.5% | 27.4% | 29.1% | 1.6% |
| EBITDA Margin | 39.5% | 30.3% | 26.4% | 30.2% | 27.0% | -3.2% |
| Net Income Margin | 22.6% | 19.4% | 16.4% | 19.0% | 16.7% | -2.3% |
| SG&A, % of revenue | 5.6% | 4.7% | 4.6% | 5.2% | 6.3% | 1.1% |
| CAPEX, % of revenue | 51.1% | 36.3% | 34.6% | 19.8% | | -19.8% |
| ROIC | 17.0% | 15.4% | 13.6% | 12.0% | 10.7% | -1.3% |
| ROE | 24.3% | 24.0% | 19.7% | 17.5% | 15.7% | -1.8% |
| Net Debt/EBITDA | 1.3x | 1.9x | 2.1x | 2.4x | 2.7x | 0.3x |
Revenue and profitability
Longfor Properties Co Ltd's Revenue surged on 15.6%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.1 pp from 6.7% to 7.8% in FY2016.
Gross Margin increased slightly on 1.6 pp from 27.4% to 29.1% in FY2016. SG&A as a % of Revenue increased slightly on 1.1 pp from 5.2% to 6.3% in FY2016.
Net Income marign decreased on 2.3 pp from 19.0% to 16.7% in FY2016.
Return on investment
The company operates at good ROE (15.66%) while ROIC is low (10.65%). ROIC decreased slightly on 1.3 pp from 12.0% to 10.7% in FY2016. ROE decreased slightly on 1.8 pp from 17.5% to 15.7% in FY2016.
Leverage (Debt)
Debt level is 2.7x Net Debt / EBITDA and 3.9x Debt / EBITDA. Net Debt / EBITDA surged on 0.3x from 2.4x to 2.7x in FY2016. Debt surged on 10.7% while cash decreased on 3.7%.
Appendix 1: Peers in Real Estate
Below you can find Longfor Properties 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% | 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% | 13.1% | 5.2% | 4.5% | 9.3% |
|---|
| Longfor Properties Co Ltd ($960) | | 48.8% | 22.8% | -7.0% | 15.6% |
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% | 43.0% |
|---|
| Longfor Properties Co Ltd ($960) | 40.1% | 27.8% | 26.5% | 27.4% | 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% | 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) | 28.9% | 28.3% | 27.8% | 23.4% | 30.3% |
|---|
| Longfor Properties Co Ltd ($960) | 39.5% | 30.3% | 26.4% | 30.2% | 27.0% |
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% | 3.2% | 3.8% |
|---|
| Longfor Properties Co Ltd ($960) | 51.1% | 36.3% | 34.6% | 19.8% | |
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% | 3.4% |
|---|
| Longfor Properties Co Ltd ($960) | 17.0% | 15.4% | 13.6% | 12.0% | 10.7% |
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 |
|---|
| Longfor Properties Co Ltd ($960) | 1.3x | 1.9x | 2.1x | 2.4x | 2.7x |
