China Vanke Co Ltd revenue jumped on 23.1% in 2016 and EBITDA Margin decreased slightly on 0.50 pp from 17.3% to 16.8%
26/03/2017 • About China Vanke Co Ltd (
$2202) • By InTwits
China Vanke Co Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Vanke Co Ltd is a fast growth stock: 2016 revenue growth was 23.1%, 5 year revenue CAGR was 26.4% at 2016 ROIC 13.7%
- China Vanke Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's in pair with industry average of 4.2%.
- CAPEX is quite volatile: 2,147 in 2016, 2,063 in 2015, 1,831 in 2014, 2,439 in 2013, 151 in 2012
- The company has highly profitable business model: ROIC is at 13.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Vanke Co Ltd ($2202) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 96,860 | 123,874 | 137,994 | 177,569 | 218,498 | 23.1% |
| Gross Profit | 31,406 | 31,076 | 34,635 | 39,418 | 48,756 | 23.7% |
| SG&A | 5,902 | 6,868 | 8,508 | 8,884 | 11,961 | 34.6% |
| EBITDA | 25,662 | 24,327 | 29,048 | 30,754 | 36,749 | 19.5% |
| Net Income | 12,551 | 15,119 | 15,746 | 18,119 | 21,023 | 16.0% |
Balance Sheet
|
|---|
| Cash | 51,120 | 43,004 | 61,653 | 51,748 | 79,490 | 53.6% |
| Short Term Debt | 35,557 | 47,408 | 22,832 | 43,391 | 46,954 | 8.2% |
| Long Term Debt | 36,036 | 44,082 | 46,149 | 52,844 | 85,514 | 61.8% |
Cash flow
|
|---|
| Capex | 151 | 2,439 | 1,831 | 2,063 | 2,147 | 4.1% |
Ratios
|
|---|
| Revenue growth | 43.1% | 27.9% | 11.4% | 28.7% | 23.1% | |
| EBITDA growth | 32.4% | -5.2% | 19.4% | 5.9% | 19.5% | |
| Gross Margin | 32.4% | 25.1% | 25.1% | 22.2% | 22.3% | 0.1% |
| EBITDA Margin | 26.5% | 19.6% | 21.1% | 17.3% | 16.8% | -0.5% |
| Net Income Margin | 13.0% | 12.2% | 11.4% | 10.2% | 9.6% | -0.6% |
| SG&A, % of revenue | 6.1% | 5.5% | 6.2% | 5.0% | 5.5% | 0.5% |
| CAPEX, % of revenue | 0.2% | 2.0% | 1.3% | 1.2% | 1.0% | -0.2% |
| ROIC | 17.8% | 13.5% | 14.6% | 14.1% | 13.7% | -0.4% |
| ROE | 21.5% | 21.5% | 19.1% | 19.2% | 19.7% | 0.4% |
| Net Debt/EBITDA | 0.8x | 2.0x | 0.3x | 1.4x | 1.4x | -0.0x |
China Vanke Co Ltd ($2202) key quoterly financial indicators
| mln. CNY | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 13,346 | 55,165 | 40,281 | 111,524 | | | | |
| Net Income | 833 | 4,518 | 2,911 | 12,760 | | | | |
Balance Sheet
|
|---|
| Cash | 52,785 | 70,907 | 69,913 | 79,490 | | | | |
| Short Term Debt | 38,466 | 37,633 | 30,940 | 46,954 | | | | |
| Long Term Debt | 61,110 | 62,170 | 57,084 | 85,514 | | | | |
Ratios
|
|---|
| Gross Margin | 25.3% | 18.2% | 23.3% | 24.9% | | | | |
| Net Income Margin | 6.2% | 8.2% | 7.2% | 11.4% | | | | |
Revenue and profitability
China Vanke Co Ltd's Revenue surged on 23.1%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 0.50 pp from 17.3% to 16.8% in 2016.
Gross Margin showed almost no change in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign decreased slightly on 0.58 pp from 10.2% to 9.6% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.98% in 2016. CAPEX/Revenue decreased slightly on 0.99 pp from 2.0% in 2013 to 0.98% in 2016. It's average level of CAPEX/Revenue for the last three years was 1.2%.
Return on investment
The company operates at good ROIC (13.66%) and ROE (19.68%). ROIC showed almost no change in 2016. ROE showed almost no change in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.4x and Debt / EBITDA is 3.6x. Net Debt / EBITDA showed almost no change in 2016. Debt surged on 37.6% while cash jumped on 53.6%.
Appendix 1: Peers in Real Estate
Below you can find China Vanke 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 (181 companies) | 18.3% | 13.5% | 5.2% | 4.2% | 9.7% |
|---|
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 (162 companies) | 41.9% | 41.8% | 39.1% | 38.2% | 42.3% |
|---|
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 (181 companies) | 28.9% | 28.5% | 26.9% | 23.4% | 29.2% |
|---|
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 (180 companies) | 5.6% | 6.1% | 4.7% | 3.3% | 3.8% |
|---|
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 (183 companies) | 4.2% | 4.1% | 4.1% | 2.5% | 3.4% |
|---|
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 (138 companies) | 2.4x | 2.7x | 3.0x | 3.3x | 2.7x |
|---|
