China New City Commercial Development Ltd reports 80.1% Net Income decline in 2016 while 70.3% Revenue growth
27/03/2017 • About China New City Commercial Development Ltd (
$1321) • By InTwits
China New City Commercial Development Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: It operates with high leverage: Net Debt/EBITDA is 13.9x while industry average is 3.6x.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China New City Commercial Development Ltd ($1321) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 164.3 | 875.8 | 208.9 | 504.0 | 858.4 | 70.3% |
| Gross Profit | 115.8 | 368.8 | 108.6 | 179.4 | | -100.0% |
| SG&A | 88.7 | 101.9 | 147.8 | 164.3 | | -100.0% |
| EBITDA | 43.9 | 280.0 | -25.4 | 28.1 | | -100.0% |
| Net Income | 79.1 | 364.6 | 476.5 | 740.3 | 147.0 | -80.1% |
Balance Sheet
|
|---|
| Cash | 179.5 | 224.0 | 723.9 | 947.6 | | -100.0% |
| Short Term Debt | 565.0 | 100.0 | 1,638.0 | 707.5 | | -100.0% |
| Long Term Debt | 755.7 | 2,334.6 | 2,240.5 | 3,051.7 | | -100.0% |
Cash flow
|
|---|
| Capex | 0.5 | 8.3 | 2.7 | 7.2 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -16.9% | 433.0% | -76.2% | 141.3% | 70.3% | |
| EBITDA growth | -16.7% | 537.1% | -109.1% | -210.6% | | |
| Gross Margin | 70.5% | 42.1% | 52.0% | 35.6% | | -35.6% |
| EBITDA Margin | 26.7% | 32.0% | -12.2% | 5.6% | 0.0% | -5.6% |
| Net Income Margin | 48.1% | 41.6% | 228.2% | 146.9% | 17.1% | -129.8% |
| SG&A, % of revenue | 54.0% | 11.6% | 70.8% | 32.6% | | -32.6% |
| CAPEX, % of revenue | 0.3% | 1.0% | 1.3% | 1.4% | | -1.4% |
| ROIC | 0.7% | 5.5% | -0.5% | 0.2% | | -0.2% |
| ROE | 4.2% | 17.2% | 14.4% | 15.9% | | -15.9% |
| Net Debt/EBITDA | 26.0x | 7.9x | | 100.1x | | -100.1x |
Revenue and profitability
The company's Revenue jumped on 70.3%.
Net Income marign dropped on 130 pp from 147% to 17.1% in FY2016.
Appendix 1: Peers in Lodging
Below we provide China New City Commercial Development Ltd benchmarking against other companies in Lodging 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 |
|---|
| Zhuhai Holdings Investment Group Ltd ($908) | 229.8% | 14.5% | 57.0% | 76.3% | |
| Shanghai Jin Jiang International Hotels Group Co Ltd ($2006) | -28.8% | 3.2% | 0.8% | 29.9% | |
| Century City International Holdings Ltd ($355) | 283.6% | 108.7% | -35.8% | 25.9% | |
| Far East Consortium International Ltd/HK ($35) | | 111.9% | 9.0% | 25.7% | -21.8% |
| NagaCorp Ltd ($3918) | | 23.7% | 17.2% | 24.6% | 5.5% |
| |
|---|
| Median (23 companies) | 11.5% | 10.2% | 0.8% | -10.2% | -3.2% |
|---|
| China New City Commercial Development Ltd ($1321) | | 433.0% | -76.2% | 141.3% | 70.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SJM Holdings Ltd ($880) | 99.7% | 99.7% | 99.7% | 99.5% | 99.4% |
| Wynn Macau Ltd ($1128) | 97.9% | 98.3% | 98.5% | 98.4% | |
| Emperor Entertainment Hotel Ltd ($296) | 77.1% | 75.6% | 76.8% | 70.9% | 65.5% |
| Asia Standard Hotel Group Ltd ($292) | 60.7% | 73.4% | 72.1% | 67.6% | 65.8% |
| Sino Hotels Holdings Ltd ($1221) | 71.3% | 70.4% | 68.9% | 65.8% | 62.0% |
| |
|---|
| Median (17 companies) | 55.7% | 55.9% | 51.3% | 51.8% | 62.0% |
|---|
| China New City Commercial Development Ltd ($1321) | 70.5% | 42.1% | 52.0% | 35.6% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| NagaCorp Ltd ($3918) | 49.8% | 50.1% | 42.8% | 45.3% | 48.1% |
| Emperor Entertainment Hotel Ltd ($296) | 44.9% | 46.4% | 46.9% | 43.1% | 36.2% |
| Jinmao Investments and Jinmao China Investments Holdings Ltd ($6139) | 41.2% | 40.5% | 25.8% | 41.5% | |
| Asia Standard Hotel Group Ltd ($292) | -23.9% | 65.2% | 49.9% | 40.4% | 17.8% |
| Sino Hotels Holdings Ltd ($1221) | 46.5% | 45.9% | 43.1% | 39.6% | 33.1% |
| |
|---|
| Median (23 companies) | 26.8% | 26.4% | 25.8% | 23.8% | 23.7% |
|---|
| China New City Commercial Development Ltd ($1321) | 26.7% | 32.0% | -12.2% | 5.6% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Macau Legend Development Ltd ($1680) | 5.0% | 24.2% | 73.0% | 68.5% | |
| Wynn Macau Ltd ($1128) | 5.2% | 11.0% | 28.2% | 66.6% | |
| Legend Strategy International Holdings Group Co Ltd ($1355) | 17.0% | 38.0% | 1.2% | 62.6% | |
| Century City International Holdings Ltd ($355) | 21.2% | 32.9% | 13.4% | 35.8% | |
| Shangri-La Asia Ltd ($69) | 48.5% | 33.1% | 41.2% | 34.3% | |
| |
|---|
| Median (23 companies) | 7.4% | 11.0% | 13.2% | 14.5% | 10.3% |
|---|
| China New City Commercial Development Ltd ($1321) | 0.3% | 1.0% | 1.3% | 1.4% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| NagaCorp Ltd ($3918) | 30.6% | 28.9% | 22.6% | 28.6% | 21.3% |
| MGM China Holdings Ltd ($2282) | 46.2% | 53.8% | 54.5% | 24.0% | 16.0% |
| Sands China Ltd ($1928) | 14.2% | 24.4% | 26.7% | 15.8% | 14.3% |
| Emperor Entertainment Hotel Ltd ($296) | 22.2% | 21.1% | 18.4% | 12.0% | 7.5% |
| Galaxy Entertainment Group Ltd ($27) | 25.2% | 30.0% | 27.5% | 10.2% | 12.7% |
| |
|---|
| Median (23 companies) | 7.6% | 5.7% | 3.9% | 3.9% | 4.8% |
|---|
| China New City Commercial Development Ltd ($1321) | 0.7% | 5.5% | -0.5% | 0.2% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Century City International Holdings Ltd ($355) | 6.5x | 9.3x | 11.2x | 12.3x | |
| Regal Hotels International Holdings Ltd ($78) | 5.0x | 8.7x | 11.8x | 11.1x | |
| Shangri-La Asia Ltd ($69) | 6.0x | 6.8x | 6.9x | 9.8x | 14.7x |
| Macau Legend Development Ltd ($1680) | 2.2x | 0.6x | 0.2x | 7.1x | |
| Jinmao Investments and Jinmao China Investments Holdings Ltd ($6139) | 4.5x | 4.1x | 10.4x | 6.3x | |
| |
|---|
| Median (21 companies) | 0.5x | 0.6x | 0.7x | 4.0x | 1.9x |
|---|
| China New City Commercial Development Ltd ($1321) | 26.0x | 7.9x | | 100.1x | |
