Dalian Wanda Commercial Properties Co Ltd revenue started to decline in 2016: dropped 100.0% vs. 24.5% growth a year earliner
29/12/2017 • About Dalian Wanda Commercial Properties Co Ltd (
$3699) • By InTwits
Dalian Wanda Commercial Properties Co Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dalian Wanda Commercial Properties Co Ltd is a company in decline: 2016 revenue growth was -100.0%, 5 years revenue CAGR was -74.4%
- Dalian Wanda Commercial Properties Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 29.4%. At the same time it's in pair with industry average of 4.9%.
- CAPEX is quite volatile: 0.80 in 2016, 44,757 in 2015, 44,005 in 2014, 20,932 in 2013, 24,279 in 2012
- The company has potentially unprofitable business model: ROIC is at 5.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dalian Wanda Commercial Properties Co Ltd ($3699) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 59,091 | 86,774 | 99,783 | 124,203 | 56 | -100.0% |
| Gross Profit | 30,284 | 37,336 | 38,676 | 50,367 | 42 | -99.9% |
| SG&A | 6,947 | 9,212 | 11,731 | 13,153 | 16 | -99.9% |
| EBITDA | 47,735 | 47,984 | | 57,844 | 49 | -99.9% |
| Net Income | 27,310 | 24,581 | 24,839 | 29,971 | 32 | -99.9% |
Balance Sheet
|
|---|
| Cash | 48,585 | 69,525 | 93,035 | 66,606 | 43 | -99.9% |
| Short Term Debt | 21,681 | 21,016 | 36,466 | 41,930 | 15 | -100.0% |
| Long Term Debt | 71,547 | 112,977 | 144,505 | 144,716 | 33 | -100.0% |
Cash flow
|
|---|
| Capex | 24,279 | 20,932 | 44,005 | 44,757 | 1 | -100.0% |
Ratios
|
|---|
| Revenue growth | 16.4% | 46.8% | 15.0% | 24.5% | -100.0% | |
| EBITDA growth | 40.6% | 0.5% | | | -99.9% | |
| Gross Margin | 51.2% | 43.0% | 38.8% | 40.6% | 75.1% | 34.6% |
| EBITDA Margin | 80.8% | 55.3% | 0.0% | 46.6% | 88.2% | 41.6% |
| Net Income Margin | 46.2% | 28.3% | 24.9% | 24.1% | 56.3% | 32.2% |
| SG&A, % of revenue | 11.8% | 10.6% | 11.8% | 10.6% | 28.3% | 17.7% |
| CAPEX, % of revenue | 41.1% | 24.1% | 44.1% | 36.0% | 1.4% | -34.6% |
| ROIC | 26.8% | 19.6% | 12.3% | 14.4% | 5.5% | -8.9% |
| ROE | 37.4% | 25.3% | 19.0% | 18.0% | 4.7% | -13.3% |
| Net Debt/EBITDA | 0.9x | 1.3x | | 2.1x | 0.1x | -2.0x |
Revenue and profitability
Dalian Wanda Commercial Properties Co Ltd's Revenue dropped on 100.0%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 41.6 pp from 46.6% to 88.2% in 2016.
Gross Margin jumped on 34.6 pp from 40.6% to 75.1% in 2016. SG&A as a % of Revenue jumped on 17.7 pp from 10.6% to 28.3% in 2016.
Net Income marign jumped on 32.2 pp from 24.1% to 56.3% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 1.4%. Dalian Wanda Commercial Properties Co Ltd showed big decline in CAPEX/Revenue of 22.7 pp from 24.1% in 2013 to 1.4% in 2016. Average CAPEX/Revenue for the last three years was 27.2%.
Return on investment
The company operates at low ROIC (5.54%) and ROE (4.67%). ROIC decreased on 8.9 pp from 14.4% to 5.5% in 2016. ROE dropped on 13.3 pp from 18.0% to 4.7% in 2016.
Leverage (Debt)
Debt level is 0.1x Net Debt / EBITDA and 1.0x Debt / EBITDA. Net Debt / EBITDA dropped on 2.0x from 2.1x to 0.1x in 2016. Debt dropped on 100.0% while cash dropped on 99.9%.
Appendix 1: Peers in Real Estate
Below we provide Dalian Wanda Commercial Properties Co 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 (180 companies) | 21.6% | 13.1% | 5.1% | 4.1% | 10.3% |
|---|
| Dalian Wanda Commercial Properties Co Ltd ($3699) | | 46.8% | 15.0% | 24.5% | -100.0% |
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 (161 companies) | 41.8% | 41.1% | 39.2% | 38.2% | 41.9% |
|---|
| Dalian Wanda Commercial Properties Co Ltd ($3699) | 51.2% | 43.0% | 38.8% | 40.6% | 75.1% |
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 (180 companies) | 28.9% | 28.4% | 26.9% | 23.2% | 29.0% |
|---|
| Dalian Wanda Commercial Properties Co Ltd ($3699) | 80.8% | 55.3% | | 46.6% | 88.2% |
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 (179 companies) | 5.5% | 6.1% | 4.7% | 3.2% | 4.0% |
|---|
| Dalian Wanda Commercial Properties Co Ltd ($3699) | 41.1% | 24.1% | 44.1% | 36.0% | 1.4% |
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% |
| China Resources Land Ltd ($1109) | 12.3% | 14.7% | 13.5% | 13.9% | 14.4% |
| |
|---|
| Median (182 companies) | 4.1% | 4.0% | 4.0% | 2.5% | 3.4% |
|---|
| Dalian Wanda Commercial Properties Co Ltd ($3699) | 26.8% | 19.6% | 12.3% | 14.4% | 5.5% |
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 (137 companies) | 2.4x | 2.8x | 3.0x | 3.3x | 2.9x |
|---|
| Dalian Wanda Commercial Properties Co Ltd ($3699) | 0.9x | 1.3x | | 2.1x | 0.1x |
