Country Garden Holdings Co Ltd Net Income surged on 126% and EBITDA Margin increased on 4.6 pp from 15.0% to 19.6%
20/03/2018 • About Country Garden Holdings Co Ltd (
$2007) • By InTwits
Country Garden Holdings Co Ltd reported 2017 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Country Garden Holdings Co Ltd is a fast growth stock: 2017 revenue growth was 48.2%, 5 year revenue CAGR was 40.2% at 2017 ROIC 14.2%
- Country Garden Holdings Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's a lot of higher than industry average of 0.5%.
- CAPEX is quite volatile: 3,464 in 2017, 2,559 in 2016, 2,617 in 2015, 5,106 in 2014, 5,311 in 2013
- The company has highly profitable business model: ROIC is at 14.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Country Garden Holdings Co Ltd ($2007) key annual financial indicators
| mln. CNY | 2013 | 2014 | 2015 | 2016 | 2017 | 2017/2016 |
|---|
P&L
|
|---|
| Revenue | 62,725 | 84,549 | 113,223 | 153,087 | 226,900 | 48.2% |
| Gross Profit | 19,011 | 22,055 | 22,863 | 32,236 | 58,785 | 82.4% |
| SG&A | 6,337 | 7,516 | 7,919 | 12,354 | 18,303 | 48.2% |
| EBITDA | 13,287 | 17,388 | 16,833 | 22,901 | 44,423 | 94.0% |
| Net Income | 8,514 | 10,229 | 9,276 | 11,517 | 26,064 | 126.3% |
Balance Sheet
|
|---|
| Cash | 18,910 | 18,761 | 36,241 | 84,647 | 137,084 | 61.9% |
| Short Term Debt | 12,434 | 14,929 | 22,778 | 38,720 | 68,281 | 76.3% |
| Long Term Debt | 43,815 | 46,139 | 66,966 | 97,477 | 146,484 | 50.3% |
Cash flow
|
|---|
| Capex | 5,311 | 5,106 | 2,617 | 2,559 | 3,464 | 35.4% |
Ratios
|
|---|
| Revenue growth | 49.7% | 34.8% | 33.9% | 35.2% | 48.2% | |
| EBITDA growth | 9.7% | 30.9% | -3.2% | 36.0% | 94.0% | |
| Gross Margin | 30.3% | 26.1% | 20.2% | 21.1% | 25.9% | 4.9% |
| EBITDA Margin | 21.2% | 20.6% | 14.9% | 15.0% | 19.6% | 4.6% |
| Net Income Margin | 13.6% | 12.1% | 8.2% | 7.5% | 11.5% | 4.0% |
| SG&A, % of revenue | 10.1% | 8.9% | 7.0% | 8.1% | 8.1% | -0.0% |
| CAPEX, % of revenue | 8.5% | 6.0% | 2.3% | 1.7% | 1.5% | -0.1% |
| ROIC | 13.2% | 13.7% | 10.1% | 10.5% | 14.2% | 3.7% |
| ROE | 20.9% | 20.3% | 15.2% | 17.0% | 31.8% | 14.8% |
| Net Debt/EBITDA | 2.8x | 2.4x | 3.2x | 2.3x | 1.7x | -0.5x |
Revenue and profitability
Country Garden Holdings Co Ltd's Revenue jumped on 48.2%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.62 pp from 20.4% to 21.0% in 2017.
Gross Margin increased on 4.9 pp from 21.1% to 25.9% in 2017. SG&A as a % of Revenue showed almost no change in 2017.
Net Income marign increased on 4.0 pp from 7.5% to 11.5% in 2017.
Capital expenditures (CAPEX) and working capital investments
Country Garden Holdings Co Ltd's CAPEX/Revenue was 1.5% in 2017. Country Garden Holdings Co Ltd's CAPEX/Revenue decreased on 4.5 pp from 6.0% in 2014 to 1.5% in 2017. Average CAPEX/Revenue for the last three years was 1.8%.
Return on investment
The company operates at high and attractive ROE (31.82%) while ROIC is a bit lower (14.19%). ROIC increased on 3.7 pp from 10.5% to 14.2% in 2017. ROE jumped on 14.8 pp from 17.0% to 31.8% in 2017.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.7x and Debt / EBITDA is 4.8x. Net Debt / EBITDA dropped on 0.5x from 2.3x to 1.7x in 2017. Debt surged on 57.7% while cash jumped on 61.9%.
Appendix 1: Peers in Real Estate
Below you can find Country Garden Holdings 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 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| South China Land Ltd ($8155) | | | | 896.2% | |
| Hon Kwok Land Investment Co Ltd ($160) | -73.5% | 60.4% | -5.6% | 335.1% | |
| Golden Wheel Tiandi Holdings Co Ltd ($1232) | -9.6% | -4.6% | -72.4% | 309.9% | |
| LVGEM China Real Estate Invest ($95) | -21.9% | 3,008.3% | -77.4% | 259.3% | |
| ITC Properties Group Ltd ($199) | -95.2% | 75.7% | 678.6% | 206.4% | |
| |
|---|
| Median (136 companies) | 13.1% | 5.1% | 4.1% | 9.9% | 6.6% |
|---|
| Country Garden Holdings Co Ltd ($2007) | | 34.8% | 33.9% | 35.2% | 48.2% |
Top companies by Gross margin, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Tern Properties Co Ltd ($277) | 98.4% | 98.4% | 98.7% | 98.8% | |
| Wah Ha Realty Co Ltd ($278) | 96.0% | 93.2% | 95.9% | 92.9% | |
| China Oceanwide Holdings Ltd ($715) | 81.2% | 82.0% | 80.9% | 90.0% | |
| Tian Teck Land Ltd ($266) | 86.9% | 88.9% | 87.5% | 87.9% | |
| Hysan Development Co Ltd ($14) | 86.8% | 87.5% | 87.9% | 87.9% | |
| |
|---|
| Median (88 companies) | 41.9% | 39.2% | 38.2% | 42.3% | 36.8% |
|---|
| Country Garden Holdings Co Ltd ($2007) | 30.3% | 26.1% | 20.2% | 21.1% | 25.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| China Oceanwide Holdings Ltd ($715) | 110.5% | 48.4% | 69.2% | 204.5% | |
| SOHO China Ltd ($410) | 80.8% | 104.0% | 201.9% | 175.0% | |
| Wanda Hotel Development Co Ltd ($169) | 43.2% | -125.7% | 28.3% | 109.9% | |
| Swire Properties Ltd ($1972) | 114.6% | 73.2% | 100.3% | 105.1% | |
| Sinolink Worldwide Holdings Ltd ($1168) | 42.2% | 28.8% | 15.8% | 97.2% | |
| |
|---|
| Median (95 companies) | 28.5% | 27.3% | 23.4% | 29.4% | 37.7% |
|---|
| Country Garden Holdings Co Ltd ($2007) | 21.2% | 20.6% | 14.9% | 15.0% | 19.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Qingdao Holdings International Ltd ($499) | 0.9% | 0.1% | 0.7% | 607.5% | |
| Pacific Century Premium Developments Ltd ($432) | 323.1% | 351.2% | 340.6% | 570.7% | |
| Wah Ha Realty Co Ltd ($278) | 0.0% | | 0.0% | 289.2% | |
| Cheuk Nang Holdings Ltd ($131) | 130.3% | 67.5% | 144.9% | 117.6% | |
| Beijing Capital Juda Ltd ($1329) | 0.1% | 0.1% | 83.1% | 104.7% | |
| |
|---|
| Median (54 companies) | 6.1% | 4.7% | 3.3% | 4.0% | 4.7% |
|---|
| Country Garden Holdings Co Ltd ($2007) | 8.5% | 6.0% | 2.3% | 1.7% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Gemdale Properties & Investment Corp Ltd ($535) | 19.6% | 10.8% | 15.9% | 17.9% | |
| China Resources Land Ltd ($1109) | 14.7% | 13.5% | 13.9% | 14.4% | 15.4% |
| Colour Life Services Group Co Ltd ($1778) | 47.9% | 29.3% | 14.5% | 13.1% | |
| China Overseas Land & Investment Ltd ($688) | 15.1% | 18.5% | 15.4% | 13.0% | 12.8% |
| Future Land Development Holdings Ltd ($1030) | 16.0% | 11.3% | 12.3% | 11.9% | |
| |
|---|
| Median (137 companies) | 4.0% | 4.0% | 2.5% | 3.4% | 14.1% |
|---|
| Country Garden Holdings Co Ltd ($2007) | 13.2% | 13.7% | 10.1% | 10.5% | 14.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Henry Group Holdings Ltd ($859) | 103.1x | | -23.1x | 65.0x | |
| Asia Standard International Group Ltd ($129) | 3.3x | 4.4x | | 38.3x | |
| Beijing Capital Land Ltd ($2868) | 4.6x | 11.7x | 49.1x | 37.0x | |
| Beijing Capital Juda Ltd ($1329) | 0.6x | 1.6x | 11.5x | 36.3x | |
| Asia Orient Holdings Ltd ($214) | 2.1x | 2.7x | 6.1x | 33.8x | |
| |
|---|
| Median (82 companies) | 2.7x | 3.0x | 3.3x | 2.9x | 1.4x |
|---|
| Country Garden Holdings Co Ltd ($2007) | 2.8x | 2.4x | 3.2x | 2.3x | 1.7x |
