Hagl JSC reports 105% revenue growth in 2015 and 11.4 pp EBITDA Margin decline from 39.6% to 28.2%
14 Mar 2016 • About Hagl JSC (
$HAG) • By InTwits
Hagl JSC reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hagl JSC has high CAPEX intensity: 5 year average CAPEX/Revenue was 146.2%. At the same time it's a lot of higher than industry average of 23.5%.
- CAPEX is quite volatile: 307,539 in FY2015, 496,108 in FY2014, 581,786 in FY2013, 412,991 in FY2012, 228,654 in FY2011
- The company has potentially unprofitable business model: ROIC is at 3.6%
- It operates with high leverage: Net Debt/EBITDA is 14.8x while industry average is 8.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hagl JSC ($HAG) key annual financial indicators
| mln. VND | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,150,252 | 4,394,478 | 2,771,219 | 3,054,331 | 6,252,447 | 104.7% |
| Gross Profit | 1,423,952 | 1,200,566 | 1,196,126 | 1,226,993 | 1,854,426 | 51.1% |
| SG&A | 394,501 | 411,588 | 400,299 | 351,119 | 461,611 | 31.5% |
| EBITDA | 1,164,970 | 1,013,641 | 1,122,276 | 1,210,055 | 1,765,407 | 45.9% |
| Net Income | 1,167,980 | 349,964 | 846,072 | 1,453,000 | 502,343 | -65.4% |
Balance Sheet
|
|---|
| Cash | 2,896,457 | 2,518,419 | 2,448,256 | 978,414 | 967,967 | -1.1% |
| Short Term Debt | 3,201,904 | 2,517,412 | 3,129,670 | 6,839,583 | 8,297,755 | 21.3% |
| Long Term Debt | 8,423,895 | 13,614,099 | 11,128,674 | 11,286,990 | 18,801,460 | 66.6% |
Cash flow
|
|---|
| Capex | 4,812,910 | 5,897,608 | 4,743,279 | 4,447,439 | 7,946,189 | 78.7% |
Ratios
|
|---|
| Revenue growth | -20.6% | 39.5% | -36.9% | 10.2% | 104.7% | |
| EBITDA growth | -35.2% | -13.0% | 10.7% | 7.8% | 45.9% | |
| Gross Margin | 45.2% | 27.3% | 43.2% | 40.2% | 29.7% | -10.5% |
| EBITDA Margin | 37.0% | 23.1% | 40.5% | 39.6% | 28.2% | -11.4% |
| Net Income Margin | 37.1% | 8.0% | 30.5% | 47.6% | 8.0% | -39.5% |
| SG&A, % of revenue | 12.5% | 9.4% | 14.4% | 11.5% | 7.4% | -4.1% |
| CAPEX, % of revenue | 152.8% | 134.2% | 171.2% | 145.6% | 127.1% | -18.5% |
| ROIC | 5.4% | 3.2% | 2.9% | 2.8% | 3.6% | 0.7% |
| ROE | 13.3% | 3.7% | 7.5% | 11.1% | 3.7% | -7.4% |
| Net Debt/EBITDA | 7.5x | 13.4x | 10.5x | 14.2x | 14.8x | 0.6x |
Revenue and profitability
The company's Revenue jumped on 105% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.3 pp from 10.9% to 15.2% in 2015.
Gross Margin dropped on 10.5 pp from 40.2% to 29.7% in 2015. SG&A as a % of Revenue decreased on 4.1 pp from 11.5% to 7.4% in 2015.
Net Income marign dropped on 39.5 pp from 47.6% to 8.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 127%. The company showed decline in CAPEX/Revenue of 7.1 pp from 134% in 2012 to 127% in 2015. For the last three years the average CAPEX/Revenue was 148%.To fuel this fast growth Hagl JSC made large investments to CAPEX (450% of EBITDA).
Return on investment
The company operates at low ROIC (3.58%) and ROE (3.73%). ROIC increased slightly on 0.74 pp from 2.8% to 3.6% in 2015. ROE decreased on 7.4 pp from 11.1% to 3.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 14.8x and Debt / EBITDA is 15.4x. Net Debt / EBITDA jumped on 0.6x from 14.2x to 14.8x in 2015. Debt surged on 49.5% in 2015 while cash decreased slightly on 1.1% in 2015.
Appendix 1: Peers in Real Estate Investment & Services
Below we provide Hagl JSC benchmarking against other companies in Real Estate Investment & Services 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Plaza Centers Nv ($PLAZ) | -37.7% | 28.0% | -10.0% | 131.0% | |
| Formation Group ($FRM) | | -60.8% | 147.9% | 35.8% | 199.3% |
| Etalon Group Ltd ($ETLN) | 11.9% | 18.3% | 48.4% | 29.0% | |
| Safeland ($SAF) | | 38.2% | -40.1% | 21.2% | -1.5% |
| Hml Hldgs ($HMLH) | | 12.9% | 20.8% | 15.3% | 16.7% |
| |
|---|
| Median (16 companies) | 2.5% | 3.2% | 20.8% | -0.1% | 16.7% |
|---|
| Hagl JSC ($HAG) | | 39.5% | -36.9% | 10.2% | 104.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Arricano Real Estate ($ARO) | | | 96.1% | 96.5% | |
| Taliesin Property Fund Ltd ($TPFZ) | | 75.2% | 76.6% | 74.9% | 76.3% |
| Songbird Estates ($SBD) | 69.2% | 71.5% | 68.3% | 70.7% | |
| Panther Securities ($PNS) | 65.3% | 69.2% | 77.2% | 68.0% | |
| Damac Real Estate Development Ltd ($DMC) | 37.5% | 40.7% | 64.4% | 59.6% | 59.4% |
| |
|---|
| Median (12 companies) | 39.2% | 40.8% | 44.8% | 34.6% | 43.1% |
|---|
| Hagl JSC ($HAG) | 45.2% | 27.3% | 43.2% | 40.2% | 29.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Summit Germany Ltd ($SMTG) | 77.8% | 78.3% | 78.7% | 89.3% | |
| Panther Securities ($PNS) | 39.9% | 44.8% | 56.9% | 50.3% | |
| Damac Real Estate Development Ltd ($DMC) | 31.2% | 32.9% | 54.5% | 46.4% | 53.5% |
| Quintain Estates & Development ($QED) | -101.5% | -81.5% | -70.4% | 43.6% | 76.3% |
| Farglory Land Development Co Ltd ($FLDS) | 33.7% | 33.5% | 31.8% | 30.2% | |
| |
|---|
| Median (15 companies) | 30.2% | 32.8% | 20.9% | 11.8% | 31.8% |
|---|
| Hagl JSC ($HAG) | 37.0% | 23.1% | 40.5% | 39.6% | 28.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Quintain Estates & Development ($QED) | 136.2% | 210.6% | 162.3% | 217.2% | 173.3% |
| Taliesin Property Fund Ltd ($TPFZ) | | 14.1% | 21.3% | 45.2% | 43.7% |
| Raven Russia Ltd ($RUS) | | 19.8% | 27.5% | 41.0% | 9.1% |
| Panther Securities ($PNS) | 176.0% | 87.9% | 42.6% | 26.0% | |
| Farglory Land Development Co Ltd ($FLDS) | 1.9% | 3.6% | 2.3% | 8.3% | |
| |
|---|
| Median (16 companies) | 1.7% | 2.1% | 1.2% | 1.5% | 9.1% |
|---|
| Hagl JSC ($HAG) | 152.8% | 134.2% | 171.2% | 145.6% | 127.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Damac Real Estate Development Ltd ($DMC) | | 163.1% | 127.1% | 31.3% | 41.5% |
| Etalon Group Ltd ($ETLN) | 20.1% | 12.1% | 14.4% | 14.3% | |
| PIK Group OJSC ($PIK) | 25.6% | 21.2% | 25.6% | 13.5% | |
| Hml Hldgs ($HMLH) | 5.6% | 8.2% | 9.9% | 12.5% | 12.5% |
| Farglory Land Development Co Ltd ($FLDS) | 16.0% | 9.7% | 13.0% | 7.7% | |
| |
|---|
| Median (16 companies) | 3.8% | 4.1% | 4.0% | 2.7% | 5.1% |
|---|
| Hagl JSC ($HAG) | 5.4% | 3.2% | 2.9% | 2.8% | 3.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Raven Russia Ltd ($RUS) | | 6.4x | 4.1x | 75.5x | |
| Plaza Centers Nv ($PLAZ) | | 17.9x | | 41.9x | |
| Quintain Estates & Development ($QED) | | | | 15.3x | 4.5x |
| London & Associated Properties ($LAS) | 10.8x | 40.8x | 11.1x | 13.0x | |
| Panther Securities ($PNS) | 11.8x | 13.0x | 10.6x | 11.8x | |
| |
|---|
| Median (12 companies) | 6.0x | 6.4x | 3.8x | 9.0x | 0.8x |
|---|
| Hagl JSC ($HAG) | 7.5x | 13.4x | 10.5x | 14.2x | 14.8x |
