Farglory Land Development Co Ltd revenue returned to growth in 2015: increased 52.6% vs. 29.0% decline a year earliner
31 Mar 2016 • About Farglory Land Development Co Ltd (
$FLDS) • By InTwits
Farglory Land Development Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 26.7% in 2015 vs. 30.2% in 2014 vs. 33.7% in 2011
- Farglory Land Development Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's in pair with industry average of 4.1%.
- CAPEX is quite volatile: 4.0 in 2015, 1,475 in 2014, 567 in 2013, 552 in 2012, 383 in 2011
- The company has business model with low profitability: ROIC is at 9.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Farglory Land Development Co Ltd ($FLDS) key annual financial indicators
| mln. TWD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 20,219 | 15,391 | 25,118 | 17,824 | 27,196 | 52.6% |
| Gross Profit | 8,278 | 6,275 | 9,862 | 6,855 | 9,223 | 34.5% |
| SG&A | | 1,152 | 1,924 | 1,519 | 2,020 | 33.0% |
| EBITDA | 6,818 | 5,162 | 7,979 | 5,389 | 7,259 | 34.7% |
| Net Income | 5,895 | 3,754 | 6,694 | 5,007 | 6,467 | 29.2% |
Balance Sheet
|
|---|
| Cash | 974 | 759 | 409 | 2,368 | 2,149 | -9.3% |
| Short Term Debt | 17,486 | 22,090 | 22,248 | 31,018 | 32,274 | 4.0% |
| Long Term Debt | 295 | 4,060 | 6,782 | 1,965 | 1,855 | -5.6% |
Cash flow
|
|---|
| Capex | 383 | 552 | 567 | 1,475 | 4 | -99.7% |
Ratios
|
|---|
| Revenue growth | 0.8% | -23.9% | 63.2% | -29.0% | 52.6% | |
| EBITDA growth | -2.7% | -24.3% | 54.6% | -32.5% | 34.7% | |
| Gross Margin | 40.9% | 40.8% | 39.3% | 38.5% | 33.9% | -4.5% |
| EBITDA Margin | 33.7% | 33.5% | 31.8% | 30.2% | 26.7% | -3.5% |
| Net Income Margin | 29.2% | 24.4% | 26.7% | 28.1% | 23.8% | -4.3% |
| SG&A, % of revenue | | 7.5% | 7.7% | 8.5% | 7.4% | -1.1% |
| CAPEX, % of revenue | 1.9% | 3.6% | 2.3% | 8.3% | 0.0% | -8.3% |
| ROIC | 16.0% | 9.7% | 13.0% | 7.7% | 9.5% | 1.8% |
| ROE | 20.5% | 12.5% | 21.0% | 13.3% | 15.5% | 2.2% |
| Net Debt/EBITDA | 2.5x | 4.9x | 3.6x | 5.7x | 4.4x | -1.3x |
Revenue and profitability
The company's Revenue surged on 52.6% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 3.5 pp from 30.2% to 26.7% in 2015.
Gross Margin decreased on 4.5 pp from 38.5% to 33.9% in 2015. SG&A as a % of Revenue decreased slightly on 1.1 pp from 8.5% to 7.4% in 2015.
Net Income marign decreased on 4.3 pp from 28.1% to 23.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Farglory Land Development Co Ltd had CAPEX/Revenue of 0.015%. Farglory Land Development Co Ltd's CAPEX/Revenue decreased on 3.6 pp from 3.6% in 2012 to 0.015% in 2015. For the last three years the average CAPEX/Revenue was 3.5%.
Return on investment
The company operates at good ROE (15.55%) while ROIC is low (9.48%). ROIC increased slightly on 1.8 pp from 7.7% to 9.5% in 2015. ROE increased on 2.2 pp from 13.3% to 15.5% in 2015.
Leverage (Debt)
Debt level is 4.4x Net Debt / EBITDA and 4.7x Debt / EBITDA. Net Debt / EBITDA dropped on 1.3x from 5.7x to 4.4x in 2015. Debt increased on 3.5% in 2015 while cash decreased on 9.3% in 2015.
Appendix 1: Peers in Real Estate Investment & Services
Below you can find Farglory Land Development Co Ltd benchmarking vs. other companies in Real Estate Investment & Services 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Plaza Centers Nv ($PLAZ) | | 28.0% | -10.0% | 131.0% | -13.4% |
| Formation Group ($FRM) | | -60.8% | 147.9% | 35.8% | 199.3% |
| Etalon Group Ltd ($ETLN) | | 18.3% | 48.4% | 29.0% | -17.6% |
| Safeland ($SAF) | | 38.2% | -40.1% | 21.2% | -1.5% |
| Hml Hldgs ($HMLH) | | 12.9% | 20.8% | 15.3% | 16.7% |
| |
|---|
| Median (16 companies) | 2.5% | 5.0% | 13.0% | 3.4% | -1.5% |
|---|
| Farglory Land Development Co Ltd ($FLDS) | | -23.9% | 63.2% | -29.0% | 52.6% |
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 ($DMC) | 37.5% | 40.7% | 64.4% | 59.6% | 59.4% |
| |
|---|
| Median (12 companies) | 41.4% | 40.7% | 46.7% | 35.4% | 30.2% |
|---|
| Farglory Land Development Co Ltd ($FLDS) | 40.9% | 40.8% | 39.3% | 38.5% | 33.9% |
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% |
| Hagl JSC ($HAG) | 37.0% | 23.1% | 40.5% | 39.6% | 28.2% |
| |
|---|
| Median (15 companies) | 30.2% | 23.4% | 20.9% | 11.8% | 22.2% |
|---|
| Farglory Land Development Co Ltd ($FLDS) | 33.7% | 33.5% | 31.8% | 30.2% | 26.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Quintain Estates & Development ($QED) | 136.2% | 210.6% | 162.3% | 217.2% | 173.3% |
| Hagl JSC ($HAG) | 152.8% | 134.2% | 171.2% | 145.6% | 127.1% |
| 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 ($PNS) | 176.0% | 87.9% | 42.6% | 26.0% | |
| |
|---|
| Median (16 companies) | 1.7% | 2.1% | 1.2% | 1.5% | 3.1% |
|---|
| Farglory Land Development Co Ltd ($FLDS) | 1.9% | 3.6% | 2.3% | 8.3% | 0.0% |
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% | 10.2% |
| PIK Group OJSC ($PIK) | 25.6% | 21.2% | 25.6% | 13.5% | 25.3% |
| Hml Hldgs ($HMLH) | 5.6% | 8.2% | 9.9% | 12.5% | 12.5% |
| Summit Germany Ltd ($SMTG) | 5.8% | 6.9% | 5.6% | 7.1% | |
| |
|---|
| Median (16 companies) | 3.8% | 3.6% | 3.0% | 2.3% | 5.1% |
|---|
| Farglory Land Development Co Ltd ($FLDS) | 16.0% | 9.7% | 13.0% | 7.7% | 9.5% |
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 | 25.4x |
| Quintain Estates & Development ($QED) | | | | 15.3x | 4.5x |
| Hagl JSC ($HAG) | 7.5x | 13.4x | 10.5x | 14.2x | 14.8x |
| London & Associated Properties ($LAS) | 10.8x | 40.8x | 11.1x | 13.0x | |
| |
|---|
| Median (12 companies) | 7.9x | 8.2x | 7.3x | 11.0x | 1.1x |
|---|
| Farglory Land Development Co Ltd ($FLDS) | 2.5x | 4.9x | 3.6x | 5.7x | 4.4x |
