Eye on China Tian Lun Gas Holdings Ltd as a growth stock
02/04/2015 • About China Tian Lun Gas Holdings Ltd (
$1600) • By InTwits
Have you thought about China Tian Lun Gas Holdings Ltd as a growth stock? It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
China Tian Lun Gas Holdings Ltd showed growth in the last financial year. The company's revenue surged on 47.4% in FY2014. Together with revenue growth China Tian Lun Gas Holdings Ltd also managed to keep EBITDA growth. EBITDA grew 50.1% for the same period.
If we look for the longer period China Tian Lun Gas Holdings Ltd showed fast revenue growth of 43.9% from 2011 to 2014 annualy. EBITDA surged on 44.1% from 2011 to 2014 annualy.
China Tian Lun Gas Holdings Ltd ($1600) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 258 | 451 | 716 | 912 | 1,344 |
|---|
| Revenue growth, % | | 74.6% | 58.9% | 27.3% | 47.4% |
|---|
| Gross margin, % | 46.9% | 38.1% | 35.1% | 36.5% | 34.3% |
|---|
| SG&A, % | 7.13% | 10.6% | 8.66% | 7.92% | 6.65% |
|---|
| EBITDA | 110 | 149 | 241 | 297 | 446 |
|---|
| EBITDA growth, % | | 35.5% | 61.3% | 23.7% | 50.1% |
|---|
| EBITDA margin, % | 42.6% | 33.1% | 33.6% | 32.6% | 33.2% |
|---|
| Net Income | 75 | 83 | 135 | 169 | 220 |
|---|
| Net Income margin, % | 29.1% | 18.3% | 18.9% | 18.5% | 16.4% |
|---|
| |
| CAPEX | 25 | 171 | 124 | 144 | 275 |
|---|
| CAPEX/Revenue, % | 9.52% | 38.0% | 17.2% | 15.8% | 20.4% |
|---|
| Debt | 31 | 471 | 806 | 1,011 | 1,383 |
|---|
| Cash | 412 | 311 | 369 | 576 | 264 |
|---|
| Net Debt/EBITDA | -3.5x | 1.1x | 1.8x | 1.5x | 2.5x |
|---|
| |
| ROIC, % | 25.9% | 13.5% | 13.5% | 12.8% | 14.1% |
|---|
| ROE, % | 22.6% | 14.1% | 19.8% | 20.2% | 21.3% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. EBITDA margin increased slightly on 0.600 pp from 32.6% to 33.2% in 2014. If we look for the longer period the company's EBITDA margin showed almost no change on 0.100 pp from 33.1% in 2011 to 33.2% in 2014.
China Tian Lun Gas Holdings Ltd shows attractive ROIC at 14.1% for the last 12 months which assumes stable development model. Three years ago it was a bit lower at 13.5%. Average ROIC for the last three years was 13.5%.
The company showed big decline in Net Income margin of 2.10 pp from 18.5% to 16.4% in 2014. In the last 3 years the company's Net Income margin dropped on 1.90 pp from 18.3% in 2011 to 16.4% in 2014.
China Tian Lun Gas Holdings Ltd operates at ROE of 21.3%. It's average ROE for the last three years was 20.4%.
Capital expenditures (CAPEX)
To this fast growth China Tian Lun Gas Holdings Ltd had to invest in CAPEX.The company's CAPEX/Revenue was 20.4% in FY2014. The company's CAPEX/Revenue dropped on 17.5 pp from 38.0% in 2011 to 20.4% in 2014. It's average level of CAPEX/Revenue for the last three years was 17.8%.
Leverage (Debt)
China Tian Lun Gas Holdings Ltd has medium debt level at 2.5x Net Debt/EBITDA to maintain high growth. In the longer period the company's leverage surged on 1.44x from 1.07x in 2011 to 2.51x in 2014.
Peers in Pipelines
Below you can find China Tian Lun Gas Holdings Ltd benchmarking vs. other companies in Pipelines 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Chinese People Holdings Co Ltd ($681) | | 18.4% | 24.9% | -16.4% | 8.2% |
| |
|---|
| Median (1 company) | | 18.4% | 24.9% | -16.4% | 8.2% |
|---|
| China Tian Lun Gas Holdings Ltd ($1600) | | 74.6% | 58.9% | 27.3% | 47.4% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Chinese People Holdings Co Ltd ($681) | 29.8% | 26.9% | 26.2% | 19.6% | 20.3% |
| |
|---|
| Median (1 company) | 29.8% | 26.9% | 26.2% | 19.6% | 20.3% |
|---|
| China Tian Lun Gas Holdings Ltd ($1600) | 46.9% | 38.1% | 35.1% | 36.5% | 34.3% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Chinese People Holdings Co Ltd ($681) | 13.8% | 12.4% | 13.7% | 7.2% | 5.1% |
| |
|---|
| Median (1 company) | 13.8% | 12.4% | 13.7% | 7.2% | 5.1% |
|---|
| China Tian Lun Gas Holdings Ltd ($1600) | 42.6% | 33.1% | 33.6% | 32.6% | 33.2% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Chinese People Holdings Co Ltd ($681) | 22.5% | 12.9% | 13.9% | 5.9% | 8.4% |
| |
|---|
| Median (1 company) | 22.5% | 12.9% | 13.9% | 5.9% | 8.4% |
|---|
| China Tian Lun Gas Holdings Ltd ($1600) | 9.5% | 38.0% | 17.2% | 15.8% | 20.4% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Chinese People Holdings Co Ltd ($681) | 5.8% | 5.6% | 5.1% | 0.1% | 1.5% |
| |
|---|
| Median (1 company) | 5.8% | 5.6% | 5.1% | 0.1% | 1.5% |
|---|
| China Tian Lun Gas Holdings Ltd ($1600) | 25.9% | 13.5% | 13.5% | 12.8% | 14.1% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Chinese People Holdings Co Ltd ($681) | -1.1x | -0.4x | -0.2x | -4.2x | -5.8x |
| |
|---|
| Median (1 company) | -1.1x | -0.4x | -0.2x | -4.2x | -5.8x |
|---|
| China Tian Lun Gas Holdings Ltd ($1600) | -3.5x | 1.1x | 1.8x | 1.5x | 2.5x |
