Tysan Holdings Ltd Net Income surged on 47.9% in 2015 and Revenue surged on 38.0%
11/06/2015 • About Tysan Holdings Ltd (
$687) • By InTwits
Tysan Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tysan Holdings Ltd is a fast growth stock: FY2015 revenue growth was 38.0%, 5 year revenue CAGR was 17.8% at FY2015 ROIC 21.0%
- EBITDA Margin is quite volatile: 17.7% in FY2015, 16.6% in FY2014, 11.5% in FY2013, 7.9% in FY2012, 22.1% in FY2011
- Tysan Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's in pair with industry average of 3.3%.
- CAPEX is quite volatile: 133 in FY2015, 61.8 in FY2014, 75.3 in FY2013, 304 in FY2012, 84.8 in FY2011
- The company has highly profitable business model: ROIC is at 21.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tysan Holdings Ltd ($687) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,660 | 2,348 | 3,767 | 3,504 | 4,836 | 38.0% |
| Gross Profit | 594 | 216 | 441 | 644 | 859 | 33.3% |
| SG&A | | 76 | 88 | 141 | 89 | -36.8% |
| EBITDA | 587 | 186 | 432 | 583 | 854 | 46.5% |
| Net Income | 373 | 98 | 348 | 270 | 399 | 47.9% |
Balance Sheet
|
|---|
| Cash | 991 | 484 | 1,018 | 1,548 | 1,287 | -16.8% |
| Short Term Debt | 128 | 231 | 110 | 252 | 143 | -43.2% |
| Long Term Debt | 332 | 367 | 726 | 334 | 225 | -32.7% |
Cash flow
|
|---|
| Capex | 85 | 304 | 75 | 62 | 133 | 114.9% |
Ratios
|
|---|
| Revenue growth | 24.6% | -11.7% | 60.4% | -7.0% | 38.0% | |
| EBITDA growth | -18.1% | -68.4% | 132.5% | 34.9% | 46.5% | |
| Gross Margin | 22.3% | 9.2% | 11.7% | 18.4% | 17.8% | -0.6% |
| EBITDA Margin | 22.1% | 7.9% | 11.5% | 16.6% | 17.7% | 1.0% |
| Net Income Margin | 14.0% | 4.2% | 9.3% | 7.7% | 8.3% | 0.6% |
| SG&A, % of revenue | | 3.2% | 2.3% | 4.0% | 1.8% | -2.2% |
| CAPEX, % of revenue | 3.2% | 12.9% | 2.0% | 1.8% | 2.7% | 1.0% |
| ROIC | 16.1% | 4.1% | 10.6% | 14.0% | 21.0% | 7.1% |
| ROE | 22.1% | 5.0% | 16.0% | 11.2% | 15.3% | 4.1% |
| Net Debt/EBITDA | -0.9x | 0.6x | -0.4x | -1.7x | -1.1x | 0.6x |
Revenue and profitability
The company's Revenue jumped on 38.0% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.2 pp from 11.2% to 12.4% in 2015.
Gross Margin decreased slightly on 0.63 pp from 18.4% to 17.8% in FY2015. SG&A as a % of Revenue decreased on 2.2 pp from 4.0% to 1.8% in FY2015.
Net Income marign increased slightly on 0.55 pp from 7.7% to 8.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Tysan Holdings Ltd's CAPEX/Revenue was 2.7% in FY2015. The company showed big decline in CAPEX/Revenue of 10.2 pp from 12.9% in FY2012 to 2.7% in FY2015. It's average level of CAPEX/Revenue for the last three years was 2.2%.
Return on investment
The company operates at high and attractive ROIC (21.05%) while ROE is a bit lower (15.29%). ROIC increased on 7.1 pp from 14.0% to 21.0% in FY2015. ROE increased on 4.1 pp from 11.2% to 15.3% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.1x and Debt / EBITDA is 0.4x. Net Debt / EBITDA jumped on 0.6x from -1.7x to -1.1x in FY2015. Debt dropped on 37.2% in FY2015 while cash dropped on 16.8% in FY2015.
Appendix 1: Peers in Engineering&Construction
Below you can find Tysan Holdings Ltd benchmarking vs. other companies in Engineering&Construction 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 |
|---|
| Richly Field China Development Ltd ($313) | | | -45.0% | 464.2% | |
| Junefield Department Store Group Ltd ($758) | 22.9% | -20.3% | -24.9% | 126.6% | |
| CNQC International Holdings Ltd ($1240) | 401.9% | 21.6% | 91.0% | 103.7% | |
| Wison Engineering Services Co Ltd ($2236) | 1.2% | -2.9% | -24.9% | 90.3% | |
| China Resources and Transportation Group Ltd ($269) | -37.0% | 939.8% | 3,196.3% | 87.9% | |
| |
|---|
| Median (38 companies) | 11.1% | 11.5% | 19.2% | 11.3% | 44.4% |
|---|
| Tysan Holdings Ltd ($687) | | -11.7% | 60.4% | -7.0% | 38.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huayu Expressway Group Ltd ($1823) | 2.2% | 43.6% | 65.6% | 64.0% | |
| HNA Infrastructure Company Ltd ($357) | 61.6% | 66.4% | 62.1% | 62.4% | |
| Freetech Road Recycling Technology Holdings Ltd ($6888) | 50.1% | 54.1% | 54.3% | 41.5% | |
| Grand Ming Group Holdings Ltd ($1271) | 20.4% | 11.0% | 18.1% | 35.7% | 19.7% |
| China Saite Group Co Ltd ($153) | 29.4% | 32.1% | 33.7% | 29.8% | |
| |
|---|
| Median (33 companies) | 11.0% | 12.4% | 12.1% | 11.9% | 13.0% |
|---|
| Tysan Holdings Ltd ($687) | 22.3% | 9.2% | 11.7% | 18.4% | 17.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huayu Expressway Group Ltd ($1823) | -0.5% | 46.2% | 73.8% | 77.1% | |
| HNA Infrastructure Company Ltd ($357) | 60.0% | 62.8% | 63.7% | 62.8% | |
| Beijing Capital International Airport Co Ltd ($694) | 55.1% | 53.4% | 52.9% | 50.3% | |
| Cheung Kong Infrastructure Holdings Ltd ($1038) | 39.8% | 31.2% | 20.6% | 36.2% | |
| Grand Ming Group Holdings Ltd ($1271) | 17.5% | 10.0% | 15.8% | 31.0% | 19.0% |
| |
|---|
| Median (39 companies) | 8.5% | 9.2% | 7.1% | 5.7% | 10.6% |
|---|
| Tysan Holdings Ltd ($687) | 22.1% | 7.9% | 11.5% | 16.6% | 17.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HNA Infrastructure Company Ltd ($357) | 43.3% | 36.8% | 5.7% | 85.4% | |
| PYI Corp Ltd ($498) | 6.6% | 3.7% | 4.2% | 24.5% | |
| Shun Cheong Holdings ($650) | 7.2% | 16.4% | 8.0% | 23.9% | |
| Freetech Road Recycling Technology Holdings Ltd ($6888) | 6.1% | 4.2% | 7.7% | 20.2% | |
| KFM Kingdom Holdings Ltd ($3816) | 6.5% | 4.6% | 11.5% | 14.9% | |
| |
|---|
| Median (39 companies) | 4.7% | 2.5% | 3.5% | 2.6% | 17.9% |
|---|
| Tysan Holdings Ltd ($687) | 3.2% | 12.9% | 2.0% | 1.8% | 2.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chun Sing Engineering Holdings Ltd ($2277) | | | 98.3% | 54.9% | |
| CNQC International Holdings Ltd ($1240) | 23.1% | 12.2% | 22.3% | 40.4% | |
| China Saite Group Co Ltd ($153) | 46.3% | 64.0% | 53.2% | 35.3% | |
| China Machinery Engineering Corp ($1829) | 35.5% | 24.9% | 20.4% | 16.0% | |
| China State Construction International Holdings Ltd ($3311) | 9.9% | 10.2% | 10.7% | 12.2% | |
| |
|---|
| Median (40 companies) | 6.9% | 5.5% | 4.6% | 3.3% | -4.1% |
|---|
| Tysan Holdings Ltd ($687) | 16.1% | 4.1% | 10.6% | 14.0% | 21.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Resources and Transportation Group Ltd ($269) | | | | 66.7x | |
| CNC Holdings Ltd ($8356) | -0.7x | | 22.0x | 21.9x | 24.3x |
| Deson Development International Holdings ($262) | 3.1x | 3.8x | 4.9x | 13.7x | |
| Chun Wo Development Holdings Ltd ($711) | | 14.3x | 8.1x | 12.6x | |
| Hsin Chong Construction Group Ltd ($404) | 4.3x | 1.8x | 8.0x | 10.2x | |
| |
|---|
| Median (32 companies) | 0.8x | 2.4x | 3.5x | 3.1x | 15.1x |
|---|
| Tysan Holdings Ltd ($687) | -0.9x | 0.6x | -0.4x | -1.7x | -1.1x |
