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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. HKD201120122013201420152015/2014
P&L
Revenue2,6602,3483,7673,5044,83638.0%
Gross Profit59421644164485933.3%
SG&A768814189-36.8%
EBITDA58718643258385446.5%
Net Income3739834827039947.9%
Balance Sheet
Cash9914841,0181,5481,287-16.8%
Short Term Debt128231110252143-43.2%
Long Term Debt332367726334225-32.7%
Cash flow
Capex853047562133114.9%
Ratios
Revenue growth24.6%-11.7%60.4%-7.0%38.0%
EBITDA growth-18.1%-68.4%132.5%34.9%46.5%
Gross Margin22.3%9.2%11.7%18.4%17.8%-0.6%
EBITDA Margin22.1%7.9%11.5%16.6%17.7%1.0%
Net Income Margin14.0%4.2%9.3%7.7%8.3%0.6%
SG&A, % of revenue3.2%2.3%4.0%1.8%-2.2%
CAPEX, % of revenue3.2%12.9%2.0%1.8%2.7%1.0%
ROIC16.1%4.1%10.6%14.0%21.0%7.1%
ROE22.1%5.0%16.0%11.2%15.3%4.1%
Net Debt/EBITDA-0.9x0.6x-0.4x-1.7x-1.1x0.6x

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)-0.7x22.0x21.9x24.3x
Deson Development International Holdings ($262)3.1x3.8x4.9x13.7x
Chun Wo Development Holdings Ltd ($711)14.3x8.1x12.6x
Hsin Chong Construction Group Ltd ($404)4.3x1.8x8.0x10.2x
 
Median (32 companies)0.8x2.4x3.5x3.1x15.1x
Tysan Holdings Ltd ($687)-0.9x0.6x-0.4x-1.7x-1.1x