Vitasoy International Holdings Ltd reports 143% CAPEX growth and 12.4% Revenue growth
25/06/2015 • About Vitasoy International Holdings Ltd (
$345) • By InTwits
Vitasoy International Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vitasoy International Holdings Ltd is a growth stock: FY2015 revenue growth was 12.4%, 5 year revenue CAGR was 10.9% at FY2015 ROIC 23.5%
- EBITDA Margin is relatively stable: 14.4% in FY2015 vs. 14.5% in FY2014 vs. 16.1% in FY2011
- Vitasoy International Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.1%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 560 in FY2015, 231 in FY2014, 171 in FY2013, 414 in FY2012, 467 in FY2011
- The company has highly profitable business model: ROIC is at 23.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Vitasoy International Holdings Ltd ($345) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,329 | 3,717 | 4,051 | 4,494 | 5,052 | 12.4% |
| Gross Profit | 1,601 | 1,760 | 1,925 | 2,175 | 2,511 | 15.4% |
| SG&A | 1,024 | 1,155 | 1,298 | 1,496 | 1,756 | 17.4% |
| EBITDA | 537 | 553 | 617 | 652 | 726 | 11.4% |
| Net Income | 284 | 281 | 301 | 307 | 372 | 21.3% |
Balance Sheet
|
|---|
| Cash | 352 | 206 | 223 | 320 | 335 | 4.4% |
| Short Term Debt | 146 | 309 | 152 | 53 | 127 | 139.8% |
| Long Term Debt | 127 | 89 | 100 | 73 | 31 | -57.8% |
Cash flow
|
|---|
| Capex | 467 | 414 | 171 | 231 | 560 | 142.8% |
Ratios
|
|---|
| Revenue growth | 10.5% | 11.6% | 9.0% | 10.9% | 12.4% | |
| EBITDA growth | 12.7% | 2.8% | 11.7% | 5.6% | 11.4% | |
| Gross Margin | 48.1% | 47.4% | 47.5% | 48.4% | 49.7% | 1.3% |
| EBITDA Margin | 16.1% | 14.9% | 15.2% | 14.5% | 14.4% | -0.1% |
| Net Income Margin | 8.5% | 7.6% | 7.4% | 6.8% | 7.4% | 0.5% |
| SG&A, % of revenue | 30.8% | 31.1% | 32.0% | 33.3% | 34.8% | 1.5% |
| CAPEX, % of revenue | 14.0% | 11.1% | 4.2% | 5.1% | 11.1% | 6.0% |
| ROIC | 23.8% | 20.8% | 20.6% | 21.7% | 23.5% | 1.8% |
| ROE | 20.5% | 19.3% | 19.3% | 18.2% | 20.3% | 2.1% |
| Net Debt/EBITDA | -0.1x | 0.3x | 0.0x | -0.3x | -0.2x | 0.1x |
Revenue and profitability
Vitasoy International Holdings Ltd's Revenue surged on 12.4% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.9 pp from 8.0% to 9.9% in 2015.
Gross Margin increased slightly on 1.3 pp from 48.4% to 49.7% in FY2015. SG&A as a % of Revenue increased slightly on 1.5 pp from 33.3% to 34.8% in FY2015.
Net Income marign increased slightly on 0.54 pp from 6.8% to 7.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 11.1%. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 6.8%.Vitasoy International Holdings Ltd invested a big chunk of EBITDA (77.1%) to CAPEX to fuel its growth.
Return on investment
The company operates at high and attractive ROIC (23.51%) and ROE (20.28%). ROIC increased slightly on 1.8 pp from 21.7% to 23.5% in FY2015. ROE increased on 2.1 pp from 18.2% to 20.3% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.2x and Debt / EBITDA is 0.2x. Net Debt / EBITDA increased on 0.1x from -0.3x to -0.2x in FY2015. Debt surged on 25.1% in FY2015 while cash increased on 4.4% in FY2015.
Appendix 1: Peers in Beverages
Below we provide Vitasoy International Holdings Ltd benchmarking against other companies in Beverages 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 |
|---|
| China Tontine Wines Group Ltd ($389) | 18.0% | -20.7% | -73.3% | 62.7% | |
| Silver base Group Holdings Ltd ($886) | 68.1% | 34.1% | -86.9% | 25.4% | |
| Besunyen Holdings Co Ltd ($926) | -3.9% | -43.5% | 2.6% | 15.7% | |
| China Tianyi Holdings Ltd ($756) | -5.0% | 43.0% | -19.2% | 8.3% | |
| San Miguel Brewery Hong Kong Ltd ($236) | 16.0% | 0.4% | 0.1% | 6.0% | |
| |
|---|
| Median (15 companies) | 17.8% | -2.7% | -13.0% | 2.0% | -10.5% |
|---|
| Vitasoy International Holdings Ltd ($345) | | 11.6% | 9.0% | 10.9% | 12.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Besunyen Holdings Co Ltd ($926) | 87.8% | 82.5% | 83.3% | 84.3% | |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 78.8% | 81.4% | 73.2% | 62.7% | |
| Tenfu Cayman Holdings Co Ltd ($6868) | 61.6% | 64.1% | 61.2% | 62.2% | |
| San Miguel Brewery Hong Kong Ltd ($236) | 43.4% | 42.8% | 42.2% | 42.8% | |
| JLF Investment Co Ltd ($472) | 54.4% | 50.9% | 48.7% | 42.4% | |
| |
|---|
| Median (15 companies) | 43.4% | 44.5% | 34.7% | 34.7% | 38.8% |
|---|
| Vitasoy International Holdings Ltd ($345) | 48.1% | 47.4% | 47.5% | 48.4% | 49.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 72.2% | 73.3% | 73.2% | 69.2% | |
| China Tianyi Holdings Ltd ($756) | 17.7% | 28.4% | 26.1% | 29.7% | |
| Tenfu Cayman Holdings Co Ltd ($6868) | 27.4% | 27.5% | 25.3% | 26.1% | |
| Yantai North Andre Juice Co ($2218) | 16.1% | 14.1% | 11.9% | 15.5% | |
| China Haisheng Juice Holdings Co Ltd ($359) | 15.2% | 5.8% | 6.6% | 14.9% | |
| |
|---|
| Median (15 companies) | 17.7% | 17.3% | 9.6% | 10.6% | -6.9% |
|---|
| Vitasoy International Holdings Ltd ($345) | 16.1% | 14.9% | 15.2% | 14.5% | 14.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Culiangwang Beverages Holdings Ltd ($904) | 39.1% | 26.8% | 52.2% | 81.8% | |
| China Tianyi Holdings Ltd ($756) | 7.5% | 5.8% | 6.2% | 33.6% | |
| China Tontine Wines Group Ltd ($389) | 5.3% | 15.3% | 129.4% | 16.7% | |
| China Haisheng Juice Holdings Co Ltd ($359) | 3.6% | 4.8% | 6.3% | 15.3% | |
| Tenfu Cayman Holdings Co Ltd ($6868) | 11.2% | 18.3% | 8.8% | 12.0% | |
| |
|---|
| Median (15 companies) | 6.2% | 10.1% | 7.3% | 8.8% | 3.4% |
|---|
| Vitasoy International Holdings Ltd ($345) | 14.0% | 11.1% | 4.2% | 5.1% | 11.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tenfu Cayman Holdings Co Ltd ($6868) | 26.1% | 19.4% | 17.9% | 15.7% | |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 41.0% | 23.3% | 20.3% | 14.9% | |
| Tsingtao Brewery Co Ltd ($168) | 16.4% | 13.4% | 12.0% | 12.2% | |
| China Tianyi Holdings Ltd ($756) | 7.3% | 12.0% | 6.1% | 6.7% | |
| Yantai North Andre Juice Co ($2218) | 8.4% | 6.5% | 3.2% | 4.2% | |
| |
|---|
| Median (15 companies) | 10.3% | 9.6% | 3.0% | 2.7% | -11.1% |
|---|
| Vitasoy International Holdings Ltd ($345) | 23.8% | 20.8% | 20.6% | 21.7% | 23.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino Distillery Group Ltd ($39) | | | 4.6x | 17.7x | |
| China Haisheng Juice Holdings Co Ltd ($359) | 3.0x | 11.9x | 16.2x | 8.9x | |
| China Huiyuan Juice Group Ltd ($1886) | 8.6x | 5.4x | 4.3x | 7.9x | |
| Yantai North Andre Juice Co ($2218) | 2.6x | 2.3x | 2.4x | 2.2x | |
| San Miguel Brewery Hong Kong Ltd ($236) | | | 2.0x | 1.0x | |
| |
|---|
| Median (10 companies) | -1.1x | -1.0x | 1.9x | 1.0x | |
|---|
| Vitasoy International Holdings Ltd ($345) | -0.1x | 0.3x | 0.0x | -0.3x | -0.2x |
