China Tianyi Holdings Ltd CAPEX dropped on 84.9% in 2015 and Revenue dropped on 17.3%
15/09/2015 • About China Tianyi Holdings Ltd (
$756) • By InTwits
China Tianyi Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Tianyi Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.8%. At the same time it's in pair with industry average of 11.4%.
- CAPEX is quite volatile: 28.9 in FY2015, 191 in FY2014, 32.5 in FY2013, 37.8 in FY2012, 34.1 in FY2011
- The company has potentially unprofitable business model: ROIC is at 3.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Tianyi Holdings Ltd ($756) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 455.2 | 651.0 | 525.8 | 569.2 | 470.8 | -17.3% |
| Gross Profit | 141.3 | 247.9 | 198.0 | 208.1 | 170.2 | -18.2% |
| SG&A | 76.9 | 77.9 | 77.2 | 78.2 | 102.8 | 31.4% |
| EBITDA | 80.8 | 185.1 | 137.0 | 168.9 | 108.3 | -35.8% |
| Net Income | 153.8 | 250.3 | 67.1 | 116.9 | 78.0 | -33.2% |
Balance Sheet
|
|---|
| Cash | 556.0 | 513.2 | 488.9 | 481.7 | 430.9 | -10.5% |
| Short Term Debt | 250.7 | 136.1 | 183.1 | 459.7 | 228.3 | -50.3% |
| Long Term Debt | 5.1 | 184.3 | 199.4 | 180.8 | 316.5 | 75.1% |
Cash flow
|
|---|
| Capex | 34.1 | 37.8 | 32.5 | 191.0 | 28.9 | -84.9% |
Ratios
|
|---|
| Revenue growth | -5.0% | 43.0% | -19.2% | 8.3% | -17.3% | |
| EBITDA growth | -36.4% | 129.1% | -26.0% | 23.2% | -35.8% | |
| Gross Margin | 31.0% | 38.1% | 37.7% | 36.6% | 36.1% | -0.4% |
| EBITDA Margin | 17.7% | 28.4% | 26.1% | 29.7% | 23.0% | -6.7% |
| Net Income Margin | 33.8% | 38.4% | 12.8% | 20.5% | 16.6% | -4.0% |
| SG&A, % of revenue | 16.9% | 12.0% | 14.7% | 13.7% | 21.8% | 8.1% |
| CAPEX, % of revenue | 7.5% | 5.8% | 6.2% | 33.6% | 6.1% | -27.4% |
| ROIC | 7.3% | 12.0% | 6.1% | 6.7% | 3.2% | -3.6% |
| ROE | 21.6% | 24.1% | 5.0% | 7.9% | 4.9% | -3.1% |
| Net Debt/EBITDA | -3.7x | -1.0x | -0.8x | 0.9x | 1.1x | 0.1x |
Revenue and profitability
China Tianyi Holdings Ltd's Revenue dropped on 17.3% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 12.4 pp from 86.6% to 99.0% in FY2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue increased on 8.1 pp from 13.7% to 21.8% in FY2015.
Net Income marign decreased on 4.0 pp from 20.5% to 16.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 6.1%. CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 15.3%.
Return on investment
The company operates at low ROIC (3.17%) and ROE (4.87%). ROIC decreased on 3.6 pp from 6.7% to 3.2% in FY2015. ROE decreased on 3.1 pp from 7.9% to 4.9% in FY2015.
Leverage (Debt)
Debt level is 1.1x Net Debt / EBITDA and 5.0x Debt / EBITDA. Net Debt / EBITDA jumped on 0.1x from 0.9x to 1.1x in FY2015. Debt dropped on 14.9% in FY2015 while cash dropped on 10.5% in FY2015.
Appendix 1: Peers in Beverages
Below you can find China Tianyi Holdings Ltd benchmarking vs. other companies in Beverages 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 |
|---|
| China Tontine Wines Group Ltd ($389) | 18.0% | -20.7% | -73.3% | 62.7% | |
| Silver base Group Holdings Ltd ($886) | | 34.1% | -86.9% | 25.4% | -14.4% |
| Besunyen Holdings Co Ltd ($926) | -3.9% | -43.5% | 2.6% | 15.7% | |
| Vitasoy International Holdings Ltd ($345) | | 11.6% | 9.0% | 10.9% | 12.4% |
| San Miguel Brewery Hong Kong Ltd ($236) | 16.0% | 0.4% | 0.1% | 6.0% | |
| |
|---|
| Median (15 companies) | 18.0% | -2.7% | -8.1% | 2.0% | -12.4% |
|---|
| China Tianyi Holdings Ltd ($756) | | 43.0% | -19.2% | 8.3% | -17.3% |
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% | |
| Vitasoy International Holdings Ltd ($345) | 48.1% | 47.4% | 47.5% | 48.4% | 49.7% |
| San Miguel Brewery Hong Kong Ltd ($236) | 43.4% | 42.8% | 42.2% | 42.8% | |
| |
|---|
| Median (15 companies) | 46.1% | 44.8% | 34.7% | 34.7% | 29.3% |
|---|
| China Tianyi Holdings Ltd ($756) | 31.0% | 38.1% | 37.7% | 36.6% | 36.1% |
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% | |
| 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% | |
| Vitasoy International Holdings Ltd ($345) | 16.1% | 14.9% | 15.2% | 14.5% | 14.4% |
| |
|---|
| Median (15 companies) | 16.1% | 15.2% | 9.6% | 10.6% | -6.1% |
|---|
| China Tianyi Holdings Ltd ($756) | 17.7% | 28.4% | 26.1% | 29.7% | 23.0% |
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% | 75.8% |
| 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% | |
| China Huiyuan Juice Group Ltd ($1886) | 20.1% | 11.7% | 7.4% | 10.5% | |
| |
|---|
| Median (15 companies) | 6.2% | 11.1% | 7.3% | 7.3% | 7.2% |
|---|
| China Tianyi Holdings Ltd ($756) | 7.5% | 5.8% | 6.2% | 33.6% | 6.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitasoy International Holdings Ltd ($345) | 23.8% | 20.8% | 20.6% | 21.7% | 23.5% |
| 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% | |
| Yantai North Andre Juice Co ($2218) | 8.4% | 6.5% | 3.2% | 4.2% | |
| |
|---|
| Median (15 companies) | 14.9% | 10.3% | 3.0% | 2.7% | -4.1% |
|---|
| China Tianyi Holdings Ltd ($756) | 7.3% | 12.0% | 6.1% | 6.7% | 3.2% |
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) | -0.4x | -0.7x | 1.9x | 0.9x | -0.2x |
|---|
| China Tianyi Holdings Ltd ($756) | -3.7x | -1.0x | -0.8x | 0.9x | 1.1x |
