Heng Tai Consumables Group Ltd revenue decreased on 4.1% in 2015 while EBITDA Margin surged on 20.8 pp from -20.6% to 0.18%
29/09/2015 • About Heng Tai Consumables Group Ltd (
$197) • By InTwits
Heng Tai Consumables Group Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Heng Tai Consumables Group Ltd is a company in decline: FY2015 revenue growth was -4.1%, 5 years revenue CAGR was -7.1%
- Heng Tai Consumables Group Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -0.4% for the sames years0
- Heng Tai Consumables Group Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.3%. At the same time it's in pair with industry average of 11.4%.
- CAPEX is quite volatile: 55.1 in FY2015, 90.2 in FY2014, 142 in FY2013, 170 in FY2012, 361 in FY2011
- The company has 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.
Heng Tai Consumables Group Ltd ($197) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,122 | 2,028 | 1,902 | 1,712 | 1,641 | -4.1% |
| Gross Profit | 464 | 348 | 209 | 140 | 136 | -2.8% |
| SG&A | | | 386 | 312 | 215 | -31.0% |
| EBITDA | 267 | 96 | -50 | -353 | 3 | -100.9% |
| Net Income | 133 | -30 | -179 | -682 | -73 | -89.3% |
Balance Sheet
|
|---|
| Cash | 604 | 726 | 545 | 301 | 348 | 15.6% |
| Short Term Debt | 127 | 83 | 88 | 66 | 64 | -1.7% |
| Long Term Debt | 1 | 0 | 0 | 0 | 0 | -31.0% |
Cash flow
|
|---|
| Capex | 361 | 170 | 142 | 90 | 55 | -38.9% |
Ratios
|
|---|
| Revenue growth | -10.3% | -4.5% | -6.2% | -10.0% | -4.1% | |
| EBITDA growth | -24.1% | -64.0% | -151.8% | 608.0% | -100.9% | |
| Gross Margin | 21.8% | 17.2% | 11.0% | 8.2% | 8.3% | 0.1% |
| EBITDA Margin | 12.6% | 4.7% | -2.6% | -20.6% | 0.2% | 20.8% |
| Net Income Margin | 6.3% | -1.5% | -9.4% | -39.8% | -4.5% | 35.4% |
| SG&A, % of revenue | | | 20.3% | 18.2% | 13.1% | -5.1% |
| CAPEX, % of revenue | 17.0% | 8.4% | 7.5% | 5.3% | 3.4% | -1.9% |
| ROIC | 5.2% | -0.9% | -5.6% | -15.6% | -3.2% | 12.3% |
| ROE | 4.5% | -0.9% | -5.1% | -22.2% | -2.6% | 19.5% |
| Net Debt/EBITDA | -1.8x | -6.7x | | | -93.9x | -93.9x |
Revenue and profitability
The company's Revenue decreased on 4.1% in FY2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 20.8 pp from -20.6% to 0.18% in FY2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue decreased on 5.1 pp from 18.2% to 13.1% in FY2015.
Net Income marign surged on 35.4 pp from -39.8% to -4.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Heng Tai Consumables Group Ltd had CAPEX/Revenue of 3.4%. CAPEX/Revenue decreased on 5.0 pp from 8.4% in FY2012 to 3.4% in FY2015. Average CAPEX/Revenue for the last three years was 5.4%.The company has spent a lot to CAPEX (1,824% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-3.24%) and ROE (-2.62%). ROIC surged on 12.3 pp from -15.6% to -3.2% in FY2015. ROE surged on 19.5 pp from -22.2% to -2.6% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -93.9x and Debt / EBITDA is 21.4x. Net Debt / EBITDA dropped93.9x from to -93.9x in FY2015. Debt decreased slightly on 1.8% in FY2015 while cash surged on 15.6% in FY2015.
Appendix 1: Peers in Food
Below we provide Heng Tai Consumables Group Ltd benchmarking against other companies in Food 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 |
|---|
| Wealth Glory Holdings Ltd ($8269) | | -16.5% | -53.8% | 555.7% | -12.4% |
| Natural Dairy NZ Holdings Ltd ($462) | 12.0% | -47.2% | 19.1% | 76.6% | |
| China Modern Dairy Holdings Ltd ($1117) | 88.8% | 50.7% | 96.1% | 52.8% | |
| China Huishan Dairy Holdings Co Ltd ($6863) | | 256.3% | 91.5% | 38.3% | 11.1% |
| Asia Cassava Resources Holdings Ltd ($841) | | -3.0% | 99.6% | 32.6% | -28.4% |
| |
|---|
| Median (37 companies) | 23.0% | 9.8% | 6.4% | 2.7% | -0.1% |
|---|
| Heng Tai Consumables Group Ltd ($197) | | -4.5% | -6.2% | -10.0% | -4.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Honworld Group Ltd ($2226) | 42.2% | 57.2% | 59.0% | 57.8% | |
| Shenguan Holdings Group Ltd ($829) | 61.9% | 58.2% | 58.5% | 54.9% | |
| Yashili International Holdings Ltd ($1230) | 52.0% | 53.7% | 53.5% | 51.2% | |
| Natural Dairy NZ Holdings Ltd ($462) | 16.3% | -13.7% | 27.5% | 48.8% | |
| Christine International Holdings Ltd ($1210) | 51.3% | 50.2% | 49.7% | 47.2% | |
| |
|---|
| Median (37 companies) | 17.7% | 16.5% | 19.7% | 20.0% | 17.4% |
|---|
| Heng Tai Consumables Group Ltd ($197) | 21.8% | 17.2% | 11.0% | 8.2% | 8.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shenguan Holdings Group Ltd ($829) | 57.2% | 58.7% | 59.2% | 54.5% | |
| YuanShengTai Dairy Farm Ltd ($1431) | 147.8% | 40.3% | 48.4% | 47.1% | |
| China Huishan Dairy Holdings Co Ltd ($6863) | 109.2% | 45.1% | 47.9% | 47.1% | 37.2% |
| Honworld Group Ltd ($2226) | 28.4% | 44.4% | 42.1% | 42.0% | |
| China Modern Dairy Holdings Ltd ($1117) | 33.9% | 33.5% | 27.0% | 25.3% | |
| |
|---|
| Median (37 companies) | 8.5% | 7.9% | 6.7% | 7.6% | 4.9% |
|---|
| Heng Tai Consumables Group Ltd ($197) | 12.6% | 4.7% | -2.6% | -20.6% | 0.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Huishan Dairy Holdings Co Ltd ($6863) | 453.6% | 98.2% | 29.8% | 132.0% | 109.8% |
| Honworld Group Ltd ($2226) | 25.3% | 6.0% | 10.8% | 50.8% | |
| YuanShengTai Dairy Farm Ltd ($1431) | 182.5% | 26.1% | 18.3% | 43.4% | |
| Yashili International Holdings Ltd ($1230) | 3.6% | 8.2% | 7.1% | 20.1% | |
| Vedan International Holdings Ltd ($2317) | 2.8% | 2.5% | 2.4% | 18.8% | |
| |
|---|
| Median (37 companies) | 3.6% | 5.9% | 5.6% | 5.1% | 1.6% |
|---|
| Heng Tai Consumables Group Ltd ($197) | 17.0% | 8.4% | 7.5% | 5.3% | 3.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Honworld Group Ltd ($2226) | 22.1% | 50.4% | 44.5% | 23.6% | |
| Want Want China Holdings Ltd ($151) | 24.9% | 27.9% | 29.4% | 22.8% | |
| Shenguan Holdings Group Ltd ($829) | 40.6% | 40.0% | 33.2% | 21.4% | |
| Huisheng International Holdings Ltd ($1340) | 63.0% | 31.9% | 23.7% | 16.3% | |
| Asia Cassava Resources Holdings Ltd ($841) | 13.8% | 4.2% | 5.9% | 13.6% | 11.6% |
| |
|---|
| Median (37 companies) | 11.9% | 7.6% | 6.5% | 5.6% | 6.0% |
|---|
| Heng Tai Consumables Group Ltd ($197) | 5.2% | -0.9% | -5.6% | -15.6% | -3.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Yurun Food Group Ltd ($1068) | 0.4x | 40.7x | 6.9x | 9.4x | |
| Beijing Jingkelong Co Ltd ($814) | 3.4x | 5.0x | 4.8x | 5.3x | |
| CP Lotus Corp ($121) | 2.3x | | 6.5x | 5.1x | |
| DaChan Food Asia Ltd ($3999) | -0.3x | 0.1x | 1.3x | 4.8x | |
| First Pacific Co Ltd/Hong Kong ($142) | 1.3x | 1.8x | 3.8x | 4.5x | |
| |
|---|
| Median (30 companies) | 0.2x | -0.3x | 0.8x | 0.7x | 0.6x |
|---|
