Ta Yang Group Holdings Ltd revenue decline decelerated to 8.8% in FY2015 vs. 15.2% a year earliner
16/10/2015 • About Ta Yang Group Holdings Ltd (
$1991) • By InTwits
Ta Yang Group Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ta Yang Group Holdings Ltd is a company in decline: FY2015 revenue growth was -8.8%, 5 years revenue CAGR was -12.1%
- The company operates at negative EBITDA Margin: -18.1%
- Ta Yang Group Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -8.2%0
- Ta Yang Group Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.9%. At the same time it's a lot of higher than industry average of 25.6%.
- CAPEX is quite volatile: 7.0 in FY2015, 13.3 in FY2014, 27.0 in FY2013, 19.8 in FY2012, 53.0 in FY2011
- The company has unprofitable business model: ROIC is at -15.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ta Yang Group Holdings Ltd ($1991) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 787.3 | 624.5 | 551.3 | 467.3 | 426.2 | -8.8% |
| Gross Profit | 149.7 | 36.4 | 8.1 | -4.7 | 50.1 | -1,175.7% |
| SG&A | | | 142.0 | 158.9 | 148.7 | -6.4% |
| EBITDA | 69.5 | -38.8 | -77.3 | -111.7 | -77.3 | -30.8% |
| Net Income | 42.6 | -78.1 | -131.6 | -216.6 | -156.3 | -27.8% |
Balance Sheet
|
|---|
| Cash | 262.2 | 78.3 | 104.9 | 200.1 | 103.6 | -48.3% |
| Short Term Debt | 0.0 | 31.7 | 20.1 | 45.7 | 33.3 | -27.1% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 53.0 | 19.8 | 27.0 | 13.3 | 7.0 | -47.1% |
Ratios
|
|---|
| Revenue growth | -3.0% | -20.7% | -11.7% | -15.2% | -8.8% | |
| EBITDA growth | -35.6% | -155.9% | 99.2% | 44.4% | -30.8% | |
| Gross Margin | 19.0% | 5.8% | 1.5% | -1.0% | 11.8% | 12.8% |
| EBITDA Margin | 8.8% | -6.2% | -14.0% | -23.9% | -18.1% | 5.8% |
| Net Income Margin | 5.4% | -12.5% | -23.9% | -46.3% | -36.7% | 9.7% |
| SG&A, % of revenue | | | 25.7% | 34.0% | 34.9% | 0.9% |
| CAPEX, % of revenue | 6.7% | 3.2% | 4.9% | 2.8% | 1.6% | -1.2% |
| ROIC | 2.0% | -7.4% | -11.9% | -18.3% | -15.4% | 2.9% |
| ROE | 3.8% | -7.3% | -14.1% | -29.0% | -28.3% | 0.7% |
| Net Debt/EBITDA | -3.8x | | | | | 0.0x |
Revenue and profitability
The company's Revenue decreased on 8.8% in FY2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 5.8 pp from -23.9% to -18.1% in FY2015.
Gross Margin surged on 12.8 pp from -1.00% to 11.8% in FY2015. SG&A as a % of Revenue increased slightly on 0.90 pp from 34.0% to 34.9% in FY2015.
Net Income marign increased on 9.7 pp from -46.3% to -36.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Ta Yang Group Holdings Ltd's CAPEX/Revenue was 1.6% in FY2015. The company showed small CAPEX/Revenue decline of 1.5 pp from 3.2% in FY2012 to 1.6% in FY2015. For the last three years the average CAPEX/Revenue was 3.1%.
Return on investment
The company operates at negative ROIC (-15.38%) and ROE (-28.31%). ROIC increased on 2.9 pp from -18.3% to -15.4% in FY2015. ROE increased slightly on 0.73 pp from -29.0% to -28.3% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.2x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt dropped on 27.1% in FY2015 while cash dropped on 48.3% in FY2015.
Appendix 1: Peers in Miscellaneous Manufactur
Below you can find Ta Yang Group Holdings Ltd benchmarking vs. other companies in Miscellaneous Manufactur 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 |
|---|
| CSR Corp Ltd ($1766) | 24.0% | 12.0% | 9.7% | 123.7% | |
| Sunny Optical Technology Group Co Ltd ($2382) | 37.4% | 59.5% | 45.9% | 45.0% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 21.4% | 1.5% | 22.2% | 43.2% | |
| Time Watch Investments Ltd ($2033) | | 28.2% | 25.4% | 25.6% | 10.4% |
| China International Marine Containers Group Co Ltd ($2039) | 23.4% | -15.6% | 6.6% | 21.4% | |
| |
|---|
| Median (25 companies) | 24.0% | -1.8% | 0.1% | 8.2% | -13.7% |
|---|
| Ta Yang Group Holdings Ltd ($1991) | | -20.7% | -11.7% | -15.2% | -8.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Time Watch Investments Ltd ($2033) | 58.5% | 60.2% | 60.6% | 65.0% | 68.1% |
| Man Sang International Ltd ($938) | 34.7% | 42.4% | 32.8% | 60.3% | 78.6% |
| Lee & Man Chemical Co Ltd ($746) | 46.7% | 34.3% | 35.7% | 41.9% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 35.0% | 33.2% | 35.1% | 37.4% | |
| Launch Tech Co Ltd ($2488) | 39.2% | 27.4% | 33.6% | 33.6% | |
| |
|---|
| Median (24 companies) | 21.0% | 19.8% | 20.8% | 24.9% | 21.9% |
|---|
| Ta Yang Group Holdings Ltd ($1991) | 19.0% | 5.8% | 1.5% | -1.0% | 11.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 42.8% | 30.4% | 31.3% | 38.4% | |
| Man Sang International Ltd ($938) | 18.7% | 24.9% | 15.4% | 37.0% | 33.8% |
| IPE Group Ltd ($929) | 24.9% | 25.6% | 22.5% | 29.5% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 19.5% | 18.4% | 19.8% | 20.6% | |
| Time Watch Investments Ltd ($2033) | 16.8% | 17.6% | 16.8% | 19.4% | 20.5% |
| |
|---|
| Median (25 companies) | 10.7% | 8.1% | 9.8% | 9.8% | 4.7% |
|---|
| Ta Yang Group Holdings Ltd ($1991) | 8.8% | -6.2% | -14.0% | -23.9% | -18.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 1.4% | 5.8% | 51.1% | 33.7% | |
| KEE Holdings Co Ltd ($2011) | 20.9% | 21.8% | 43.7% | 24.9% | |
| China International Marine Containers Group Co Ltd ($2039) | 4.7% | 3.9% | 12.1% | 18.5% | |
| China Environmental Energy Investment Ltd ($986) | 77.7% | 6.1% | 0.4% | 17.9% | 47.6% |
| TK Group Holdings Ltd ($2283) | 8.9% | 13.3% | 8.1% | 13.7% | |
| |
|---|
| Median (25 companies) | 5.0% | 4.9% | 4.2% | 4.4% | 4.9% |
|---|
| Ta Yang Group Holdings Ltd ($1991) | 6.7% | 3.2% | 4.9% | 2.8% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TK Group Holdings Ltd ($2283) | 34.0% | 36.8% | 31.1% | 29.4% | |
| Time Watch Investments Ltd ($2033) | 30.5% | 34.5% | 27.1% | 27.8% | 27.9% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 21.4% | 16.9% | 17.7% | 20.0% | |
| Sunny Optical Technology Group Co Ltd ($2382) | 12.2% | 19.7% | 17.8% | 16.5% | |
| CSR Corp Ltd ($1766) | 13.4% | 11.1% | 11.2% | 15.3% | |
| |
|---|
| Median (25 companies) | 8.0% | 4.4% | 4.4% | 4.4% | 1.4% |
|---|
| Ta Yang Group Holdings Ltd ($1991) | 2.0% | -7.4% | -11.9% | -18.3% | -15.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| South China China Ltd ($413) | 2.3x | | 37.5x | 2,842.3x | |
| Continental Holdings Ltd ($513) | 8.3x | | 20.1x | 92.9x | 4,203.6x |
| China International Marine Containers Group Co Ltd ($2039) | 2.8x | 4.0x | 4.7x | 5.8x | |
| VS International Group Ltd ($1002) | 8.6x | 5.1x | 6.5x | 4.4x | 3.3x |
| Launch Tech Co Ltd ($2488) | -0.4x | 7.6x | 2.4x | 3.9x | |
| |
|---|
| Median (22 companies) | 0.1x | -0.3x | -0.3x | -0.1x | -0.1x |
|---|
