Tiande Chemical Holdings Ltd CAPEX jumped on 16.0% in 2015 and Revenue showed almost no change
07/03/2016 • About Tiande Chemical Holdings Ltd (
$609) • By InTwits
Tiande Chemical Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tiande Chemical Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.2%. At the same time it's a lot of higher than industry average of 11.2%.
- CAPEX is quite volatile: 504 in FY2015, 548 in FY2014, 339 in FY2013, 364 in FY2012, 190 in FY2011
- The company has highly profitable business model: ROIC is at 20.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tiande Chemical Holdings Ltd ($609) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 972 | 1,004 | 1,195 | 1,121 | 1,123 | 0.2% |
| Gross Profit | 220 | 262 | 343 | 284 | 317 | 11.5% |
| SG&A | | 56 | 75 | 81 | 80 | -0.7% |
| EBITDA | 211 | 256 | 326 | 281 | 312 | 11.2% |
| Net Income | 132 | 159 | 188 | 155 | 172 | 11.6% |
Balance Sheet
|
|---|
| Cash | 64 | 50 | 50 | 63 | 118 | 86.9% |
| Short Term Debt | 70 | 57 | 33 | 31 | 32 | 4.9% |
| Long Term Debt | 39 | 17 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 75 | 133 | 103 | 85 | 99 | 16.0% |
Ratios
|
|---|
| Revenue growth | 10.3% | 3.3% | 19.1% | -6.2% | 0.2% | |
| EBITDA growth | -0.9% | 21.8% | 27.2% | -13.9% | 11.2% | |
| Gross Margin | 22.6% | 26.1% | 28.7% | 25.3% | 28.2% | 2.9% |
| EBITDA Margin | 21.7% | 25.5% | 27.3% | 25.1% | 27.8% | 2.7% |
| Net Income Margin | 13.6% | 15.9% | 15.7% | 13.8% | 15.3% | 1.6% |
| SG&A, % of revenue | | 5.6% | 6.3% | 7.2% | 7.1% | -0.1% |
| CAPEX, % of revenue | 7.7% | 13.3% | 8.7% | 7.6% | 8.8% | 1.2% |
| ROIC | 24.4% | 26.2% | 29.4% | 20.7% | 20.6% | -0.0% |
| ROE | 22.9% | 22.8% | 22.2% | 15.6% | 15.4% | -0.1% |
| Net Debt/EBITDA | 0.2x | 0.1x | -0.0x | -0.1x | -0.3x | -0.2x |
Revenue and profitability
Tiande Chemical Holdings Ltd's Revenue showed almost no change in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.7 pp from 25.1% to 27.8% in 2015.
Gross Margin increased on 2.9 pp from 25.3% to 28.2% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 1.6 pp from 13.8% to 15.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
Tiande Chemical Holdings Ltd's CAPEX/Revenue was 8.8% in 2015. Tiande Chemical Holdings Ltd showed decline in CAPEX/Revenue of 4.5 pp from 13.3% in 2012 to 8.8% in 2015. Average CAPEX/Revenue for the last three years was 8.4%.
Return on investment
The company operates at high and attractive ROIC (20.61%) while ROE is a bit lower (15.44%). ROIC showed almost no change in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt level is -0.3x Net Debt / EBITDA and 0.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from -0.1x to -0.3x in 2015. Debt increased on 4.9% in 2015 while cash surged on 86.9% in 2015.
Appendix 1: Peers in Chemicals
Below we provide Tiande Chemical Holdings Ltd benchmarking against other companies in Chemicals 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 |
|---|
| Bestway International Holdings Ltd ($718) | | -25.4% | -62.1% | 330.3% | 238.4% |
| Jilin Qifeng Chemical Fiber Co Ltd ($549) | 39.7% | -33.6% | 5.5% | 29.1% | |
| China XLX Fertiliser Ltd ($1866) | 29.3% | 7.0% | 0.6% | 28.0% | |
| Century Sunshine Group Holdings Ltd ($509) | 49.2% | 68.7% | 32.0% | 26.4% | |
| Landing International Development Ltd ($582) | -50.7% | 2.1% | 15.9% | 23.3% | |
| |
|---|
| Median (31 companies) | 27.6% | 2.0% | 9.4% | 2.2% | 2.1% |
|---|
| Tiande Chemical Holdings Ltd ($609) | | 3.3% | 19.1% | -6.2% | 0.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huabao International Holdings Ltd ($336) | 74.3% | 70.5% | 69.1% | 70.8% | 69.9% |
| China Flavors & Fragrances Co Ltd ($3318) | 41.3% | 46.8% | 48.6% | 47.8% | |
| Smartac Group China Holdings Ltd ($395) | 17.3% | -1.8% | 11.2% | 40.4% | |
| Bracell Ltd ($1768) | 40.1% | 30.5% | 37.3% | 37.3% | |
| Yingde Gases Group Co Ltd ($2168) | 34.2% | 31.7% | 31.0% | 32.1% | |
| |
|---|
| Median (31 companies) | 19.8% | 18.2% | 16.2% | 16.0% | 33.2% |
|---|
| Tiande Chemical Holdings Ltd ($609) | 22.6% | 26.1% | 28.7% | 25.3% | 28.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huabao International Holdings Ltd ($336) | 66.4% | 63.8% | 59.1% | 60.0% | 58.3% |
| Bracell Ltd ($1768) | 30.1% | 22.3% | 30.8% | 38.2% | |
| Yingde Gases Group Co Ltd ($2168) | 32.3% | 29.4% | 29.8% | 32.3% | |
| China First Chemical Holdings Ltd ($2121) | 29.7% | 26.6% | 30.0% | 29.6% | |
| Century Sunshine Group Holdings Ltd ($509) | 15.5% | 24.2% | 28.1% | 27.6% | |
| |
|---|
| Median (31 companies) | 15.2% | 13.2% | 12.7% | 11.1% | 2.7% |
|---|
| Tiande Chemical Holdings Ltd ($609) | 21.7% | 25.5% | 27.3% | 25.1% | 27.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Landing International Development Ltd ($582) | 27.9% | 7.2% | 29.6% | 419.5% | |
| China Zenith Chemical Group Ltd ($362) | 36.8% | 147.3% | 55.7% | 67.4% | 152.2% |
| Smartac Group China Holdings Ltd ($395) | 22.5% | 14.0% | 4.7% | 49.3% | |
| China Flavors & Fragrances Co Ltd ($3318) | 16.4% | 15.8% | 20.1% | 42.4% | |
| Bracell Ltd ($1768) | 24.4% | 22.3% | 64.3% | 35.4% | |
| |
|---|
| Median (31 companies) | 8.7% | 7.2% | 8.3% | 5.1% | 3.6% |
|---|
| Tiande Chemical Holdings Ltd ($609) | 7.7% | 13.3% | 8.7% | 7.6% | 8.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huabao International Holdings Ltd ($336) | 34.6% | 28.7% | 25.2% | 26.2% | 23.3% |
| Century Sunshine Group Holdings Ltd ($509) | 3.5% | 11.3% | 15.9% | 16.4% | |
| Fufeng Group Ltd ($546) | 13.9% | 9.6% | 10.8% | 11.6% | |
| Yingde Gases Group Co Ltd ($2168) | 14.7% | 10.6% | 11.5% | 11.5% | |
| China BlueChemical Ltd ($3983) | 21.0% | 19.1% | 16.4% | 11.4% | |
| |
|---|
| Median (31 companies) | 7.8% | 6.9% | 7.4% | 5.2% | 3.1% |
|---|
| Tiande Chemical Holdings Ltd ($609) | 24.4% | 26.2% | 29.4% | 20.7% | 20.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Sanjiang Fine Chemicals Co Ltd ($2198) | 2.4x | 2.2x | 4.6x | 18.1x | |
| China XLX Fertiliser Ltd ($1866) | 2.4x | 2.6x | 5.1x | 5.8x | |
| Ngai Hing Hong Co Ltd ($1047) | 4.8x | 11.7x | 5.3x | 5.4x | 5.3x |
| Jilin Qifeng Chemical Fiber Co Ltd ($549) | 4.3x | 14.1x | 6.5x | 5.3x | |
| Sinofert Holdings Ltd ($297) | 4.3x | 2.9x | 32.4x | 5.0x | |
| |
|---|
| Median (24 companies) | 1.5x | 1.9x | 2.5x | 1.5x | -0.8x |
|---|
| Tiande Chemical Holdings Ltd ($609) | 0.2x | 0.1x | -0.0x | -0.1x | -0.3x |
