Besunyen Holdings Co Ltd reports 105% Net Income growth and 0.56 pp EBITDA Margin decline from 14.3% to 13.7%
11/03/2016 • About Besunyen Holdings Co Ltd (
$926) • By InTwits
Besunyen Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Besunyen Holdings Co Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -5.3%0
- Besunyen Holdings Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 18.8%. At the same time it's a lot of higher than industry average of 11.1%.
- CAPEX is quite volatile: 37.3 in 2015, 49.5 in 2014, 35.8 in 2013, 89.0 in 2012, 452 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Besunyen Holdings Co Ltd ($926) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 840.4 | 475.2 | 487.5 | 563.9 | 662.8 | 17.5% |
| Gross Profit | 737.6 | 392.1 | 406.1 | 475.3 | 594.2 | 25.0% |
| SG&A | 730.0 | 674.8 | 484.9 | 451.2 | 536.7 | 19.0% |
| EBITDA | 39.0 | -311.3 | -60.9 | 80.5 | 91.0 | 13.0% |
| Net Income | -40.9 | -342.2 | -90.0 | 45.0 | 92.3 | 104.9% |
Balance Sheet
|
|---|
| Cash | 602.5 | 447.5 | 207.6 | 477.8 | 425.9 | -10.9% |
| Short Term Debt | 0.0 | 0.0 | 13.6 | 8.6 | 7.6 | -12.4% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 451.8 | 89.0 | 35.8 | 49.5 | 37.3 | -24.6% |
Ratios
|
|---|
| Revenue growth | -3.9% | -43.5% | 2.6% | 15.7% | 17.5% | |
| EBITDA growth | -85.1% | -897.4% | -80.4% | -232.3% | 13.0% | |
| Gross Margin | 87.8% | 82.5% | 83.3% | 84.3% | 89.7% | 5.4% |
| EBITDA Margin | 4.6% | -65.5% | -12.5% | 14.3% | 13.7% | -0.6% |
| Net Income Margin | -4.9% | -72.0% | -18.5% | 8.0% | 13.9% | 5.9% |
| SG&A, % of revenue | 86.9% | 142.0% | 99.5% | 80.0% | 81.0% | 1.0% |
| CAPEX, % of revenue | 53.8% | 18.7% | 7.3% | 8.8% | 5.6% | -3.1% |
| ROIC | 0.2% | -24.2% | -8.9% | 3.2% | 4.1% | 0.9% |
| ROE | -2.4% | -23.5% | -7.5% | 3.9% | 7.6% | 3.8% |
| Net Debt/EBITDA | -15.4x | | | -5.8x | -4.6x | 1.2x |
Revenue and profitability
Besunyen Holdings Co Ltd's Revenue jumped on 17.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.2 pp from 14.5% to 16.7% in 2015.
Gross Margin increased on 5.4 pp from 84.3% to 89.7% in 2015. SG&A as a % of Revenue increased slightly on 0.96 pp from 80.0% to 81.0% in 2015.
Net Income marign increased on 5.9 pp from 8.0% to 13.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
Besunyen Holdings Co Ltd's CAPEX/Revenue was 5.6% in 2015. Besunyen Holdings Co Ltd showed big decline in CAPEX/Revenue of 13.1 pp from 18.7% in 2012 to 5.6% in 2015. It's average CAPEX/Revenue for the last three years was 7.3%.
Return on investment
The company operates at low ROIC (4.13%) and ROE (7.62%). ROIC increased slightly on 0.92 pp from 3.2% to 4.1% in 2015. ROE increased on 3.8 pp from 3.9% to 7.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -4.6x and Debt / EBITDA is 0.1x. Net Debt / EBITDA surged on 1.2x from -5.8x to -4.6x in 2015. Debt dropped on 12.4% in 2015 while cash dropped on 10.9% in 2015.
Appendix 1: Peers in Beverages
Below you can find Besunyen Holdings Co 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% |
| Vitasoy International Holdings Ltd ($345) | | 11.6% | 9.0% | 10.9% | 12.4% |
| China Tianyi Holdings Ltd ($756) | | 43.0% | -19.2% | 8.3% | -17.3% |
| San Miguel Brewery Hong Kong Ltd ($236) | | 0.4% | 0.1% | 6.0% | -21.8% |
| |
|---|
| Median (15 companies) | 18.7% | 0.4% | -13.0% | 2.0% | -15.8% |
|---|
| Besunyen Holdings Co Ltd ($926) | | -43.5% | 2.6% | 15.7% | 17.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | 41.7% |
| JLF Investment Co Ltd ($472) | 54.4% | 50.9% | 48.7% | 42.4% | |
| |
|---|
| Median (15 companies) | 43.4% | 44.5% | 34.7% | 34.7% | 37.5% |
|---|
| Besunyen Holdings Co Ltd ($926) | 87.8% | 82.5% | 83.3% | 84.3% | 89.7% |
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% | 23.0% |
| 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% | 10.5% | 10.6% | -1.6% |
|---|
| Besunyen Holdings Co Ltd ($926) | 4.6% | -65.5% | -12.5% | 14.3% | 13.7% |
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 Tianyi Holdings Ltd ($756) | 7.5% | 5.8% | 6.2% | 33.6% | 6.1% |
| 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% | 6.5% | 7.3% | 4.8% |
|---|
| Besunyen Holdings Co Ltd ($926) | 53.8% | 18.7% | 7.3% | 8.8% | 5.6% |
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% | |
| China Tianyi Holdings Ltd ($756) | 7.3% | 12.0% | 6.1% | 6.7% | 3.2% |
| |
|---|
| Median (15 companies) | 14.9% | 12.7% | 3.7% | 2.7% | -2.2% |
|---|
| Besunyen Holdings Co Ltd ($926) | 0.2% | -24.2% | -8.9% | 3.2% | 4.1% |
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 | 3.8x |
| |
|---|
| Median (10 companies) | -0.4x | -1.0x | 1.0x | 1.0x | 1.1x |
|---|
| Besunyen Holdings Co Ltd ($926) | -15.4x | | | -5.8x | -4.6x |
