Tenfu Cayman Holdings Co Ltd reports 45.8% Net Income decline and 3.5 pp EBITDA Margin decline from 26.1% to 22.5%
15/03/2016 • About Tenfu Cayman Holdings Co Ltd (
$6868) • By InTwits
Tenfu Cayman Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tenfu Cayman Holdings Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.9%. At the same time it's in pair with industry average of 11.0%.
- CAPEX is quite volatile: 140 in 2015, 202 in 2014, 146 in 2013, 312 in 2012, 196 in 2011
- The company has business model with average profitability: ROIC is at 11.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tenfu Cayman Holdings Co Ltd ($6868) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,753 | 1,707 | 1,662 | 1,689 | 1,518 | -10.1% |
| Gross Profit | 1,080 | 1,095 | 1,017 | 1,050 | 932 | -11.3% |
| SG&A | | 696 | 680 | 703 | 678 | -3.5% |
| EBITDA | 480 | 469 | 420 | 440 | 342 | -22.3% |
| Net Income | 294 | 295 | 267 | 270 | 146 | -45.8% |
Balance Sheet
|
|---|
| Cash | 1,120 | 559 | 202 | 232 | 201 | -13.3% |
| Short Term Debt | 325 | 104 | 121 | 477 | 252 | -47.3% |
| Long Term Debt | 0 | 0 | 0 | 122 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 196 | 312 | 146 | 202 | 140 | -31.0% |
Ratios
|
|---|
| Revenue growth | 40.6% | -2.7% | -2.6% | 1.6% | -10.1% | |
| EBITDA growth | 37.3% | -2.4% | -10.4% | 4.8% | -22.3% | |
| Gross Margin | 61.6% | 64.1% | 61.2% | 62.2% | 61.4% | -0.8% |
| EBITDA Margin | 27.4% | 27.5% | 25.3% | 26.1% | 22.5% | -3.5% |
| Net Income Margin | 16.7% | 17.3% | 16.1% | 16.0% | 9.6% | -6.4% |
| SG&A, % of revenue | | 40.8% | 40.9% | 41.6% | 44.7% | 3.1% |
| CAPEX, % of revenue | 11.2% | 18.3% | 8.8% | 12.0% | 9.2% | -2.8% |
| ROIC | 26.1% | 19.4% | 17.9% | 15.7% | 11.0% | -4.8% |
| ROE | 23.0% | 15.8% | 14.4% | 14.0% | 7.5% | -6.5% |
| Net Debt/EBITDA | -1.7x | -1.0x | -0.2x | 0.8x | 0.1x | -0.7x |
Revenue and profitability
Tenfu Cayman Holdings Co Ltd's Revenue dropped on 10.1% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.9 pp from 7.5% to 9.4% in 2015.
Gross Margin decreased slightly on 0.81 pp from 62.2% to 61.4% in 2015. SG&A as a % of Revenue increased on 3.1 pp from 41.6% to 44.7% in 2015.
Net Income marign decreased on 6.4 pp from 16.0% to 9.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
Tenfu Cayman Holdings Co Ltd's CAPEX/Revenue was 9.2% in 2015. The company showed decline in CAPEX/Revenue of 9.1 pp from 18.3% in 2012 to 9.2% in 2015. Average CAPEX/Revenue for the last three years was 10.0%.
Return on investment
The company operates at low ROIC (10.99%) and ROE (7.53%). ROIC decreased on 4.8 pp from 15.7% to 11.0% in 2015. ROE decreased on 6.5 pp from 14.0% to 7.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is 0.7x. Net Debt / EBITDA dropped on 0.7x from 0.8x to 0.1x in 2015. Debt dropped on 58.0% in 2015 while cash dropped on 13.3% in 2015.
Appendix 1: Peers in Beverages
Below you can find Tenfu Cayman 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% |
| Besunyen Holdings Co Ltd ($926) | | -43.5% | 2.6% | 15.7% | 17.5% |
| 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% |
| |
|---|
| Median (15 companies) | 18.3% | 0.4% | -13.0% | 3.1% | -14.4% |
|---|
| Tenfu Cayman Holdings Co Ltd ($6868) | | -2.7% | -2.6% | 1.6% | -10.1% |
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% | 89.7% |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 78.8% | 81.4% | 73.2% | 62.7% | |
| 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% | 38.8% |
|---|
| Tenfu Cayman Holdings Co Ltd ($6868) | 61.6% | 64.1% | 61.2% | 62.2% | 61.4% |
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% |
| 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% | 2.0% |
|---|
| Tenfu Cayman Holdings Co Ltd ($6868) | 27.4% | 27.5% | 25.3% | 26.1% | 22.5% |
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% | |
| China Huiyuan Juice Group Ltd ($1886) | 20.1% | 11.7% | 7.4% | 10.5% | |
| |
|---|
| Median (15 companies) | 6.2% | 10.1% | 6.5% | 7.3% | 5.6% |
|---|
| Tenfu Cayman Holdings Co Ltd ($6868) | 11.2% | 18.3% | 8.8% | 12.0% | 9.2% |
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% |
| 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% |
| Yantai North Andre Juice Co ($2218) | 8.4% | 6.5% | 3.2% | 4.2% | |
| |
|---|
| Median (15 companies) | 10.3% | 9.6% | 3.0% | 2.7% | -2.0% |
|---|
| Tenfu Cayman Holdings Co Ltd ($6868) | 26.1% | 19.4% | 17.9% | 15.7% | 11.0% |
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 | -0.7x | 1.9x | 1.0x | 0.4x |
|---|
| Tenfu Cayman Holdings Co Ltd ($6868) | -1.7x | -1.0x | -0.2x | 0.8x | 0.1x |
