Overseas Chinese Town Asia Holdings Ltd reports 73.8% CAPEX growth and 69.5% Revenue growth
16/03/2016 • About Overseas Chinese Town Asia Holdings Ltd (
$3366) • By InTwits
Overseas Chinese Town Asia Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Overseas Chinese Town Asia Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.4%. At the same time it's in pair with industry average of 7.0%.
- CAPEX is quite volatile: 355 in 2015, 204 in 2014, 304 in 2013, 75.8 in 2012, 290 in 2011
- The company has business model with low profitability: ROIC is at 8.0%
- It operates with high leverage: Net Debt/EBITDA is 4.4x while industry average is 0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Overseas Chinese Town Asia Holdings Ltd ($3366) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,559 | 3,453 | 4,059 | 3,797 | 6,436 | 69.5% |
| Gross Profit | 773 | 1,186 | 1,480 | 1,246 | 2,021 | 62.2% |
| SG&A | | 379 | 407 | 412 | 534 | 29.8% |
| EBITDA | 653 | 965 | 1,248 | 1,039 | 1,692 | 62.9% |
| Net Income | 159 | 177 | 236 | 326 | 273 | -16.3% |
Balance Sheet
|
|---|
| Cash | 748 | 1,526 | 1,711 | 3,764 | 3,374 | -10.4% |
| Short Term Debt | 92 | 3,479 | 880 | 1,779 | 2,687 | 51.0% |
| Long Term Debt | 1,126 | 7,105 | 9,191 | 9,706 | 8,101 | -16.5% |
Cash flow
|
|---|
| Capex | 290 | 76 | 304 | 204 | 355 | 73.8% |
Ratios
|
|---|
| Revenue growth | 34.3% | 34.9% | 17.5% | -6.5% | 69.5% | |
| EBITDA growth | 252.1% | 47.8% | 29.3% | -16.7% | 62.9% | |
| Gross Margin | 30.2% | 34.3% | 36.5% | 32.8% | 31.4% | -1.4% |
| EBITDA Margin | 25.5% | 27.9% | 30.7% | 27.4% | 26.3% | -1.1% |
| Net Income Margin | 6.2% | 5.1% | 5.8% | 8.6% | 4.2% | -4.3% |
| SG&A, % of revenue | | 11.0% | 10.0% | 10.8% | 8.3% | -2.5% |
| CAPEX, % of revenue | 11.3% | 2.2% | 7.5% | 5.4% | 5.5% | 0.1% |
| ROIC | 13.3% | 8.1% | 6.4% | 4.9% | 8.0% | 3.2% |
| ROE | 10.6% | 10.7% | 10.2% | 10.8% | 8.5% | -2.3% |
| Net Debt/EBITDA | 0.7x | 9.4x | 6.7x | 7.4x | 4.4x | -3.1x |
Revenue and profitability
The company's Revenue surged on 69.5% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.6 pp from 14.0% to 15.5% in 2015.
Gross Margin decreased slightly on 1.4 pp from 32.8% to 31.4% in 2015. SG&A as a % of Revenue decreased on 2.5 pp from 10.8% to 8.3% in 2015.
Net Income marign decreased on 4.3 pp from 8.6% to 4.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 5.5%. The company's CAPEX/Revenue increased on 3.3 pp from 2.2% in 2012 to 5.5% in 2015. Average CAPEX/Revenue for the last three years was 6.1%.
Return on investment
The company operates at low ROIC (8.03%) and ROE (8.51%). ROIC increased on 3.2 pp from 4.9% to 8.0% in 2015. ROE decreased on 2.3 pp from 10.8% to 8.5% in 2015.
Leverage (Debt)
Debt level is 4.4x Net Debt / EBITDA and 6.4x Debt / EBITDA. Net Debt / EBITDA dropped on 3.1x from 7.4x to 4.4x in 2015. Debt decreased on 6.1% in 2015 while cash dropped on 10.4% in 2015.
Appendix 1: Peers in Packaging&Containers
Below we provide Overseas Chinese Town Asia Holdings Ltd benchmarking against other companies in Packaging&Containers 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 |
|---|
| China For You Group Co Ltd ($572) | 19.6% | -46.9% | -99.7% | 36,225.6% | |
| China Aluminum Cans Holdings Ltd ($6898) | 19.6% | 15.5% | -5.0% | 189.1% | |
| Zhengye International Holdings Co Ltd ($3363) | 10.5% | 6.8% | 16.4% | 18.6% | |
| Come Sure Group Holdings Ltd ($794) | | 10.7% | -0.7% | 16.8% | 2.9% |
| Huajun Holdings Ltd ($377) | | 11.2% | 3.3% | 3.4% | 10.4% |
| |
|---|
| Median (17 companies) | 17.5% | 4.2% | 5.0% | 0.9% | 9.9% |
|---|
| Overseas Chinese Town Asia Holdings Ltd ($3366) | | 34.9% | 17.5% | -6.5% | 69.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huaxi Holdings Co Ltd ($1689) | 13.1% | 19.0% | 28.2% | 40.9% | 37.5% |
| Sheen Tai Holdings Grp Co Ltd ($1335) | 36.5% | 36.4% | 37.8% | 39.6% | |
| Jin Cai Holdings Co Ltd ($1250) | 39.6% | 36.6% | 39.1% | 37.7% | |
| China For You Group Co Ltd ($572) | 18.7% | 12.4% | | 34.6% | |
| Kith Holdings Ltd ($1201) | 12.7% | 30.8% | 31.9% | 31.4% | |
| |
|---|
| Median (17 companies) | 18.4% | 18.6% | 19.7% | 21.1% | 22.3% |
|---|
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 30.2% | 34.3% | 36.5% | 32.8% | 31.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sheen Tai Holdings Grp Co Ltd ($1335) | 35.5% | 31.9% | 32.2% | 32.1% | |
| Jin Cai Holdings Co Ltd ($1250) | 35.7% | 33.2% | 26.1% | 27.6% | |
| Huaxi Holdings Co Ltd ($1689) | 7.8% | 14.5% | 21.2% | 27.1% | 29.1% |
| Greatview Aseptic Packaging Co Ltd ($468) | 24.1% | 25.9% | 23.1% | 21.6% | |
| Kith Holdings Ltd ($1201) | 8.7% | 21.6% | 19.4% | 20.1% | |
| |
|---|
| Median (18 companies) | 10.6% | 11.1% | 13.7% | 11.1% | 7.9% |
|---|
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 25.5% | 27.9% | 30.7% | 27.4% | 26.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Aluminum Cans Holdings Ltd ($6898) | 1.3% | 6.9% | 9.5% | 20.7% | |
| Lee & Man Paper Manufacturing Ltd ($2314) | 13.5% | 19.7% | 13.7% | 13.1% | 17.1% |
| Hao Tian Development Group Ltd ($474) | 88.2% | 81.6% | | 13.0% | 25.4% |
| CPMC Holdings Ltd ($906) | 13.7% | 16.7% | 19.7% | 8.6% | |
| Jin Bao Bao Holdings Ltd ($1239) | 3.8% | 5.2% | 3.3% | 8.3% | |
| |
|---|
| Median (18 companies) | 5.2% | 7.9% | 4.8% | 4.1% | 5.7% |
|---|
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 11.3% | 2.2% | 7.5% | 5.4% | 5.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huaxi Holdings Co Ltd ($1689) | | 21.4% | 28.5% | 26.2% | 23.6% |
| Sheen Tai Holdings Grp Co Ltd ($1335) | 32.5% | 26.8% | 26.2% | 24.7% | |
| China Aluminum Cans Holdings Ltd ($6898) | 14.8% | 19.7% | 14.6% | 20.2% | |
| Greatview Aseptic Packaging Co Ltd ($468) | 19.6% | 20.2% | 18.9% | 15.7% | |
| Jin Cai Holdings Co Ltd ($1250) | 38.7% | 35.3% | 18.4% | 15.4% | |
| |
|---|
| Median (18 companies) | 10.0% | 7.4% | 6.6% | 6.3% | 3.7% |
|---|
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 13.3% | 8.1% | 6.4% | 4.9% | 8.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zhengye International Holdings Co Ltd ($3363) | 4.0x | 6.2x | 6.4x | 7.8x | |
| Sino Haijing Holdings Ltd ($1106) | 4.7x | 6.4x | 6.1x | 6.2x | |
| Come Sure Group Holdings Ltd ($794) | -1.1x | 3.6x | 4.1x | 3.8x | 3.4x |
| Lee & Man Paper Manufacturing Ltd ($2314) | 2.5x | 4.1x | 3.5x | 3.4x | 3.0x |
| Kith Holdings Ltd ($1201) | 2.9x | 3.0x | 3.2x | 2.9x | |
| |
|---|
| Median (17 companies) | 0.4x | 0.9x | 0.5x | 0.3x | 3.0x |
|---|
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 0.7x | 9.4x | 6.7x | 7.4x | 4.4x |
