TAI Ping Carpet International Ltd revenue decreased on 8.1% in 2015 and EBITDA Margin showed almost no change
18/03/2016 • About TAI Ping Carpet International Ltd (
$146) • By InTwits
TAI Ping Carpet International Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- TAI Ping Carpet International Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.7%. At the same time it's a lot of higher than industry average of 8.8%.
- CAPEX is quite volatile: 164 in FY2015, 280 in FY2014, 249 in FY2013, 1,645 in FY2012, 4,464 in FY2011
- The company has potentially unprofitable business model: ROIC is at 5.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
TAI Ping Carpet International Ltd ($146) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,250 | 1,503 | 1,433 | 1,428 | 1,313 | -8.1% |
| Gross Profit | 505 | 616 | 651 | 666 | 612 | -8.2% |
| SG&A | 569 | 592 | 624 | 613 | 573 | -6.6% |
| EBITDA | 53 | 93 | 97 | 127 | 117 | -8.0% |
| Net Income | -178 | 133 | 47 | 24 | 19 | -20.5% |
Balance Sheet
|
|---|
| Cash | 117 | 453 | 307 | 147 | 170 | 16.0% |
| Short Term Debt | 1 | 121 | 82 | 121 | 147 | 22.0% |
| Long Term Debt | | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 78 | 123 | 144 | 98 | 97 | -1.2% |
Ratios
|
|---|
| Revenue growth | 2.3% | 20.2% | -4.6% | -0.3% | -8.1% | |
| EBITDA growth | -20.2% | 75.2% | 4.4% | 30.2% | -8.0% | |
| Gross Margin | 40.4% | 41.0% | 45.4% | 46.7% | 46.6% | -0.0% |
| EBITDA Margin | 4.3% | 6.2% | 6.8% | 8.9% | 8.9% | 0.0% |
| Net Income Margin | -14.3% | 8.8% | 3.3% | 1.7% | 1.4% | -0.2% |
| SG&A, % of revenue | 45.5% | 39.4% | 43.6% | 42.9% | 43.6% | 0.7% |
| CAPEX, % of revenue | 6.3% | 8.2% | 10.1% | 6.9% | 7.4% | 0.5% |
| ROIC | | | 2.6% | 5.7% | 5.5% | -0.2% |
| ROE | -19.6% | 15.7% | 5.3% | 2.9% | 2.5% | -0.4% |
| Net Debt/EBITDA | -2.2x | -3.6x | -2.3x | -0.2x | -0.2x | 0.0x |
Revenue and profitability
TAI Ping Carpet International Ltd's Revenue decreased on 8.1% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 10.3 pp from 46.3% to 56.6% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased slightly on 0.70 pp from 42.9% to 43.6% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 TAI Ping Carpet International Ltd had CAPEX/Revenue of 7.4%. The company's CAPEX/Revenue decreased slightly on 0.78 pp from 8.2% in 2012 to 7.4% in 2015. It's average CAPEX/Revenue for the last three years was 8.1%.Battling declining revenue TAI Ping Carpet International Ltd invested a large share of EBITDA (83.0%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low ROIC (5.50%) and ROE (2.48%). ROIC showed almost no change in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.2x and Debt / EBITDA is 1.3x. Net Debt / EBITDA increased slightly on 0.0082x from -0.2x to -0.2x in 2015. Debt surged on 22.0% in 2015 while cash surged on 16.0% in 2015.
Appendix 1: Peers in Textiles
Below you can find TAI Ping Carpet International Ltd benchmarking vs. other companies in Textiles 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 |
|---|
| Victory City International Holdings Ltd ($539) | | -5.2% | 6.5% | 31.5% | -4.4% |
| Guangdong Tannery Ltd ($1058) | 12.7% | 6.1% | -4.5% | 29.0% | |
| Kingdom Holding Co Ltd ($528) | | 1.1% | 6.0% | 20.0% | 12.2% |
| Pacific Textiles Holdings Ltd ($1382) | | -10.6% | 3.6% | 11.6% | -7.0% |
| Kam Hing International Holdings Ltd ($2307) | 24.4% | 0.9% | -4.3% | 1.6% | |
| |
|---|
| Median (19 companies) | 18.9% | -5.2% | -4.3% | -11.5% | -4.4% |
|---|
| TAI Ping Carpet International Ltd ($146) | | 20.2% | -4.6% | -0.3% | -8.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ping Shan Tea Group Ltd ($364) | 15.3% | 11.2% | 20.8% | 42.9% | |
| Texwinca Holdings Ltd ($321) | 33.7% | 29.6% | 30.9% | 33.3% | 34.1% |
| CECEP COSTIN New Materials Group Ltd ($2228) | 30.3% | 31.1% | 32.5% | 32.5% | |
| Kingdom Holding Co Ltd ($528) | 32.1% | 29.1% | 27.2% | 26.8% | 25.8% |
| Yongsheng Advanced Materials Co Ltd ($3608) | 5.6% | 4.9% | 7.3% | 24.9% | |
| |
|---|
| Median (19 companies) | 15.3% | 16.3% | 12.6% | 13.6% | 18.2% |
|---|
| TAI Ping Carpet International Ltd ($146) | 40.4% | 41.0% | 45.4% | 46.7% | 46.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ping Shan Tea Group Ltd ($364) | 14.9% | 11.2% | | 39.3% | |
| CECEP COSTIN New Materials Group Ltd ($2228) | 26.2% | 28.1% | 28.7% | 30.2% | |
| Kingdom Holding Co Ltd ($528) | 29.3% | 26.3% | 25.3% | 24.8% | 23.0% |
| Weiqiao Textile Co ($2698) | 10.2% | 17.5% | 20.2% | 21.4% | 30.8% |
| Pacific Textiles Holdings Ltd ($1382) | 19.5% | 19.1% | 19.0% | 19.5% | 18.4% |
| |
|---|
| Median (19 companies) | 14.5% | 11.2% | 10.0% | 11.7% | 12.1% |
|---|
| TAI Ping Carpet International Ltd ($146) | 4.3% | 6.2% | 6.8% | 8.9% | 8.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hua Lien International Holding Co Ltd ($969) | 0.0% | 19.7% | 40.5% | 79.6% | |
| Ping Shan Tea Group Ltd ($364) | 18.1% | 32.0% | | 14.0% | |
| Kingdom Holding Co Ltd ($528) | 6.2% | 8.4% | 18.8% | 10.9% | 5.6% |
| Victory City International Holdings Ltd ($539) | 2.3% | 4.2% | 10.1% | 8.6% | 6.8% |
| Silverman Holdings Ltd ($1616) | 8.7% | 6.5% | 18.0% | 8.4% | |
| |
|---|
| Median (19 companies) | 2.6% | 2.6% | 1.8% | 3.9% | 4.7% |
|---|
| TAI Ping Carpet International Ltd ($146) | 6.3% | 8.2% | 10.1% | 6.9% | 7.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Textiles Holdings Ltd ($1382) | 28.8% | 23.7% | 26.4% | 31.6% | 25.9% |
| CECEP COSTIN New Materials Group Ltd ($2228) | 24.2% | 22.3% | 20.1% | 17.6% | |
| Yongsheng Advanced Materials Co Ltd ($3608) | 7.9% | 6.2% | 13.2% | 15.4% | |
| Kingdom Holding Co Ltd ($528) | 16.3% | 13.8% | 12.7% | 13.8% | 12.7% |
| Texwinca Holdings Ltd ($321) | 15.5% | 8.3% | 5.3% | 5.5% | 8.1% |
| |
|---|
| Median (19 companies) | 7.6% | 5.1% | 5.3% | 3.5% | 5.9% |
|---|
| TAI Ping Carpet International Ltd ($146) | | | 2.6% | 5.7% | 5.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Guangdong Tannery Ltd ($1058) | 8.9x | 6.5x | 5.8x | 11.6x | |
| Sijia Group Co ($1863) | -0.1x | 1.6x | 5.3x | 6.4x | |
| China Weaving Materials Holdings Ltd ($3778) | 1.3x | 3.6x | 3.0x | 5.3x | |
| Co-Prosperity Holdings Ltd ($707) | 8.3x | 34.8x | | 4.5x | |
| Victory City International Holdings Ltd ($539) | 1.8x | 1.5x | 2.0x | 3.2x | 2.5x |
| |
|---|
| Median (17 companies) | 1.3x | 1.5x | 2.0x | 1.0x | 0.5x |
|---|
| TAI Ping Carpet International Ltd ($146) | -2.2x | -3.6x | -2.3x | -0.2x | -0.2x |
