Tianneng Power International Ltd reports 9,700% EBITDA growth and 26.8% Revenue growth
18/03/2016 • About Tianneng Power International Ltd (
$819) • By InTwits
Tianneng Power International Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tianneng Power International Ltd is a fast growth stock: 2015 revenue growth was 26.8%, 5 year revenue CAGR was 36.5% at 2015 ROIC 14.9%
- EBITDA Margin is quite volatile: 6.6% in 2015, 0.1% in 2014, 3.4% in 2013, 11.6% in 2012, 17.9% in 2011
- Tianneng Power International Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.3%. At the same time it's a lot of higher than industry average of 0.7%.
- CAPEX is quite volatile: 510 in 2015, 301 in 2014, 63.1 in 2013, 44.6 in 2012, 139 in 2011
- The company has highly profitable business model: ROIC is at 14.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tianneng Power International Ltd ($819) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,438 | 9,888 | 13,635 | 14,044 | 17,804 | 26.8% |
| Gross Profit | 1,435 | 1,855 | 1,404 | 1,263 | 2,428 | 92.2% |
| SG&A | 363 | 553 | 780 | 1,003 | 922 | -8.1% |
| EBITDA | 975 | 1,144 | 459 | 12 | 1,174 | 9,699.6% |
| Net Income | 616 | 710 | 135 | -305 | 611 | -300.4% |
Balance Sheet
|
|---|
| Cash | 753 | 814 | 943 | 1,625 | 1,398 | -14.0% |
| Short Term Debt | 1,470 | 2,758 | 2,143 | 2,500 | 822 | -67.1% |
| Long Term Debt | 0 | 149 | 655 | 1,074 | 1,338 | 24.6% |
Cash flow
|
|---|
| Capex | 692 | 1,029 | 787 | 753 | 427 | -43.3% |
Ratios
|
|---|
| Revenue growth | 44.9% | 81.8% | 37.9% | 3.0% | 26.8% | |
| EBITDA growth | 92.8% | 17.3% | -59.9% | -97.4% | 9,699.6% | |
| Gross Margin | 26.4% | 18.8% | 10.3% | 9.0% | 13.6% | 4.6% |
| EBITDA Margin | 17.9% | 11.6% | 3.4% | 0.1% | 6.6% | 6.5% |
| Net Income Margin | 11.3% | 7.2% | 1.0% | -2.2% | 3.4% | 5.6% |
| SG&A, % of revenue | 6.7% | 5.6% | 5.7% | 7.1% | 5.2% | -2.0% |
| CAPEX, % of revenue | 12.7% | 10.4% | 5.8% | 5.4% | 2.4% | -3.0% |
| ROIC | 27.1% | 20.0% | 4.5% | -3.6% | 14.9% | 18.5% |
| ROE | 27.6% | 25.6% | 4.5% | -10.7% | 20.2% | 30.9% |
| Net Debt/EBITDA | 0.7x | 1.8x | 4.0x | 162.7x | 0.6x | -162.0x |
Revenue and profitability
The company's Revenue jumped on 26.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 11.3 pp from 42.3% to 53.6% in 2015.
Gross Margin increased on 4.6 pp from 9.0% to 13.6% in 2015. SG&A as a % of Revenue decreased slightly on 2.0 pp from 7.1% to 5.2% in 2015.
Net Income marign increased on 5.6 pp from -2.2% to 3.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Tianneng Power International Ltd had CAPEX/Revenue of 2.4%. Tianneng Power International Ltd showed decline in CAPEX/Revenue of 8.0 pp from 10.4% in 2012 to 2.4% in 2015. It's average CAPEX/Revenue for the last three years was 4.5%.
Return on investment
The company operates at high and attractive ROE (20.16%) while ROIC is a bit lower (14.87%). ROIC surged on 18.5 pp from -3.6% to 14.9% in 2015. ROE surged on 30.9 pp from -10.7% to 20.2% in 2015.
Leverage (Debt)
Debt level is 0.6x Net Debt / EBITDA and 1.8x Debt / EBITDA. Net Debt / EBITDA dropped on 162.0x from 162.7x to 0.6x in 2015. Debt dropped on 39.6% in 2015 while cash dropped on 14.0% in 2015.
Appendix 1: Peers in Electrical Compo&Equip
Below we provide Tianneng Power International Ltd benchmarking against other companies in Electrical Compo&Equip 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 |
|---|
| Enterprise Development Holdings Ltd ($1808) | 225.9% | 2.5% | 37.3% | 83.9% | |
| FDG Electric Vehicles Ltd ($729) | | -23.1% | -7.0% | 54.0% | 270.8% |
| Boer Power Holdings Ltd ($1685) | 11.4% | 20.4% | 10.9% | 51.3% | |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | -27.0% | -12.0% | 8.7% | 44.1% | |
| CEC International Holdings Ltd ($759) | | 23.9% | 60.8% | 43.0% | 32.3% |
| |
|---|
| Median (31 companies) | 13.4% | -6.3% | 8.3% | 16.1% | 3.7% |
|---|
| Tianneng Power International Ltd ($819) | | 81.8% | 37.9% | 3.0% | 26.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Boer Power Holdings Ltd ($1685) | 37.1% | 36.8% | 36.0% | 35.3% | |
| China Titans Energy Technology Group Co Ltd ($2188) | 45.4% | 41.4% | 27.3% | 33.7% | |
| Sun King Power Electronics Group ($580) | 16.2% | 25.4% | 30.0% | 30.8% | |
| CEC International Holdings Ltd ($759) | 18.5% | 23.6% | 27.9% | 29.9% | 31.8% |
| Johnson Electric Holdings Ltd ($179) | 27.5% | 27.3% | 28.0% | 29.5% | 29.6% |
| |
|---|
| Median (30 companies) | 20.4% | 19.0% | 17.7% | 16.4% | 19.5% |
|---|
| Tianneng Power International Ltd ($819) | 26.4% | 18.8% | 10.3% | 9.0% | 13.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shougang Concord Technology Holdings ($521) | 22.7% | 12.3% | 28.1% | 31.9% | |
| Boer Power Holdings Ltd ($1685) | 28.1% | 26.3% | 27.8% | 28.5% | |
| China High Speed Transmission Equipment Group Co Ltd ($658) | 21.0% | 20.2% | 19.2% | 20.8% | |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 9.2% | 5.7% | 7.4% | 16.9% | |
| Johnson Electric Holdings Ltd ($179) | 14.9% | 14.2% | 14.5% | 15.5% | 15.4% |
| |
|---|
| Median (32 companies) | 10.5% | 7.3% | 7.2% | 4.7% | -2.7% |
|---|
| Tianneng Power International Ltd ($819) | 17.9% | 11.6% | 3.4% | 0.1% | 6.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Applied Development Holdings Ltd ($519) | 46.4% | 79.7% | | 1,285.3% | 89.8% |
| FDG Electric Vehicles Ltd ($729) | 177.5% | 374.3% | 82.3% | 71.1% | 417.0% |
| Sun King Power Electronics Group ($580) | 9.2% | 16.5% | 7.7% | 15.5% | |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 23.7% | 23.1% | 50.7% | 13.5% | |
| Coslight Technology International Group Co Ltd ($1043) | 11.0% | 9.3% | 11.4% | 11.5% | |
| |
|---|
| Median (32 companies) | 9.3% | 5.7% | 4.9% | 3.6% | 4.1% |
|---|
| Tianneng Power International Ltd ($819) | 12.7% | 10.4% | 5.8% | 5.4% | 2.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Boer Power Holdings Ltd ($1685) | 18.2% | 18.0% | 17.0% | 21.2% | |
| Jiangnan Group Ltd ($1366) | 17.0% | 14.9% | 14.1% | 13.5% | |
| Johnson Electric Holdings Ltd ($179) | 13.1% | 11.7% | 11.6% | 12.7% | 11.2% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 5.1% | 1.8% | 3.0% | 10.4% | |
| Hengxin Technology Ltd ($1085) | 13.9% | 8.1% | 9.3% | 9.0% | 10.2% |
| |
|---|
| Median (32 companies) | 5.4% | 2.7% | 2.9% | 1.7% | -1.0% |
|---|
| Tianneng Power International Ltd ($819) | 27.1% | 20.0% | 4.5% | -3.6% | 14.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Coslight Technology International Group Co Ltd ($1043) | 11.2x | 51.9x | 8.7x | 54.7x | |
| China Titans Energy Technology Group Co Ltd ($2188) | 0.2x | 1.5x | | 16.9x | |
| Shougang Concord Technology Holdings ($521) | 12.7x | 16.3x | 4.9x | 13.8x | |
| Sun King Power Electronics Group ($580) | | 1.7x | 1.4x | 10.0x | |
| Guodian Technology & Environment Group Corp Ltd ($1296) | 5.4x | 6.3x | 7.6x | 6.8x | |
| |
|---|
| Median (24 companies) | 0.3x | 1.5x | -0.2x | 1.5x | -1.5x |
|---|
| Tianneng Power International Ltd ($819) | 0.7x | 1.8x | 4.0x | 162.7x | 0.6x |
