Tenwow International Holdings Ltd Debt surged on 17.9% in 2015 while Revenue decreased on 3.5%
22/03/2016 • About Tenwow International Holdings Ltd (
$1219) • By InTwits
Tenwow International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 12.4% in 2015 vs. 11.2% in 2014 vs. 7.7% in 2011
- Tenwow International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's in pair with industry average of 21.2%.
- CAPEX is quite volatile: 292 in 2015, 260 in 2014, 61.3 in 2013, 68.1 in 2012, 147 in 2011
- The company has business model with average profitability: ROIC is at 11.9%
- It operates with high leverage: Net Debt/EBITDA is 2.3x while industry average is -2.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tenwow International Holdings Ltd ($1219) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,790 | 4,252 | 4,725 | 5,084 | 4,908 | -3.5% |
| Gross Profit | 462 | 543 | 736 | 854 | 916 | 7.2% |
| SG&A | 199 | 201 | 277 | 331 | 172 | -47.9% |
| EBITDA | 293 | 377 | 504 | 570 | 611 | 7.1% |
| Net Income | 157 | 221 | 286 | 345 | 351 | 1.6% |
Balance Sheet
|
|---|
| Cash | 83 | 188 | 1,078 | 693 | 449 | -35.3% |
| Short Term Debt | 609 | 899 | 1,231 | 1,524 | 1,492 | -2.1% |
| Long Term Debt | 98 | 98 | 88 | 46 | 359 | 677.3% |
Cash flow
|
|---|
| Capex | 147 | 68 | 61 | 260 | 292 | 12.4% |
Ratios
|
|---|
| Revenue growth | 0.1% | 12.2% | 11.1% | 7.6% | -3.5% | |
| EBITDA growth | 30.2% | 28.6% | 33.8% | 13.1% | 7.1% | |
| Gross Margin | 12.2% | 12.8% | 15.6% | 16.8% | 18.7% | 1.9% |
| EBITDA Margin | 7.7% | 8.9% | 10.7% | 11.2% | 12.4% | 1.2% |
| Net Income Margin | 4.1% | 5.2% | 6.1% | 6.8% | 7.1% | 0.4% |
| SG&A, % of revenue | 5.3% | 4.7% | 5.9% | 6.5% | 3.5% | -3.0% |
| CAPEX, % of revenue | 3.9% | 1.6% | 1.3% | 5.1% | 6.0% | 0.8% |
| ROIC | 20.3% | 19.7% | 15.7% | 12.8% | 11.9% | -0.9% |
| ROE | 31.5% | 30.2% | 17.7% | 14.0% | 13.0% | -1.0% |
| Net Debt/EBITDA | 2.1x | 2.1x | 0.5x | 1.5x | 2.3x | 0.8x |
Revenue and profitability
Tenwow International Holdings Ltd's Revenue decreased on 3.5% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.2 pp from 11.2% to 12.4% in 2015.
Gross Margin increased slightly on 1.9 pp from 16.8% to 18.7% in 2015. SG&A as a % of Revenue decreased on 3.0 pp from 6.5% to 3.5% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 6.0% in 2015. CAPEX/Revenue increased on 4.4 pp from 1.6% in 2012 to 6.0% in 2015. Average CAPEX/Revenue for the last three years was 4.1%.
Return on investment
The company operates at good ROE (12.97%) while ROIC is low (11.90%). ROIC decreased slightly on 0.86 pp from 12.8% to 11.9% in 2015. ROE decreased slightly on 0.99 pp from 14.0% to 13.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.3x and Debt / EBITDA is 3.0x. Net Debt / EBITDA jumped on 0.8x from 1.5x to 2.3x in 2015. Debt jumped on 17.9% in 2015 while cash dropped on 35.3% in 2015.
Appendix 1: Peers in Food
Below we provide Tenwow International Holdings Ltd benchmarking against other companies in Food 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 |
|---|
| Wealth Glory Holdings Ltd ($8269) | | -16.5% | -53.8% | 555.7% | -12.4% |
| Natural Dairy NZ Holdings Ltd ($462) | | -47.2% | 19.1% | 76.6% | -54.8% |
| China Modern Dairy Holdings Ltd ($1117) | | 50.7% | 96.1% | 52.8% | -4.0% |
| China Huishan Dairy Holdings Co Ltd ($6863) | | 256.3% | 91.5% | 38.3% | 11.1% |
| Asia Cassava Resources Holdings Ltd ($841) | | -3.0% | 99.6% | 32.6% | -28.4% |
| |
|---|
| Median (37 companies) | 22.4% | 9.4% | 5.6% | 0.4% | -3.1% |
|---|
| Tenwow International Holdings Ltd ($1219) | | 12.2% | 11.1% | 7.6% | -3.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Honworld Group Ltd ($2226) | 42.2% | 57.2% | 59.0% | 57.8% | |
| Shenguan Holdings Group Ltd ($829) | 61.9% | 58.2% | 58.5% | 54.9% | 44.2% |
| Yashili International Holdings Ltd ($1230) | 52.0% | 53.7% | 53.5% | 51.2% | 50.8% |
| Natural Dairy NZ Holdings Ltd ($462) | 16.3% | -13.7% | 27.5% | 48.8% | 49.6% |
| Christine International Holdings Ltd ($1210) | 51.3% | 50.2% | 49.7% | 47.2% | |
| |
|---|
| Median (37 companies) | 18.1% | 16.8% | 19.7% | 20.0% | 23.7% |
|---|
| Tenwow International Holdings Ltd ($1219) | 12.2% | 12.8% | 15.6% | 16.8% | 18.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shenguan Holdings Group Ltd ($829) | 57.2% | 58.7% | 59.2% | 54.5% | 43.6% |
| YuanShengTai Dairy Farm Ltd ($1431) | 147.8% | 40.3% | 48.4% | 47.1% | 35.4% |
| China Huishan Dairy Holdings Co Ltd ($6863) | 109.2% | 45.1% | 47.9% | 47.1% | 37.2% |
| Honworld Group Ltd ($2226) | 28.4% | 44.4% | 42.1% | 42.0% | |
| China Modern Dairy Holdings Ltd ($1117) | 33.9% | 33.5% | 27.0% | 25.3% | 21.1% |
| |
|---|
| Median (37 companies) | 8.8% | 7.8% | 6.5% | 7.4% | 8.0% |
|---|
| Tenwow International Holdings Ltd ($1219) | 7.7% | 8.9% | 10.7% | 11.2% | 12.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Huishan Dairy Holdings Co Ltd ($6863) | 453.6% | 98.2% | 29.8% | 132.0% | 109.8% |
| Honworld Group Ltd ($2226) | 25.3% | 6.0% | 10.8% | 50.8% | |
| YuanShengTai Dairy Farm Ltd ($1431) | 182.5% | 26.1% | 18.3% | 43.4% | 30.1% |
| Yashili International Holdings Ltd ($1230) | 3.6% | 8.2% | 7.1% | 20.1% | 12.5% |
| Vedan International Holdings Ltd ($2317) | 2.8% | 2.5% | 2.4% | 18.8% | |
| |
|---|
| Median (37 companies) | 3.6% | 6.0% | 6.2% | 5.1% | 5.2% |
|---|
| Tenwow International Holdings Ltd ($1219) | 3.9% | 1.6% | 1.3% | 5.1% | 6.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Honworld Group Ltd ($2226) | 22.1% | 50.4% | 44.5% | 23.6% | |
| Want Want China Holdings Ltd ($151) | 24.9% | 27.9% | 29.4% | 22.8% | 21.8% |
| Shenguan Holdings Group Ltd ($829) | 40.6% | 40.0% | 33.2% | 21.4% | 10.0% |
| Huisheng International Holdings Ltd ($1340) | 63.0% | 31.9% | 23.7% | 16.3% | |
| Asia Cassava Resources Holdings Ltd ($841) | 13.8% | 4.2% | 5.9% | 13.6% | 11.6% |
| |
|---|
| Median (38 companies) | 10.4% | 6.7% | 5.9% | 5.5% | 5.8% |
|---|
| Tenwow International Holdings Ltd ($1219) | 20.3% | 19.7% | 15.7% | 12.8% | 11.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Yurun Food Group Ltd ($1068) | 0.4x | 40.7x | 6.9x | 9.4x | |
| Beijing Jingkelong Co Ltd ($814) | 3.4x | 5.0x | 4.8x | 5.3x | 9.3x |
| CP Lotus Corp ($121) | 2.3x | | 6.5x | 5.1x | 3.0x |
| DaChan Food Asia Ltd ($3999) | -0.3x | 0.1x | 1.3x | 4.8x | |
| First Pacific Co Ltd/Hong Kong ($142) | 1.3x | 1.8x | 3.8x | 4.5x | |
| |
|---|
| Median (29 companies) | -0.1x | -0.5x | 0.8x | 0.7x | 1.3x |
|---|
| Tenwow International Holdings Ltd ($1219) | 2.1x | 2.1x | 0.5x | 1.5x | 2.3x |
