China Tontine Wines Group Ltd EBITDA Margin jumped on 84.2 pp from -74.6% to 9.6% in 2015 and Revenue increased on 2.6%
24/03/2016 • About China Tontine Wines Group Ltd (
$389) • By InTwits
China Tontine Wines Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Tontine Wines Group Ltd doesn't have a profitable business model yet: 2015 ROIC is 2.0%
- China Tontine Wines Group Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -3.3% for the sames years0
- China Tontine Wines Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 33.9%. At the same time it's a lot of higher than industry average of 10.2%.
- CAPEX is quite volatile: 8.7 in 2015, 47.8 in 2014, 228 in 2013, 101 in 2012, 44.2 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Tontine Wines Group Ltd ($389) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 830.1 | 658.1 | 176.0 | 286.3 | 293.7 | 2.6% |
| Gross Profit | 479.1 | 331.2 | -90.1 | 24.9 | 94.6 | 279.4% |
| SG&A | | 197.3 | 292.4 | 268.8 | 83.0 | -69.1% |
| EBITDA | 317.1 | 149.9 | -354.9 | -213.7 | 28.1 | -113.1% |
| Net Income | 188.8 | 88.9 | -503.9 | -659.0 | 9.6 | -101.5% |
Balance Sheet
|
|---|
| Cash | 1,274.7 | 1,104.9 | 530.9 | 172.6 | 201.9 | 17.0% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 44.2 | 100.7 | 227.8 | 47.8 | 8.7 | -81.8% |
Ratios
|
|---|
| Revenue growth | 18.0% | -20.7% | -73.3% | 62.7% | 2.6% | |
| EBITDA growth | 3.8% | -52.7% | -336.7% | -39.8% | -113.1% | |
| Gross Margin | 57.7% | 50.3% | -51.2% | 8.7% | 32.2% | 23.5% |
| EBITDA Margin | 38.2% | 22.8% | -201.7% | -74.6% | 9.6% | 84.2% |
| Net Income Margin | 22.7% | 13.5% | -286.3% | -230.2% | 3.3% | 233.4% |
| SG&A, % of revenue | | 30.0% | 166.2% | 93.9% | 28.3% | -65.6% |
| CAPEX, % of revenue | 5.3% | 15.3% | 129.4% | 16.7% | 3.0% | -13.7% |
| ROIC | 17.0% | 7.2% | -22.0% | -21.2% | 2.0% | 23.2% |
| ROE | 11.0% | 4.9% | -31.5% | -64.7% | 1.4% | 66.1% |
| Net Debt/EBITDA | -4.0x | -7.4x | | | -7.2x | -7.2x |
Revenue and profitability
China Tontine Wines Group Ltd's Revenue increased on 2.6% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.2 pp from 2.6% to 0.46% in 2015.
Gross Margin jumped on 23.5 pp from 8.7% to 32.2% in 2015. SG&A as a % of Revenue dropped on 65.6 pp from 93.9% to 28.3% in 2015.
Net Income marign surged on 233 pp from -230% to 3.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 3.0%. The company showed big decline in CAPEX/Revenue of 12.4 pp from 15.3% in 2012 to 3.0% in 2015. Average CAPEX/Revenue for the last three years was 49.7%.
Return on investment
The company operates at low ROIC (1.98%) and ROE (1.37%). ROIC surged on 23.2 pp from -21.2% to 2.0% in 2015. ROE jumped on 66.1 pp from -64.7% to 1.4% in 2015.
Leverage (Debt)
The company has no debt. Cash jumped on 17.0% in 2015.
Appendix 1: Peers in Beverages
Below we provide China Tontine Wines Group Ltd benchmarking against other companies in Beverages 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 |
|---|
| 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% |
| San Miguel Brewery Hong Kong Ltd ($236) | | 0.4% | 0.1% | 6.0% | -21.8% |
| |
|---|
| Median (15 companies) | 15.9% | 0.4% | -8.1% | 2.0% | -10.3% |
|---|
| China Tontine Wines Group Ltd ($389) | | -20.7% | -73.3% | 62.7% | 2.6% |
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% | 60.3% |
| Tenfu Cayman Holdings Co Ltd ($6868) | 61.6% | 64.1% | 61.2% | 62.2% | 61.4% |
| 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% |
| |
|---|
| Median (15 companies) | 43.4% | 44.5% | 37.7% | 36.6% | 40.3% |
|---|
| China Tontine Wines Group Ltd ($389) | 57.7% | 50.3% | -51.2% | 8.7% | 32.2% |
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% | 52.8% |
| China Tianyi Holdings Ltd ($756) | 17.7% | 28.4% | 26.1% | 29.7% | 23.0% |
| Tenfu Cayman Holdings Co Ltd ($6868) | 27.4% | 27.5% | 25.3% | 26.1% | 22.5% |
| Yantai North Andre Juice Co ($2218) | 16.1% | 14.1% | 11.9% | 15.5% | 15.7% |
| China Haisheng Juice Holdings Co Ltd ($359) | 15.2% | 5.8% | 6.6% | 14.9% | |
| |
|---|
| Median (15 companies) | 16.1% | 15.2% | 10.5% | 11.3% | 14.0% |
|---|
| China Tontine Wines Group Ltd ($389) | 38.2% | 22.8% | -201.7% | -74.6% | 9.6% |
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 Haisheng Juice Holdings Co Ltd ($359) | 3.6% | 4.8% | 6.3% | 15.3% | |
| Tenfu Cayman Holdings Co Ltd ($6868) | 11.2% | 18.3% | 8.8% | 12.0% | 9.2% |
| China Huiyuan Juice Group Ltd ($1886) | 20.1% | 11.7% | 7.4% | 10.5% | |
| |
|---|
| Median (15 companies) | 7.5% | 10.1% | 6.5% | 7.3% | 4.5% |
|---|
| China Tontine Wines Group Ltd ($389) | 5.3% | 15.3% | 129.4% | 16.7% | 3.0% |
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% |
| Tenfu Cayman Holdings Co Ltd ($6868) | 26.1% | 19.4% | 17.9% | 15.7% | 11.0% |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 41.0% | 23.3% | 20.3% | 14.9% | 11.0% |
| 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% |
| |
|---|
| Median (15 companies) | 10.3% | 12.7% | 3.7% | 3.2% | 3.6% |
|---|
| China Tontine Wines Group Ltd ($389) | 17.0% | 7.2% | -22.0% | -21.2% | 2.0% |
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 | 3.0x |
| San Miguel Brewery Hong Kong Ltd ($236) | | | 2.0x | 1.0x | 3.8x |
| |
|---|
| Median (11 companies) | -0.4x | -0.7x | 1.0x | 0.9x | 0.1x |
|---|
