Tibet 5100 Water Resources Holdings Ltd Net Income dropped on 19.4% in 2015 and EBITDA Margin dropped on 16.3 pp from 69.2% to 52.8%
24/03/2016 • About Tibet 5100 Water Resources Holdings Ltd (
$1115) • By InTwits
Tibet 5100 Water Resources Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tibet 5100 Water Resources Holdings Ltd is a growth stock: 2015 revenue growth was 7.7%, 5 year revenue CAGR was 18.2% at 2015 ROIC 11.0%
- EBITDA Margin is declining: 52.8% in 2015 vs. 69.2% in 2014 vs. 72.2% in 2011
- Tibet 5100 Water Resources Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's a lot of higher than industry average of 7.6%.
- CAPEX is quite volatile: 23.2 in 2015, 18.2 in 2014, 8.7 in 2013, 44.6 in 2012, 33.3 in 2011
- The company has business model with average profitability: ROIC is at 11.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tibet 5100 Water Resources Holdings Ltd ($1115) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 633.2 | 682.1 | 786.9 | 772.5 | 832.3 | 7.7% |
| Gross Profit | 498.8 | 555.0 | 575.9 | 484.0 | 502.2 | 3.7% |
| SG&A | 163.4 | 171.0 | 206.2 | 195.7 | 183.2 | -6.4% |
| EBITDA | 457.4 | 499.7 | 576.4 | 534.5 | 439.9 | -17.7% |
| Net Income | 373.1 | 410.7 | 441.3 | 343.5 | 277.0 | -19.4% |
Balance Sheet
|
|---|
| Cash | 137.4 | 1,132.3 | 985.4 | 763.4 | 628.1 | -17.7% |
| Short Term Debt | 0.0 | 0.0 | 195.7 | 99.6 | 200.0 | 100.8% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 91.5 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 33.3 | 44.6 | 8.7 | 18.2 | 23.2 | 27.5% |
Ratios
|
|---|
| Revenue growth | 75.6% | 7.7% | 15.4% | -1.8% | 7.7% | |
| EBITDA growth | 204.8% | 9.2% | 15.4% | -7.3% | -17.7% | |
| Gross Margin | 78.8% | 81.4% | 73.2% | 62.7% | 60.3% | -2.3% |
| EBITDA Margin | 72.2% | 73.3% | 73.2% | 69.2% | 52.8% | -16.3% |
| Net Income Margin | 58.9% | 60.2% | 56.1% | 44.5% | 33.3% | -11.2% |
| SG&A, % of revenue | 25.8% | 25.1% | 26.2% | 25.3% | 22.0% | -3.3% |
| CAPEX, % of revenue | 5.3% | 6.5% | 1.1% | 2.4% | 2.8% | 0.4% |
| ROIC | 41.0% | 23.3% | 20.3% | 14.9% | 11.0% | -4.0% |
| ROE | 34.9% | 20.3% | 18.8% | 13.3% | 10.0% | -3.3% |
| Net Debt/EBITDA | -0.3x | -2.3x | -1.4x | -1.1x | -1.0x | 0.1x |
Revenue and profitability
Tibet 5100 Water Resources Holdings Ltd's Revenue increased on 7.7% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 24.3 pp from -5.7% to 18.6% in 2015.
Gross Margin decreased on 2.3 pp from 62.7% to 60.3% in 2015. SG&A as a % of Revenue decreased on 3.3 pp from 25.3% to 22.0% in 2015.
Net Income marign dropped on 11.2 pp from 44.5% to 33.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 2.8%. Tibet 5100 Water Resources Holdings Ltd showed decline in CAPEX/Revenue of 3.8 pp from 6.5% in 2012 to 2.8% in 2015. Average CAPEX/Revenue for the last three years was 2.1%.
Return on investment
The company operates at low ROIC (10.97%) and ROE (9.97%). ROIC decreased on 4.0 pp from 14.9% to 11.0% in 2015. ROE decreased on 3.3 pp from 13.3% to 10.0% in 2015.
Leverage (Debt)
Debt level is -1.0x Net Debt / EBITDA and 0.5x Debt / EBITDA. Net Debt / EBITDA increased on 0.1x from -1.1x to -1.0x in 2015. Debt increased on 4.6% in 2015 while cash dropped on 17.7% in 2015.
Appendix 1: Peers in Beverages
Below we provide Tibet 5100 Water Resources Holdings 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 |
|---|
| China Tontine Wines Group Ltd ($389) | | -20.7% | -73.3% | 62.7% | 2.6% |
| 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% |
| |
|---|
| Median (15 companies) | 15.9% | -2.7% | -13.0% | 3.1% | -10.3% |
|---|
| Tibet 5100 Water Resources Holdings Ltd ($1115) | | 7.7% | 15.4% | -1.8% | 7.7% |
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% |
| 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% |
| JLF Investment Co Ltd ($472) | 54.4% | 50.9% | 48.7% | 42.4% | |
| |
|---|
| Median (15 companies) | 43.4% | 44.5% | 34.7% | 34.7% | 37.5% |
|---|
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 78.8% | 81.4% | 73.2% | 62.7% | 60.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | |
| Vitasoy International Holdings Ltd ($345) | 16.1% | 14.9% | 15.2% | 14.5% | 14.4% |
| |
|---|
| Median (15 companies) | 16.1% | 15.2% | 9.6% | 10.6% | 11.6% |
|---|
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 72.2% | 73.3% | 73.2% | 69.2% | 52.8% |
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 Tontine Wines Group Ltd ($389) | 5.3% | 15.3% | 129.4% | 16.7% | 3.0% |
| 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% |
| |
|---|
| Median (15 companies) | 7.5% | 11.1% | 7.3% | 8.8% | 4.5% |
|---|
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 5.3% | 6.5% | 1.1% | 2.4% | 2.8% |
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% |
| 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% |
| Yantai North Andre Juice Co ($2218) | 8.4% | 6.5% | 3.2% | 4.2% | 4.1% |
| |
|---|
| Median (15 companies) | 10.3% | 9.6% | 3.0% | 2.7% | 2.6% |
|---|
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 41.0% | 23.3% | 20.3% | 14.9% | 11.0% |
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 (10 companies) | -1.1x | -0.7x | 1.9x | 1.0x | 0.1x |
|---|
| Tibet 5100 Water Resources Holdings Ltd ($1115) | -0.3x | -2.3x | -1.4x | -1.1x | -1.0x |
