Transport International Holdings Ltd CAPEX surged on 68.4% in 2015 and Revenue increased on 3.0%
24/03/2016 • About Transport International Holdings Ltd (
$62) • By InTwits
Transport 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: 19.6% in 2015 vs. 15.7% in 2014 vs. 16.7% in 2011
- Transport International Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.5%. At the same time it's in pair with industry average of 20.0%.
- CAPEX is quite volatile: 2,040 in 2015, 1,211 in 2014, 1,205 in 2013, 565 in 2012, 758 in 2011
- The company has business model with low profitability: ROIC is at 7.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Transport International Holdings Ltd ($62) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,948 | 7,181 | 7,420 | 7,557 | 7,780 | 3.0% |
| SG&A | 1 | | | | | |
| EBITDA | 1,157 | 872 | 1,072 | 1,189 | 1,526 | 28.3% |
| Net Income | 242 | 166 | 371 | 415 | 629 | 51.5% |
Balance Sheet
|
|---|
| Cash | 1,690 | 437 | 943 | 1,389 | 722 | -48.1% |
| Short Term Debt | 70 | 200 | 200 | 0 | 460 | |
| Long Term Debt | 798 | 598 | 399 | 545 | 589 | 8.2% |
Cash flow
|
|---|
| Capex | 758 | 565 | 1,205 | 1,211 | 2,040 | 68.4% |
Ratios
|
|---|
| Revenue growth | 3.9% | 3.4% | 3.3% | 1.8% | 3.0% | |
| EBITDA growth | -14.6% | -24.7% | 22.9% | 11.0% | 28.3% | |
| EBITDA Margin | 16.7% | 12.1% | 14.4% | 15.7% | 19.6% | 3.9% |
| Net Income Margin | 3.5% | 2.3% | 5.0% | 5.5% | 8.1% | 2.6% |
| SG&A, % of revenue | 0.0% | | | | | 0.0% |
| CAPEX, % of revenue | 10.9% | 7.9% | 16.2% | 16.0% | 26.2% | 10.2% |
| ROIC | 3.4% | 0.4% | 3.7% | 4.7% | 7.7% | 3.1% |
| ROE | 3.7% | 2.6% | 5.6% | 5.8% | 8.7% | 2.9% |
| Net Debt/EBITDA | -0.7x | 0.4x | -0.3x | -0.7x | 0.2x | 0.9x |
Revenue and profitability
The company's Revenue increased on 3.0% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.2 pp from 10.8% to 8.6% in 2015.
Net Income marign increased on 2.6 pp from 5.5% to 8.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 26.2% in 2015. The company's CAPEX/Revenue jumped on 18.3 pp from 7.9% in 2012 to 26.2% in 2015. For the last three years the average CAPEX/Revenue was 19.5%.The company investments to CAPEX were large: 134% of EBITDA.
Return on investment
The company operates at low ROIC (7.74%) and ROE (8.73%). ROIC increased on 3.1 pp from 4.7% to 7.7% in 2015. ROE increased on 2.9 pp from 5.8% to 8.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.2x and Debt / EBITDA is 0.7x. Net Debt / EBITDA surged on 0.9x from -0.7x to 0.2x in 2015. Debt surged on 92.6% in 2015 while cash dropped on 48.1% in 2015.
Appendix 1: Peers in Transportation
Below we provide Transport International Holdings Ltd benchmarking against other companies in Transportation 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 |
|---|
| Frontier Services Group Ltd ($500) | -90.5% | -10.8% | -49.9% | 1,021.1% | |
| China Best Group Holding Ltd ($370) | 333.1% | 202.4% | -53.6% | 459.4% | |
| Guangdong Yueyun Transportation Co Ltd-H ($3399) | | -4.2% | -5.9% | 60.4% | -12.0% |
| Tianjin Port Development Holdings Ltd ($3382) | 9.8% | 8.7% | 24.9% | 51.9% | |
| CIG Yangtze Ports PLC ($8233) | | 17.9% | 30.6% | 23.5% | 0.1% |
| |
|---|
| Median (29 companies) | 9.4% | 6.9% | 4.5% | 5.5% | -5.2% |
|---|
| Transport International Holdings Ltd ($62) | | 3.4% | 3.3% | 1.8% | 3.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CIG Yangtze Ports PLC ($8233) | 51.0% | 51.3% | 44.8% | 46.6% | 48.7% |
| Frontier Services Group Ltd ($500) | 80.7% | 83.8% | 65.9% | 44.8% | |
| Qinhuangdao Port Co Ltd ($3369) | 43.2% | 43.1% | 42.4% | 43.3% | 40.5% |
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | 21.5% | 23.1% | 25.1% | 24.1% | |
| Kwoon Chung Bus Holdings Ltd ($306) | 17.6% | 18.9% | 20.4% | 22.7% | 26.8% |
| |
|---|
| Median (27 companies) | 18.7% | 13.0% | 10.9% | 10.3% | 11.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Qinhuangdao Port Co Ltd ($3369) | 45.3% | 46.0% | 44.6% | 46.5% | 41.1% |
| MTR Corp Ltd ($66) | 49.1% | 42.7% | 37.6% | 45.2% | 41.6% |
| CIG Yangtze Ports PLC ($8233) | 29.9% | 30.2% | 27.6% | 38.5% | 39.5% |
| Great Harvest Maeta Group Holdings Ltd ($3683) | 61.3% | 56.3% | 18.7% | 32.6% | -8.5% |
| China Shipping Development Co Ltd ($1138) | 24.7% | 12.5% | 3.0% | 24.7% | |
| |
|---|
| Median (30 companies) | 15.4% | 9.4% | 7.1% | 7.5% | 8.2% |
|---|
| Transport International Holdings Ltd ($62) | 16.7% | 12.1% | 14.4% | 15.7% | 19.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Century Investment Holdings Ltd ($2322) | | 0.0% | | 296.6% | 1.4% |
| Frontier Services Group Ltd ($500) | 5.4% | 6.3% | 3.6% | 63.3% | |
| China Shipping Development Co Ltd ($1138) | 68.9% | 55.8% | 34.0% | 54.9% | |
| Courage Marine Group Ltd ($1145) | 78.9% | 235.0% | 37.7% | 50.4% | 9.2% |
| Qinhuangdao Port Co Ltd ($3369) | 47.2% | 57.9% | 35.8% | 46.3% | 21.0% |
| |
|---|
| Median (30 companies) | 11.3% | 9.0% | 8.7% | 7.1% | 9.8% |
|---|
| Transport International Holdings Ltd ($62) | 10.9% | 7.9% | 16.2% | 16.0% | 26.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Changan Minsheng APLL Logistics Co Ltd ($1292) | 34.2% | 21.1% | 20.9% | 19.1% | 19.3% |
| ASR Logistics Holdings Ltd ($1803) | 79.6% | 54.7% | 38.9% | 13.4% | |
| CIG Yangtze Ports PLC ($8233) | 4.3% | 4.9% | 5.7% | 11.0% | 11.1% |
| Kerry Logistics Network Ltd ($636) | 11.3% | 12.0% | 13.4% | 10.5% | 10.9% |
| Guangdong Yueyun Transportation Co Ltd-H ($3399) | 8.9% | 5.6% | 7.2% | 9.6% | 10.6% |
| |
|---|
| Median (30 companies) | 5.3% | 3.3% | 2.8% | 3.1% | 4.4% |
|---|
| Transport International Holdings Ltd ($62) | 3.4% | 0.4% | 3.7% | 4.7% | 7.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jinhui Holdings Co Ltd ($137) | 2.8x | 5.0x | 4.2x | 17.5x | 19.6x |
| China Shipping Development Co Ltd ($1138) | 7.2x | 20.2x | 92.8x | 12.8x | |
| Tianjin Binhai Teda Logistics Group Corp Ltd ($8348) | -0.5x | 9.7x | 9.3x | 9.5x | -1.8x |
| China COSCO Holdings Co Ltd ($1919) | | | 18.8x | 9.0x | |
| AMS Public Transport Holdings Ltd ($77) | 0.7x | 1.2x | 11.6x | 7.7x | 4.5x |
| |
|---|
| Median (22 companies) | 0.5x | 1.6x | 1.7x | 1.6x | 1.3x |
|---|
| Transport International Holdings Ltd ($62) | -0.7x | 0.4x | -0.3x | -0.7x | 0.2x |
