China Huiyuan Juice Group Ltd EBITDA jumped on 101% in 2015 and EBITDA Margin increased on 7.0 pp from 11.3% to 18.3%
29/03/2016 • About China Huiyuan Juice Group Ltd (
$1886) • By InTwits
China Huiyuan Juice Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Huiyuan Juice Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.9%. At the same time it's in pair with industry average of 11.0%.
- CAPEX is quite volatile: 845 in 2015, 484 in 2014, 334 in 2013, 465 in 2012, 769 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.2%
- It operates with high leverage: Net Debt/EBITDA is 4.3x while industry average is 0.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Huiyuan Juice Group Ltd ($1886) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,826 | 3,981 | 4,504 | 4,592 | 5,682 | 23.7% |
| Gross Profit | 964 | 1,115 | 1,398 | 1,594 | 2,169 | 36.1% |
| SG&A | 1,208 | 1,258 | 1,663 | 1,904 | 2,187 | 14.9% |
| EBITDA | 346 | 606 | 979 | 517 | 1,039 | 100.8% |
| Net Income | 310 | 16 | 228 | -127 | -229 | 80.5% |
Balance Sheet
|
|---|
| Cash | 168 | 405 | 360 | 241 | 1,007 | 317.1% |
| Short Term Debt | 2,441 | 1,808 | 2,786 | 3,131 | 2,128 | -32.0% |
| Long Term Debt | 692 | 1,879 | 1,757 | 1,177 | 3,306 | 181.0% |
Cash flow
|
|---|
| Capex | 769 | 465 | 334 | 484 | 845 | 74.7% |
Ratios
|
|---|
| Revenue growth | 3.2% | 4.1% | 13.1% | 2.0% | 23.7% | |
| EBITDA growth | -27.6% | 75.1% | 61.5% | -47.1% | 100.8% | |
| Gross Margin | 25.2% | 28.0% | 31.0% | 34.7% | 38.2% | 3.5% |
| EBITDA Margin | 9.0% | 15.2% | 21.7% | 11.3% | 18.3% | 7.0% |
| Net Income Margin | 8.1% | 0.4% | 5.1% | -2.8% | -4.0% | -1.3% |
| SG&A, % of revenue | 31.6% | 31.6% | 36.9% | 41.5% | 38.5% | -3.0% |
| CAPEX, % of revenue | 20.1% | 11.7% | 7.4% | 10.5% | 14.9% | 4.3% |
| ROIC | 0.2% | 2.4% | 4.1% | -0.4% | 3.2% | 3.6% |
| ROE | 6.0% | 0.3% | 3.5% | -1.4% | -2.3% | -0.9% |
| Net Debt/EBITDA | 8.6x | 5.4x | 4.3x | 7.9x | 4.3x | -3.6x |
Revenue and profitability
The company's Revenue surged on 23.7% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.2 pp from 9.1% to 10.3% in 2015.
Gross Margin increased on 3.5 pp from 34.7% to 38.2% in 2015. SG&A as a % of Revenue decreased on 3.0 pp from 41.5% to 38.5% in 2015.
Net Income marign decreased slightly on 1.3 pp from -2.8% to -4.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 China Huiyuan Juice Group Ltd had CAPEX/Revenue of 14.9%. CAPEX/Revenue increased on 3.2 pp from 11.7% in 2012 to 14.9% in 2015. Average CAPEX/Revenue for the last three years was 10.9%.China Huiyuan Juice Group Ltd invested a big chunk of EBITDA (81.4%) to CAPEX to fuel its growth.
Return on investment
The company operates at low but positive ROIC (3.24%) and negative ROE (-2.33%). ROIC increased on 3.6 pp from -0.36% to 3.2% in 2015. ROE decreased slightly on 0.89 pp from -1.4% to -2.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.3x and Debt / EBITDA is 5.2x. Net Debt / EBITDA dropped on 3.6x from 7.9x to 4.3x in 2015. Debt jumped on 26.2% in 2015 while cash surged on 317% in 2015.
Appendix 1: Peers in Beverages
Below you can find China Huiyuan Juice Group Ltd benchmarking vs. other companies in Beverages industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino Distillery Group Ltd ($39) | | -62.4% | -34.9% | -15.0% | 882.1% |
| 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% |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | | 7.7% | 15.4% | -1.8% | 7.7% |
| China Tontine Wines Group Ltd ($389) | | -20.7% | -73.3% | 62.7% | 2.6% |
| |
|---|
| Median (13 companies) | 34.4% | -2.7% | -13.0% | 3.1% | -4.7% |
|---|
| China Huiyuan Juice Group Ltd ($1886) | | 4.1% | 13.1% | 2.0% | 23.7% |
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% |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 78.8% | 81.4% | 73.2% | 62.7% | 60.3% |
| 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 (13 companies) | 46.1% | 44.8% | 37.7% | 36.6% | 36.1% |
|---|
| China Huiyuan Juice Group Ltd ($1886) | 25.2% | 28.0% | 31.0% | 34.7% | 38.2% |
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% |
| Vitasoy International Holdings Ltd ($345) | 16.1% | 14.9% | 15.2% | 14.5% | 14.4% |
| |
|---|
| Median (13 companies) | 17.7% | 17.3% | 9.6% | 10.6% | 9.6% |
|---|
| China Huiyuan Juice Group Ltd ($1886) | 9.0% | 15.2% | 21.7% | 11.3% | 18.3% |
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% |
| Sino Distillery Group Ltd ($39) | 6.2% | 32.4% | 6.5% | 0.4% | 12.0% |
| Vitasoy International Holdings Ltd ($345) | 14.0% | 11.1% | 4.2% | 5.1% | 11.1% |
| Tenfu Cayman Holdings Co Ltd ($6868) | 11.2% | 18.3% | 8.8% | 12.0% | 9.2% |
| China Tianyi Holdings Ltd ($756) | 7.5% | 5.8% | 6.2% | 33.6% | 6.1% |
| |
|---|
| Median (13 companies) | 6.2% | 10.1% | 6.5% | 7.3% | 5.1% |
|---|
| China Huiyuan Juice Group Ltd ($1886) | 20.1% | 11.7% | 7.4% | 10.5% | 14.9% |
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% | 6.7% |
| Besunyen Holdings Co Ltd ($926) | 0.2% | -24.2% | -8.9% | 3.2% | 4.1% |
| |
|---|
| Median (13 companies) | 14.9% | 12.7% | 3.0% | 3.2% | 3.2% |
|---|
| China Huiyuan Juice Group Ltd ($1886) | 0.2% | 2.4% | 4.1% | -0.4% | 3.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| San Miguel Brewery Hong Kong Ltd ($236) | | | 2.0x | 1.0x | 3.8x |
| Yantai North Andre Juice Co ($2218) | 2.6x | 2.3x | 2.4x | 2.2x | 3.0x |
| China Tianyi Holdings Ltd ($756) | -3.7x | -1.0x | -0.8x | 0.9x | 1.1x |
| Tenfu Cayman Holdings Co Ltd ($6868) | -1.7x | -1.0x | -0.2x | 0.8x | 0.1x |
| Vitasoy International Holdings Ltd ($345) | -0.1x | 0.3x | 0.0x | -0.3x | -0.2x |
| |
|---|
| Median (9 companies) | -1.1x | -1.0x | 0.0x | 0.9x | -0.2x |
|---|
| China Huiyuan Juice Group Ltd ($1886) | 8.6x | 5.4x | 4.3x | 7.9x | 4.3x |
