Tianjin Capital Environmental Protection Group Co Ltd CAPEX dropped on 26.6% in 2015 while Revenue increased on 4.0%
29/03/2016 • About Tianjin Capital Environmental Protection Group Co Ltd (
$1065) • By InTwits
Tianjin Capital Environmental Protection Group Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 57.9% in 2015 vs. 57.8% in 2014 vs. 55.9% in 2011
- Tianjin Capital Environmental Protection Group Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 39.5%. At the same time it's a lot of higher than industry average of 23.3%.
- CAPEX is quite volatile: 532 in 2015, 199 in 2014, 2.0 in 2013, 20.7 in 2012, 2.1 in 2011
- The company has business model with low profitability: ROIC is at 8.8%
- It operates with high leverage: Net Debt/EBITDA is 1.2x while industry average is -1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tianjin Capital Environmental Protection Group Co Ltd ($1065) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,484 | 1,530 | 1,599 | 1,655 | 1,720 | 4.0% |
| Gross Profit | 649 | 638 | 609 | 652 | 608 | -6.8% |
| SG&A | 104 | 105 | 109 | 103 | 109 | 4.9% |
| EBITDA | 830 | 879 | 905 | 956 | 996 | 4.1% |
| Net Income | 276 | 269 | 282 | 308 | 331 | 7.3% |
Balance Sheet
|
|---|
| Cash | 689 | 997 | 995 | 815 | 1,329 | 63.0% |
| Short Term Debt | 1,028 | 912 | 881 | 358 | 1,007 | 180.9% |
| Long Term Debt | 3,051 | 3,815 | 2,911 | 3,224 | 1,543 | -52.1% |
Cash flow
|
|---|
| Capex | 627 | 660 | 743 | 639 | 469 | -26.6% |
Ratios
|
|---|
| Revenue growth | 9.8% | 3.1% | 4.5% | 3.5% | 4.0% | |
| EBITDA growth | 13.8% | 6.0% | 2.9% | 5.6% | 4.1% | |
| Gross Margin | 43.7% | 41.7% | 38.1% | 39.4% | 35.3% | -4.1% |
| EBITDA Margin | 55.9% | 57.5% | 56.6% | 57.8% | 57.9% | 0.1% |
| Net Income Margin | 18.6% | 17.6% | 17.6% | 18.6% | 19.2% | 0.6% |
| SG&A, % of revenue | 7.0% | 6.9% | 6.8% | 6.2% | 6.3% | 0.1% |
| CAPEX, % of revenue | 42.2% | 43.1% | 46.5% | 38.6% | 27.2% | -11.4% |
| ROIC | 7.4% | 7.1% | 6.8% | 7.8% | 8.8% | 1.0% |
| ROE | 7.9% | 7.3% | 7.3% | 7.6% | 7.7% | 0.1% |
| Net Debt/EBITDA | 4.1x | 4.2x | 3.1x | 2.9x | 1.2x | -1.7x |
Revenue and profitability
Tianjin Capital Environmental Protection Group Co Ltd's Revenue increased on 4.0% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.2 pp from 18.0% to 22.2% in 2015.
Gross Margin decreased on 4.1 pp from 39.4% to 35.3% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 0.59 pp from 18.6% to 19.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 27.2%. The company showed big decline in CAPEX/Revenue of 15.9 pp from 43.1% in 2012 to 27.2% in 2015. For the last three years the average CAPEX/Revenue was 37.4%.
Return on investment
The company operates at low ROIC (8.80%) and ROE (7.71%). ROIC increased slightly on 1.0 pp from 7.8% to 8.8% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt level is 1.2x Net Debt / EBITDA and 2.6x Debt / EBITDA. Net Debt / EBITDA dropped on 1.7x from 2.9x to 1.2x in 2015. Debt dropped on 28.8% in 2015 while cash surged on 63.0% in 2015.
Appendix 1: Peers in Environmental Control
Below we provide Tianjin Capital Environmental Protection Group Co Ltd benchmarking against other companies in Environmental Control 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 |
|---|
| Sky Forever Supply Chain Management Group Ltd ($8047) | | -73.4% | 446.4% | -62.3% | 12,494.5% |
| CT Environmental Group Ltd ($1363) | | -18.7% | 23.1% | 112.9% | 75.4% |
| ELL Environmental Holdings Ltd ($1395) | | 5.3% | 38.8% | 30.9% | 70.8% |
| Ozner Water International Holding Ltd ($2014) | | 183.9% | 38.5% | 27.2% | 45.7% |
| China Everbright International Ltd ($257) | | -2.2% | 56.0% | 19.5% | 34.3% |
| |
|---|
| Median (18 companies) | 1.6% | -2.1% | 18.1% | 20.7% | 3.2% |
|---|
| Tianjin Capital Environmental Protection Group Co Ltd ($1065) | | 3.1% | 4.5% | 3.5% | 4.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| EverChina International Holdings Co Ltd ($202) | 40.2% | 51.8% | 53.4% | 95.3% | 95.4% |
| Ozner Water International Holding Ltd ($2014) | 56.7% | 64.5% | 67.8% | 65.4% | 58.9% |
| CT Environmental Group Ltd ($1363) | 57.7% | 65.8% | 63.1% | 56.4% | 49.9% |
| China Water Affairs Group Ltd ($855) | 42.7% | 44.0% | 43.1% | 41.8% | 47.3% |
| China Everbright International Ltd ($257) | 41.3% | 49.4% | 44.7% | 46.7% | 45.8% |
| |
|---|
| Median (18 companies) | 34.8% | 33.2% | 30.5% | 31.3% | 34.4% |
|---|
| Tianjin Capital Environmental Protection Group Co Ltd ($1065) | 43.7% | 41.7% | 38.1% | 39.4% | 35.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CT Environmental Group Ltd ($1363) | 52.2% | 63.6% | 62.8% | 58.7% | 64.6% |
| China Everbright International Ltd ($257) | 37.3% | 44.6% | 40.7% | 43.6% | 44.1% |
| China Water Affairs Group Ltd ($855) | 38.8% | 38.2% | 38.1% | 37.1% | 40.3% |
| New Universe International Group Ltd ($8068) | 42.0% | 40.2% | 37.8% | 39.3% | 36.6% |
| Dynagreen Environmental Protection Group Co Ltd ($1330) | 31.5% | 24.3% | | | 33.5% |
| |
|---|
| Median (18 companies) | 10.3% | 8.1% | 3.8% | 2.3% | 16.2% |
|---|
| Tianjin Capital Environmental Protection Group Co Ltd ($1065) | 55.9% | 57.5% | 56.6% | 57.8% | 57.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chaoyue Group Ltd ($147) | 3.8% | | 18.1% | 9.2% | 100.9% |
| Ozner Water International Holding Ltd ($2014) | 179.8% | 94.9% | 102.2% | 148.5% | 90.9% |
| Integrated Waste Solutions Group Holdings Ltd ($923) | 25.4% | 13.2% | 10.6% | 41.7% | 88.1% |
| CT Environmental Group Ltd ($1363) | 31.8% | 65.0% | 27.1% | 51.4% | 40.5% |
| New Universe International Group Ltd ($8068) | 103.4% | 16.4% | 16.6% | 44.9% | 33.3% |
| |
|---|
| Median (18 companies) | 10.8% | 12.9% | 13.0% | 8.8% | 8.1% |
|---|
| Tianjin Capital Environmental Protection Group Co Ltd ($1065) | 42.2% | 43.1% | 46.5% | 38.6% | 27.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CT Environmental Group Ltd ($1363) | 34.4% | 25.9% | 20.5% | 20.8% | 20.1% |
| China Everbright International Ltd ($257) | 11.1% | 10.4% | 11.2% | 10.5% | 10.8% |
| Dynagreen Environmental Protection Group Co Ltd ($1330) | | 11.4% | 9.0% | 8.5% | 8.6% |
| Dongjiang Environmental Co Ltd ($895) | 17.0% | 14.3% | 7.4% | 9.4% | 8.2% |
| New Universe International Group Ltd ($8068) | 5.8% | 6.3% | 6.8% | 8.9% | 8.1% |
| |
|---|
| Median (18 companies) | 2.3% | -0.7% | 1.1% | -0.6% | 2.7% |
|---|
| Tianjin Capital Environmental Protection Group Co Ltd ($1065) | 7.4% | 7.1% | 6.8% | 7.8% | 8.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Water Affairs Group Ltd ($855) | 2.8x | 2.6x | 2.7x | 3.2x | 3.4x |
| Dynagreen Environmental Protection Group Co Ltd ($1330) | 0.4x | 3.2x | | | 3.2x |
| China Everbright International Ltd ($257) | 2.8x | 2.1x | 0.5x | 1.5x | 2.6x |
| Dongjiang Environmental Co Ltd ($895) | 1.0x | -1.7x | -1.5x | 0.9x | 2.5x |
| CT Environmental Group Ltd ($1363) | 1.8x | 2.4x | 0.5x | 1.9x | 1.8x |
| |
|---|
| Median (11 companies) | 0.6x | 1.5x | 0.0x | -0.2x | -0.0x |
|---|
| Tianjin Capital Environmental Protection Group Co Ltd ($1065) | 4.1x | 4.2x | 3.1x | 2.9x | 1.2x |
