Tianjin Port Development Holdings Ltd revenue dropped on 38.9% in 2015 while EBITDA Margin increased on 8.6 pp from 10.9% to 19.5%
29/03/2016 • About Tianjin Port Development Holdings Ltd (
$3382) • By InTwits
Tianjin Port Development Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tianjin Port Development Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.1%. At the same time it's in pair with industry average of 45.0%.
- CAPEX is quite volatile: 1,848 in 2015, 1,809 in 2014, 3,365 in 2013, 1,945 in 2012, 760 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.5x while industry average is 2.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tianjin Port Development Holdings Ltd ($3382) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 16,228 | 17,644 | 22,041 | 33,486 | 20,476 | -38.9% |
| Gross Profit | 3,523 | 3,973 | 4,055 | 4,568 | 4,658 | 2.0% |
| SG&A | 1,775 | 1,938 | 2,017 | 2,183 | 2,068 | -5.3% |
| EBITDA | 2,802 | 3,096 | 3,253 | 3,645 | 3,993 | 9.5% |
| Net Income | 713 | 706 | 811 | 819 | 639 | -21.9% |
Balance Sheet
|
|---|
| Cash | 4,575 | 5,264 | 5,713 | 5,891 | 7,253 | 23.1% |
| Short Term Debt | 3,930 | 3,576 | 3,787 | 6,956 | 5,594 | -19.6% |
| Long Term Debt | 6,205 | 7,813 | 11,304 | 11,254 | 11,575 | 2.9% |
Cash flow
|
|---|
| Capex | 760 | 1,945 | 3,365 | 1,809 | 1,848 | 2.2% |
Ratios
|
|---|
| Revenue growth | 9.8% | 8.7% | 24.9% | 51.9% | -38.9% | |
| EBITDA growth | 9.9% | 10.5% | 5.1% | 12.1% | 9.5% | |
| Gross Margin | 21.7% | 22.5% | 18.4% | 13.6% | 22.7% | 9.1% |
| EBITDA Margin | 17.3% | 17.5% | 14.8% | 10.9% | 19.5% | 8.6% |
| Net Income Margin | 4.4% | 4.0% | 3.7% | 2.4% | 3.1% | 0.7% |
| SG&A, % of revenue | 10.9% | 11.0% | 9.2% | 6.5% | 10.1% | 3.6% |
| CAPEX, % of revenue | 4.7% | 11.0% | 15.3% | 5.4% | 9.0% | 3.6% |
| ROIC | 6.2% | 6.5% | 6.0% | 6.0% | 6.3% | 0.4% |
| ROE | 7.4% | 6.9% | 7.4% | 7.0% | 5.4% | -1.6% |
| Net Debt/EBITDA | 2.0x | 2.0x | 2.9x | 3.4x | 2.5x | -0.9x |
Revenue and profitability
The company's Revenue dropped on 38.9% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 8.6 pp from 10.9% to 19.5% in 2015.
Gross Margin increased on 9.1 pp from 13.6% to 22.7% in 2015. SG&A as a % of Revenue increased on 3.6 pp from 6.5% to 10.1% in 2015.
Net Income marign increased slightly on 0.68 pp from 2.4% to 3.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 9.0%. Tianjin Port Development Holdings Ltd showed small CAPEX/Revenue decline of 2.0 pp from 11.0% in 2012 to 9.0% in 2015. It's average level of CAPEX/Revenue for the last three years was 9.9%.
Return on investment
The company operates at low ROIC (6.33%) and ROE (5.41%). ROIC showed almost no change in 2015. ROE decreased slightly on 1.6 pp from 7.0% to 5.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.5x and Debt / EBITDA is 4.3x. Net Debt / EBITDA dropped on 0.9x from 3.4x to 2.5x in 2015. Debt decreased on 5.7% in 2015 while cash surged on 23.1% in 2015.
Appendix 1: Peers in Transportation
Below you can find Tianjin Port Development Holdings Ltd benchmarking vs. other companies in Transportation 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 |
|---|
| Noble Century Investment Holdings Ltd ($2322) | | | | | 2,388.3% |
| Changan Minsheng APLL Logistics Co Ltd ($1292) | | 10.9% | 27.9% | 15.0% | 13.3% |
| Kwoon Chung Bus Holdings Ltd ($306) | | -8.6% | 7.9% | 5.5% | 7.9% |
| Guangshen Railway Co Ltd ($525) | | 2.7% | 4.7% | -6.9% | 6.9% |
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | | 9.4% | 6.9% | 12.9% | 5.1% |
| |
|---|
| Median (25 companies) | -12.3% | 3.4% | 3.5% | 4.7% | -0.5% |
|---|
| Tianjin Port Development Holdings Ltd ($3382) | | 8.7% | 24.9% | 51.9% | -38.9% |
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% |
| Qinhuangdao Port Co Ltd ($3369) | 43.2% | 43.1% | 42.4% | 43.3% | 40.5% |
| Kwoon Chung Bus Holdings Ltd ($306) | 17.6% | 18.9% | 20.4% | 22.7% | 26.8% |
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | 21.5% | 23.1% | 25.1% | 24.1% | 23.1% |
| China Shipping Development Co Ltd ($1138) | 12.5% | -1.8% | -1.6% | 11.3% | 19.2% |
| |
|---|
| Median (21 companies) | 17.6% | 12.7% | 10.6% | 10.2% | 12.6% |
|---|
| Tianjin Port Development Holdings Ltd ($3382) | 21.7% | 22.5% | 18.4% | 13.6% | 22.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| MTR Corp Ltd ($66) | 49.1% | 42.7% | 37.6% | 45.2% | 41.6% |
| Qinhuangdao Port Co Ltd ($3369) | 45.3% | 46.0% | 44.6% | 46.5% | 41.1% |
| CIG Yangtze Ports PLC ($8233) | 29.9% | 30.2% | 27.6% | 38.5% | 39.5% |
| China Shipping Development Co Ltd ($1138) | 24.7% | 12.5% | 3.0% | 24.7% | 26.7% |
| Kwoon Chung Bus Holdings Ltd ($306) | 15.4% | 13.3% | 16.1% | 20.7% | 26.1% |
| |
|---|
| Median (25 companies) | 15.4% | 9.4% | 7.1% | 7.5% | 10.0% |
|---|
| Tianjin Port Development Holdings Ltd ($3382) | 17.3% | 17.5% | 14.8% | 10.9% | 19.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Great Harvest Maeta Group Holdings Ltd ($3683) | 150.5% | 4.0% | 6.1% | 40.7% | 164.7% |
| MTR Corp Ltd ($66) | 30.0% | 31.1% | 34.5% | 30.8% | 52.0% |
| CIG Yangtze Ports PLC ($8233) | 31.4% | 17.8% | 24.8% | 2.1% | 50.7% |
| Transport International Holdings Ltd ($62) | 10.9% | 7.9% | 16.2% | 16.0% | 26.2% |
| Qinhuangdao Port Co Ltd ($3369) | 47.2% | 57.9% | 35.8% | 46.3% | 21.0% |
| |
|---|
| Median (25 companies) | 11.3% | 7.8% | 8.7% | 7.4% | 9.2% |
|---|
| Tianjin Port Development Holdings Ltd ($3382) | 4.7% | 11.0% | 15.3% | 5.4% | 9.0% |
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% |
| Kwoon Chung Bus Holdings Ltd ($306) | 6.9% | 3.6% | 5.7% | 9.2% | 14.6% |
| SITC International Holdings Co Ltd ($1308) | 9.0% | 8.2% | 9.1% | 9.1% | 11.2% |
| 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% |
| |
|---|
| Median (25 companies) | 5.0% | 3.2% | 2.8% | 3.1% | 5.0% |
|---|
| Tianjin Port Development Holdings Ltd ($3382) | 6.2% | 6.5% | 6.0% | 6.0% | 6.3% |
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 | 11.4x |
| Pacific Basin Shipping Ltd ($2343) | 0.8x | 2.1x | 4.6x | | 4.7x |
| AMS Public Transport Holdings Ltd ($77) | 0.7x | 1.2x | 11.6x | 7.7x | 4.5x |
| Orient Overseas International Ltd ($316) | 2.0x | 2.7x | 5.1x | 3.4x | 3.9x |
| |
|---|
| Median (18 companies) | 0.2x | 1.1x | 1.5x | 0.8x | 0.8x |
|---|
| Tianjin Port Development Holdings Ltd ($3382) | 2.0x | 2.0x | 2.9x | 3.4x | 2.5x |
