Ping Shan Tea Group Ltd revenue jumped on 71.6% in 2015 while EBITDA Margin dropped on 21.2 pp from 39.3% to 18.1%
30/03/2016 • About Ping Shan Tea Group Ltd (
$364) • By InTwits
Ping Shan Tea Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has potentially unprofitable business model: ROIC is at 2.3%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ping Shan Tea Group Ltd ($364) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 727.3 | 539.1 | 882.6 | 479.3 | 822.5 | 71.6% |
| Gross Profit | 111.1 | 60.6 | 183.2 | 205.7 | 208.0 | 1.1% |
| SG&A | 89.2 | 75.8 | 220.2 | 80.5 | 100.4 | 24.6% |
| EBITDA | 108.7 | 60.5 | | 188.4 | 149.0 | -20.9% |
| Net Income | -138.5 | -190.8 | -79.7 | -819.1 | -826.7 | 0.9% |
Balance Sheet
|
|---|
| Cash | 512.3 | 261.0 | 978.7 | 1,482.2 | 1,688.4 | 13.9% |
| Short Term Debt | 48.0 | 0.0 | 99.5 | 547.9 | 567.6 | 3.6% |
| Long Term Debt | 137.3 | 123.3 | 711.0 | 416.1 | 1,082.7 | 160.2% |
Cash flow
|
|---|
| Capex | 131.4 | 172.4 | | 67.3 | 0.2 | -99.6% |
Ratios
|
|---|
| Revenue growth | -6.0% | -25.9% | 63.7% | -45.7% | 71.6% | |
| EBITDA growth | -34.4% | -44.3% | | | -20.9% | |
| Gross Margin | 15.3% | 11.2% | 20.8% | 42.9% | 25.3% | -17.6% |
| EBITDA Margin | 14.9% | 11.2% | 0.0% | 39.3% | 18.1% | -21.2% |
| Net Income Margin | -19.0% | -35.4% | -9.0% | -170.9% | -100.5% | 70.4% |
| SG&A, % of revenue | 12.3% | 14.1% | 24.9% | 16.8% | 12.2% | -4.6% |
| CAPEX, % of revenue | 18.1% | 32.0% | | 14.0% | 0.0% | -14.0% |
| ROIC | 1.4% | -0.7% | -1.1% | 2.9% | 2.3% | -0.6% |
| ROE | -9.4% | -13.7% | -2.9% | -21.2% | -25.6% | -4.4% |
| Net Debt/EBITDA | -3.0x | -2.3x | | -2.8x | -0.3x | 2.5x |
Revenue and profitability
The company's Revenue surged on 71.6% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 13.3 pp from 19.5% to 6.1% in 2015.
Gross Margin dropped on 17.6 pp from 42.9% to 25.3% in 2015. SG&A as a % of Revenue decreased on 4.6 pp from 16.8% to 12.2% in 2015.
Net Income marign surged on 70.4 pp from -171% to -101% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.030%. Ping Shan Tea Group Ltd's CAPEX/Revenue dropped on 32.0 pp from 32.0% in 2012 to 0.030% in 2015.
Return on investment
The company operates at low but positive ROIC (2.27%) and negative ROE (-25.63%). ROIC decreased slightly on 0.62 pp from 2.9% to 2.3% in 2015. ROE decreased on 4.4 pp from -21.2% to -25.6% in 2015.
Leverage (Debt)
Debt level is -0.3x Net Debt / EBITDA and 11.1x Debt / EBITDA. Net Debt / EBITDA jumped on 2.5x from -2.8x to -0.3x in 2015. Debt jumped on 71.2% in 2015 while cash jumped on 13.9% in 2015.
Appendix 1: Peers in Textiles
Below you can find Ping Shan Tea Group Ltd benchmarking vs. other companies in Textiles 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 |
|---|
| China Weaving Materials Holdings Ltd ($3778) | | -15.4% | -4.2% | -3.8% | 53.9% |
| Easyknit Enterprises Holdings Ltd ($616) | | 9.6% | 10.2% | 7.3% | 22.3% |
| Kingdom Holding Co Ltd ($528) | | 1.1% | 6.0% | 20.0% | 12.2% |
| Kam Hing International Holdings Ltd ($2307) | | 0.9% | -4.3% | 1.6% | 4.2% |
| Zhejiang Yonglong Enterprises Co Ltd ($8211) | | -33.5% | 58.8% | -8.6% | 1.8% |
| |
|---|
| Median (20 companies) | -5.2% | 0.9% | -4.3% | -3.8% | -5.8% |
|---|
| Ping Shan Tea Group Ltd ($364) | | -25.9% | 63.7% | -45.7% | 71.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Art Textile Technology International Co Ltd ($565) | 13.9% | 9.4% | 11.8% | 18.0% | 81.8% |
| TAI Ping Carpet International Ltd ($146) | 40.4% | 41.0% | 45.4% | 46.7% | 46.6% |
| Texwinca Holdings Ltd ($321) | 33.7% | 29.6% | 30.9% | 33.3% | 34.1% |
| Yongsheng Advanced Materials Co Ltd ($3608) | 5.6% | 4.9% | 7.3% | 24.9% | 28.8% |
| CECEP COSTIN New Materials Group Ltd ($2228) | 30.3% | 31.1% | 32.5% | 32.5% | 28.3% |
| |
|---|
| Median (19 companies) | 16.2% | 17.3% | 16.6% | 14.4% | 17.1% |
|---|
| Ping Shan Tea Group Ltd ($364) | 15.3% | 11.2% | 20.8% | 42.9% | 25.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Weiqiao Textile Co ($2698) | 10.2% | 17.5% | 20.2% | 21.4% | 30.8% |
| CECEP COSTIN New Materials Group Ltd ($2228) | 26.2% | 28.1% | 28.7% | 30.2% | 23.4% |
| Kingdom Holding Co Ltd ($528) | 29.3% | 26.3% | 25.3% | 24.8% | 23.0% |
| Yongsheng Advanced Materials Co Ltd ($3608) | 3.2% | 2.5% | 5.1% | 17.5% | 18.9% |
| Pacific Textiles Holdings Ltd ($1382) | 19.5% | 19.1% | 19.0% | 19.5% | 18.4% |
| |
|---|
| Median (19 companies) | 13.3% | 14.9% | 10.4% | 11.7% | 10.2% |
|---|
| Ping Shan Tea Group Ltd ($364) | 14.9% | 11.2% | | 39.3% | 18.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Art Textile Technology International Co Ltd ($565) | 2.6% | 1.0% | 1.9% | 3.9% | 105.3% |
| Kam Hing International Holdings Ltd ($2307) | 5.5% | 10.6% | 10.5% | 7.6% | 8.3% |
| TAI Ping Carpet International Ltd ($146) | 6.3% | 8.2% | 10.1% | 6.9% | 7.4% |
| Wang Tai Holdings Ltd ($1400) | 23.9% | 34.1% | 18.8% | 7.5% | 7.3% |
| Sijia Group Co ($1863) | 25.1% | 45.8% | 13.7% | 5.6% | 7.3% |
| |
|---|
| Median (19 companies) | 2.6% | 2.6% | 1.9% | 3.9% | 4.4% |
|---|
| Ping Shan Tea Group Ltd ($364) | 18.1% | 32.0% | | 14.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Textiles Holdings Ltd ($1382) | 28.8% | 23.7% | 26.4% | 31.6% | 25.9% |
| Yongsheng Advanced Materials Co Ltd ($3608) | 7.9% | 6.2% | 13.2% | 15.4% | 19.6% |
| Kingdom Holding Co Ltd ($528) | 16.3% | 13.8% | 12.7% | 13.8% | 12.7% |
| CECEP COSTIN New Materials Group Ltd ($2228) | 24.2% | 22.3% | 20.1% | 17.6% | 11.0% |
| Texwinca Holdings Ltd ($321) | 15.5% | 8.3% | 5.3% | 5.5% | 8.1% |
| |
|---|
| Median (20 companies) | 7.7% | 5.3% | 5.3% | 4.4% | 5.0% |
|---|
| Ping Shan Tea Group Ltd ($364) | 1.4% | -0.7% | -1.1% | 2.9% | 2.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Guangdong Tannery Ltd ($1058) | 8.9x | 6.5x | 5.8x | 11.6x | |
| Sijia Group Co ($1863) | -0.1x | 1.6x | 5.3x | 6.4x | |
| China Weaving Materials Holdings Ltd ($3778) | 1.3x | 3.6x | 3.0x | 5.3x | 5.5x |
| Co-Prosperity Holdings Ltd ($707) | 8.3x | 34.8x | | 4.5x | |
| Victory City International Holdings Ltd ($539) | 1.8x | 1.5x | 2.0x | 3.2x | 2.5x |
| |
|---|
| Median (19 companies) | 1.3x | 1.5x | 1.9x | 1.0x | 0.5x |
|---|
| Ping Shan Tea Group Ltd ($364) | -3.0x | -2.3x | | -2.8x | -0.3x |
