Sheen Tai Holdings Grp Co Ltd reports 789% CAPEX growth while 34.1% Revenue decline
30/03/2016 • About Sheen Tai Holdings Grp Co Ltd (
$1335) • By InTwits
Sheen Tai Holdings Grp Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sheen Tai Holdings Grp Co Ltd is a company in decline: 2015 revenue growth was -34.1%, 5 years revenue CAGR was -3.1%
- EBITDA Margin is quite volatile: 11.0% in 2015, 32.1% in 2014, 32.2% in 2013, 31.9% in 2012, 35.5% in 2011
- Sheen Tai Holdings Grp Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.0%. At the same time it's in pair with industry average of 14.8%.
- CAPEX is quite volatile: 198 in 2015, 22.3 in 2014, 8.2 in 2013, 26.0 in 2012, 64.6 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sheen Tai Holdings Grp Co Ltd ($1335) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 675.0 | 699.6 | 706.1 | 712.5 | 469.2 | -34.1% |
| Gross Profit | 246.6 | 254.5 | 266.6 | 282.2 | 131.0 | -53.6% |
| SG&A | | 78.4 | 83.3 | 91.1 | 89.4 | -1.9% |
| EBITDA | 239.7 | 223.3 | 227.4 | 228.7 | 51.5 | -77.5% |
| Net Income | 81.4 | 70.1 | 77.9 | 92.5 | 326.5 | 253.0% |
Balance Sheet
|
|---|
| Cash | 63.0 | 79.2 | 61.2 | 117.0 | 194.4 | 66.1% |
| Short Term Debt | 154.2 | 277.5 | 271.1 | 211.3 | 95.8 | -54.7% |
| Long Term Debt | 146.8 | 24.7 | 1.1 | 70.0 | 69.9 | -0.2% |
Cash flow
|
|---|
| Capex | 64.6 | 26.0 | 8.2 | 22.3 | 198.2 | 788.9% |
Ratios
|
|---|
| Revenue growth | 22.6% | 3.6% | 0.9% | 0.9% | -34.1% | |
| EBITDA growth | 29.9% | -6.8% | 1.8% | 0.5% | -77.5% | |
| Gross Margin | 36.5% | 36.4% | 37.8% | 39.6% | 27.9% | -11.7% |
| EBITDA Margin | 35.5% | 31.9% | 32.2% | 32.1% | 11.0% | -21.1% |
| Net Income Margin | 12.1% | 10.0% | 11.0% | 13.0% | 69.6% | 56.6% |
| SG&A, % of revenue | | 11.2% | 11.8% | 12.8% | 19.0% | 6.3% |
| CAPEX, % of revenue | 9.6% | 3.7% | 1.2% | 3.1% | 42.2% | 39.1% |
| ROIC | 32.5% | 26.8% | 26.2% | 24.7% | 3.3% | -21.3% |
| ROE | 40.9% | 24.4% | 21.8% | 22.4% | 48.0% | 25.6% |
| Net Debt/EBITDA | 1.0x | 1.0x | 0.9x | 0.7x | -0.6x | -1.3x |
Revenue and profitability
Sheen Tai Holdings Grp Co Ltd's Revenue dropped on 34.1% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 21.1 pp from 32.1% to 11.0% in 2015.
Gross Margin dropped on 11.7 pp from 39.6% to 27.9% in 2015. SG&A as a % of Revenue increased on 6.3 pp from 12.8% to 19.0% in 2015.
Net Income marign jumped on 56.6 pp from 13.0% to 69.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 42.2% in 2015. CAPEX/Revenue jumped on 38.5 pp from 3.7% in 2012 to 42.2% in 2015. It's average level of CAPEX/Revenue for the last three years was 15.5%.Battling declining revenue Sheen Tai Holdings Grp Co Ltd made large investments to CAPEX (385% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at good ROE (48.05%) while ROIC is low (3.32%). ROIC dropped on 21.3 pp from 24.7% to 3.3% in 2015. ROE surged on 25.6 pp from 22.4% to 48.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.6x and Debt / EBITDA is 3.2x. Net Debt / EBITDA dropped on 1.3x from 0.7x to -0.6x in 2015. Debt dropped on 41.1% in 2015 while cash surged on 66.1% in 2015.
Appendix 1: Peers in Packaging&Containers
Below you can find Sheen Tai Holdings Grp Co Ltd benchmarking vs. other companies in Packaging&Containers 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 |
|---|
| Overseas Chinese Town Asia Holdings Ltd ($3366) | | 34.9% | 17.5% | -6.5% | 69.5% |
| Hao Tian Development Group Ltd ($474) | | 14.8% | | | 51.0% |
| Jin Cai Holdings Co Ltd ($1250) | | 2.1% | -6.3% | -3.1% | 40.8% |
| Huaxi Holdings Co Ltd ($1689) | | 25.3% | 5.0% | -5.1% | 12.5% |
| Huajun Holdings Ltd ($377) | | 11.2% | 3.3% | 3.4% | 10.4% |
| |
|---|
| Median (17 companies) | 8.0% | 4.9% | 5.3% | 0.7% | 3.0% |
|---|
| Sheen Tai Holdings Grp Co Ltd ($1335) | | 3.6% | 0.9% | 0.9% | -34.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jin Cai Holdings Co Ltd ($1250) | 39.6% | 36.6% | 39.1% | 37.7% | 44.7% |
| Huaxi Holdings Co Ltd ($1689) | 13.1% | 19.0% | 28.2% | 40.9% | 37.5% |
| China For You Group Co Ltd ($572) | 18.7% | 12.4% | | 34.6% | 31.9% |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 30.2% | 34.3% | 36.5% | 32.8% | 31.4% |
| Greatview Aseptic Packaging Co Ltd ($468) | 30.2% | 31.6% | 26.8% | 24.4% | 27.8% |
| |
|---|
| Median (16 companies) | 18.5% | 19.0% | 19.8% | 21.7% | 20.9% |
|---|
| Sheen Tai Holdings Grp Co Ltd ($1335) | 36.5% | 36.4% | 37.8% | 39.6% | 27.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huaxi Holdings Co Ltd ($1689) | 7.8% | 14.5% | 21.2% | 27.1% | 29.1% |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 25.5% | 27.9% | 30.7% | 27.4% | 26.3% |
| Greatview Aseptic Packaging Co Ltd ($468) | 24.1% | 25.9% | 23.1% | 21.6% | 23.4% |
| Lee & Man Paper Manufacturing Ltd ($2314) | 19.3% | 14.6% | 17.2% | 18.7% | 21.6% |
| Jin Cai Holdings Co Ltd ($1250) | 35.7% | 33.2% | 26.1% | 27.6% | 19.8% |
| |
|---|
| Median (17 companies) | 10.8% | 11.9% | 13.8% | 12.2% | 8.7% |
|---|
| Sheen Tai Holdings Grp Co Ltd ($1335) | 35.5% | 31.9% | 32.2% | 32.1% | 11.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jin Cai Holdings Co Ltd ($1250) | 0.0% | 0.0% | 0.0% | 3.0% | 122.3% |
| Hao Tian Development Group Ltd ($474) | 88.2% | 81.6% | | 13.0% | 25.4% |
| Lee & Man Paper Manufacturing Ltd ($2314) | 13.5% | 19.7% | 13.7% | 13.1% | 17.1% |
| CPMC Holdings Ltd ($906) | 13.7% | 16.7% | 19.7% | 8.6% | 9.2% |
| Huajun Holdings Ltd ($377) | 5.6% | 18.4% | 4.0% | 4.1% | 7.2% |
| |
|---|
| Median (17 companies) | 5.6% | 6.9% | 5.0% | 4.1% | 5.5% |
|---|
| Sheen Tai Holdings Grp Co Ltd ($1335) | 9.6% | 3.7% | 1.2% | 3.1% | 42.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huaxi Holdings Co Ltd ($1689) | | 21.4% | 28.5% | 26.2% | 23.6% |
| Greatview Aseptic Packaging Co Ltd ($468) | 19.6% | 20.2% | 18.9% | 15.7% | 17.7% |
| Lee & Man Paper Manufacturing Ltd ($2314) | 11.3% | 7.2% | 8.7% | 8.0% | 9.2% |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 13.3% | 8.1% | 6.4% | 4.9% | 8.0% |
| Zhengye International Holdings Co Ltd ($3363) | 10.0% | 7.7% | 6.2% | 5.4% | 6.8% |
| |
|---|
| Median (17 companies) | 10.0% | 7.7% | 6.4% | 5.4% | 4.4% |
|---|
| Sheen Tai Holdings Grp Co Ltd ($1335) | 32.5% | 26.8% | 26.2% | 24.7% | 3.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zhengye International Holdings Co Ltd ($3363) | 4.0x | 6.2x | 6.4x | 7.8x | 5.5x |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 0.7x | 9.4x | 6.7x | 7.4x | 4.4x |
| Sino Haijing Holdings Ltd ($1106) | 4.7x | 6.4x | 6.1x | 6.2x | 10.1x |
| Come Sure Group Holdings Ltd ($794) | -1.1x | 3.6x | 4.1x | 3.8x | 3.4x |
| Lee & Man Paper Manufacturing Ltd ($2314) | 2.5x | 4.1x | 3.5x | 3.4x | 3.0x |
| |
|---|
| Median (18 companies) | 0.6x | 1.2x | 0.6x | 0.5x | 2.7x |
|---|
| Sheen Tai Holdings Grp Co Ltd ($1335) | 1.0x | 1.0x | 0.9x | 0.7x | -0.6x |
