Tianjin Development Hldgs Ltd reports 45.4% EBITDA decline and 2.2 pp EBITDA Margin decline from 5.3% to 3.1%
30/03/2016 • About Tianjin Development Hldgs Ltd (
$882) • By InTwits
Tianjin Development Hldgs Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tianjin Development Hldgs Ltd doesn't have a profitable business model yet: 2015 ROIC is -0.4%
- EBITDA Margin is quite volatile: 3.1% in 2015, 5.3% in 2014, 5.5% in 2013, 2.2% in 2012, -0.4% in 2011
- Tianjin Development Hldgs Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.9%. At the same time it's a lot of higher than industry average of 7.0%.
- CAPEX is quite volatile: 869 in 2015, 1,287 in 2014, 252 in 2013, 248 in 2012, 549 in 2011
- The company has unprofitable business model: ROIC is at -0.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tianjin Development Hldgs Ltd ($882) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,517 | 3,890 | 4,952 | 6,814 | 6,369 | -6.5% |
| Gross Profit | 275 | 332 | 249 | 1,272 | 1,184 | -7.0% |
| SG&A | 363 | 440 | 622 | 1,279 | 1,210 | -5.4% |
| EBITDA | -14 | 86 | 274 | 364 | 199 | -45.4% |
| Net Income | 437 | 413 | 704 | 737 | 562 | -23.7% |
Balance Sheet
|
|---|
| Cash | 3,755 | 4,258 | 4,835 | 8,535 | 6,888 | -19.3% |
| Short Term Debt | 372 | 779 | 2,502 | 749 | 3,150 | 320.7% |
| Long Term Debt | 1,988 | 1,994 | 0 | 2,665 | 87 | -96.7% |
Cash flow
|
|---|
| Capex | 549 | 248 | 252 | 1,287 | 869 | -32.5% |
Ratios
|
|---|
| Revenue growth | 9.1% | 10.6% | 27.3% | 37.6% | -6.5% | |
| EBITDA growth | -125.7% | -696.3% | 217.5% | 33.2% | -45.4% | |
| Gross Margin | 7.8% | 8.5% | 5.0% | 18.7% | 18.6% | -0.1% |
| EBITDA Margin | -0.4% | 2.2% | 5.5% | 5.3% | 3.1% | -2.2% |
| Net Income Margin | 12.4% | 10.6% | 14.2% | 10.8% | 8.8% | -2.0% |
| SG&A, % of revenue | 10.3% | 11.3% | 12.6% | 18.8% | 19.0% | 0.2% |
| CAPEX, % of revenue | 15.6% | 6.4% | 5.1% | 18.9% | 13.6% | -5.2% |
| ROIC | -0.8% | -0.1% | 0.8% | 0.7% | -0.4% | -1.0% |
| ROE | 4.7% | 4.2% | 6.7% | 6.9% | 5.5% | -1.4% |
| Net Debt/EBITDA | | -17.2x | -8.5x | -14.1x | -18.4x | -4.3x |
Revenue and profitability
The company's Revenue decreased on 6.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.6 pp from 14.0% to 15.5% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased slightly on 2.0 pp from 10.8% to 8.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Tianjin Development Hldgs Ltd had CAPEX/Revenue of 13.6%. Tianjin Development Hldgs Ltd showed CAPEX/Revenue growth of 7.3 pp from 6.4% in 2012 to 13.6% in 2015. Average CAPEX/Revenue for the last three years was 12.5%.Tianjin Development Hldgs Ltd has spent a lot to CAPEX (437% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-0.35%) and low but positive ROE (5.46%). ROIC decreased slightly on 1.0 pp from 0.68% to -0.35% in 2015. ROE decreased slightly on 1.4 pp from 6.9% to 5.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -18.4x and Debt / EBITDA is 16.3x. Net Debt / EBITDA dropped on 4.3x from -14.1x to -18.4x in 2015. Debt decreased on 5.2% in 2015 while cash dropped on 19.3% in 2015.
Appendix 1: Peers in Electric
Below we provide Tianjin Development Hldgs Ltd benchmarking against other companies in Electric 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 |
|---|
| Huaneng Renewables Corp Ltd ($958) | | 26.0% | 46.7% | 4.1% | 19.6% |
| CGN Power Co Ltd ($1816) | | 10.7% | -1.2% | 19.3% | 12.3% |
| Huadian Fuxin Energy Corp Ltd ($816) | | 56.0% | 16.7% | 4.9% | 10.4% |
| China Datang Corp Renewable Power Co Ltd ($1798) | | 14.1% | 28.9% | -7.9% | 7.8% |
| HK Electric Investments & HK Electric Investments Ltd ($2638) | | 2.1% | -1.8% | 2.9% | 6.7% |
| |
|---|
| Median (16 companies) | | 8.8% | 11.3% | 4.8% | -2.4% |
|---|
| Tianjin Development Hldgs Ltd ($882) | | 10.6% | 27.3% | 37.6% | -6.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Power Assets Holdings Ltd ($6) | 60.5% | 60.0% | 63.5% | 85.6% | 99.4% |
| China Power New Energy Development Co Ltd ($735) | 57.1% | 73.3% | 70.8% | 72.0% | 74.9% |
| HK Electric Investments & HK Electric Investments Ltd ($2638) | 60.5% | 60.1% | 58.6% | 54.0% | 53.7% |
| CGN Power Co Ltd ($1816) | 48.3% | 46.5% | 46.9% | 48.6% | 47.9% |
| Huaneng Power International Inc ($902) | | | | 24.8% | 28.4% |
| |
|---|
| Median (6 companies) | 52.7% | 53.3% | 58.6% | 48.6% | 50.8% |
|---|
| Tianjin Development Hldgs Ltd ($882) | 7.8% | 8.5% | 5.0% | 18.7% | 18.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huaneng Renewables Corp Ltd ($958) | 110.2% | 94.0% | 80.5% | 91.3% | 93.1% |
| China Datang Corp Renewable Power Co Ltd ($1798) | 100.2% | 90.5% | 82.8% | 87.0% | 82.4% |
| HK Electric Investments & HK Electric Investments Ltd ($2638) | 72.8% | 72.6% | 77.6% | 73.3% | 71.7% |
| Power Assets Holdings Ltd ($6) | 64.6% | 66.2% | 68.0% | 2,533.1% | 71.2% |
| CGN Power Co Ltd ($1816) | 64.2% | 66.0% | 62.6% | 60.5% | 59.4% |
| |
|---|
| Median (16 companies) | 25.3% | 30.3% | 36.4% | 38.2% | 47.0% |
|---|
| Tianjin Development Hldgs Ltd ($882) | -0.4% | 2.2% | 5.5% | 5.3% | 3.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Enerchina Holdings Ltd ($622) | 54.3% | 24.1% | 28.3% | 3.8% | 321.6% |
| Huaneng Renewables Corp Ltd ($958) | 240.9% | 163.4% | 124.0% | 217.8% | 171.9% |
| China Power New Energy Development Co Ltd ($735) | 21.5% | 82.2% | 80.1% | 119.5% | 99.0% |
| Huadian Fuxin Energy Corp Ltd ($816) | 78.6% | 62.2% | 54.3% | 91.8% | 96.0% |
| China Datang Corp Renewable Power Co Ltd ($1798) | 273.4% | 157.1% | 81.7% | 106.3% | 93.4% |
| |
|---|
| Median (16 companies) | 24.3% | 29.6% | 28.3% | 16.9% | 20.6% |
|---|
| Tianjin Development Hldgs Ltd ($882) | 15.6% | 6.4% | 5.1% | 18.9% | 13.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CLP Holdings Ltd ($2) | 7.8% | 7.0% | 4.8% | 8.5% | 12.8% |
| China Resources Power Holdings Co Ltd ($836) | 5.9% | 7.7% | 9.7% | 8.0% | 11.0% |
| Huaneng Power International Inc ($902) | 4.0% | 7.3% | 10.3% | 11.3% | 10.9% |
| China Power International Development Ltd ($2380) | 4.0% | 5.7% | 7.5% | 8.0% | 10.1% |
| Huadian Power International Corp Ltd ($1071) | 2.7% | 5.0% | 8.4% | 10.4% | 10.0% |
| |
|---|
| Median (16 companies) | 5.2% | 5.4% | 6.8% | 6.7% | 5.8% |
|---|
| Tianjin Development Hldgs Ltd ($882) | -0.8% | -0.1% | 0.8% | 0.7% | -0.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CGN Meiya Power Holdings Co Ltd ($1811) | 5.7x | 9.1x | 8.1x | 4.3x | 8.6x |
| China Datang Corp Renewable Power Co Ltd ($1798) | 8.1x | 9.1x | 8.2x | 8.7x | 8.5x |
| CGN Power Co Ltd ($1816) | 4.7x | 6.5x | 6.7x | 7.8x | 8.4x |
| China Power New Energy Development Co Ltd ($735) | 5.9x | 4.8x | 5.5x | 6.4x | 7.9x |
| Huadian Fuxin Energy Corp Ltd ($816) | 9.3x | 6.9x | 6.2x | 6.5x | 7.4x |
| |
|---|
| Median (14 companies) | 5.9x | 5.8x | 5.6x | 5.1x | 5.2x |
|---|
| Tianjin Development Hldgs Ltd ($882) | | -17.2x | -8.5x | -14.1x | -18.4x |
