Anhui Tianda Oil Pipe Co Ltd reports 53.7% EBITDA decline and 2.6 pp EBITDA Margin decline from 7.5% to 4.9%
31/03/2016 • About Anhui Tianda Oil Pipe Co Ltd (
$839) • By InTwits
Anhui Tianda Oil Pipe Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Anhui Tianda Oil Pipe Co Ltd is a company in decline: 2015 revenue growth was -29.5%, 5 years revenue CAGR was -8.6%
- Anhui Tianda Oil Pipe Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's a lot of higher than industry average of 5.6%.
- CAPEX is quite volatile: 21.5 in 2015, 47.4 in 2014, 98.6 in 2013, 102 in 2012, 168 in 2011
- The company has 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.
Anhui Tianda Oil Pipe Co Ltd ($839) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,530 | 3,961 | 3,310 | 2,882 | 2,032 | -29.5% |
| Gross Profit | 294 | 238 | 229 | 246 | 86 | -65.1% |
| SG&A | | 202 | 176 | 179 | 151 | -15.8% |
| EBITDA | 234 | 192 | 213 | 216 | 100 | -53.7% |
| Net Income | 64 | 35 | 49 | 58 | -19 | -133.0% |
Balance Sheet
|
|---|
| Cash | 125 | 43 | 369 | 475 | 766 | 61.2% |
| Short Term Debt | 327 | 10 | 269 | 186 | 219 | 17.6% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 168 | 102 | 99 | 47 | 22 | -54.6% |
Ratios
|
|---|
| Revenue growth | 42.4% | -12.6% | -16.4% | -12.9% | -29.5% | |
| EBITDA growth | -6.0% | -17.7% | 11.0% | 1.4% | -53.7% | |
| Gross Margin | 6.5% | 6.0% | 6.9% | 8.6% | 4.2% | -4.3% |
| EBITDA Margin | 5.2% | 4.9% | 6.4% | 7.5% | 4.9% | -2.6% |
| Net Income Margin | 1.4% | 0.9% | 1.5% | 2.0% | -0.9% | -2.9% |
| SG&A, % of revenue | | 5.1% | 5.3% | 6.2% | 7.4% | 1.2% |
| CAPEX, % of revenue | 3.7% | 2.6% | 3.0% | 1.6% | 1.1% | -0.6% |
| ROIC | 3.6% | 1.7% | 2.2% | 2.1% | -2.3% | -4.5% |
| ROE | 3.2% | 1.5% | 2.1% | 2.5% | -0.9% | -3.5% |
| Net Debt/EBITDA | 0.9x | -0.2x | -0.5x | -1.3x | -5.5x | -4.1x |
Revenue and profitability
Anhui Tianda Oil Pipe Co Ltd's Revenue dropped on 29.5% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 2.6 pp from 7.5% to 4.9% in 2015.
Gross Margin decreased on 4.3 pp from 8.6% to 4.2% in 2015. SG&A as a % of Revenue increased slightly on 1.2 pp from 6.2% to 7.4% in 2015.
Net Income marign decreased on 2.9 pp from 2.0% to -0.94% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Anhui Tianda Oil Pipe Co Ltd had CAPEX/Revenue of 1.1%. CAPEX/Revenue decreased slightly on 1.5 pp from 2.6% in 2012 to 1.1% in 2015. Average CAPEX/Revenue for the last three years was 1.9%.
Return on investment
The company operates at negative ROIC (-2.31%) and ROE (-0.92%). ROIC decreased on 4.5 pp from 2.1% to -2.3% in 2015. ROE decreased on 3.5 pp from 2.5% to -0.92% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -5.5x and Debt / EBITDA is 2.2x. Net Debt / EBITDA dropped on 4.1x from -1.3x to -5.5x in 2015. Debt surged on 17.6% in 2015 while cash jumped on 61.2% in 2015.
Appendix 1: Peers in Oil&Gas Services
Below you can find Anhui Tianda Oil Pipe Co Ltd benchmarking vs. other companies in Oil&Gas Services 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 |
|---|
| Hans Energy Co Ltd ($554) | | 40.8% | 8.0% | -4.0% | 5.5% |
| Hilong Holding Ltd ($1623) | | 23.5% | 8.3% | 5.0% | -3.6% |
| Sinopec Engineering Group Co Ltd ($2386) | | 25.9% | 13.1% | 13.3% | -7.8% |
| Petro-King Oilfield Services Ltd ($2178) | | 543.3% | 0.3% | -33.5% | -10.5% |
| Anton Oilfield Services Group/Hong Kong ($3337) | | 59.2% | 26.4% | -18.2% | -11.5% |
| |
|---|
| Median (12 companies) | | 28.8% | 11.5% | 6.0% | -27.4% |
|---|
| Anhui Tianda Oil Pipe Co Ltd ($839) | | -12.6% | -16.4% | -12.9% | -29.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sinopec Kantons Holdings Ltd ($934) | 1.6% | 1.1% | 0.7% | 4.4% | 41.1% |
| Hilong Holding Ltd ($1623) | 41.0% | 39.5% | 40.3% | 39.6% | 32.6% |
| Anton Oilfield Services Group/Hong Kong ($3337) | 41.5% | 45.0% | 44.3% | 31.2% | 31.8% |
| TSC Group Holdings Ltd ($206) | 38.0% | 30.7% | 31.6% | 27.8% | 27.9% |
| Jutal Offshore Oil Services Ltd ($3303) | 20.3% | 21.7% | 25.1% | 19.6% | 19.6% |
| |
|---|
| Median (9 companies) | 20.3% | 19.5% | 20.4% | 18.8% | 19.6% |
|---|
| Anhui Tianda Oil Pipe Co Ltd ($839) | 6.5% | 6.0% | 6.9% | 8.6% | 4.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sinopec Kantons Holdings Ltd ($934) | 2.1% | 1.5% | 0.9% | 6.6% | 63.8% |
| Hans Energy Co Ltd ($554) | -38.3% | 40.4% | 45.0% | 42.8% | 42.7% |
| China Oilfield Services Ltd ($2883) | 43.7% | 39.8% | 40.0% | 37.0% | 25.2% |
| Hilong Holding Ltd ($1623) | 28.5% | 25.9% | 27.8% | 28.8% | 22.7% |
| Anton Oilfield Services Group/Hong Kong ($3337) | 18.6% | 24.5% | 28.0% | 12.5% | 17.2% |
| |
|---|
| Median (12 companies) | 12.8% | 16.0% | 16.9% | 12.5% | 10.0% |
|---|
| Anhui Tianda Oil Pipe Co Ltd ($839) | 5.2% | 4.9% | 6.4% | 7.5% | 4.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Oilfield Services Ltd ($2883) | 24.9% | 16.5% | 30.9% | 29.8% | 25.3% |
| SPT Energy Group Inc ($1251) | 6.8% | 7.4% | 5.6% | 7.9% | 23.5% |
| Sinopec Kantons Holdings Ltd ($934) | 0.3% | 0.8% | 1.7% | 6.7% | 15.8% |
| Petro-King Oilfield Services Ltd ($2178) | 8.2% | 13.3% | 13.3% | 75.4% | 12.3% |
| Hilong Holding Ltd ($1623) | 17.1% | 16.7% | 18.9% | 48.1% | 9.6% |
| |
|---|
| Median (12 companies) | 6.8% | 10.0% | 6.3% | 7.3% | 8.9% |
|---|
| Anhui Tianda Oil Pipe Co Ltd ($839) | 3.7% | 2.6% | 3.0% | 1.6% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sinopec Engineering Group Co Ltd ($2386) | 59.6% | 77.5% | 33.3% | 18.6% | 15.3% |
| CIMC Enric Holdings Ltd ($3899) | 19.4% | 20.3% | 20.0% | 21.3% | 8.9% |
| Hilong Holding Ltd ($1623) | 19.0% | 15.5% | 14.8% | 12.0% | 6.0% |
| Sinopec Kantons Holdings Ltd ($934) | 8.3% | 3.5% | 0.4% | 6.0% | 5.0% |
| Yuan Heng Gas Holdings Ltd ($332) | | -59.8% | -0.0% | 25.6% | 3.9% |
| |
|---|
| Median (12 companies) | 8.6% | 11.8% | 12.2% | 10.2% | 2.0% |
|---|
| Anhui Tianda Oil Pipe Co Ltd ($839) | 3.6% | 1.7% | 2.2% | 2.1% | -2.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hans Energy Co Ltd ($554) | | 14.0x | 11.9x | 12.9x | 11.3x |
| Yuan Heng Gas Holdings Ltd ($332) | | | | 2.7x | 8.9x |
| Anton Oilfield Services Group/Hong Kong ($3337) | -0.5x | 0.0x | 0.9x | 7.4x | 6.4x |
| China Oilfield Services Ltd ($2883) | 2.8x | 2.7x | 1.9x | 1.8x | 3.9x |
| Hilong Holding Ltd ($1623) | 0.8x | 0.9x | 1.1x | 2.6x | 3.3x |
| |
|---|
| Median (10 companies) | -0.3x | 0.1x | -0.0x | 1.8x | 2.8x |
|---|
| Anhui Tianda Oil Pipe Co Ltd ($839) | 0.9x | -0.2x | -0.5x | -1.3x | -5.5x |
