Shanghai Tonva Petrochemical Co Ltd revenue surged on 55.4% in 2015 while EBITDA Margin decreased slightly on 1.6 pp from 6.9% to 5.4%
15/06/2016 • About Shanghai Tonva Petrochemical Co Ltd (
$1103) • By InTwits
Shanghai Tonva Petrochemical Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shanghai Tonva Petrochemical Co Ltd is a fast growth stock: 2015 revenue growth was 55.4%, 5 year revenue CAGR was 27.1% at 2015 ROIC 13.9%
- Shanghai Tonva Petrochemical Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has highly profitable business model: ROIC is at 13.9%
- It operates with high leverage: Net Debt/EBITDA is 2.8x while industry average is -0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shanghai Tonva Petrochemical Co Ltd ($1103) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,221 | 4,422 | 5,886 | 5,293 | 8,223 | 55.4% |
| Gross Profit | 192 | 247 | 400 | 389 | 502 | 29.1% |
| SG&A | | 113 | 117 | 138 | 132 | -4.2% |
| EBITDA | 118 | 185 | 352 | 368 | 441 | 20.0% |
| Net Income | 72 | 101 | 139 | 168 | 247 | 47.2% |
Balance Sheet
|
|---|
| Cash | 219 | 502 | 280 | 111 | 363 | 227.5% |
| Short Term Debt | 1,205 | 1,609 | 1,807 | 1,377 | 1,573 | 14.2% |
| Long Term Debt | 0 | 0 | 0 | 70 | 32 | -54.8% |
Cash flow
|
|---|
| Capex | 12 | 19 | 18 | 27 | 31 | 13.5% |
Ratios
|
|---|
| Revenue growth | 30.1% | 37.3% | 33.1% | -10.1% | 55.4% | |
| EBITDA growth | -16.8% | 56.3% | 90.3% | 4.3% | 20.0% | |
| Gross Margin | 6.0% | 5.6% | 6.8% | 7.3% | 6.1% | -1.2% |
| EBITDA Margin | 3.7% | 4.2% | 6.0% | 6.9% | 5.4% | -1.6% |
| Net Income Margin | 2.2% | 2.3% | 2.4% | 3.2% | 3.0% | -0.2% |
| SG&A, % of revenue | | 2.6% | 2.0% | 2.6% | 1.6% | -1.0% |
| CAPEX, % of revenue | 0.4% | 0.4% | 0.3% | 0.5% | 0.4% | -0.1% |
| ROIC | 5.4% | 7.3% | 12.6% | 13.0% | 13.9% | 1.0% |
| ROE | 12.5% | 15.8% | 19.2% | 20.3% | 20.9% | 0.6% |
| Net Debt/EBITDA | 8.3x | 6.0x | 4.3x | 3.6x | 2.8x | -0.8x |
Revenue and profitability
Shanghai Tonva Petrochemical Co Ltd's Revenue surged on 55.4% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 10.5 pp from 45.2% to 55.7% in 2015.
Gross Margin decreased slightly on 1.2 pp from 7.3% to 6.1% in 2015. SG&A as a % of Revenue decreased slightly on 1.0 pp from 2.6% to 1.6% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Shanghai Tonva Petrochemical Co Ltd had CAPEX/Revenue of 0.37%. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 0.40%.
Return on investment
The company operates at high and attractive ROE (20.86%) while ROIC is a bit lower (13.94%). ROIC increased slightly on 0.98 pp from 13.0% to 13.9% in 2015. ROE increased slightly on 0.58 pp from 20.3% to 20.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.8x and Debt / EBITDA is 3.6x. Net Debt / EBITDA dropped on 0.8x from 3.6x to 2.8x in 2015. Debt surged on 10.9% in 2015 while cash surged on 227% in 2015.
Appendix 1: Peers in Oil&Gas
Below you can find Shanghai Tonva Petrochemical Co Ltd benchmarking vs. other companies in Oil&Gas 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 |
|---|
| Enviro Energy International Holdings Ltd ($1102) | | -57.9% | 1,572.5% | -9.6% | 1,162.8% |
| Sino Oil And Gas Holdings Ltd ($702) | | -17.5% | -25.3% | -23.4% | 305.2% |
| China CBM Group Co Ltd ($8270) | | -27.6% | 1.8% | 60.9% | 9.3% |
| Yanchang Petroleum International Ltd ($346) | | 641.9% | 155.6% | 15.5% | 4.4% |
| South Sea Petroleum Holdings Ltd ($76) | | 21.5% | 231.0% | -77.6% | 0.8% |
| |
|---|
| Median (17 companies) | | 10.3% | 3.7% | -1.8% | -13.3% |
|---|
| Shanghai Tonva Petrochemical Co Ltd ($1103) | | 37.3% | 33.1% | -10.1% | 55.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| United Energy Group Ltd ($467) | 15.4% | 39.4% | 48.0% | 53.8% | 51.5% |
| EPI Holdings Ltd ($689) | 0.3% | 58.0% | 50.7% | 54.6% | 41.2% |
| Zhongyu Gas Holdings Ltd ($3633) | 23.9% | 23.6% | 23.8% | 24.9% | 24.0% |
| South Sea Petroleum Holdings Ltd ($76) | 48.2% | 27.3% | 25.3% | 38.5% | 22.2% |
| COSCO International Holdings Ltd ($517) | 8.4% | 6.9% | 7.5% | 10.6% | 11.5% |
| |
|---|
| Median (10 companies) | 6.4% | 10.7% | 4.1% | 10.6% | 8.5% |
|---|
| Shanghai Tonva Petrochemical Co Ltd ($1103) | 6.0% | 5.6% | 6.8% | 7.3% | 6.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CNOOC Ltd ($883) | 50.3% | 48.5% | 47.2% | 50.7% | 53.0% |
| Kunlun Energy Co Ltd ($135) | 46.8% | 47.0% | 39.5% | 34.9% | 30.9% |
| Zhongyu Gas Holdings Ltd ($3633) | 15.3% | 18.6% | 18.9% | 21.0% | 21.5% |
| PetroChina Co Ltd ($857) | 16.0% | 14.9% | 15.6% | 15.2% | 16.3% |
| China CBM Group Co Ltd ($8270) | 14.4% | 16.0% | -4.7% | 7.5% | 11.4% |
| |
|---|
| Median (17 companies) | 5.6% | 4.7% | 1.4% | 5.9% | -2.5% |
|---|
| Shanghai Tonva Petrochemical Co Ltd ($1103) | 3.7% | 4.2% | 6.0% | 6.9% | 5.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| MIE Holdings Corp ($1555) | 43.9% | 52.2% | 43.3% | 44.1% | 62.4% |
| United Energy Group Ltd ($467) | 60.0% | 37.2% | 62.7% | 42.4% | 49.1% |
| CNOOC Ltd ($883) | 21.9% | 25.4% | 30.3% | 34.8% | 39.5% |
| Zhongyu Gas Holdings Ltd ($3633) | 9.2% | 8.2% | 17.8% | 18.9% | 22.9% |
| Kunlun Energy Co Ltd ($135) | 52.1% | 46.7% | 35.5% | 19.9% | 14.2% |
| |
|---|
| Median (17 companies) | 27.7% | 15.0% | 10.7% | 11.0% | 7.9% |
|---|
| Shanghai Tonva Petrochemical Co Ltd ($1103) | 0.4% | 0.4% | 0.3% | 0.5% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Brightoil Petroleum Holdings Ltd ($933) | 18.2% | 4.2% | -4.4% | 6.5% | 13.8% |
| Zhongyu Gas Holdings Ltd ($3633) | 10.6% | 17.4% | 15.0% | 12.3% | 8.2% |
| Kunlun Energy Co Ltd ($135) | 12.3% | 13.0% | 12.6% | 11.0% | 7.7% |
| China Petroleum & Chemical Corp ($386) | 14.2% | 11.9% | 10.6% | 7.5% | 5.5% |
| PetroChina Co Ltd ($857) | 13.4% | 11.2% | 10.9% | 9.3% | 4.2% |
| |
|---|
| Median (19 companies) | 3.6% | 3.8% | 1.6% | 1.5% | -1.7% |
|---|
| Shanghai Tonva Petrochemical Co Ltd ($1103) | 5.4% | 7.3% | 12.6% | 13.0% | 13.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Titan Petrochemicals Group Ltd ($1192) | | | | 95.2x | |
| Sino Oil And Gas Holdings Ltd ($702) | | | | 55.5x | |
| Zhongyu Gas Holdings Ltd ($3633) | 2.0x | 1.6x | 2.3x | 3.7x | 4.8x |
| China CBM Group Co Ltd ($8270) | 1.3x | 3.2x | | 3.3x | 2.1x |
| Brightoil Petroleum Holdings Ltd ($933) | 2.7x | 8.9x | | 3.1x | 2.9x |
| |
|---|
| Median (12 companies) | 1.2x | 1.5x | 1.0x | 2.1x | 1.7x |
|---|
| Shanghai Tonva Petrochemical Co Ltd ($1103) | 8.3x | 6.0x | 4.3x | 3.6x | 2.8x |
