Shanghai Tonva Petrochemical Co Ltd's revenue growth was 23.0% and EBITDA growth 33.5% annually over the last three years
22/06/2016 • About Shanghai Tonva Petrochemical Co Ltd (
$1103) • By InTwits
Shanghai Tonva Petrochemical Co Ltd is a fast-growing stock in Oil&Gas industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Shanghai Tonva Petrochemical Co Ltd showed growth in the last financial year. Shanghai Tonva Petrochemical Co Ltd's revenue surged on 55.4% in FY2015. EBITDA also increased considerably: 20.0% for the same period.
In the longer period the company showed fast revenue growth of 23.0% from 2012 to 2015 annualy. EBITDA surged on 33.5% from 2012 to 2015 annualy.
Shanghai Tonva Petrochemical Co Ltd ($1103) financials for the last 5 years
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 3,221 | 4,422 | 5,886 | 5,293 | 8,223 |
|---|
| Revenue growth, % | | 37.3% | 33.1% | -10.1% | 55.4% |
|---|
| Gross margin, % | 5.96% | 5.60% | 6.79% | 7.35% | 6.11% |
|---|
| SG&A, % | | 2.55% | 1.99% | 2.61% | 1.61% |
|---|
| EBITDA | 118 | 185 | 352 | 368 | 441 |
|---|
| EBITDA growth, % | | 56.3% | 90.3% | 4.3% | 20.0% |
|---|
| EBITDA margin, % | 3.68% | 4.19% | 5.99% | 6.94% | 5.36% |
|---|
| Net Income | 72 | 101 | 139 | 168 | 247 |
|---|
| Net Income margin, % | 2.23% | 2.29% | 2.36% | 3.18% | 3.01% |
|---|
| |
| CAPEX | 12 | 19 | 18 | 27 | 31 |
|---|
| CAPEX/Revenue, % | 0.362% | 0.433% | 0.306% | 0.511% | 0.373% |
|---|
| Debt | 1,205 | 1,609 | 1,807 | 1,447 | 1,605 |
|---|
| Cash | 219 | 502 | 280 | 111 | 363 |
|---|
| Net Debt/EBITDA | 8.3x | 6.0x | 4.3x | 3.6x | 2.8x |
|---|
| |
| ROIC, % | 5.4% | 7.3% | 12.6% | 13.0% | 13.9% |
|---|
| ROE, % | 12.5% | 15.8% | 19.2% | 20.3% | 20.9% |
|---|
Profitability and return on investment
Despite revenue growth EBITDA margin declined slightly from 6.90% in FY2014 to 5.40% in FY2015. In the last 3 years the company showed fast EBITDA margin growth of 1.20 pp from 4.20% in 2012 to 5.40% in 2015.
We call Shanghai Tonva Petrochemical Co Ltd an attractive growth stock as together with the growth it delivers high ROIC at 13.9%. Three years ago it was lower at 7.34%. It's average ROIC for the last three years was 13.2%.
Net Income margin decreased on 0.200 pp from 3.20% to 3% in 2015. In the last 3 years Shanghai Tonva Petrochemical Co Ltd's Net Income margin surged on 0.700 pp from 2.30% in 2012 to 3% in 2015.
Shanghai Tonva Petrochemical Co Ltd operates at ROE of 20.9%. Average ROE for the last three years was 20.1%.
Capital expenditures (CAPEX)
In FY2015 Shanghai Tonva Petrochemical Co Ltd had CAPEX/Revenue of 0.373%. CAPEX/Revenue dropped on 0.0599 pp from 0.433% in 2012 to 0.373% in 2015. It's average CAPEX/Revenue for the last three years was 0.397%.
Leverage (Debt)
Shanghai Tonva Petrochemical Co Ltd has medium debt level at 2.8x Net Debt/EBITDA to maintain high growth. If we look for the longer period leverage dropped on 3.16x from 5.98x in 2012 to 2.82x in 2015.
Peers in Oil&Gas
Below we provide Shanghai Tonva Petrochemical Co Ltd benchmarking against other companies in Oil&Gas 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 |
