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Tysan Holdings Ltd revenue dropped on 16.1% in 2016 while EBITDA Margin increased on 4.1 pp from 17.7% to 21.7%

29/06/2016 • About Tysan Holdings Ltd ($687) • By InTwits

Tysan Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • EBITDA Margin is expanding: 21.7% in FY2016 vs. 17.7% in FY2015 vs. 7.9% in FY2012
  • EBITDA Margin is quite volatile: 21.7% in FY2016, 17.7% in FY2015, 16.6% in FY2014, 11.5% in FY2013, 7.9% in FY2012
  • Tysan Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's in pair with industry average of 9.6%.
  • CAPEX is quite volatile: 29.5 in FY2016, 133 in FY2015, 61.8 in FY2014, 75.3 in FY2013, 304 in FY2012
  • The company has highly profitable business model: ROIC is at 20.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Tysan Holdings Ltd ($687) key annual financial indicators

mln. HKD201220132014201520162016/2015
P&L
Revenue2,3483,7673,5044,8364,057-16.1%
Gross Profit2164416448599257.7%
SG&A76881418910518.0%
EBITDA1864325838548823.4%
Net Income98348270399397-0.6%
Balance Sheet
Cash4841,0181,5481,2871,80640.3%
Short Term Debt23111025214319938.6%
Long Term Debt367726334225658193.1%
Cash flow
Capex304756213330-77.8%
Ratios
Revenue growth-11.7%60.4%-7.0%38.0%-16.1%
EBITDA growth-68.4%132.5%34.9%46.5%3.4%
Gross Margin9.2%11.7%18.4%17.8%22.8%5.0%
EBITDA Margin7.9%11.5%16.6%17.7%21.7%4.1%
Net Income Margin4.2%9.3%7.7%8.3%9.8%1.5%
SG&A, % of revenue3.2%2.3%4.0%1.8%2.6%0.8%
CAPEX, % of revenue12.9%2.0%1.8%2.7%0.7%-2.0%
ROIC4.1%10.6%14.0%21.0%20.7%-0.3%
ROE5.0%16.0%11.2%15.3%14.6%-0.7%
Net Debt/EBITDA0.6x-0.4x-1.7x-1.1x-1.1x0.0x

Revenue and profitability


Tysan Holdings Ltd's Revenue dropped on 16.1%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.1 pp from 17.7% to 21.7% in FY2016.

Gross Margin increased on 5.0 pp from 17.8% to 22.8% in FY2016. SG&A as a % of Revenue increased slightly on 0.75 pp from 1.8% to 2.6% in FY2016.

Net Income marign increased slightly on 1.5 pp from 8.3% to 9.8% in FY2016.

Capital expenditures (CAPEX) and working capital investments


The company's CAPEX/Revenue was 0.73% in FY2016. CAPEX/Revenue decreased slightly on 1.3 pp from 2.0% in FY2013 to 0.73% in FY2016. It's average level of CAPEX/Revenue for the last three years was 1.7%.

Return on investment


The company operates at high and attractive ROIC (20.73%) while ROE is a bit lower (14.62%). ROIC showed almost no change in FY2016. ROE decreased slightly on 0.67 pp from 15.3% to 14.6% in FY2016.

Leverage (Debt)


Company's Net Debt / EBITDA is -1.1x and Debt / EBITDA is 1.0x. Net Debt / EBITDA showed almost no change in FY2016. Debt jumped on 133% while cash surged on 40.3%.

Appendix 1: Peers in Engineering&Construction


Below you can find Tysan Holdings Ltd benchmarking vs. other companies in Engineering&Construction 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 FY2012 FY2013 FY2014 FY2015 FY2016
CNQC International Holdings Ltd ($1240)21.6%91.0%103.7%807.4%
China National Culture Group Ltd ($745)-76.8%-55.8%592.3%86.7%
Vision Fame International Holding Ltd ($1315)45.9%-10.5%105.6%40.9%
Sino Credit Holdings Ltd ($628)-13.8%97.4%
Grand Ming Group Holdings Ltd ($1271)-26.9%-37.4%74.8%14.3%
 
Median (44 companies)15.2%24.0%21.4%10.3%10.5%
Tysan Holdings Ltd ($687)60.4%-7.0%38.0%-16.1%


Top companies by Gross margin, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
HNA Infrastructure Company Ltd ($357)66.4%62.1%62.4%61.1%
Huayu Expressway Group Ltd ($1823)43.6%65.6%64.0%58.9%
Broad Greenstate International Co Ltd ($1253)20.1%28.7%35.8%36.7%
Sam Woo Construction Group Ltd ($3822)33.2%27.3%33.6%36.0%19.8%
China National Culture Group Ltd ($745)0.9%12.1%10.3%32.3%19.2%
 
Median (39 companies)17.5%16.9%15.4%15.6%13.7%
Tysan Holdings Ltd ($687)9.2%11.7%18.4%17.8%22.8%


Top companies by EBITDA margin, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Huayu Expressway Group Ltd ($1823)46.2%73.8%77.1%76.2%
HNA Infrastructure Company Ltd ($357)62.8%63.7%62.8%61.7%
Cheung Kong Infrastructure Holdings Ltd ($1038)31.2%20.6%36.2%60.9%
Beijing Capital International Airport Co Ltd ($694)53.4%52.9%50.3%51.6%
China National Culture Group Ltd ($745)-30.4%-72.7%-279.2%45.3%-14.6%
 
Median (44 companies)10.0%10.4%9.2%8.3%1.9%
Tysan Holdings Ltd ($687)7.9%11.5%16.6%17.7%21.7%


Top companies by CAPEX/Revenue, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
HNA Infrastructure Company Ltd ($357)36.8%5.7%85.4%155.4%
Grand Ming Group Holdings Ltd ($1271)0.0%16.1%8.7%33.8%14.0%
Beijing Capital International Airport Co Ltd ($694)3.5%6.6%7.2%28.2%
NEW Concepts Holdings Ltd ($2221)1.7%1.2%3.1%20.5%0.3%
Louis XIII Holdings Ltd ($577)1.2%29.5%9.3%16.1%47.3%
 
Median (44 companies)2.2%3.3%1.7%2.0%1.7%
Tysan Holdings Ltd ($687)12.9%2.0%1.8%2.7%0.7%


Top companies by ROIC, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
In Construction Holdings Ltd ($1500)52.8%37.0%49.4%40.4%
Chun Sing Engineering Holdings Ltd ($2277)98.3%54.9%43.7%
NEW Concepts Holdings Ltd ($2221)51.0%78.8%39.0%23.3%
Sam Woo Construction Group Ltd ($3822)28.2%28.7%33.5%18.3%
Ngai Shun Holdings Ltd ($1246)68.8%77.2%45.2%31.0%
 
Median (46 companies)6.5%5.9%4.4%5.5%2.8%
Tysan Holdings Ltd ($687)4.1%10.6%14.0%21.0%20.7%


Top companies by Net Debt / EBITDA

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Deson Development International Holdings ($262)3.8x4.9x13.7x47.0x
Hsin Chong Construction Group Ltd ($404)1.8x8.0x10.2x41.7x
China Resources and Transportation Group Ltd ($269)66.7x29.7x
CNC Holdings Ltd ($8356)22.0x21.9x24.3x2.7x
Louis XIII Holdings Ltd ($577)0.8x-12.5x-23.2x19.1x
 
Median (38 companies)0.9x0.3x0.4x1.3x-0.4x
Tysan Holdings Ltd ($687)0.6x-0.4x-1.7x-1.1x-1.1x