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. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,348 | 3,767 | 3,504 | 4,836 | 4,057 | -16.1% |
| Gross Profit | 216 | 441 | 644 | 859 | 925 | 7.7% |
| SG&A | 76 | 88 | 141 | 89 | 105 | 18.0% |
| EBITDA | 186 | 432 | 583 | 854 | 882 | 3.4% |
| Net Income | 98 | 348 | 270 | 399 | 397 | -0.6% |
Balance Sheet
|
|---|
| Cash | 484 | 1,018 | 1,548 | 1,287 | 1,806 | 40.3% |
| Short Term Debt | 231 | 110 | 252 | 143 | 199 | 38.6% |
| Long Term Debt | 367 | 726 | 334 | 225 | 658 | 193.1% |
Cash flow
|
|---|
| Capex | 304 | 75 | 62 | 133 | 30 | -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 Margin | 9.2% | 11.7% | 18.4% | 17.8% | 22.8% | 5.0% |
| EBITDA Margin | 7.9% | 11.5% | 16.6% | 17.7% | 21.7% | 4.1% |
| Net Income Margin | 4.2% | 9.3% | 7.7% | 8.3% | 9.8% | 1.5% |
| SG&A, % of revenue | 3.2% | 2.3% | 4.0% | 1.8% | 2.6% | 0.8% |
| CAPEX, % of revenue | 12.9% | 2.0% | 1.8% | 2.7% | 0.7% | -2.0% |
| ROIC | 4.1% | 10.6% | 14.0% | 21.0% | 20.7% | -0.3% |
| ROE | 5.0% | 16.0% | 11.2% | 15.3% | 14.6% | -0.7% |
| Net Debt/EBITDA | 0.6x | -0.4x | -1.7x | -1.1x | -1.1x | 0.0x |
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) | 3.8x | 4.9x | 13.7x | 47.0x | |
| Hsin Chong Construction Group Ltd ($404) | 1.8x | 8.0x | 10.2x | 41.7x | |
| China Resources and Transportation Group Ltd ($269) | | | 66.7x | 29.7x | |
| CNC Holdings Ltd ($8356) | | 22.0x | 21.9x | 24.3x | 2.7x |
| Louis XIII Holdings Ltd ($577) | 0.8x | -12.5x | -23.2x | 19.1x | |
| |
|---|
| Median (38 companies) | 0.9x | 0.3x | 0.4x | 1.3x | -0.4x |
|---|
| Tysan Holdings Ltd ($687) | 0.6x | -0.4x | -1.7x | -1.1x | -1.1x |
