China Haisheng Juice Holdings Co Ltd reports 56.8% CAPEX growth while 7.5% Revenue decline
29/07/2016 • About China Haisheng Juice Holdings Co Ltd (
$359) • By InTwits
China Haisheng Juice Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Haisheng Juice Holdings Co Ltd is a company in decline: 2015 revenue growth was -7.5%, 5 years revenue CAGR was -4.0%
- EBITDA Margin is quite volatile: 14.8% in 2015, 14.9% in 2014, 6.6% in 2013, 5.8% in 2012, 15.2% in 2011
- China Haisheng Juice Holdings Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.2%. At the same time it's a lot of higher than industry average of 9.0%.
- CAPEX is quite volatile: 297 in 2015, 189 in 2014, 105 in 2013, 92.2 in 2012, 75.4 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.4%
- It operates with high leverage: Net Debt/EBITDA is 9.9x while industry average is 1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Haisheng Juice Holdings Co Ltd ($359) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,106 | 1,918 | 1,669 | 1,237 | 1,144 | -7.5% |
| Gross Profit | 466 | 215 | 207 | 206 | 194 | -5.7% |
| SG&A | | 218 | 233 | 224 | 255 | 13.8% |
| EBITDA | 321 | 111 | 110 | 184 | 170 | -7.7% |
| Net Income | 162 | -56 | -56 | 23 | -1 | -106.1% |
Balance Sheet
|
|---|
| Cash | 157 | 78 | 183 | 174 | 100 | -42.3% |
| Short Term Debt | 1,026 | 1,230 | 1,485 | 1,119 | 1,451 | 29.6% |
| Long Term Debt | 79 | 166 | 483 | 686 | 328 | -52.2% |
Cash flow
|
|---|
| Capex | 75 | 92 | 105 | 189 | 297 | 56.8% |
Ratios
|
|---|
| Revenue growth | 50.1% | -8.9% | -13.0% | -25.9% | -7.5% | |
| EBITDA growth | 4,686.7% | -65.4% | -1.0% | 67.2% | -7.7% | |
| Gross Margin | 22.1% | 11.2% | 12.4% | 16.6% | 17.0% | 0.3% |
| EBITDA Margin | 15.2% | 5.8% | 6.6% | 14.9% | 14.8% | -0.0% |
| Net Income Margin | 7.7% | -2.9% | -3.4% | 1.9% | -0.1% | -2.0% |
| SG&A, % of revenue | | 11.4% | 14.0% | 18.1% | 22.3% | 4.2% |
| CAPEX, % of revenue | 3.6% | 4.8% | 6.3% | 15.3% | 26.0% | 10.6% |
| ROIC | 9.6% | 0.5% | 0.6% | 2.7% | 2.4% | -0.3% |
| ROE | 15.8% | -5.3% | -5.7% | 2.4% | -0.1% | -2.5% |
| Net Debt/EBITDA | 3.0x | 11.9x | 16.2x | 8.9x | 9.9x | 1.0x |
Revenue and profitability
China Haisheng Juice Holdings Co Ltd's Revenue decreased on 7.5% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.95 pp from 4.6% to 5.5% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased on 4.2 pp from 18.1% to 22.3% in 2015.
Net Income marign decreased slightly on 2.0 pp from 1.9% to -0.12% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 China Haisheng Juice Holdings Co Ltd had CAPEX/Revenue of 26.0%. China Haisheng Juice Holdings Co Ltd's CAPEX/Revenue jumped on 21.2 pp from 4.8% in 2012 to 26.0% in 2015. Average CAPEX/Revenue for the last three years was 15.9%.Battling declining revenue the company made large investments to CAPEX (175% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at low but positive ROIC (2.41%) and negative ROE (-0.14%). ROIC showed almost no change in 2015. ROE decreased on 2.5 pp from 2.4% to -0.14% in 2015.
Leverage (Debt)
Debt level is 9.9x Net Debt / EBITDA and 10.5x Debt / EBITDA. Net Debt / EBITDA jumped on 1.0x from 8.9x to 9.9x in 2015. Debt decreased slightly on 1.5% in 2015 while cash dropped on 42.3% in 2015.
Appendix 1: Peers in Beverages
Below we provide China Haisheng Juice Holdings Co Ltd benchmarking against other companies in Beverages 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino Distillery Group Ltd ($39) | | -62.4% | -34.9% | -15.0% | 882.1% |
| China Huiyuan Juice Group Ltd ($1886) | | 4.1% | 13.1% | 2.0% | 23.7% |
| Besunyen Holdings Co Ltd ($926) | | -43.5% | 2.6% | 15.7% | 17.5% |
| Vitasoy International Holdings Ltd ($345) | | | 9.0% | 10.9% | 12.4% |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | | 7.7% | 15.4% | -1.8% | 7.7% |
| |
|---|
| Median (15 companies) | | -2.7% | -8.1% | 3.1% | -4.7% |
|---|
| China Haisheng Juice Holdings Co Ltd ($359) | | -8.9% | -13.0% | -25.9% | -7.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Besunyen Holdings Co Ltd ($926) | 87.8% | 82.5% | 83.3% | 84.3% | 89.7% |
| Tenfu Cayman Holdings Co Ltd ($6868) | 61.6% | 64.1% | 61.2% | 62.2% | 61.4% |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 78.8% | 81.4% | 73.2% | 62.7% | 60.3% |
| Vitasoy International Holdings Ltd ($345) | | 47.4% | 47.5% | 48.4% | 49.7% |
| JLF Investment Co Ltd ($472) | 54.4% | 50.9% | 48.7% | 42.4% | 41.8% |
| |
|---|
| Median (15 companies) | 43.4% | 44.8% | 37.7% | 36.6% | 38.2% |
|---|
| China Haisheng Juice Holdings Co Ltd ($359) | 22.1% | 11.2% | 12.4% | 16.6% | 17.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 72.2% | 73.3% | 73.2% | 69.2% | 52.8% |
| China Tianyi Holdings Ltd ($756) | 17.7% | 28.4% | 26.1% | 29.7% | 23.0% |
| Tenfu Cayman Holdings Co Ltd ($6868) | 27.4% | 27.5% | 25.3% | 26.1% | 22.5% |
| China Huiyuan Juice Group Ltd ($1886) | 9.0% | 15.2% | 21.7% | 11.3% | 18.3% |
| Yantai North Andre Juice Co ($2218) | 16.1% | 14.1% | 11.9% | 15.5% | 15.7% |
| |
|---|
| Median (15 companies) | 16.1% | 17.3% | 10.5% | 10.6% | 9.6% |
|---|
| China Haisheng Juice Holdings Co Ltd ($359) | 15.2% | 5.8% | 6.6% | 14.9% | 14.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Culiangwang Beverages Holdings Ltd ($904) | | 26.8% | 52.2% | 81.8% | 75.8% |
| China Huiyuan Juice Group Ltd ($1886) | 20.1% | 11.7% | 7.4% | 10.5% | 14.9% |
| Sino Distillery Group Ltd ($39) | 6.2% | 32.4% | 6.5% | 0.4% | 12.0% |
| Vitasoy International Holdings Ltd ($345) | | 11.1% | 4.2% | 5.1% | 11.1% |
| JLF Investment Co Ltd ($472) | 17.4% | 17.7% | 9.1% | 9.4% | 9.5% |
| |
|---|
| Median (15 companies) | 7.5% | 11.1% | 7.3% | 7.3% | 5.6% |
|---|
| China Haisheng Juice Holdings Co Ltd ($359) | 3.6% | 4.8% | 6.3% | 15.3% | 26.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitasoy International Holdings Ltd ($345) | | 20.8% | 20.6% | 21.7% | 23.5% |
| Tenfu Cayman Holdings Co Ltd ($6868) | 26.1% | 19.4% | 17.9% | 15.7% | 11.0% |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 41.0% | 23.3% | 20.3% | 14.9% | 11.0% |
| Tsingtao Brewery Co Ltd ($168) | 16.4% | 13.4% | 12.0% | 12.2% | 6.7% |
| Besunyen Holdings Co Ltd ($926) | 0.2% | -24.2% | -8.9% | 3.2% | 4.1% |
| |
|---|
| Median (15 companies) | 8.4% | 12.7% | 3.7% | 3.2% | 3.2% |
|---|
| China Haisheng Juice Holdings Co Ltd ($359) | 9.6% | 0.5% | 0.6% | 2.7% | 2.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Huiyuan Juice Group Ltd ($1886) | 8.6x | 5.4x | 4.3x | 7.9x | 4.3x |
| San Miguel Brewery Hong Kong Ltd ($236) | | | 2.0x | 1.0x | 3.8x |
| Yantai North Andre Juice Co ($2218) | 2.6x | 2.3x | 2.4x | 2.2x | 3.0x |
| China Tianyi Holdings Ltd ($756) | -3.7x | -1.0x | -0.8x | 0.9x | 1.1x |
| Tenfu Cayman Holdings Co Ltd ($6868) | -1.7x | -1.0x | -0.2x | 0.8x | 0.1x |
| |
|---|
| Median (10 companies) | -1.3x | -1.0x | 0.0x | 0.9x | -0.0x |
|---|
| China Haisheng Juice Holdings Co Ltd ($359) | 3.0x | 11.9x | 16.2x | 8.9x | 9.9x |
