China Tianyi Holdings Ltd reports 27.8% CAPEX growth in 2016 and 23.5% Revenue growth
26/09/2016 • About China Tianyi Holdings Ltd (
$756) • By InTwits
China Tianyi Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Tianyi Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.6%. At the same time it's a lot of higher than industry average of 9.1%.
- CAPEX is quite volatile: 37.0 in FY2016, 28.9 in FY2015, 191 in FY2014, 32.5 in FY2013, 37.8 in FY2012
- The company has potentially unprofitable business model: ROIC is at 3.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Tianyi Holdings Ltd ($756) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 651.0 | 525.8 | 569.2 | 470.8 | 581.3 | 23.5% |
| Gross Profit | 247.9 | 198.0 | 208.1 | 170.2 | 240.3 | 41.2% |
| SG&A | 77.9 | 77.2 | 78.2 | 102.8 | 181.7 | 76.8% |
| EBITDA | 185.1 | 137.0 | 168.9 | 108.3 | 128.4 | 18.5% |
| Net Income | 250.3 | 67.1 | 116.9 | 78.0 | 62.9 | -19.4% |
Balance Sheet
|
|---|
| Cash | 513.2 | 488.9 | 481.7 | 430.9 | 450.4 | 4.5% |
| Short Term Debt | 136.1 | 183.1 | 459.7 | 228.3 | 441.7 | 93.5% |
| Long Term Debt | 184.3 | 199.4 | 180.8 | 316.5 | 134.0 | -57.7% |
Cash flow
|
|---|
| Capex | 37.8 | 32.5 | 191.0 | 28.9 | 37.0 | 27.8% |
Ratios
|
|---|
| Revenue growth | 43.0% | -19.2% | 8.3% | -17.3% | 23.5% | |
| EBITDA growth | 129.1% | -26.0% | 23.2% | -35.8% | 18.5% | |
| Gross Margin | 38.1% | 37.7% | 36.6% | 36.1% | 41.3% | 5.2% |
| EBITDA Margin | 28.4% | 26.1% | 29.7% | 23.0% | 22.1% | -0.9% |
| Net Income Margin | 38.4% | 12.8% | 20.5% | 16.6% | 10.8% | -5.8% |
| SG&A, % of revenue | 12.0% | 14.7% | 13.7% | 21.8% | 31.3% | 9.4% |
| CAPEX, % of revenue | 5.8% | 6.2% | 33.6% | 6.1% | 6.4% | 0.2% |
| ROIC | 12.0% | 6.1% | 6.7% | 3.2% | 3.7% | 0.5% |
| ROE | 24.1% | 5.0% | 7.9% | 4.9% | 3.8% | -1.1% |
| Net Debt/EBITDA | -1.0x | -0.8x | 0.9x | 1.1x | 1.0x | -0.1x |
Revenue and profitability
China Tianyi Holdings Ltd's Revenue jumped on 23.5%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.0 pp from 8.3% to 12.3% in FY2016.
Gross Margin increased on 5.2 pp from 36.1% to 41.3% in FY2016. SG&A as a % of Revenue increased on 9.4 pp from 21.8% to 31.3% in FY2016.
Net Income marign decreased on 5.8 pp from 16.6% to 10.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 6.4% in FY2016. CAPEX/Revenue showed almost no change from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 15.4%.
Return on investment
The company operates at low ROIC (3.70%) and ROE (3.78%). ROIC increased slightly on 0.54 pp from 3.2% to 3.7% in FY2016. ROE decreased slightly on 1.1 pp from 4.9% to 3.8% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.0x and Debt / EBITDA is 4.5x. Net Debt / EBITDA decreased on 0.1x from 1.1x to 1.0x in FY2016. Debt increased on 5.7% while cash increased on 4.5%.
Appendix 1: Peers in Beverages
Below you can find China Tianyi Holdings Ltd benchmarking vs. other companies in Beverages 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 |
|---|
| 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% | 9.9% |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 7.7% | 15.4% | -1.8% | 7.7% | |
| |
|---|
| Median (15 companies) | -6.5% | -8.1% | 2.0% | -4.7% | -2.6% |
|---|
| China Tianyi Holdings Ltd ($756) | | -19.2% | 8.3% | -17.3% | 23.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Besunyen Holdings Co Ltd ($926) | 82.5% | 83.3% | 84.3% | 89.7% | |
| Tenfu Cayman Holdings Co Ltd ($6868) | 64.1% | 61.2% | 62.2% | 61.4% | |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 81.4% | 73.2% | 62.7% | 60.3% | |
| Vitasoy International Holdings Ltd ($345) | 47.4% | 47.5% | 48.4% | 49.7% | 50.9% |
| JLF Investment Co Ltd ($472) | 50.9% | 48.7% | 42.4% | 41.8% | |
| |
|---|
| Median (15 companies) | 44.8% | 34.7% | 34.7% | 38.2% | 26.7% |
|---|
| China Tianyi Holdings Ltd ($756) | 38.1% | 37.7% | 36.6% | 36.1% | 41.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 73.3% | 73.2% | 69.2% | 52.8% | |
| Tenfu Cayman Holdings Co Ltd ($6868) | 27.5% | 25.3% | 26.1% | 22.5% | |
| China Huiyuan Juice Group Ltd ($1886) | 15.2% | 21.7% | 11.3% | 18.3% | |
| Yantai North Andre Juice Co ($2218) | 14.1% | 11.9% | 15.5% | 15.7% | |
| China Haisheng Juice Holdings Co Ltd ($359) | 5.8% | 6.6% | 14.9% | 14.8% | |
| |
|---|
| Median (15 companies) | 15.2% | 9.6% | 10.6% | 9.6% | -0.6% |
|---|
| China Tianyi Holdings Ltd ($756) | 28.4% | 26.1% | 29.7% | 23.0% | 22.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Culiangwang Beverages Holdings Ltd ($904) | 26.8% | 52.2% | 81.8% | 75.8% | 25.1% |
| China Haisheng Juice Holdings Co Ltd ($359) | 4.8% | 6.3% | 15.3% | 26.0% | |
| China Huiyuan Juice Group Ltd ($1886) | 11.7% | 7.4% | 10.5% | 14.9% | |
| Sino Distillery Group Ltd ($39) | 32.4% | 6.5% | 0.4% | 12.0% | |
| Vitasoy International Holdings Ltd ($345) | 11.1% | 4.2% | 5.1% | 11.1% | 12.0% |
| |
|---|
| Median (15 companies) | 11.1% | 7.3% | 7.3% | 5.6% | 12.0% |
|---|
| China Tianyi Holdings Ltd ($756) | 5.8% | 6.2% | 33.6% | 6.1% | 6.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vitasoy International Holdings Ltd ($345) | 20.8% | 20.6% | 21.7% | 23.5% | 23.5% |
| Tenfu Cayman Holdings Co Ltd ($6868) | 19.4% | 17.9% | 15.7% | 11.0% | |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 23.3% | 20.3% | 14.9% | 11.0% | |
| Tsingtao Brewery Co Ltd ($168) | 13.4% | 12.0% | 12.2% | 6.7% | |
| Besunyen Holdings Co Ltd ($926) | -24.2% | -8.9% | 3.2% | 4.1% | |
| |
|---|
| Median (15 companies) | 10.3% | 3.0% | 2.7% | 2.4% | -2.1% |
|---|
| China Tianyi Holdings Ltd ($756) | 12.0% | 6.1% | 6.7% | 3.2% | 3.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Haisheng Juice Holdings Co Ltd ($359) | 11.9x | 16.2x | 8.9x | 9.9x | |
| China Huiyuan Juice Group Ltd ($1886) | 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) | 2.3x | 2.4x | 2.2x | 3.0x | |
| Tenfu Cayman Holdings Co Ltd ($6868) | -1.0x | -0.2x | 0.8x | 0.1x | |
| |
|---|
| Median (10 companies) | -0.7x | 1.9x | 0.9x | -0.0x | 5.5x |
|---|
| China Tianyi Holdings Ltd ($756) | -1.0x | -0.8x | 0.9x | 1.1x | 1.0x |
