Ta Yang Group Holdings Ltd revenue decline continued to 9.3% in FY2016 vs. 8.8% a year earliner
21/10/2016 • About Ta Yang Group Holdings Ltd (
$1991) • By InTwits
Ta Yang Group Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ta Yang Group Holdings Ltd is a company in decline: FY2016 revenue growth was -9.3%, 5 years revenue CAGR was -13.3%
- The company operates at negative EBITDA Margin: -9.7%
- Ta Yang Group Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -14.0% for the sames years0
- Ta Yang Group Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's a lot of higher than industry average of 15.6%.
- CAPEX is quite volatile: 14.2 in FY2016, 7.0 in FY2015, 13.3 in FY2014, 27.0 in FY2013, 19.8 in FY2012
- The company has unprofitable business model: ROIC is at -10.2%
- It operates with high leverage: Net Debt/EBITDA is -0.5x while industry average is -3.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ta Yang Group Holdings Ltd ($1991) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 624.5 | 551.3 | 467.3 | 426.2 | 386.5 | -9.3% |
| Gross Profit | 36.4 | 8.1 | -4.7 | 50.1 | 68.7 | 37.1% |
| SG&A | | 142.0 | 158.9 | 148.7 | 132.5 | -10.9% |
| EBITDA | -38.8 | -77.3 | -111.7 | -77.3 | -37.6 | |
| Net Income | -78.1 | -131.6 | -216.6 | -156.3 | -71.3 | |
Balance Sheet
|
|---|
| Cash | 78.3 | 104.9 | 200.1 | 103.6 | 154.1 | 48.8% |
| Short Term Debt | 31.7 | 20.1 | 45.7 | 33.3 | 33.3 | 0.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 19.8 | 27.0 | 13.3 | 7.0 | 14.2 | 102.5% |
Ratios
|
|---|
| Revenue growth | -20.7% | -11.7% | -15.2% | -8.8% | -9.3% | |
| EBITDA growth | -155.9% | 99.2% | 44.4% | -30.8% | -51.3% | |
| Gross Margin | 5.8% | 1.5% | -1.0% | 11.8% | 17.8% | 6.0% |
| EBITDA Margin | -6.2% | -14.0% | -23.9% | -18.1% | -9.7% | 8.4% |
| Net Income Margin | -12.5% | -23.9% | -46.3% | -36.7% | -18.4% | 18.2% |
| SG&A, % of revenue | | 25.7% | 34.0% | 34.9% | 34.3% | -0.6% |
| CAPEX, % of revenue | 3.2% | 4.9% | 2.8% | 1.6% | 3.7% | 2.0% |
| ROIC | -7.4% | -11.9% | -18.3% | -15.4% | -10.2% | 5.2% |
| ROE | -7.3% | -14.1% | -29.0% | -28.3% | -16.1% | 12.2% |
Revenue and profitability
Ta Yang Group Holdings Ltd's Revenue decreased on 9.3%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 8.4 pp from -18.1% to -9.7% in FY2016.
Gross Margin increased on 6.0 pp from 11.8% to 17.8% in FY2016. SG&A as a % of Revenue decreased slightly on 0.61 pp from 34.9% to 34.3% in FY2016.
Net Income marign surged on 18.2 pp from -36.7% to -18.4% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 3.7%. CAPEX/Revenue decreased slightly on 1.2 pp from 4.9% in FY2013 to 3.7% in FY2016. For the last three years the average CAPEX/Revenue was 2.7%.
Return on investment
The company operates at negative ROIC (-10.21%) and ROE (-16.09%). ROIC increased on 5.2 pp from -15.4% to -10.2% in FY2016. ROE jumped on 12.2 pp from -28.3% to -16.1% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.5x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt didn't change in FY2016 while cash jumped on 48.8%.
Appendix 1: Peers in Miscellaneous Manufactur
Below we provide Ta Yang Group Holdings Ltd benchmarking against other companies in Miscellaneous Manufactur 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Karrie International Hldgs ($1050) | | 0.1% | -11.3% | 27.4% | 11.8% |
| Sunny Optical Technology Group Co Ltd ($2382) | 59.5% | 45.9% | 45.0% | 26.9% | |
| TK Group Holdings Ltd ($2283) | 40.2% | 9.3% | 11.8% | 20.0% | |
| AMCO United Holding Ltd ($2970) | | 10.8% | 53.9% | 16.8% | 31.1% |
| Yusei Holdings Ltd ($96) | 18.4% | -9.3% | 6.7% | 15.6% | |
| |
|---|
| Median (25 companies) | -1.7% | 0.1% | 8.2% | -4.8% | 16.4% |
|---|
| Ta Yang Group Holdings Ltd ($1991) | | -11.7% | -15.2% | -8.8% | -9.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Man Sang International Ltd ($938) | 42.4% | 32.8% | 60.3% | 78.6% | 56.4% |
| Time Watch Investments Ltd ($2033) | 60.2% | 60.6% | 65.0% | 68.1% | 68.5% |
| China Environmental Energy Investment Ltd ($986) | 14.0% | 1.2% | 9.0% | 49.2% | 40.4% |
| Lee & Man Chemical Co Ltd ($746) | 34.3% | 35.7% | 41.9% | 39.6% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 33.2% | 35.1% | 37.4% | 38.7% | |
| |
|---|
| Median (24 companies) | 19.8% | 20.8% | 24.9% | 23.9% | 20.4% |
|---|
| Ta Yang Group Holdings Ltd ($1991) | 5.8% | 1.5% | -1.0% | 11.8% | 17.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 30.4% | 31.3% | 38.4% | 37.6% | |
| Man Sang International Ltd ($938) | 24.9% | 15.4% | 37.0% | 33.8% | 40.4% |
| IPE Group Ltd ($929) | 25.6% | 22.5% | 29.5% | 29.1% | |
| DeTeam Co Ltd ($65) | 8.0% | 3.9% | -1.3% | 24.3% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 18.4% | 19.8% | 20.6% | 24.2% | |
| |
|---|
| Median (25 companies) | 8.0% | 9.8% | 9.8% | 7.9% | 5.7% |
|---|
| Ta Yang Group Holdings Ltd ($1991) | -6.2% | -14.0% | -23.9% | -18.1% | -9.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Environmental Energy Investment Ltd ($986) | 6.1% | 0.4% | 17.9% | 47.6% | 6.2% |
| DeTeam Co Ltd ($65) | 6.7% | 47.0% | 5.6% | 33.1% | |
| Lee & Man Chemical Co Ltd ($746) | 5.8% | 51.1% | 33.7% | 22.8% | |
| China International Marine Containers Group Co Ltd ($2039) | 3.9% | 12.1% | 18.5% | 21.2% | |
| IPE Group Ltd ($929) | 6.3% | 13.3% | 12.3% | 13.3% | |
| |
|---|
| Median (25 companies) | 4.7% | 4.2% | 4.2% | 5.6% | 3.8% |
|---|
| Ta Yang Group Holdings Ltd ($1991) | 3.2% | 4.9% | 2.8% | 1.6% | 3.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Time Watch Investments Ltd ($2033) | 34.5% | 27.1% | 27.8% | 27.9% | 18.6% |
| TK Group Holdings Ltd ($2283) | 36.8% | 31.1% | 29.4% | 27.6% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 16.9% | 17.7% | 20.0% | 21.1% | |
| Sunny Optical Technology Group Co Ltd ($2382) | 19.7% | 17.8% | 16.5% | 19.4% | |
| Yusei Holdings Ltd ($96) | 4.2% | 7.0% | 13.6% | 14.1% | |
| |
|---|
| Median (25 companies) | 4.3% | 4.4% | 4.4% | 1.6% | 7.1% |
|---|
| Ta Yang Group Holdings Ltd ($1991) | -7.4% | -11.9% | -18.3% | -15.4% | -10.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Continental Holdings Ltd ($513) | | 20.1x | 92.9x | 4,203.6x | |
| South China China Ltd ($413) | | 37.5x | 2,842.3x | 27.3x | |
| Launch Tech Co Ltd ($2488) | 7.6x | 2.4x | 3.9x | 14.5x | |
| China International Marine Containers Group Co Ltd ($2039) | 4.0x | 4.7x | 5.8x | 9.8x | |
| VS International Group Ltd ($1002) | 5.1x | 6.5x | 4.4x | 3.3x | 4.6x |
| |
|---|
| Median (23 companies) | -0.2x | -0.0x | -0.1x | 0.4x | -0.9x |
|---|
