China Tontine Wines Group Ltd EBITDA dropped on 415% and Revenue decreased on 7.6%
27/02/2017 • About China Tontine Wines Group Ltd (
$389) • By InTwits
China Tontine Wines Group Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Tontine Wines Group Ltd is a company in decline: 2016 revenue growth was -7.6%, 5 years revenue CAGR was -20.0%
- The company operates at negative EBITDA Margin: -32.5%
- China Tontine Wines Group Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2012-2016 was 0.0%. On average EBITDA Margin was -28.4% for the sames years0
- China Tontine Wines Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 33.7%. At the same time it's a lot of higher than industry average of 9.7%.
- CAPEX is quite volatile: 11.8 in 2016, 8.7 in 2015, 47.8 in 2014, 228 in 2013, 101 in 2012
- The company has unprofitable business model: ROIC is at -13.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Tontine Wines Group Ltd ($389) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 658.1 | 176.0 | 286.3 | 293.7 | 271.3 | -7.6% |
| Gross Profit | 331.2 | -90.1 | 24.9 | 94.6 | 84.2 | -11.1% |
| SG&A | 197.3 | 292.4 | 268.8 | 83.0 | 187.6 | 126.0% |
| EBITDA | 149.9 | -354.9 | -213.7 | 28.1 | -88.3 | -414.6% |
| Net Income | 88.9 | -503.9 | -659.0 | 9.6 | -93.3 | -1,073.7% |
Balance Sheet
|
|---|
| Cash | 1,104.9 | 530.9 | 172.6 | 201.9 | 181.7 | -10.0% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 7.1 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 100.7 | 227.8 | 47.8 | 8.7 | 11.8 | 35.6% |
Ratios
|
|---|
| Revenue growth | -20.7% | -73.3% | 62.7% | 2.6% | -7.6% | |
| EBITDA growth | -52.7% | -336.7% | -39.8% | -113.1% | -414.6% | |
| Gross Margin | 50.3% | -51.2% | 8.7% | 32.2% | 31.0% | -1.2% |
| EBITDA Margin | 22.8% | -201.7% | -74.6% | 9.6% | -32.5% | -42.1% |
| Net Income Margin | 13.5% | -286.3% | -230.2% | 3.3% | -34.4% | -37.6% |
| SG&A, % of revenue | 30.0% | 166.2% | 93.9% | 28.3% | 69.1% | 40.9% |
| CAPEX, % of revenue | 15.3% | 129.4% | 16.7% | 3.0% | 4.3% | 1.4% |
| ROIC | 7.2% | -22.0% | -21.2% | 2.0% | -13.3% | -15.3% |
| ROE | 4.9% | -31.5% | -64.7% | 1.4% | -14.1% | -15.4% |
| Net Debt/EBITDA | -7.4x | | | -7.2x | | 7.2x |
Revenue and profitability
The company's Revenue decreased on 7.6%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 42.1 pp from 9.6% to -32.5% in 2016.
Gross Margin decreased slightly on 1.2 pp from 32.2% to 31.0% in 2016. SG&A as a % of Revenue jumped on 40.9 pp from 28.3% to 69.1% in 2016.
Net Income marign dropped on 37.6 pp from 3.3% to -34.4% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 China Tontine Wines Group Ltd had CAPEX/Revenue of 4.3%. CAPEX/Revenue dropped on 125 pp from 129% in 2013 to 4.3% in 2016. For the last three years the average CAPEX/Revenue was 8.0%.
Return on investment
The company operates at negative ROIC (-13.35%) and ROE (-14.07%). ROIC dropped on 15.3 pp from 2.0% to -13.3% in 2016. ROE dropped on 15.4 pp from 1.4% to -14.1% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.2x and Debt / EBITDA is . Net Debt / EBITDA jumped on 7.2x from -7.2x to in 2016. Debt jumped while cash dropped on 10.0%.
Appendix 1: Peers in Beverages
Below you can find China Tontine Wines Group 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% | -5.5% | 2.5% |
|---|
| China Tontine Wines Group Ltd ($389) | | -73.3% | 62.7% | 2.6% | -7.6% |
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) | 44.5% | 37.7% | 36.6% | 38.2% | 38.1% |
|---|
| China Tontine Wines Group Ltd ($389) | 50.3% | -51.2% | 8.7% | 32.2% | 31.0% |
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% | |
| China Tianyi Holdings Ltd ($756) | 28.4% | 26.1% | 29.7% | 23.0% | 22.1% |
| 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% | |
| |
|---|
| Median (15 companies) | 15.2% | 10.5% | 11.3% | 13.7% | 5.2% |
|---|
| China Tontine Wines Group Ltd ($389) | 22.8% | -201.7% | -74.6% | 9.6% | -32.5% |
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) | 10.1% | 6.5% | 7.3% | 6.1% | 9.2% |
|---|
| China Tontine Wines Group Ltd ($389) | 15.3% | 129.4% | 16.7% | 3.0% | 4.3% |
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) | 12.7% | 3.7% | 3.2% | 3.2% | 1.9% |
|---|
| China Tontine Wines Group Ltd ($389) | 7.2% | -22.0% | -21.2% | 2.0% | -13.3% |
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 | 1.0x |
| Yantai North Andre Juice Co ($2218) | 2.3x | 2.4x | 2.2x | 3.0x | |
| China Tianyi Holdings Ltd ($756) | -1.0x | -0.8x | 0.9x | 1.1x | 1.0x |
| |
|---|
| Median (10 companies) | -0.7x | 1.0x | 0.9x | 0.6x | 1.0x |
|---|
| China Tontine Wines Group Ltd ($389) | -7.4x | | | -7.2x | |
