Shanghai Tonva Petrochemical Co Ltd reports 74.7% revenue growth in FY2016 and 1.9 pp EBITDA Margin decline from 5.4% to 3.5%
13/03/2017 • About Shanghai Tonva Petrochemical Co Ltd (
$1103) • By InTwits
Shanghai Tonva Petrochemical Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company has business model with low profitability: ROIC is at 9.6%
- It operates with high leverage: Net Debt/EBITDA is 3.5x while industry average is 0.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shanghai Tonva Petrochemical Co Ltd ($1103) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,422 | 5,886 | 5,293 | 8,223 | 14,365 | 74.7% |
| Gross Profit | 247 | 400 | 389 | 502 | 600 | 19.4% |
| SG&A | 113 | 117 | 138 | 132 | 133 | 0.7% |
| EBITDA | 185 | 352 | 368 | 441 | 497 | 12.8% |
| Net Income | 101 | 139 | 168 | 247 | 307 | 24.1% |
Balance Sheet
|
|---|
| Cash | 502 | 280 | 111 | 363 | 1,226 | 238.1% |
| Short Term Debt | 1,609 | 1,807 | 1,377 | 1,573 | 2,982 | 89.5% |
| Long Term Debt | 0 | 0 | 70 | 32 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 19 | 18 | 27 | 31 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 37.3% | 33.1% | -10.1% | 55.4% | 74.7% | |
| EBITDA growth | 56.3% | 90.3% | 4.3% | 20.0% | 12.8% | |
| Gross Margin | 5.6% | 6.8% | 7.3% | 6.1% | 4.2% | -1.9% |
| EBITDA Margin | 4.2% | 6.0% | 6.9% | 5.4% | 3.5% | -1.9% |
| Net Income Margin | 2.3% | 2.4% | 3.2% | 3.0% | 2.1% | -0.9% |
| SG&A, % of revenue | 2.6% | 2.0% | 2.6% | 1.6% | 0.9% | -0.7% |
| CAPEX, % of revenue | 0.4% | 0.3% | 0.5% | 0.4% | | -0.4% |
| ROIC | 7.3% | 12.6% | 13.0% | 13.9% | 9.6% | -4.3% |
| ROE | 15.8% | 19.2% | 20.3% | 20.9% | 13.5% | -7.4% |
| Net Debt/EBITDA | 6.0x | 4.3x | 3.6x | 2.8x | 3.5x | 0.7x |
Revenue and profitability
Shanghai Tonva Petrochemical Co Ltd's Revenue jumped on 74.7%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.2 pp from 24.1% to 26.3% in FY2016.
Gross Margin decreased slightly on 1.9 pp from 6.1% to 4.2% in FY2016. SG&A as a % of Revenue decreased slightly on 0.68 pp from 1.6% to 0.93% in FY2016.
Net Income marign decreased slightly on 0.87 pp from 3.0% to 2.1% in FY2016.
Return on investment
The company operates at good ROE (13.49%) while ROIC is low (9.65%). ROIC decreased on 4.3 pp from 13.9% to 9.6% in FY2016. ROE decreased on 7.4 pp from 20.9% to 13.5% in FY2016.
Leverage (Debt)
Debt level is 3.5x Net Debt / EBITDA and 6.0x Debt / EBITDA. Net Debt / EBITDA surged on 0.7x from 2.8x to 3.5x in FY2016. Debt surged on 85.8% while cash surged on 238%.
Appendix 1: Peers in Oil&Gas
Below you can find Shanghai Tonva Petrochemical Co Ltd benchmarking vs. other companies in Oil&Gas 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 |
|---|
| Enviro Energy International Holdings Ltd ($1102) | -57.9% | 1,572.5% | -9.6% | 1,162.8% | |
| Sino Oil And Gas Holdings Ltd ($702) | -17.5% | -25.3% | -23.4% | 305.2% | |
| China CBM Group Co Ltd ($8270) | -27.6% | 1.8% | 60.9% | 9.3% | |
| Yanchang Petroleum International Ltd ($346) | 641.9% | 155.6% | 15.5% | 4.4% | |
| South Sea Petroleum Holdings Ltd ($76) | 21.5% | 231.0% | -77.6% | 0.8% | |
| |
|---|
| Median (15 companies) | -6.1% | 3.7% | -3.9% | -12.3% | -14.6% |
|---|
| Shanghai Tonva Petrochemical Co Ltd ($1103) | | 33.1% | -10.1% | 55.4% | 74.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| United Energy Group Ltd ($467) | 39.4% | 48.0% | 53.8% | 51.5% | |
| EPI Holdings Ltd ($689) | 58.0% | 50.7% | 54.6% | 41.2% | |
| Zhongyu Gas Holdings Ltd ($3633) | 23.6% | 23.8% | 24.9% | 24.0% | |
| South Sea Petroleum Holdings Ltd ($76) | 27.3% | 25.3% | 38.5% | 22.2% | |
| COSCO International Holdings Ltd ($517) | 6.9% | 7.5% | 10.6% | 11.5% | |
| |
|---|
| Median (10 companies) | 10.7% | 4.1% | 10.6% | 8.5% | 3.1% |
|---|
| Shanghai Tonva Petrochemical Co Ltd ($1103) | 5.6% | 6.8% | 7.3% | 6.1% | 4.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CNOOC Ltd ($883) | | 47.2% | 50.7% | 53.0% | 44.8% |
| Kunlun Energy Co Ltd ($135) | 47.0% | 39.5% | 34.9% | 30.9% | |
| Zhongyu Gas Holdings Ltd ($3633) | 18.6% | 18.9% | 21.0% | 21.5% | |
| China CBM Group Co Ltd ($8270) | 16.0% | -4.7% | 7.5% | 11.4% | |
| Brightoil Petroleum Holdings Ltd ($933) | 1.1% | -0.6% | 1.4% | 4.7% | 6.5% |
| |
|---|
| Median (15 companies) | 1.1% | -0.1% | 3.5% | -10.9% | 6.5% |
|---|
| Shanghai Tonva Petrochemical Co Ltd ($1103) | 4.2% | 6.0% | 6.9% | 5.4% | 3.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| MIE Holdings Corp ($1555) | 52.2% | 43.3% | 44.1% | 62.4% | |
| United Energy Group Ltd ($467) | 37.2% | 62.7% | 42.4% | 49.1% | |
| CNOOC Ltd ($883) | | 30.3% | 34.8% | 39.5% | 35.1% |
| Zhongyu Gas Holdings Ltd ($3633) | 8.2% | 17.8% | 18.9% | 22.9% | |
| Kunlun Energy Co Ltd ($135) | 46.7% | 35.5% | 19.9% | 14.2% | |
| |
|---|
| Median (15 companies) | 15.9% | 12.8% | 11.0% | 7.9% | 3.1% |
|---|
| Shanghai Tonva Petrochemical Co Ltd ($1103) | 0.4% | 0.3% | 0.5% | 0.4% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Brightoil Petroleum Holdings Ltd ($933) | 4.2% | -4.4% | 6.5% | 13.8% | 6.7% |
| Zhongyu Gas Holdings Ltd ($3633) | 17.4% | 15.0% | 12.3% | 8.2% | |
| Kunlun Energy Co Ltd ($135) | 13.0% | 12.6% | 11.0% | 7.7% | |
| CNOOC Ltd ($883) | | 18.1% | 15.8% | 3.2% | -0.6% |
| COSCO International Holdings Ltd ($517) | 3.8% | 2.4% | 2.9% | 2.8% | |
| |
|---|
| Median (17 companies) | -1.0% | -0.0% | -0.6% | -3.7% | -0.0% |
|---|
| Shanghai Tonva Petrochemical Co Ltd ($1103) | 7.3% | 12.6% | 13.0% | 13.9% | 9.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zhongyu Gas Holdings Ltd ($3633) | 1.6x | 2.3x | 3.7x | 4.8x | |
| Brightoil Petroleum Holdings Ltd ($933) | 8.9x | | 3.1x | 2.9x | 2.6x |
| China CBM Group Co Ltd ($8270) | 3.2x | | 3.3x | 2.1x | |
| CNOOC Ltd ($883) | | 0.9x | 0.9x | 1.7x | 2.1x |
| Kunlun Energy Co Ltd ($135) | 0.8x | 1.0x | 0.9x | 0.9x | |
| |
|---|
| Median (6 companies) | 1.6x | 0.9x | 2.7x | 1.9x | 2.6x |
|---|
| Shanghai Tonva Petrochemical Co Ltd ($1103) | 6.0x | 4.3x | 3.6x | 2.8x | 3.5x |
