Tian Ge Interactive Holdings Ltd reports 53.6% Net Income growth in 2016 and 23.1% Revenue growth
24/03/2017 • About Tian Ge Interactive Holdings Ltd (
$1980) • By InTwits
Tian Ge Interactive Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: EBITDA Margin is declining: in FY2016 vs. 24.9% in FY2015 vs. 36.4% in FY2012.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tian Ge Interactive Holdings Ltd ($1980) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 455.8 | 548.2 | 692.2 | 677.5 | 834.2 | 23.1% |
| Gross Profit | 403.5 | 480.1 | 586.9 | 526.2 | | -100.0% |
| SG&A | 210.1 | 216.7 | 344.1 | 295.6 | | -100.0% |
| EBITDA | 166.0 | 228.4 | 197.0 | 168.7 | | -100.0% |
| Net Income | -27.2 | -92.6 | -107.5 | 151.8 | 233.2 | 53.6% |
Balance Sheet
|
|---|
| Cash | 136.6 | 171.9 | 289.1 | 232.8 | | -100.0% |
| Short Term Debt | 0.0 | 30.5 | 0.0 | 0.0 | | |
| Long Term Debt | 355.2 | 627.7 | 0.0 | 0.0 | | |
Cash flow
|
|---|
| Capex | 82.2 | 43.4 | 50.7 | 49.8 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 18.6% | 20.3% | 26.3% | -2.1% | 23.1% | |
| EBITDA growth | 12.8% | 37.6% | -13.7% | -14.4% | | |
| Gross Margin | 88.5% | 87.6% | 84.8% | 77.7% | | -77.7% |
| EBITDA Margin | 36.4% | 41.7% | 28.5% | 24.9% | 0.0% | -24.9% |
| Net Income Margin | -6.0% | -16.9% | -15.5% | 22.4% | 28.0% | 5.6% |
| SG&A, % of revenue | 46.1% | 39.5% | 49.7% | 43.6% | | -43.6% |
| CAPEX, % of revenue | 18.0% | 7.9% | 7.3% | 7.4% | | -7.4% |
| ROIC | 48.2% | 42.1% | 13.3% | 6.4% | | -6.4% |
| ROE | | | | 6.9% | | -6.9% |
| Net Debt/EBITDA | 1.3x | 2.1x | -1.5x | -1.4x | | 1.4x |
Revenue and profitability
The company's Revenue jumped on 23.1%.
Net Income marign increased on 5.6 pp from 22.4% to 28.0% in FY2016.
Appendix 1: Peers in Software
Below we provide Tian Ge Interactive Holdings Ltd benchmarking against other companies in Software 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 |
|---|
| Yunbo Digital Synergy Group Ltd ($8050) | | 241.6% | -31.9% | 348.0% | 99.6% |
| Pizu Group Holdings Ltd ($8053) | | -42.9% | 1,742.9% | 157.9% | 235.2% |
| China Eco-Farming Ltd ($8166) | | -7.7% | 21.8% | 155.5% | 21.3% |
| ICO Group Ltd ($8140) | | -11.1% | -3.1% | 104.9% | 29.8% |
| Aurum Pacific China Group Ltd ($8148) | | | 50.0% | 92.7% | -17.8% |
| |
|---|
| Median (38 companies) | 21.1% | 11.2% | 21.2% | 9.2% | 17.4% |
|---|
| Tian Ge Interactive Holdings Ltd ($1980) | | 20.3% | 26.3% | -2.1% | 23.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Bio Cassava Holdings Ltd ($8129) | 90.4% | 97.4% | 98.4% | 98.3% | |
| Chanjet Information Technology Co Ltd ($1588) | 89.2% | 91.3% | 92.4% | 91.4% | |
| China Binary Sale Technology Ltd ($8255) | 63.5% | 68.5% | 67.7% | 85.9% | |
| Kingdee International Software Group Co Ltd ($268) | 65.0% | 75.3% | 82.5% | 81.5% | 81.3% |
| Kingsoft Corp Ltd ($3888) | 86.8% | 86.3% | 82.4% | 76.8% | 67.9% |
| |
|---|
| Median (37 companies) | 44.3% | 40.5% | 42.1% | 40.1% | 38.6% |
|---|
| Tian Ge Interactive Holdings Ltd ($1980) | 88.5% | 87.6% | 84.8% | 77.7% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| International Entertainment Corp ($1009) | 50.8% | 64.0% | 54.9% | 62.0% | 45.5% |
| Sinosoft Technology Group Ltd ($1297) | 62.6% | 54.9% | 57.2% | 59.0% | |
| China Binary Sale Technology Ltd ($8255) | 35.1% | 35.4% | 44.4% | 50.5% | |
| Boyaa Interactive International Ltd ($434) | 38.5% | 25.8% | 30.7% | 47.6% | |
| TravelSky Technology Ltd ($696) | 38.1% | 35.8% | 31.9% | 41.1% | |
| |
|---|
| Median (38 companies) | 8.5% | 11.1% | 8.9% | 8.5% | 5.4% |
|---|
| Tian Ge Interactive Holdings Ltd ($1980) | 36.4% | 41.7% | 28.5% | 24.9% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| NetDragon Websoft Inc ($777) | 21.1% | 34.6% | 54.6% | 42.9% | |
| China Information Technology Development Ltd ($8178) | 4.1% | 1.1% | 0.5% | 40.7% | |
| Aurum Pacific China Group Ltd ($8148) | | 2.9% | 7.5% | 20.6% | |
| TravelSky Technology Ltd ($696) | 8.9% | 21.7% | 18.1% | 18.1% | |
| Kingsoft Corp Ltd ($3888) | 4.3% | 3.8% | 14.3% | 11.1% | |
| |
|---|
| Median (38 companies) | 1.4% | 1.5% | 2.6% | 2.0% | 0.5% |
|---|
| Tian Ge Interactive Holdings Ltd ($1980) | 18.0% | 7.9% | 7.3% | 7.4% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pizu Group Holdings Ltd ($8053) | -21.8% | -13.4% | -6.8% | 120.0% | 51.7% |
| ICO Group Ltd ($8140) | | 43.5% | 6.8% | 37.7% | 27.1% |
| IGG Inc ($8002) | | 55.9% | 41.4% | 25.9% | |
| Boyaa Interactive International Ltd ($434) | 75.3% | 21.3% | 20.0% | 21.4% | |
| Sinosoft Technology Group Ltd ($1297) | 34.0% | 21.9% | 20.2% | 20.8% | |
| |
|---|
| Median (38 companies) | 4.7% | 6.1% | 3.3% | 2.0% | 4.4% |
|---|
| Tian Ge Interactive Holdings Ltd ($1980) | 48.2% | 42.1% | 13.3% | 6.4% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Epicurean and Co Ltd ($8213) | 2.3x | 4.7x | 12.3x | 12.0x | 13.9x |
| Sing Lee Software Group Ltd ($8076) | | | 6.2x | 4.4x | |
| Century Sage Scientific Holdings Ltd ($1450) | 0.2x | 0.0x | -0.2x | 1.8x | |
| Microsoft Corp ($4338) | | | 0.4x | 1.2x | 1.4x |
| Chinasoft International Ltd ($354) | -0.7x | 0.7x | 1.5x | 0.7x | |
| |
|---|
| Median (21 companies) | -1.0x | -1.5x | -2.1x | -1.0x | -0.5x |
|---|
| Tian Ge Interactive Holdings Ltd ($1980) | 1.3x | 2.1x | -1.5x | -1.4x | |
