Heng Tai Consumables Group Ltd revenue dropped on 35.5% and EBITDA Margin dropped on 19.0 pp from -27.6% to -46.6%
30/09/2020 • About Heng Tai Consumables Group Ltd (
$197) • By InTwits
Heng Tai Consumables Group Ltd reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Heng Tai Consumables Group Ltd is a company in decline: FY2020 revenue growth was -35.5%, 5 years revenue CAGR was -19.9%
- The company operates at negative EBITDA Margin: -46.6%
- Heng Tai Consumables Group Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 was 0.0% while average EBITDA Margin was -18.4% for the sames years
- The company has unprofitable business model: ROIC is -18.1%
- It operates with high leverage: Net Debt/EBITDA is 6.5x while industry average is 1.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Heng Tai Consumables Group Ltd's Revenue dropped on 35.5%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 19.0 pp from -27.6% to -46.6% in FY2020.
Gross Margin decreased on 2.7 pp from 8.6% to 5.9% in FY2020. Gross Margin stuck to a declining trend at -1.1 pp per annum in the last 5 years. SG&A as a % of Revenue increased on 5.1 pp from 19.5% to 24.5% in FY2020. SG&A as a % of Revenue stuck to a growing trend at 2.5 pp per annum in the last 5 years.
Net Income margin dropped on 24.8 pp from -33.9% to -58.7% in FY2020.
Return on investment
The company operates at negative ROIC (-18.1%) and ROE (-18.9%). ROIC decreased on 3.3 pp from -14.8% to -18.1% in FY2020. ROE decreased on 4.7 pp from -14.2% to -18.9% in FY2020.
Leverage (Debt)
Company's Net Debt / EBITDA is 6.5x and Debt / EBITDA is . Debt surged on 41.3% while cash dropped on 24.0%.
Heng Tai Consumables Group Ltd has no short term refinancing risk: cash is higher than short term debt (1,517.5%).
Financial and operational results
Heng Tai Consumables Group Ltd ($197) key annual financial indicators| mln. | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 1,366 | 1,224 | 981 | 841 | 542 | -35.5% |
| Gross Profit | 142 | 135 | 91 | 72 | 32 | -55.5% |
| SG&A | 189 | 193 | 174 | 164 | 133 | -18.8% |
| EBITDA | 30 | -372 | -85 | -232 | -253 | |
| Net Income | -273 | -406 | -153 | -285 | -318 | |
Balance Sheet
|
|---|
| Cash | 431 | 841 | 783 | 470 | 357 | -24.0% |
| Short Term Debt | 61 | 33 | 16 | 20 | 24 | 16.6% |
| Long Term Debt | 0 | 0 | 0 | 0 | 5 | |
Cash flow
|
|---|
| Capex | 43 | 35 | 37 | 147 | | |
Ratios
|
|---|
| Revenue growth | -16.8% | -10.4% | -19.8% | -14.3% | -35.5% | |
| EBITDA growth | 889.9% | -1,343.1% | -77.3% | 174.8% | 8.8% | |
|
|---|
| Gross Margin | 10.4% | 11.0% | 9.3% | 8.6% | 5.9% | -2.7% |
| EBITDA Margin | 2.2% | -30.4% | -8.6% | -27.6% | -46.6% | -19.0% |
| SG&A, % of revenue | 13.8% | 15.8% | 17.7% | 19.5% | 24.5% | 5.1% |
| Net Income Margin | -20.0% | -33.1% | -15.6% | -33.9% | -58.7% | -24.8% |
| CAPEX, % of revenue | 3.2% | 2.8% | 3.8% | 17.5% | | |
|
|---|
| ROIC | -2.0% | -18.6% | -7.0% | -14.8% | -18.1% | -3.3% |
| ROE | -10.1% | -16.9% | -6.9% | -14.2% | -18.9% | -4.7% |
| Net Debt/EBITDA | -12.3x | | | | |
Peers in Food
Below we provide Heng Tai Consumables Group Ltd benchmarking against other companies in Food 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.
