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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. 201620172018201920202020/2019
P&L
Revenue1,3661,224981841542-35.5%
Gross Profit142135917232-55.5%
SG&A189193174164133-18.8%
EBITDA30-372-85-232-253
Net Income-273-406-153-285-318
Balance Sheet
Cash431841783470357-24.0%
Short Term Debt613316202416.6%
Long Term Debt00005
Cash flow
Capex433537147
Ratios
Revenue growth-16.8%-10.4%-19.8%-14.3%-35.5%
EBITDA growth889.9%-1,343.1%-77.3%174.8%8.8%

Gross Margin10.4%11.0%9.3%8.6%5.9%-2.7%
EBITDA Margin2.2%-30.4%-8.6%-27.6%-46.6%-19.0%
SG&A, % of revenue13.8%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 revenue3.2%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.