1. business and industrial

Sunny Kwok 郭日升
公司报告：康师傅 (00322 HK)
+852 2509 2642
[email protected]
24 March 2015
Downgrade to “Neutral” on Weak Sales Growth Momentum
收入增长动能趋缓，下调至“中性”
Tingyi’s 2014 results missed consensus due to sales deterioration in
4Q14. Consolidated revenue decreased by 16.4% YoY in 4Q14 to US$1,780
mn (Noodles: US$972 mn, down 18.1% YoY; Beverages: US$739 mn, down
13.8% YoY). Instant noodle business earnings in 4Q14 went up by 8.2% YoY
to US$80 mn on cost cut, while net loss from beverage business widened to
US$59 mn in 4Q14 from US$49 mn in 4Q13 on low utilisation rate.
Consolidated net profit in 4Q14 was US$9 mn, down 65.7% YoY. For 2014,
both revenue and net profit decreased by 6.4% and 2.0% YoY to US$10,238
mn and US$400 mn, respectively.
The management does not expect sales growth to speed up significantly in
2015. Moreover, only partial benefits from gross margin improvement will go
to the bottom line in 2015. Owing to conservative sales growth
expectation for both instant noodle and beverage business, we cut
Tingyi’s EPS forecast in 2015-2016 by 11.1% and 10.4%, respectively.
We expect Tingyi’s EPS to grow by 19.6%, 12.7% and 9.8%, to US$0.086,
US$0.096 and US$0.106 in 2015-2017, respectively.
GTJA Research 国泰君安研究
Company Report: Tingyi (00322 HK)
Neutral
Rating:
Downgraded
评级：
中性 (下调)
6-18m TP 目标价:
HK$17.00
Revised from 原目标价:
HK$20.70
Share price 股价：
HK$17.740
Stock performance
股价表现
20.0
% of return
15.0
10.0
5.0
0.0
Tingyi’s sales and earnings growth are expected to remain very weak in
1H15. Valuation is demanding on slowing growth momentum. As such, we
downgrade the Company’s investment rating to “Neutral” and cut its TP
to HK$17.00, which represents 25.6x 2015 PER, 22.8x 2016 PER and
20.7x 2017 PER.
(5.0)
(10.0)
(15.0)
(20.0)
(25.0)
Mar-14
Jun-14
Sep-14
受 2014 年第 4 季收入倒退的负面影响，
收入倒退的负面影响，康师傅 2014 年业绩差于市场预期。
年业绩差于市场预期。2014 年第 4
Dec-14
HSI
Mar-15
TINGYI
季公司综合收入同比下降 16.4%，至 17.8 亿美元，其中方便面收入达到 9.7 亿美元，按年
4 季方便面利润按年增长 8.2%，至 80 百万美元，但饮料分部产能利用率过低，分部亏损
Change in Share Price
股价变动
从 2013 年第 4 季的 49 百万美元扩大至 2014 年第 4 季的 59 百万美元。2014 年第 4 季综
合净利为 9 百万美元，同比大幅倒退 65.7%。2014 年康师傅收入及净利分别同比轻微下跌
Abs. %
绝对变动 %
Rel. % to HS index
相对恒指变动 %
Avg. share price(HK$)
平均股价（港元）
6.4%及 2.0%，至 102.4 亿及 4.0 亿美元。
康师傅管理层并不预期 2015 年收入增速将强劲反弹。另一方面，毛利率改善所带来的好
处预期仅会部分在净利中反映。由于比较保守的
由于比较保守的方便面及饮料分部
由于比较保守的方便面及饮料分部收入增
方便面及饮料分部收入增速预测
收入增速预测，
速预测，我们分
1M
1 个月
3M
3 个月
1Y
1年
(7.4)
2.1
(12.8)
(6.0)
(2.9)
(24.9)
18.8
18.4
20.2
Source: Bloomberg, Guotai Junan Int ernat ional.
别下调康师傅 2015-2016 年每股净利 11.1%及
及 10.4%。
。我们预期康师傅于 2015-2017 年
Tingyi 康师傅 (00322 HK)
倒退 18.1%，而饮料收入则同比减少 13.8%，至 7.4 亿美元。受惠于成本控制，2014 年第
每股净利分别为 0.086、0.096 及 0.106 美元，按年分别增长 19.6%、12.7%及 9.8%。
康师傅收入及净利增长于 2015 年上半年预期将维持疲弱。由于增长动能在放缓，估值不
吸引。因此
因此，
因此，我们下调
我们下调康师傅
下调康师傅的投资评级至
康师傅的投资评级至“
的投资评级至“中性”
中性”，同时将目标价下调至
同时将目标价下调至 17.00 港元，
港元，
Year End
Turnover
Net Profit
EPS
EPS
PER
BPS
PBR
DPS
Yield
ROE
收入
股东净利
每股净利
每股净利变动
市盈率
每股净资产
市净率
每股股息
股息率
净资产收益率
(US$ m)
(US$ m)
(US$)
(△%)
(x)
(US$)
(x)
(US$)
(%)
(%)
10,941
409
0.073
(11.0)
31.3
0.515
4.4
0.037
1.6
15.1
FY14A
10,238
400
0.072
(2.1)
32.0
0.541
4.2
0.036
1.6
13.5
FY15F
10,591
479
0.086
19.6
26.8
0.591
3.9
0.043
1.9
15.1
FY16F
11,613
540
0.096
12.7
23.7
0.647
3.5
0.048
2.1
15.6
FY17F
12,628
593
0.106
9.8
21.6
0.705
3.2
0.053
2.3
15.6
年结
12/31
FY13A
Shares in issue (m) 总股数 (m)
Market cap. (HK$ m) 市值 (HK$ m)
3 month average vol. 3 个月平均成交股数 (‘000)
52 Weeks high/low (HK$) 52 周高/低
5,604.1
99,416.4
5,628.3
23.200 / 16.240
Major shareholder 大股东
Free float (%) 自由流通比率 (%)
FY15 Net gearing (%) 15 年净负债/股东资金 (%)
FY14-17 PEG (x) 市盈率/增长率 (倍)
Wei Ing-Chou 33.6%
33.3
42.9
2.3
Source: the Company, Guotai Junan International.
See the last page for disclaimer
Page 1 of 12
Company Report
相当于公司 25.6 倍 2015 年市盈率、
年市盈率、22.8 倍 2016 年市盈率及 20.7 倍 2017 年市盈率。
年市盈率。
Key Takeaways from Analyst Meeting:
very experienced in the FMCG market in China, weak consumption demand for convenient food harms the Company’s sales
growth. In addition, sales growth of instant noodle business had kept slowing since 2011 and instant food business’s
performance was unsatisfactory comparing to instant noodle and beverage businesses. We are slightly worry that in addition
to weak macro economy, the change in key personnel of the Company could further add uncertainties to the Company’s
24 March 2015
New Group’s CEO and CFO. James Wei and Mr. Liu Kuo Wei are promoted as Tingyi’s new CEO and CFO. Though they are
operation, at least in the short run.
Cost Saving, Efficiency Enhancing, Innovation. The overall operation strategy of Tingyi in 2015 will be cost saving,
efficiency enhancing and innovation. If these 3 themes are not only ranked by alphabetical order but also by their importance,
we are slightly disappointed that innovation comes last. Although we understand that Tingyi is reluctant to introduce new
products to the market under such gloomy environment as the Company hopes to maximize returns from new star products,
we still hope that Tingyi should catch up with UPC by launching more new self-developed products in 2015. On the other hand,
we do admit that Tingyi is able to deliver extra earnings growth from cost saving and efficiency enhancing, which the Company
is really good at.
Profitability Sharing with Distributors in 2015. With highly possible gross margin improvement in 2015, Tingyi admits that
the cost savings will go to: 1) Bottom line; 2) Support distributors with higher profit sharing and cash flow improvement,
especially for instant noodles and water; and 3) Product enhancement such as increased volume for water and better
ingredients for instant noodles. Though Tingyi is doing the right thing, we could not expect inspiring earnings growth to be seen
in 2015 if sales growth is expected to be low single digit.
Successful Integration with Pepsi. Tingyi’s management is satisfied with the progress of integration of Pepsi business to the
Company. Despite incurring US$73 million termination benefits for workers in Pepsi in 2014 and a possible further US$70
million to be incurred in 2015-2016, Tingyi reiterates that the Company will gain in the long run and some synergies such as
Cash is King – Less CAPEX in 2015. Tingyi incurred capital expenditure of US$1,480 million in 2014, of which US$535
million was related to the construction of Shanghai operation center, which has commenced operation in Jan. 2015. As macro
economy in China is expected to stay weak in 2015, the Company is expected to keep more cash and thus, CAPEX in 2015 is
expected to reduce to US$600-700 million.
Strong Business Partners. In addition to Pepsi, Calbee and Wakado, Tingyi teams up with Disney and Starbucks to further
enrich its product portfolio and to promote its brand name to not only domestic consumers but also international markets. We
Tingyi 康师傅 (00322 HK)
raw materials sourcing and modern channels negotiation have been realized.
believe James Wei, the new CEO of Tingyi, will continue to look for opportunities to cooperate with international F&B peers in
Company Report
order to help sales growth to speed up. However, we do not expect major M&As to be seen in the near future.
See the last page for disclaimer
Page 2 of 12
2014 Annual Results Review:
US$1.8 billion, which was attributable to tainted lard scandal of Wei Chuan in Taiwan, weak consumer sentiment, continuous
inventory destocking at distribution channels as well as slight shift of the Spring Festival in 2015. Weak raw materials did not
help gross margin due to low utilisation rates of both noodles’ and beverages’ plants and thus, consolidated gross margin in
4Q14 dropped by 1.7 ppt YoY to 25.9%. In view of weak sales, the Company’s operating expenses were well under control. As
24 March 2015
Poor Results Due to Weak Sales but Partially Offset by Stringent Cost Control. Revenue in 4Q14 fell by 16.4% YoY to
such, net profit in 4Q14 arrived at US$9 million, down 65.7% YoY. For 2014, revenue and net profit were US$10,238 million
and US$400 million, down 6.4% and 2.0% YoY, respectively. Excluding structural consolidation cost of US$73 million in 2014
and impairment loss of US$43 million in 2013, core net profit in 2014 increased by 0.4% YoY, to US$435 million.
Table-1: 2014 Annual Results Review
2013
2014
YoY
1Q-3Q13
1Q-3Q14
YoY
4Q13
4Q14
YoY
Turnover & revenue
10,941
10,238
-6.4%
8,813
8,458
-4.0%
2,128
1,780
-16.4%
Cost of sales
(7,631)
(7,120)
-6.7%
(6,088)
(5,801)
-4.7%
(1,543)
(1,319)
-14.5%
3,310
3,118
-5.8%
2,724
2,658
-2.4%
586
460
-21.4%
Other net income
164
155
-5.9%
121
102
-15.6%
43
52
21.4%
Distribution costs
Gross Profit
(2,313)
(2,139)
-7.5%
(1,823)
(1,704)
-6.6%
(490)
(435)
-11.1%
Administrative exp.
(351)
(300)
-14.6%
(267)
(237)
-11.3%
(83)
(62)
-25.3%
Other exp.
(118)
(156)
32.2%
(56)
(105)
88.5%
(62)
(50)
-18.7%
693
679
-2.0%
699
714
2.1%
(6)
(35)
484.2%
14
8
-45.6%
10
19
90.1%
4
(11)
n.a.
EBIT
Finance income, net
Share of associates
Profit before tax
Taxation
16
7
-54.7%
15
14
-5.2%
1
(7)
n.a.
723
694
-4.1%
724
747
3.2%
(1)
(53)
6955.3%
(229)
(209)
-8.7%
(201)
(204)
1.8%
(28)
(5)
-83.7%
Profit after tax
494
485
-1.9%
523
543
3.7%
(29)
(58)
100.1%
Minority interests
(86)
(84)
-1.7%
(141)
(151)
7.3%
55
67
21.6%
Reported Net Profit
409
400
-2.0%
383
392
2.4%
26
9
-65.7%
Core Net Profit *
433
435
0.4%
383
392
2.4%
51
44
-14.0%
Gross Margin
30.3%
30.5%
0.2 ppt
30.9%
31.4%
0.5 ppt
27.5%
25.9%
-1.7 ppt
EBIT Margin
6.3%
6.6%
0.3 ppt
7.9%
8.4%
0.5 ppt
-0.3%
-2.0%
-1.7 ppt
Reported Net Margin
3.7%
3.9%
0.2 ppt
4.3%
4.6%
0.3 ppt
1.2%
0.5%
-0.7 ppt
Core Net Margin
4.0%
4.3%
0.3 ppt
4.3%
4.6%
0.3 ppt
2.4%
2.5%
0.1 ppt
Source: the Company.
* Excludes structural consolidation cost of US$73 million in 2014 and impairment loss of US$43 million in 2013 (before adjustment of equity interest).
Tingyi 康师傅 (00322 HK)
Income Statement
US$ million
Instant Noodle Business: Tainted Oil Scandal and Advance Purchases. According to Nielsen, sales volume of instant
noodle declined by 7% and sales value also fell by 2.7% in 2014. Revenue from instant noodle business of Tingyi slightly
outperformed the market but the Company’s instant noodle sales were extremely weak in 4Q14. The management attributes
such performance to be partially related to tainted lard scandal of Wei Chuan, which also negatively impacted Tingyi’s sales in
4Q14 of approximately 10%. In addition, Tingyi raised bowl noodle’s ASP in 3Q14, which also affected bowl noodles sales in
4Q14 due to advance purchases by some distributors in 3Q14.
Table-2: Instant Noodle Business Revenue Breakdown (Include Inter-Segment) – By Product
Instant Noodle Business Revenue Breakdown
US$ million
2013
2014
YoY
1Q-3Q13
1Q-3Q14
YoY
4Q13
4Q14
YoY
Bowl
2,066
1,960
-5.1%
1,513
1,511
-0.1%
553
449
-18.9%
High end Packet
1,693
1,601
-5.4%
1,226
1,211
-1.2%
468
390
-16.6%
Mid end Packet
469
470
0.0%
333
356
6.9%
137
114
-16.8%
Others
104
107
3.7%
74
88
18.1%
29
19
-33.6%
4,332
4,138
-4.5%
3,146
3,166
0.6%
1,186
972
-18.1%
Total
Source: the Company.
See the last page for disclaimer
Page 3 of 12
Company Report
Segment Revenue
Beverage Business: Losing Market Share. According to Nielsen, sales volume of beverage increased by only 2.8% but
sales value went up by 6.6% in 2014. China’s soft drink market was very weak in 2H14 on weak consumer sentiment and
drink, which had the highest growth among other beverages. In addition, the Company lost market share in water and juice.
Table-3: Beverage Business Revenue Breakdown (Include Inter-Segment) – By Product
Beverage Business Revenue Breakdown
US$ million
2013
2014
YoY
1Q-3Q13
1Q-3Q14
YoY
4Q13
4Q14
Tea
2,292
Water
1,141
2,330
1.7%
1,134
-0.6%
1,978
2,011
1.7%
314
319
1.7%
981
1,000
2.0%
160
134
-16.5%
Juice
1,340
964
-28.1%
1,175
867
-26.2%
165
97
-41.4%
Carbonated & Others
1,495
Total
6,268
1,373
-8.2%
1,276
1,183
-7.3%
219
189
-13.3%
5,801
-7.5%
5,409
5,061
-6.4%
858
739
-13.8%
24 March 2015
unfavourable weather. Tingyi’s beverage business was weaker than the market as the Company does not produce functional
YoY
Segment Revenue
Source: the Company.
Profitability Improvement on Stringent Cost Control. Despite weak sales growth, the Company still reported earnings
growth in both instant noodle and beverage businesses in 2014, thanks to gross margin improvement of beverage business
and stringent cost control of both businesses. However, the gross margin improvement in 2014 was weaker than what we had
expected due to low utilisation rate (~40%-50% based on 24 hours).
Table-4: Segment Results Breakdown – By Business
Segment Results
US$ million
2013
2014
YoY
1Q-3Q13
1Q-3Q14
YoY
4Q13
4Q14
YoY
Instant Noodles
4,332
4,138
-4.5%
3,146
3,166
0.6%
1,186
972
-18.1%
Beverages
6,268
5,800
-7.5%
5,409
5,061
-6.4%
858
739
-13.8%
341
300
-12.1%
257
232
-10.1%
84
68
-18.4%
10,941
10,238
-6.4%
8,813
8,458
-4.0%
2,128
1,780
-16.4%
Instant Noodles
1,267
1,172
-7.5%
925
892
-3.5%
342
280
-18.2%
Beverages
1,927
1,851
-3.9%
1,717
1,692
-1.5%
210
159
-24.2%
116
94
-18.7%
82
73
-11.2%
34
21
-37.0%
3,310
3,118
-5.8%
2,724
2,658
-2.4%
586
460
-21.4%
Instant Noodles
437
425
-2.8%
332
342
2.9%
105
83
-21.1%
Beverages
239
258
8.3%
359
387
7.9%
(121)
(129)
7.0%
Segment Revenue
Instant Food & Others
Total
Instant Food & Others
Total
EBIT *
Instant Food & Others
Total
33
3
-91.5%
22
(1)
n.a.
11
4
-60.7%
709
686
-3.2%
714
728
2.0%
(5)
(42)
737.4%
337
360
7.0%
263
280
6.7%
74
80
8.2%
71
72
1.4%
120
131
8.4%
(49)
(59)
18.6%
Tingyi 康师傅 (00322 HK)
Gross Profit
Net Profit
Instant Noodles
Beverages
Instant Food & Others
1
(32)
n.a.
(1)
(19)
2569.7%
1
(13)
n.a.
409
400
-2.0%
383
392
2.4%
26
9
-65.7%
Instant Noodles
29.2%
28.3%
-0.9 ppt
29.4%
28.2%
-1.2 ppt
28.8%
28.8%
SAME
Beverages
30.8%
31.9%
1.2 ppt
31.7%
33.4%
1.7 ppt
24.5%
21.5%
-2.9 ppt
10.1%
10.3%
0.2 ppt
10.6%
10.8%
0.2 ppt
8.8%
8.5%
-0.3 ppt
3.8%
4.5%
0.6 ppt
6.6%
7.7%
1.0 ppt
-14.0%
-17.4%
-3.4 ppt
Instant Noodles
7.8%
8.7%
0.9 ppt
8.4%
8.9%
0.5 ppt
6.2%
8.2%
2.0 ppt
Beverages
1.1%
1.2%
0.1 ppt
2.2%
2.6%
0.4 ppt
-5.8%
-7.9%
-2.2 ppt
Total
Gross Margin
EBIT Margin
Instant Noodles
Beverages
Source: the Company.
* Include associates contribution.
See the last page for disclaimer
Page 4 of 12
Company Report
Net Margin
Noodles Underperformed but Beverages Outperformed. Instant noodle business’s sales growth of Tingyi underperformed
that of UPC’s in 2014. In addition, gross margin deterioration of such business of Tingyi was also worse than that of UPC.
improvement was stronger. Both companies were working hard on their weaker business in 2014 that Tingyi had successfully
improved its beverage business’s profitability, while UPC’s instant noodle business loss had been narrowed. However,
earnings of core business of Tingyi (instant noodle) and UPC (beverages) in 2014 were lower than those in 2013.
Table-5: Results Comparison Between Tingyi and UPC
Tingyi (00322 HK)
US$ million
2013
Revenue
Noodles
4,332
Beverages
6,268
YoY Growth
Noodles
9.4%
Beverages
27.1%
UPC (00220 HK)
2013
2014
2014
4,138
5,800
1,273
2,464
1,292
2,273
-4.5%
-7.5%
10.5%
11.7%
1.5%
-7.8%
1,267
1,927
1,172
1,851
372
882
371
802
29.2%
30.8%
28.3%
31.9%
29.2%
35.8%
28.7%
35.3%
EBIT
EBIT Margin
693
6.3%
679
6.6%
81
2.1%
35
1.0%
Reported Net Profit
Reported Net Margin
409
3.7%
400
3.9%
149
3.9%
46
1.3%
Gross Profit
Noodles
Beverages
Gross Margin
Noodles
Beverages
24 March 2015
However, Tingyi’s beverage business outperformed that of UPC as sales deterioration was less severe and gross margin
Instant Noodle Business Outlook:
Focus on Profitability Improvement. YTD (Jan. - Feb. 2015) production volume growth of instant noodles in China went up
by 2.0% YoY. We remain cautious on the long term consumption demand for instant noodle in China. According to Nielsen,
Tingyi’s market share in instant noodles market in 4Q14 was 46.3% & 55.6%, in terms of sales volume and sales value,
Tingyi 康师傅 (00322 HK)
Source: the Companies, Bloomberg.
respectively, while those of UPC were 17.0% and 18.0%, respectively. Both Tingyi’s and UPC’s market share in 4Q14 dropped
QoQ. Both companies are expected to focus on profitability improvement in 2015 as demand remains weak.
Figure-1: YoY & YTD Production Volume Growth
Figure-2: YoY & YTD Revenue Growth of Instant Noodle
of Instant Noodles in China
and Instant Food Manufacturers in China
10%
15%
YoY Growth
Revenue - YTD Growth
YTD Growth
Prof it Bef ore Tax - YTD Growth
10%
5%
5%
0%
0%
-5%
-5%
Source: National Bureau of Statistics of China.
See the last page for disclaimer
Dec-14
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
Apr-14
Mar-14
-10%
Jan&Feb-14
Jan&Feb-15
Dec-14
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
Apr-14
Mar-14
Jan&Feb-14
-15%
Source: National Bureau of Statistics of China, Guotai Junan International.
Page 5 of 12
Company Report
-10%
Figure-3: Instant Noodle Market Share – by Volume
50%
Figure-4: Instant Noodle Market Share – by Value
46.3%
60%
55.6%
24 March 2015
50%
40%
40%
Tingyi 康 师傅
Uni-President 统一
Hualong 华龙
Baixian g 白象
30%
20%
Tingyi 康 师傅
Uni-President 统一
Hualong 华龙
Baixian g 白象
30%
20%
10%
10%
0%
1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14
0%
1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14
Source: Nielsen, the Company.
Source: Nielsen, the Company.
Slight Increase of Instant Noodle’s Raw Materials Prices. Flour accounts for 12%-18% of Tingyi’s instant noodle
production cost and YoY flour price growth in 4Q14 slowed QoQ. Tingyi’s flour procurement cost was RMB3,460/ton in 4Q14,
up 3.0% QoQ and 0.9% YoY. We expect Tingyi’s flour procurement cost to be RMB3,500/ton in 1Q15, representing 0.6% YoY
increase. On the other hand, palm oil attributes 12%-15% to instant noodle manufacturing cost and Tingyi’s palm oil
procurement price increased by 1.2% YoY in 4Q14 to RMB5,940/ton. We expect Tingyi’s palm oil procurement cost to be
RMB6,300/ton in 1Q15, representing 3.4% YoY growth. Raw materials prices are expected to stay relatively stable in 2015 on
weak demand.
Figure-5:
Average Flour Price YoY Growth
Figure-6:
vs. Tingyi Procurement Cost
Average Palm Oil Price YoY Growth
vs. Tingyi Procurement Cost
RMB / ton
RMB / ton
3,750
15%
3,500
10%
7,000
20%
6,500
10%
6,000
0%
5%
5,500
3,000
-10%
0%
5,000
Tingyi Flour Procurement Cost - LHS
Tingyi Flour Procurement Cost YoY Growth - RHS
Average Flour Price YoY Growth - RHS
Source: the Company, National Bureau of Statistics of China,
Guotai Junan International.
-20%
Tingyi Palm Oil Procurement Cost - LHS
-30%
1Q15F
4Q14
3Q14
2Q14
1Q14
4Q13
3Q13
4,000
2Q13
4,500
1Q13
1Q15F
4Q14
3Q14
2Q14
1Q14
4Q13
-10%
3Q13
2,500
2Q13
-5%
1Q13
2,750
Tingyi Palm Oil Procurement Cost YoY Growth (3M Lagged) - RHS
Average MDE Palm Oil Price YoY Growth - RHS
Tingyi 康师傅 (00322 HK)
3,250
Source: the Company, MDEX, Guotai Junan International.
Cut Earnings Forecasts of Instant Noodle Business in 2015-2016 on Conservative Sales Assumption. Tingyi’s
management indicates that macro economy remains weak and thus, instant noodle business sales growth could still be under
pressure in 2015. We revise down revenue and earnings forecasts of instant noodle business in 2015-2016 by 16.3% & 18.2%
Company Report
and 16.4% & 15.5%, respectively.
See the last page for disclaimer
Page 6 of 12
OLD
2015F
4,735
1,397
545
427
29.5%
11.5%
9.0%
CHANGE
2015F
2016F
-16.3%
-16.4%
-19.2%
-16.4%
-23.6%
-20.0%
-18.2%
-15.5%
-1.0 ppt
SAME
-1.0 ppt
-0.5 ppt
-0.2 ppt
0.1 ppt
2016F
5,043
1,462
580
458
29.0%
11.5%
9.1%
24 March 2015
Table-6: Instant Noodle Business Assumptions Revisions
NEW
US$ million
2015F
2016F
2017F
Revenue
3,961
4,216
4,416
Gross Profit
1,129
1,223
1,281
EBIT
416
464
486
Net Profit
350
387
408
Gross Margin
28.5%
29.0%
29.0%
EBIT Margin
10.5%
11.0%
11.0%
Net Margin
8.8%
9.2%
9.2%
Source: Guotai Junan International.
Beverage Business Outlook:
Fall in Market Share in 4Q14. YTD (Jan. - Feb. 2015) production volume growth of soft drinks in China was 5.4%. Tingyi’s
market share (in terms of volume) in RTD tea (with milk), RTD tea (w/out milk), diluted juice drinks and water were 54.5%,
61.4%, 26.1% and 19.1% in 4Q14, respectively. The Company’s market shares in diluted juice drink and water in 4Q14 fell
QoQ, which could be related to reduced promotions. With the help of weak raw materials prices, the Company has to invest
more in R&D and promotions in order to drive sales growth in 2015.
Figure-7: YoY Production Volume Growths of
Figure-8: YTD Production Volume Growths of
Various Soft Drinks in China
Various Soft Drinks in China
40%
25%
Soft Drinks
CSD
Water
Others
Sof t Drinks
30%
CSD
Water
Others
20%
20%
15%
10%
10%
Source: National Bureau of Statistics of China, Guotai Junan International.
Source: National Bureau of Statistics of China, Guotai Junan International.
Figure-9: YoY & YTD Revenue Growth of
Figure-10: YoY & YTD Profit Before Tax Growth of
Beverages Manufacturers in China
Tingyi 康师傅 (00322 HK)
Jan&Feb-15
Dec-14
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
Apr-14
Jan&Feb-14
Jan&Feb-15
Dec-14
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
0%
Apr-14
-20%
Mar-14
5%
Jan&Feb-14
-10%
Mar-14
0%
Beverages Manufacturers in China
20%
45%
15%
30%
10%
15%
5%
0%
0%
-15%
Adjusted YoY Growth
Adjusted YoY Growth
YTD Growth
YTD Growth
See the last page for disclaimer
Dec-14
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
Apr-14
Mar-14
Source: National Bureau of Statistics of China, Guotai Junan International.
Page 7 of 12
Company Report
Source: National Bureau of Statistics of China, Guotai Junan International.
Jan&Feb-14
Dec-14
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
Apr-14
Mar-14
-30%
Jan&Feb-14
-5%
Figure-11: RTD Tea Market Share
Figure-12: RTD Tea Market Share
(Include Dairy) – by Volume
(Include Dairy) – by Value
54.5%
50%
60%
47.0%
50%
Tingyi 康 师傅
Uni-President 统一
Wahaha 娃哈哈
Coca Cola 可口可乐
40%
30%
40%
30%
20%
20%
10%
10%
0%
1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14
Tingyi 康 师傅
Uni-President 统一
Wahaha 娃哈哈
Coca Cola 可口可乐
24 March 2015
60%
0%
1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14
Source: Nielsen, the Company.
Source: Nielsen, the Company.
Figure-13: RTD Tea Market Share
Figure-14: RTD Tea Market Share
(Non-Dairy) – by Volume
(Non-Dairy) – by Value
70%
70%
61.4%
60%
56.1%
60%
50%
Tingyi 康 师傅
Uni-President 统一
Wahaha 娃哈哈
Coca Cola 可口可乐
40%
Tingyi 康师傅
Uni-President 统一
Wahaha 娃哈哈
Coca Cola 可口可乐
40%
30%
30%
20%
20%
10%
10%
0%
1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14
0%
1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14
Source: Nielsen, the Company.
Source: Nielsen, the Company.
Figure-15: Diluted Juice Drink Market Share
Figure-16: Bottled Water Market Share – by Volume
– by Volume
40%
Tingyi 康师傅
Coca Cola 可口可乐
Wahaha 娃哈哈
30%
Uni-President 统一
Huiyuan 汇源
40%
Tingyi 康师傅
Wahaha 娃哈哈
Coca Cola 可口可乐
26.1%
Farmer's Spring 农夫山泉
Yi Bao 怡 宝
30%
Tingyi 康师傅 (00322 HK)
50%
19.1%
20%
20%
10%
10%
0%
1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14
Source: Nielsen, the Company.
0%
1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14
Source: Nielsen, the Company.
Huge Gross Margin Improvement for Beverage Business in 2015. PET resin attributed ~60% to beverage business COGS
price slightly rebounds. We expect Tingyi’s PET resin and sugar procurement costs in 1Q15 to be RMB8,000/ton and
RMB5,250/ton, down 19.4% and 3.8% YoY, respectively. We expect significant improvement in beverage business’s gross
margin in 2015.
See the last page for disclaimer
Page 8 of 12
Company Report
and sugar accounted for ~10% to beverage business COGS. Tingyi’s PET resin and sugar procurement costs dropped by
11.7% and 13.4% YoY, to RMB9,200/ton and RMB4,960/ton in 4Q14, respectively. PET resin price plunged in 1Q15 but sugar
Figure-17:
Average PET Resin Price YoY Growth
Figure-18:
vs. Tingyi Procurement Cost
RMB / ton
Average Sugar Price YoY Growth
vs. Tingyi Procurement Cost
Tingyi Sugar Procurement Cost - LHS
Tingyi Sugar Procurement Cost YoY Growth - RHS
Average Sugar Price YoY Growth - RHS
Tingyi PET Resin Procurement Cost - LHS
Tingyi PET Resin Procurement Cost YoY Growth - RHS
Average PET Resin Price YoY Growth - RHS
Source: the Company, www.ccf.com.cn, www.tbs-china.com,
Guotai Junan International.
1Q15F
-20%
4Q14
4,500
3Q14
-35%
-10%
2Q14
5,000
5,000
1Q14
-30%
0%
4Q13
6,000
5,500
3Q13
-25%
10%
2Q13
7,000
6,000
1Q13
-20%
1Q15F
8,000
4Q14
-15%
3Q14
9,000
2Q14
-10%
1Q14
10,000
4Q13
-5%
3Q13
11,000
2Q13
0%
1Q13
12,000
24 March 2015
RMB / ton
Source: the Company, www.jcichina.com, Guotai Junan International.
Revise Up Earnings Forecast of Beverage Business on Better Gross Margin and Cost Control. Although beverage
business was weak in 2014, we still expect exceptional hot and rainy weather in 2014 will not repeat in 2015 and thus, the
Company’s sales growth should catch up slightly in 2H15. In addition, the plunge in PET resin price should benefit beverage
business’s profitability, though partially of the benefits will be shared by increased R&D and to support distributors. Tingyi’s
Table-7: Beverage Business Assumptions Revisions
NEW
US$ million
2015F
2016F
Revenue
6,334
7,091
Gross Profit
2,217
2,411
EBIT
507
567
Net Profit
136
161
Gross Margin
35.0%
34.0%
EBIT Margin
8.0%
8.0%
Net Margin
2.2%
2.3%
2017F
7,895
2,606
632
193
33.0%
8.0%
2.5%
OLD
2015F
6,636
2,190
398
119
33.0%
6.0%
1.8%
2016F
7,420
2,412
482
147
32.5%
6.5%
2.0%
CHANGE
2015F
2016F
-4.6%
-4.4%
1.2%
0.0%
27.3%
17.6%
14.9%
9.2%
2.0 ppt
1.5 ppt
2.0 ppt
1.5 ppt
0.4 ppt
0.3 ppt
Source: Guotai Junan International.
Earnings Forecast Assumptions and Revisions:
Earnings Cut on Lowered Contribution from Instant Noodle Business. Tingyi’s EPS forecasts for 2015-2016 are revised
Tingyi 康师傅 (00322 HK)
beverage business earnings for 2015-2016 are revised up by 14.9% and 9.2%, respectively.
down by 11.1% and 10.4%, respectively, due to lowered earnings contribution from instant noodle business. The Company’s
EPS is expected to reach US$0.086, US$0.096 and US$0.106 in 2015-2017, up 19.6%, 12.7% and 9.8%, respectively. The
earnings growth in 2015 is expected to speed up on expected lower termination benefits and gross margin improvement.
US$ million
Revenue
Gross Profit
EBIT
Net Profit
EPS (US$)
Gross Margin
EBIT Margin
Net Margin
2015F
10,591
3,439
913
479
0.086
32.5%
8.6%
4.5%
NEW
2016F
11,613
3,730
1,019
540
0.096
32.1%
8.8%
4.7%
2017F
12,628
3,987
1,102
593
0.106
31.6%
8.7%
4.7%
OLD
2015F
11,719
3,695
934
539
0.096
31.5%
8.0%
4.6%
2016F
12,831
3,989
1,056
603
0.108
31.1%
8.2%
4.7%
CHANGE
2015F
2016F
-9.6%
-9.5%
-6.9%
-6.5%
-2.2%
-3.5%
-11.1%
-10.4%
-11.1%
-10.4%
0.9 ppt
1.0 ppt
0.7 ppt
0.5 ppt
-0.1 ppt
0.0 ppt
Source: Guotai Junan International.
See the last page for disclaimer
Page 9 of 12
Company Report
Table-8: Earnings Estimate Revisions
Downgrade to “Neutral” and Cut TP to HK$17.00. Tingyi’s 2014 results disappoint the market and the outlook in 2015
remains gloomy despite favourable raw materials prices. The Company is able to secure strong business partner such as
F&B peers for stable revenue growth and are tolerance towards short term earnings fluctuation caused by raw materials
prices. However, given low sales growth expectation and the majority of earnings growth is expected to be contributed by
gross margin improvement brought by low raw material prices, there is highly likely for investors to keep devaluating the stock
as well as the sector. Valuation is not cheap and the Company’s earnings growth will still be under pressure in 1H15.
24 March 2015
Disney and Starbucks but contribution is expected to be minimal in the short run. Investors are paying premium valuation to
Therefore, we downgrade the Company’s investment rating to “Neutral” and cut its TP to HK$17.00, which represents 25.6x
2015 PER (10% premium to the 10-year average current year PER), 22.8x 2016 PER (5% premium to the 10-year average
low forward PER) and 20.7x 2017 PER.
Figure-20: Tingyi 12-Month Forward Core PER Band
30
30
20
20
High PER (x) - Avg. 2005-2014: 34.9x
Mean PER (x) - Avg. 2005-2014: 27.7x
Low PER (x) - Avg. 2005-2014: 21.7x
10
Source: the Company, Bloomberg, Guotai Junan International.
2007
2006
2014
2005
0
2013
2012
2011
2010
2009
2008
2006
2005
0
2007
High PER (x) - Avg. 2005-2014: 38.1x
Mean PER (x) - Avg. 2005-2014: 29.9x
Low PER (x) - Avg. 2005-2014: 23.3x
10
2014
40
2013
40
2012
50
2011
50
2010
x
60
2009
x
60
2008
Figure-19: Tingyi Current Year Core PER Band
Source: the Company, Bloomberg, Guotai Junan International.
PER (x)
FY14F
Gross
Margin
FY14F
Operating
Margin
FY14F
31.1
40.2
20.6
13.9
33.4
7.2
1.7
3.0
32.5
2.0
1.6
20.2
16.6
7.5
4.2
13.5
30.5
6.6
PBR (x)
ROE (%)
FY15F
FY14F
18.7
6.6
27.1
24.3
3.5
16.3
57.8
26.6
14.3
9.2
8.8
31.3
32.0
23.5
Ticker
$
Share
Price
Market Cap
(HK$ mn)
FY13A
FY14F
Want Want China
00151 HK
HK$
8.000
105,539
19.8
21.9
Tsingtao Brewery
00168 HK
HK$
50.250
69,454
27.3
Uni-President China
00220 HK
HK$
5.220
22,547
WH Group
00288 HK
HK$
4.230
61,963
Tingyi
00322 HK
HK$
17.740
99,416
Company
China Foods
00506 HK
HK$
2.890
8,084
n.a.
n.a.
80.3
1.3
(2.8)
22.7
0.5
Hengan International
01044 HK
HK$
85.500
104,687
28.3
28.0
22.9
5.9
21.7
45.6
20.6
China Yurun Food
01068 HK
HK$
2.430
4,429
101.3
n.a.
83.8
0.3
0.3
7.5
0.1
China Modern Dairy
01117 HK
HK$
2.650
12,792
21.6
13.9
10.2
1.5
16.5
37.4
27.3
5.0
China Mengniu Dairy
02319 HK
HK$
35.700
69,959
31.3
26.4
21.7
2.7
11.6
31.5
Vinda International
03331 HK
HK$
12.600
12,581
23.2
21.2
19.1
2.5
12.2
30.2
9.9
China Huishan Dairy
06863 HK
HK$
1.360
19,475
10.7
11.1
9.1
1.1
10.7
54.9
36.8
Simple Average
29.6
24.9
29.1
2.7
12.7
31.9
12.0
Weighted Average
25.3
25.4
21.4
4.0
17.9
34.7
12.8
Tingyi 康师傅 (00322 HK)
Table-9: Peers Valuation Comparison
Company Report
Source: Bloomberg.
See the last page for disclaimer
Page 10 of 12
Financial Statements and Ratios
FY15F
FY16F
FY17F
As at Dec 31 (US$ m)
Turnover
Cost of sales
10,941
(7,631)
10,238
(7,120)
10,591
(7,152)
11,613
(7,882)
12,628
(8,641)
PP&E
Prepaid lease payments
Gross Profit
3,310
3,118
3,439
3,730
3,987
164
(2,313)
(351)
155
(2,139)
(300)
153
(2,235)
(318)
163
(2,421)
(348)
170
(2,589)
(379)
(118)
(156)
(126)
(105)
(87)
693
14
16
679
8
7
913
(12)
15
1,019
(11)
17
1,102
11
20
Profit before tax
Taxation
Minority interests
723
(229)
(86)
694
(209)
(84)
916
(286)
(150)
1,025
(307)
(178)
Reported Net Profit
Core Net Profit *
Basic EPS (US$)
409
433
0.073
400
435
0.072
479
498
0.086
Core EPS (US$)
0.077
0.078
FY14A
Other net income
Distribution costs
Administrative expenses
Other operating expenses
EBIT
Finance income, net
Share of results of associates
FY13A
Turnover
- Instant noodles
- Beverages
- Instant food
- Others
EBIT (Include associates)
- Instant noodles
- Beverages
- Instant food
- Others
Reported Net Profit
- Instant noodles
- Beverages
- Instant food
- Others
FY14A
FY15F
FY16F
FY17F
5,485
319
5,860
737
6,660
369
6,610
387
6,760
406
210
265
260
286
316
6,014
6,863
7,288
7,283
7,482
Inventories
481
387
475
494
548
Trade receivables
260
238
270
286
302
Prepayments and other receivables
Cash and cash equivalents
Others
414
1,250
5
533
1,183
2
483
1,228
2
532
1,289
2
575
1,240
2
1,133
(326)
(214)
Current assets
2,410
2,343
2,458
2,603
2,667
Trade payables
1,252
896
1,063
1,198
1,406
540
550
0.096
593
593
0.106
Other payables
Borrowings
Others
1,192
1,017
165
1,233
1,382
125
1,118
1,325
133
1,251
998
142
1,353
692
150
0.089
0.098
0.106
Current liabilities
3,625
3,636
3,640
3,589
3,600
Borrowings
660
1,247
1,325
998
692
FY15F
FY16F
FY17F
Others
213
227
257
281
301
Non-current liabilities
872
1,474
1,582
1,279
993
Minority interests
Shareholders' equity
1,046
2,880
1,062
3,034
1,213
3,313
1,390
3,629
1,604
3,952
BPS (US$)
0.515
0.541
0.591
0.647
0.705
FY15F
FY16F
FY17F
Segment Results
Year end Dec (US$ m)
Others
FY13A
Non-current assets
10,941
4,332
6,268
203
139
10,238
4,138
5,800
179
121
10,591
3,961
6,334
176
119
11,613
4,216
7,091
185
120
12,628
4,416
7,895
196
120
709
686
928
1,036
1,122
Financial Ratio
437
239
(15)
425
258
(19)
416
507
(16)
464
567
(17)
486
632
(18)
FY13A
FY14A
18.8
(6.4)
3.4
9.6
8.7
48
21
22
22
22
409
337
71
(14)
15
400
360
72
(17)
(14)
479
350
136
(15)
9
540
387
161
(16)
9
593
408
193
(17)
9
20.2
(14.8)
19.1
(5.8)
(2.0)
0.4
10.3
34.6
14.5
8.5
11.5
10.3
6.9
8.1
7.9
Gross Margin (%)
- Instant noodles
- Beverages
30.3
29.2
30.8
30.5
28.3
31.9
32.5
28.5
35.0
32.1
29.0
34.0
31.6
29.0
33.0
EBITDA Margin (%)
10.6
11.2
13.5
13.7
13.6
6.3
6.6
8.6
8.8
8.7
10.1
3.8
3.7
7.8
1.1
4.0
6.2
10.3
4.5
3.9
8.7
1.2
4.3
5.5
10.5
8.0
4.5
8.8
2.2
4.7
6.6
11.0
8.0
4.7
9.2
2.3
4.7
7.3
11.0
8.0
4.7
9.2
2.5
4.7
8.1
Revenue Growth (%)
Gross Profit Growth (%)
EBIT Growth (%)
Core Net Profit Growth (%)
EBIT Margin (%)
Cash Flow Statement
Year end Dec (US$ m)
FY13A
FY14F
FY15F
FY16F
FY17F
Profit before taxation
Depreciation
Others
Working capital change
Interest and tax paid
723
444
7
303
(263)
694
454
(12)
(325)
(279)
916
500
(2)
(13)
(325)
1,025
550
(6)
190
(353)
1,133
600
(30)
203
(360)
- Instant noodles
- Beverages
Net Margin (%)
- Instant noodles
- Beverages
Core Net Margin (%)
ROA (%)
Operating cash flow
1,214
532
1,077
1,406
1,545
ROE (%)
15.1
13.5
15.1
15.6
15.6
Purchase of PP&E
(852)
(940)
(1,300)
(500)
(750)
Inventory turnover days
22.9
22.2
22.0
22.4
22.0
61
(407)
447
33
38
Account receivable days
8.2
8.9
8.8
8.7
8.5
(791)
(1,347)
(853)
(467)
(712)
Account payable days
54.9
55.1
50.0
52.4
55.0
Cash conversion cycle
(23.7)
(23.9)
(19.3)
(21.2)
(24.5)
Change in borrowings, net
186
952
22
(655)
(613)
Dividends paid and others
Others
Investing cash flow
(221)
(204)
(200)
(239)
(270)
Current ratio (x)
0.7
0.6
0.7
0.7
0.7
Financing cash flow
(34)
748
(179)
(894)
(882)
Quick ratio (x)
0.5
0.5
0.5
0.6
0.6
Change in cash and cash equivalents
389
(67)
45
45
(49)
19.5
0
0
15
0
73.2
92.8
Cash balance at year end
1,250
1,183
1,228
Source: the Company, Guotai Junan International.
* Excludes impairment loss and structural consolidation cost.
1,289
1,240
47.7
Net
interest
income
50.0
42.9
23
14.8
Net
interest
income
50.0
50.0
50.0
3.6
Net
interest
income
50.0
Foreign exchange effect
See the last page for disclaimer
Net gearing (%)
Net interest cover (x)
Payout ratio (%)
Page 11 of 12
Tingyi 康师傅 (00322 HK)
FY14A
24 March 2015
Balance Sheet
FY13A
Company Report
Income Statement
Year end Dec (US$ m)
Company Rating Definition
The Benchmark: Hong Kong Hang Seng Index
Rating
Definition
Buy
Relative Performance >15%;
or the fundamental outlook of the company or sector is favorable.
Relative Performance is 5% to 15%;
or the fundamental outlook of the company or sector is favorable.
Accumulate
Neutral
Relative Performance is -5% to 5%;
or the fundamental outlook of the company or sector is neutral.
Reduce
Relative Performance is -5% to -15%;
or the fundamental outlook of the company or sector is unfavorable.
Sell
Relative Performance <-15%;
or the fundamental outlook of the company or sector is unfavorable.
24 March 2015
Time Horizon: 6 to 18 months
Sector Rating Definition
The Benchmark: Hong Kong Hang Seng Index
Time Horizon: 6 to 18 months
Rating
Outperform
Definition
Relative Performance >5%;
or the fundamental outlook of the sector is favorable.
Neutral
Relative Performance is -5% to 5%;
or the fundamental outlook of the sector is neutral.
Underperform
Relative Performance <-5%;
or the fundamental outlook of the sector is unfavorable.
(1)
(2)
(3)
(4)
The Analysts and their associates do not serve as an officer of the issuer mentioned in this Research Report.
The Analysts and their associates do not have any financial interests in relation to the issuer mentioned in this Research Report.
Except for Shandong Chenming Paper Holdings Limited-H shares (01812), China All Access (Holdings) Limited (00633), Guangshen
Railway Company Limited-H shares (00525), Guotai Junan International Holdings Limited (01788) and Binhai Investment Company
Limited (02886), Guotai Junan and its group companies do not hold equal to or more than 1% of the market capitalization of the issuer
mentioned in this Research Report.
Guotai Junan and its group companies have not had investment banking relationships with the issuer mentioned in this Research Report
within the preceding 12 months.
DISCLAIMER
This Research Report does not constitute an invitation or offer to acquire, purchase or subscribe for securities by Guotai Junan Securities
(Hong Kong) Limited ("Guotai Junan"). Guotai Junan and its group companies may do business that relates to companies covered in
research reports, including investment banking, investment services and etc. (for example, the placing agent, lead manager, sponsor,
underwriter or invest proprietarily).
Tingyi 康师傅 (00322 HK)
DISCLOSURE OF INTERESTS
Any opinions expressed in this report may differ or be contrary to opinions or investment strategies expressed orally or in written form by sales
persons, dealers and other professional executives of Guotai Junan group of companies. Any opinions expressed in this report may differ or
be contrary to opinions or investment decisions made by the asset management and investment banking groups of Guotai Junan.
Though best effort has been made to ensure the accuracy of the information and data contained in this Research Report, Guotai Junan does
not guarantee the accuracy and completeness of the information and data herein. This Research Report may contain some forward-looking
estimates and forecasts derived from the assumptions of the future political and economic conditions with inherently unpredictable and
mutable situation, so uncertainty may contain. Investors should understand and comprehend the investment objectives and its related risks,
and where necessary consult their own financial advisers prior to any investment decision.
This Research Report is not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located
in any jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation or which would
subject Guotai Junan and its group companies to any registration or licensing requirement within such jurisdiction.
See the last page for disclaimer
Company Report
© 2015 Guotai Junan Securities (Hong Kong) Limited. All Rights Reserved.
27/F., Low Block, Grand Millennium Plaza, 181 Queen’s Road Central, Hong Kong.
Tel.: (852) 2509-9118
Fax: (852) 2509-7793
Website: www.gtja.com.hk
Page 12 of 12