Trending stocks
$700  
$992  
$941  
$13  
$763  

Looking for growth stocks? Pay attention to China State Construction International Holdings Ltd

28/03/2017 • About China State Construction International Holdings Ltd ($3311) • By InTwits

Have you thought about China State Construction International Holdings Ltd as a growth stock? Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.

Growth story


China State Construction International Holdings Ltd showed fast growth in the last financial year. China State Construction International Holdings Ltd's revenue surged on 21.9% in FY2016. The growth also happened in EBITDA of 31.1% for the same period.

If we look for the longer period the company showed fast revenue growth of 19.2% from FY2013 to FY2016 annualy. EBITDA surged on 26.7% from FY2013 to FY2016 annualy.

China State Construction International Holdings Ltd ($3311) financials for the last 5 years

mln. HKD FY2012 FY2013 FY2014 FY2015 FY2016
Revenue21,91127,28634,44037,91346,208
Revenue growth, %24.5%26.2%10.1%21.9%
Gross margin, %12.4%13.7%13.8%13.3%12.9%
SG&A, %3.21%3.52%
EBITDA2,3743,2294,3375,0106,567
EBITDA growth, %36.0%34.3%15.5%31.1%
EBITDA margin, %10.8%11.8%12.6%13.2%14.2%
Net Income2,1312,7503,4574,1535,130
Net Income margin, % 9.73%10.1%10.0%11.0%11.1%
 
CAPEX4033815144470
CAPEX/Revenue, %1.84%1.40%1.49%1.18%0%
Debt10,05112,72814,82317,77721,196
Cash6,8768,1267,4528,01511,485
Net Debt/EBITDA1.3x1.4x1.7x1.9x1.5x
 
ROIC, %10.2%10.7%12.2%12.1%13.2%
ROE, %18.5%18.7%19.3%20.3%22.0%

Profitability and return on investment


EBITDA growth was supported by margin expansion. EBITDA margin increased on 1 pp from 13.2% to 14.2% in FY2016. In the last 3 years China State Construction International Holdings Ltd showed fast EBITDA margin growth of 2.40 pp from 11.8% in FY2013 to 14.2% in FY2016.

We call China State Construction International Holdings Ltd an attractive growth stock as together with the growth it delivers high ROIC at 13.2%. During the last three years it surged - it was 10.7% in FY2013. Average ROIC for the last three years was 12.5%.

Net Income margin increased slightly on 0.100 pp from 11% to 11.1% in FY2016. In the last 3 years the company showed Net Income margin growth of 1 pp from 10.1% in FY2013 to 11.1% in FY2016.

China State Construction International Holdings Ltd operates at ROE of 22.0%. Average ROE for the last three years was 20.5%.

Capital expenditures (CAPEX)


China State Construction International Holdings Ltd's CAPEX/Revenue was 0% in FY2016. China State Construction International Holdings Ltd showed big decline in CAPEX/Revenue of 1.40 pp from 1.40% in FY2013 to 0% in FY2016.

Leverage (Debt)


Having such a fast growth profile the company keeps medium debt level at 1.5x Net Debt/EBITDA. In the longer period leverage increased slightly on 0.05x from 1.43x in FY2013 to 1.48x in FY2016.

Management team


China State Construction International Holdings Ltd is run by Zhou Yong as a CEO.

Peers in Engineering&Construction


Below we provide China State Construction International Holdings Ltd benchmarking against other companies in Engineering&Construction 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, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
CNQC International Holdings Ltd ($1240)21.6%91.0%103.7%807.4%
China National Culture Group Ltd ($745)-76.8%-55.8%592.3%86.7%
Vision Fame International Holding Ltd ($1315)45.9%-10.5%105.6%40.9%
Sino Credit Holdings Ltd ($628)97.4%-40.3%
Grand Ming Group Holdings Ltd ($1271)-26.9%-37.4%74.8%14.3%
 
Median (48 companies)5.3%21.8%16.8%10.0%6.1%
China State Construction International Holdings Ltd ($3311)24.5%26.2%10.1%21.9%


Top companies by Gross margin, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
HNA Infrastructure Company Ltd ($357)66.4%62.1%62.4%61.1%
Huayu Expressway Group Ltd ($1823)43.6%65.6%64.0%58.9%
Broad Greenstate International Co Ltd ($1253)20.1%28.7%35.8%36.7%37.4%
Sam Woo Construction Group Ltd ($3822)33.2%27.3%33.6%36.0%19.8%
China National Culture Group Ltd ($745)0.9%12.1%10.3%32.3%19.2%
 
Median (43 companies)13.5%15.3%15.3%15.1%12.2%
China State Construction International Holdings Ltd ($3311)12.4%13.7%13.8%13.3%12.9%


Top companies by EBITDA margin, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Huayu Expressway Group Ltd ($1823)46.2%73.8%77.1%76.2%
HNA Infrastructure Company Ltd ($357)62.8%63.7%62.8%61.7%
Cheung Kong Infrastructure Holdings Ltd ($1038)31.2%20.6%36.2%60.9%38.4%
Beijing Capital International Airport Co Ltd ($694)53.4%52.9%50.3%51.6%50.9%
China National Culture Group Ltd ($745)-30.4%-72.7%-279.2%45.3%-14.6%
 
Median (48 companies)9.5%9.5%8.6%7.8%5.1%
China State Construction International Holdings Ltd ($3311)10.8%11.8%12.6%13.2%14.2%


Top companies by CAPEX/Revenue, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
HNA Infrastructure Company Ltd ($357)36.8%5.7%85.4%155.4%
Grand Ming Group Holdings Ltd ($1271)0.0%16.1%8.7%33.8%14.0%
Beijing Capital International Airport Co Ltd ($694)3.5%6.6%7.2%28.2%
NEW Concepts Holdings Ltd ($2221)1.7%1.2%3.1%20.5%0.3%
Louis XIII Holdings Ltd ($577)1.2%29.5%9.3%16.1%47.3%
 
Median (48 companies)2.3%2.5%1.8%2.1%2.4%
China State Construction International Holdings Ltd ($3311)1.8%1.4%1.5%1.2%


Top companies by ROIC, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
In Construction Holdings Ltd ($1500)52.8%37.0%49.4%40.4%
Chun Sing Engineering Holdings Ltd ($2277)98.3%54.9%43.7%21.6%
NEW Concepts Holdings Ltd ($2221)51.0%78.8%39.0%23.3%
Sam Woo Construction Group Ltd ($3822)28.2%28.7%33.5%18.3%
Ngai Shun Holdings Ltd ($1246)68.8%77.2%45.2%31.0%-2.9%
 
Median (50 companies)6.4%6.1%5.5%5.6%2.0%
China State Construction International Holdings Ltd ($3311)10.2%10.7%12.2%12.1%13.2%


Top companies by Net Debt / EBITDA

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Deson Development International Holdings ($262)3.8x4.9x13.7x47.0x
Hsin Chong Construction Group Ltd ($404)1.8x8.0x10.2x41.7x
China Resources and Transportation Group Ltd ($269)66.7x29.7x
CNC Holdings Ltd ($8356)22.0x21.9x24.3x2.7x
Louis XIII Holdings Ltd ($577)0.8x-12.5x-23.2x19.1x
 
Median (42 companies)1.0x0.5x0.9x2.2x0.6x
China State Construction International Holdings Ltd ($3311)1.3x1.4x1.7x1.9x1.5x