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Minth Group Ltd is a growth stock to keep your eyes on

28/03/2017 • About Minth Group Ltd ($425) • By InTwits

Have you thought about Minth Group 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


Minth Group Ltd showed fast growth in the last financial year. The company's revenue surged on 22.8% in FY2016. In addition to revenue Minth Group Ltd also keeps delivering EBITDA growth. It was 31.8% in FY2016

In the longer period Minth Group Ltd showed fast revenue growth of 19.5% from FY2013 to FY2016 annualy. EBITDA surged on 22.7% from FY2013 to FY2016 annualy.

Minth Group Ltd ($425) financials for the last 5 years

mln. CNY FY2012 FY2013 FY2014 FY2015 FY2016
Revenue4,3305,5106,6847,6549,400
Revenue growth, %27.3%21.3%14.5%22.8%
Gross margin, %33.1%33.0%31.2%31.7%34.6%
SG&A, %11.0%11.5%11.5%10.7%11.0%
EBITDA1,1071,3361,5431,8742,469
EBITDA growth, %20.7%15.5%21.5%31.8%
EBITDA margin, %25.6%24.2%23.1%24.5%26.3%
Net Income8419711,1181,2721,719
Net Income margin, % 19.4%17.6%16.7%16.6%18.3%
 
CAPEX6428861,2491,1800
CAPEX/Revenue, %14.8%16.1%18.7%15.4%0%
Debt1,4582,4102,7081,9581,446
Cash4,1304,1193,5942,7672,940
Net Debt/EBITDA-2.4x-1.3x-0.6x-0.4x-0.6x
 
ROIC, %11.9%12.1%11.8%13.4%17.1%
ROE, %13.1%13.7%14.2%14.5%17.4%

Profitability and return on investment


EBITDA growth was partly attributed to margin expansion. EBITDA margin increased on 1.80 pp from 24.5% to 26.3% in FY2016. In the longer period Minth Group Ltd showed EBITDA margin growth of 2.10 pp from 24.2% in FY2013 to 26.3% in FY2016.

Minth Group Ltd shows attractive ROIC at 17.1% for the last 12 months which assumes stable development model. Three years ago it was lower at 12.1%. Average ROIC for the last three years was 14.1%.

The company showed fast Net Income margin growth of 1.70 pp from 16.6% to 18.3% in FY2016. If we look for the longer period Net Income margin increased slightly on 0.700 pp from 17.6% in FY2013 to 18.3% in FY2016.

Minth Group Ltd operates at ROE of 17.4%. For the last three years the average ROE was 15.4%.

Capital expenditures (CAPEX)


In FY2016 the company had CAPEX/Revenue of 0%. CAPEX/Revenue dropped on 16.1 pp from 16.1% in FY2013 to 0% in FY2016.

Leverage (Debt)


The company has negative net debt at -0.6x Net Debt/EBITDA - at the same time with high growth. In the longer period Minth Group Ltd's leverage surged on 0.67x from -1.28x in FY2013 to -0.60x in FY2016.

Management team


Shi Jian Hui runs Minth Group Ltd as a CEO and Bao Jian Ya is a CFO.

Peers in Auto Parts&Equipment


Below you can find Minth Group Ltd benchmarking vs. other companies in Auto Parts&Equipment industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.

Top companies by Revenue growth, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
China Vehicle Components Technology Holdings Ltd ($1269)-10.4%27.1%31.0%30.9%
Xinchen China Power Holdings Ltd ($1148)11.5%0.5%2.6%23.3%
Nexteer Automotive Group Ltd ($1316)10.1%24.8%12.8%14.3%
Xinyi Glass Holdings Ltd ($868)17.8%9.3%5.5%12.1%
Jinheng Automotive Safety Technology Holdings Ltd ($872)-10.2%-23.5%-7.5%5.3%
 
Median (16 companies)-10.3%10.7%2.6%-2.9%12.1%
Minth Group Ltd ($425)27.3%21.3%14.5%22.8%


Top companies by Gross margin, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Fuyao Glass Industry Group Co Ltd ($3606)37.4%41.0%41.5%41.5%42.0%
Xinyi Glass Holdings Ltd ($868)26.4%31.6%25.2%27.3%36.3%
Zhejiang Shibao Co Ltd ($1057)30.3%26.0%26.4%25.5%
Huazhong In-Vehicle Holdings Co Ltd ($6830)20.9%23.6%24.0%24.2%
Weichai Power Co Ltd ($2338)19.2%20.2%21.1%22.8%
 
Median (17 companies)20.1%20.0%21.2%19.1%36.3%
Minth Group Ltd ($425)33.1%33.0%31.2%31.7%34.6%


Top companies by EBITDA margin, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Fuyao Glass Industry Group Co Ltd ($3606)28.5%28.7%29.2%27.7%28.6%
Xinyi Glass Holdings Ltd ($868)22.5%43.8%20.0%25.0%31.4%
Xiezhong International Holdings Ltd ($3663)20.7%17.2%16.0%18.6%
Nexteer Automotive Group Ltd ($1316)6.7%10.4%12.0%13.7%14.8%
Zhejiang Shibao Co Ltd ($1057)19.8%14.0%14.5%13.5%
 
Median (17 companies)9.3%11.4%11.5%11.3%28.6%
Minth Group Ltd ($425)25.6%24.2%23.1%24.5%26.3%


Top companies by CAPEX/Revenue, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Hybrid Kinetic Group Ltd ($1188)8.5%176.2%
Changfeng Axle China Co Ltd ($1039)14.4%4.1%1.1%38.3%
Fuyao Glass Industry Group Co Ltd ($3606)14.6%16.5%21.1%23.9%21.3%
Xiezhong International Holdings Ltd ($3663)22.9%24.9%12.0%19.4%
Xinyi Glass Holdings Ltd ($868)17.0%28.9%15.8%16.7%
 
Median (17 companies)8.5%6.2%5.4%7.4%12.8%
Minth Group Ltd ($425)14.8%16.1%18.7%15.4%


Top companies by ROIC, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Nexteer Automotive Group Ltd ($1316)14.0%18.2%17.7%21.2%24.9%
Fuyao Glass Industry Group Co Ltd ($3606)19.0%21.1%22.3%15.7%15.0%
Xinyi Glass Holdings Ltd ($868)9.3%22.6%8.3%10.8%15.5%
Huazhong In-Vehicle Holdings Co Ltd ($6830)2.4%9.2%12.5%10.3%
Xinchen China Power Holdings Ltd ($1148)22.4%14.7%12.5%8.6%
 
Median (17 companies)6.3%8.5%5.8%2.8%15.5%
Minth Group Ltd ($425)11.9%12.1%11.8%13.4%17.1%


Top companies by Net Debt / EBITDA

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Huazhong In-Vehicle Holdings Co Ltd ($6830)7.9x2.8x2.2x2.9x
Xiezhong International Holdings Ltd ($3663)0.6x1.2x1.2x2.2x
China Vehicle Components Technology Holdings Ltd ($1269)9.4x5.8x5.3x2.0x
Xinchen China Power Holdings Ltd ($1148)-0.1x-2.3x0.6x1.9x
Xinyi Glass Holdings Ltd ($868)1.9x0.9x2.4x1.7x1.2x
 
Median (11 companies)0.9x1.1x1.1x0.6x0.1x
Minth Group Ltd ($425)-2.4x-1.3x-0.6x-0.4x-0.6x