Looking for a growth stock? Pay attention to Shenzhou International Group Holdings Ltd
03/04/2017 • About Shenzhou International Group Holdings Ltd (
$2313) • By InTwits
Pay attention to Shenzhou International Group 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
Shenzhou International Group Holdings Ltd showed fast growth in the last financial year. The company's revenue surged on 19.5% in FY2016. EBITDA also increased considerably: 30.3% for the same period.
If we look for the longer period the company showed fast revenue growth of 14.5% from FY2013 to FY2016 annualy. EBITDA surged on 18.7% from FY2013 to FY2016 annualy.
Shenzhou International Group Holdings Ltd ($2313) financials for the last 5 years
| mln. CNY | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Revenue | 8,938 | 10,047 | 11,132 | 12,639 | 15,099 |
|---|
| Revenue growth, % | | 12.4% | 10.8% | 13.5% | 19.5% |
|---|
| Gross margin, % | 28.5% | 28.3% | 29.0% | 30.5% | 32.5% |
|---|
| SG&A, % | 8.32% | 8.57% | 9.35% | 9.63% | 9.65% |
|---|
| EBITDA | 2,356 | 2,632 | 2,910 | 3,374 | 4,397 |
|---|
| EBITDA growth, % | | 11.7% | 10.6% | 15.9% | 30.3% |
|---|
| EBITDA margin, % | 26.4% | 26.2% | 26.1% | 26.7% | 29.1% |
|---|
| Net Income | 1,620 | 1,803 | 2,066 | 2,355 | 2,948 |
|---|
| Net Income margin, % | 18.1% | 17.9% | 18.6% | 18.6% | 19.5% |
|---|
| |
| CAPEX | 650 | 792 | 1,132 | 2,038 | 0 |
|---|
| CAPEX/Revenue, % | 7.27% | 7.88% | 10.2% | 16.1% | 0% |
|---|
| Debt | 786 | 0 | 2,911 | 3,774 | 4,652 |
|---|
| Cash | 2,144 | 2,609 | 1,428 | 1,816 | 2,105 |
|---|
| Net Debt/EBITDA | -0.6x | -1.0x | 0.5x | 0.6x | 0.6x |
|---|
| |
| ROIC, % | 24.0% | 22.9% | 19.6% | 17.9% | 20.0% |
|---|
| ROE, % | 22.9% | 19.6% | 18.7% | 18.9% | 20.9% |
|---|
Profitability and return on investment
Margin expansion supported EBITDA growth. The company's EBITDA margin increased on 2.40 pp from 26.7% to 29.1% in FY2016. In the last 3 years EBITDA margin surged on 2.90 pp from 26.2% in FY2013 to 29.1% in FY2016.
Shenzhou International Group Holdings Ltd shows attractive ROIC at 20.0% for the last 12 months which assumes stable development model. During the last three years it dropped - it was 22.9% in FY2013. Average ROIC for the last three years was 19.1%.
Shenzhou International Group Holdings Ltd's Net Income margin increased slightly on 0.900 pp from 18.6% to 19.5% in FY2016. In the last 3 years Shenzhou International Group Holdings Ltd showed Net Income margin growth of 1.60 pp from 17.9% in FY2013 to 19.5% in FY2016.
Shenzhou International Group Holdings Ltd operates at ROE of 20.9%. It's average ROE for the last three years was 19.5%.
Capital expenditures (CAPEX)
In FY2016 the company had CAPEX/Revenue of 0%. Shenzhou International Group Holdings Ltd showed big decline in CAPEX/Revenue of 7.88 pp from 7.88% in FY2013 to 0% in FY2016.
Leverage (Debt)
Having such a fast growth profile the company keeps low debt level at 0.6x Net Debt/EBITDA. If we look for the longer period Shenzhou International Group Holdings Ltd showed fast leverage growth of 1.57x from -0.99x in FY2013 to 0.58x in FY2016.
Peers in Apparel
Below we provide Shenzhou International Group Holdings Ltd benchmarking against other companies in Apparel 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 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | | 46.8% | 20.4% | 33.1% | 3.6% |
| Highlight China IoT International Ltd ($1682) | | 17.7% | -73.7% | 29.6% | -55.0% |
| Koradior Holdings Ltd ($3709) | | 44.7% | 47.7% | 23.9% | 24.5% |
| Kingmaker Footwear Holdings Ltd ($1170) | | 9.3% | 6.3% | 23.7% | -1.5% |
| Cosmo Lady China Holdings Co Ltd ($2298) | | 29.2% | 37.4% | 23.6% | -8.9% |
| |
|---|
| Median (52 companies) | 12.3% | 5.4% | 5.4% | -2.6% | -6.3% |
|---|
| Shenzhou International Group Holdings Ltd ($2313) | | 12.4% | 10.8% | 13.5% | 19.5% |
Top companies by Gross margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 38.5% | 42.3% | 59.6% | 75.6% | |
| Koradior Holdings Ltd ($3709) | 62.8% | 69.3% | 73.3% | 73.7% | |
| Prada SpA ($1913) | 71.5% | 72.1% | 73.8% | 71.8% | 72.4% |
| China Outfitters Holdings Ltd ($1146) | 74.9% | 74.3% | 70.0% | 65.7% | |
| Crocodile Garments ($122) | 64.7% | 60.7% | 60.4% | 62.1% | 59.7% |
| |
|---|
| Median (51 companies) | 24.8% | 23.5% | 24.9% | 25.0% | 18.7% |
|---|
| Shenzhou International Group Holdings Ltd ($2313) | 28.5% | 28.3% | 29.0% | 30.5% | 32.5% |
Top companies by EBITDA margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| China Lilang Ltd ($1234) | 26.3% | 26.9% | 29.4% | 30.6% | 28.6% |
| Cabbeen Fashion Ltd ($2030) | 25.0% | 29.7% | 28.4% | 29.0% | 22.9% |
| Fuguiniao Co Ltd ($1819) | 24.5% | 26.1% | 26.7% | 27.9% | |
| Prada SpA ($1913) | 29.6% | 31.7% | 31.7% | 26.8% | 22.4% |
| HOSA International Ltd ($2200) | 44.4% | 42.2% | 37.6% | 26.7% | |
| |
|---|
| Median (52 companies) | 10.5% | 10.2% | 7.2% | 6.6% | 3.3% |
|---|
| Shenzhou International Group Holdings Ltd ($2313) | 26.4% | 26.2% | 26.1% | 26.7% | 29.1% |
Top companies by CAPEX/Revenue, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 136.9% | 70.3% | 13.5% | 28.5% | |
| Crocodile Garments ($122) | 20.1% | 22.1% | 1.8% | 13.5% | 1.8% |
| Texhong Textile Group Ltd ($2678) | 8.9% | 11.8% | 5.8% | 10.5% | |
| Prada SpA ($1913) | 9.7% | 10.6% | 15.3% | 10.2% | 11.1% |
| Citychamp Watch & Jewellery Group Ltd ($256) | 6.5% | 5.6% | 3.6% | 8.6% | |
| |
|---|
| Median (51 companies) | 2.2% | 3.0% | 2.3% | 2.3% | 2.1% |
|---|
| Shenzhou International Group Holdings Ltd ($2313) | 7.3% | 7.9% | 10.2% | 16.1% | |
Top companies by ROIC, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Koradior Holdings Ltd ($3709) | 45.2% | 69.5% | 36.5% | 31.0% | |
| Cosmo Lady China Holdings Co Ltd ($2298) | 41.7% | 56.0% | 38.6% | 27.8% | |
| Cabbeen Fashion Ltd ($2030) | 32.3% | 32.9% | 26.5% | 27.0% | 16.1% |
| Sitoy Group Holdings Ltd ($1023) | 39.3% | 28.7% | 31.8% | 22.0% | 16.4% |
| Prada SpA ($1913) | 32.1% | 37.4% | 34.0% | 21.9% | 14.0% |
| |
|---|
| Median (52 companies) | 10.5% | 7.2% | 4.4% | 4.9% | 1.1% |
|---|
| Shenzhou International Group Holdings Ltd ($2313) | 24.0% | 22.9% | 19.6% | 17.9% | 20.0% |
Top companies by Net Debt / EBITDA
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| S Culture International Holdings Ltd ($1255) | 1.4x | 0.7x | 2.4x | 158.1x | |
| High Fashion International Ltd ($608) | 16.7x | 27.7x | 11.2x | 5.2x | |
| Global Brands Group Holding Ltd ($787) | -0.4x | -0.3x | 1.3x | 2.1x | |
| Fuguiniao Co Ltd ($1819) | -0.0x | -0.7x | 0.3x | 1.9x | |
| Texhong Textile Group Ltd ($2678) | 1.4x | 1.3x | 2.3x | 1.4x | 1.7x |
| |
|---|
| Median (38 companies) | -0.2x | -0.6x | -0.4x | -1.2x | -1.1x |
|---|
| Shenzhou International Group Holdings Ltd ($2313) | -0.6x | -1.0x | 0.5x | 0.6x | 0.6x |
