Le Saunda Holdings Ltd is an attractive growth stock
02/06/2014 • About Le Saunda Holdings Ltd (
$738) • By InTwits
Le Saunda Holdings Ltd is an attractive growth stock in Retail industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Le Saunda Holdings Ltd showed fast growth in the last financial year. The company's revenue surged on 15.7% in FY2014. The growth also happened in EBITDA of 22.9% for the same period.
In the last 3 years the company showed fast revenue growth of 15.6% from FY2011 to FY2014 annualy. EBITDA surged on 9.29% from FY2011 to FY2014 annualy.
Le Saunda Holdings Ltd ($738) financials for the last 5 years
| mln. HKD | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Revenue | 1,000 | 1,320 | 1,545 | 1,762 | 2,039 |
|---|
| Revenue growth, % | | 32.0% | 17.1% | 14.1% | 15.7% |
|---|
| Gross margin, % | 60.6% | 62.9% | 64.4% | 64.7% | 67.1% |
|---|
| SG&A, % | | | | 10.8% | 11.7% |
|---|
| EBITDA | 172 | 244 | 263 | 259 | 318 |
|---|
| EBITDA growth, % | | 41.8% | 7.9% | -1.6% | 22.9% |
|---|
| EBITDA margin, % | 17.2% | 18.5% | 17.0% | 14.7% | 15.6% |
|---|
| Net Income | 123 | 169 | 194 | 179 | 287 |
|---|
| Net Income margin, % | 12.3% | 12.8% | 12.6% | 10.2% | 14.1% |
|---|
| |
| CAPEX | 44 | 49 | 49 | 49 | 49 |
|---|
| CAPEX/Revenue, % | 4.41% | 3.70% | 3.20% | 2.77% | 2.38% |
|---|
| Debt | 0 | 4 | 0 | 0 | 0 |
|---|
| Cash | 278 | 345 | 421 | 427 | 621 |
|---|
| Net Debt/EBITDA | -1.6x | -1.4x | -1.6x | -1.6x | -2.0x |
|---|
| |
| ROIC, % | 16.6% | 20.5% | 19.1% | 16.5% | 18.5% |
|---|
| ROE, % | 14.1% | 17.2% | 17.4% | 14.5% | 20.6% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. The company's EBITDA margin increased on 0.900 pp from 14.7% to 15.6% in FY2014. If we look for the longer period Le Saunda Holdings Ltd's EBITDA margin dropped on 2.90 pp from 18.5% in FY2011 to 15.6% in FY2014.
Le Saunda Holdings Ltd shows attractive ROIC at 18.5% for the last 12 months which assumes stable development model. Three years ago it was a bit higher at 20.5%. For the last three years the average ROIC was 18.0%.
Net Income margin surged on 3.90 pp from 10.2% to 14.1% in FY2014. In the last 3 years Net Income margin surged on 1.30 pp from 12.8% in FY2011 to 14.1% in FY2014.
Le Saunda Holdings Ltd operates at ROE of 20.6%. It's average level of ROE for the last three years was 17.5%.
Capital expenditures (CAPEX)
Le Saunda Holdings Ltd's CAPEX/Revenue was 2.38% in FY2014. The company's CAPEX/Revenue dropped on 1.31 pp from 3.70% in FY2011 to 2.38% in FY2014. Average CAPEX/Revenue for the last three years was 2.79%.
Leverage (Debt)
Le Saunda Holdings Ltd has negative net debt at -2.0x Net Debt/EBITDA - at the same time with high growth. In the longer period the company showed fast leverage growth of 0.55x from -1.40x in FY2011 to -1.95x in FY2014.
Peers in Retail
Below we provide Le Saunda Holdings Ltd benchmarking against other companies in Retail 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Man Wah Holdings Ltd ($1999) | | 29.9% | 13.9% | 12.5% | 22.8% |
| IT Ltd ($999) | | 28.0% | 49.7% | 14.0% | 3.1% |
| |
|---|
| Median (2 companies) | | 28.9% | 31.8% | 13.2% | 13.0% |
|---|
| Le Saunda Holdings Ltd ($738) | | 32.0% | 17.1% | 14.1% | 15.7% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| IT Ltd ($999) | 60.7% | 63.3% | 61.7% | 58.8% | 59.9% |
| Man Wah Holdings Ltd ($1999) | 42.9% | 42.5% | 34.0% | 36.3% | 35.6% |
| |
|---|
| Median (2 companies) | 51.8% | 52.9% | 47.8% | 47.6% | 47.8% |
|---|
| Le Saunda Holdings Ltd ($738) | 60.6% | 62.9% | 64.4% | 64.7% | 67.1% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Man Wah Holdings Ltd ($1999) | 24.5% | 17.8% | 9.6% | 15.6% | 22.2% |
| IT Ltd ($999) | 14.4% | 15.2% | 13.7% | 11.0% | 10.3% |
| |
|---|
| Median (2 companies) | 19.4% | 16.5% | 11.6% | 13.3% | 16.3% |
|---|
| Le Saunda Holdings Ltd ($738) | 17.2% | 18.5% | 17.0% | 14.7% | 15.6% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Man Wah Holdings Ltd ($1999) | 4.9% | 10.6% | 19.0% | 8.2% | 6.2% |
| IT Ltd ($999) | 4.5% | 12.7% | 6.7% | 4.8% | 3.8% |
| |
|---|
| Median (2 companies) | 4.7% | 11.6% | 12.9% | 6.5% | 5.0% |
|---|
| Le Saunda Holdings Ltd ($738) | 4.4% | 3.7% | 3.2% | 2.8% | 2.4% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Man Wah Holdings Ltd ($1999) | 59.1% | 27.9% | 9.4% | 15.6% | 24.6% |
| IT Ltd ($999) | 20.9% | 22.3% | 20.3% | 14.2% | 10.1% |
| |
|---|
| Median (2 companies) | 40.0% | 25.1% | 14.9% | 14.9% | 17.4% |
|---|
| Le Saunda Holdings Ltd ($738) | 16.6% | 20.5% | 19.1% | 16.5% | 18.5% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| IT Ltd ($999) | -1.3x | -0.3x | 0.1x | 0.1x | -0.5x |
| Man Wah Holdings Ltd ($1999) | -0.3x | -2.4x | -1.5x | -1.2x | -1.2x |
| |
|---|
| Median (2 companies) | -0.8x | -1.3x | -0.7x | -0.5x | -0.8x |
|---|
| Le Saunda Holdings Ltd ($738) | -1.6x | -1.4x | -1.6x | -1.6x | -2.0x |
