Eye on Boer Power Holdings Ltd with its long history of healthy growth
13/03/2015 • About Boer Power Holdings Ltd (
$1685) • By InTwits
Boer Power Holdings Ltd is a growth stock in Electrical Compo&Equip industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Boer Power Holdings Ltd showed growth in the last financial year. The company's revenue surged on 51.3% in FY2014. In addition to revenue Boer Power Holdings Ltd also keeps delivering EBITDA growth. It was 55.2% in FY2014
If we look for the longer period Boer Power Holdings Ltd showed fast revenue growth of 26.4% from 2011 to 2014 annualy. EBITDA surged on 27.1% from 2011 to 2014 annualy.
Boer Power Holdings Ltd ($1685) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 911 | 1,015 | 1,221 | 1,354 | 2,048 |
|---|
| Revenue growth, % | | 11.4% | 20.4% | 10.9% | 51.3% |
|---|
| Gross margin, % | 36.5% | 37.1% | 36.8% | 36.0% | 35.3% |
|---|
| SG&A, % | 13.3% | 13.4% | 12.1% | 14.1% | 10.5% |
|---|
| EBITDA | 217 | 285 | 321 | 377 | 585 |
|---|
| EBITDA growth, % | | 31.5% | 12.7% | 17.4% | 55.2% |
|---|
| EBITDA margin, % | 23.8% | 28.1% | 26.3% | 27.8% | 28.5% |
|---|
| Net Income | 180 | 253 | 294 | 345 | 459 |
|---|
| Net Income margin, % | 19.8% | 24.9% | 24.1% | 25.5% | 22.4% |
|---|
| |
| CAPEX | 30 | 131 | 53 | 28 | 20 |
|---|
| CAPEX/Revenue, % | 3.31% | 13.0% | 4.37% | 2.07% | 0.983% |
|---|
| Debt | 0 | 38 | 0 | 430 | 671 |
|---|
| Cash | 268 | 653 | 382 | 852 | 666 |
|---|
| Net Debt/EBITDA | -1.2x | -2.2x | -1.2x | -1.1x | 0.0x |
|---|
| |
| ROIC, % | 25.8% | 18.2% | 18.0% | 17.0% | 21.2% |
|---|
| ROE, % | 23.4% | 17.6% | 18.1% | 18.7% | 22.1% |
|---|
Profitability and return on investment
Margin expansion supported EBITDA growth. The company's EBITDA margin increased slightly on 0.700 pp from 27.8% to 28.5% in 2014. In the longer period Boer Power Holdings Ltd's EBITDA margin increased slightly on 0.400 pp from 28.1% in 2011 to 28.5% in 2014.
Boer Power Holdings Ltd shows attractive ROIC at 21.2% for the last 12 months which assumes stable development model. During the last three years it surged - it was 18.2% in FY2011. It's average level of ROIC for the last three years was 18.7%.
Net Income margin dropped on 3.10 pp from 25.5% to 22.4% in 2014. If we look for the longer period Net Income margin dropped on 2.50 pp from 24.9% in 2011 to 22.4% in 2014.
Boer Power Holdings Ltd operates at ROE of 22.1%. It's average level of ROE for the last three years was 19.6%.
Capital expenditures (CAPEX)
In FY2014 the company had CAPEX/Revenue of 0.983%. The company showed big decline in CAPEX/Revenue of 12.0 pp from 13.0% in 2011 to 0.983% in 2014. Average CAPEX/Revenue for the last three years was 2.47%.
Leverage (Debt)
Having such a fast growth profile Boer Power Holdings Ltd keeps low debt level at 0.0x Net Debt/EBITDA. In the last 3 years the company showed fast leverage growth of 2.17x from -2.16x in 2011 to 0.01x in 2014.
Peers in Electrical Compo&Equip
Below you can find Boer Power Holdings Ltd benchmarking vs. other companies in Electrical Compo&Equip 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| FDG Electric Vehicles Ltd ($729) | | 2,481.8% | -23.1% | -7.0% | 54.0% |
| CEC International Holdings Ltd ($759) | | 19.5% | 23.9% | 60.8% | 43.0% |
| Solartech International Hldgs Ltd ($1166) | | -6.5% | -13.4% | -1.8% | 33.7% |
| United Pacific Industries Ltd ($176) | | 11.5% | 15.0% | -84.6% | 26.5% |
| Hengxin Technology Ltd ($1085) | | 20.0% | -20.1% | 9.2% | 19.2% |
| |
|---|
| Median (8 companies) | | 19.5% | -13.4% | -2.8% | 22.8% |
|---|
| Boer Power Holdings Ltd ($1685) | | 11.4% | 20.4% | 10.9% | 51.3% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| CEC International Holdings Ltd ($759) | 19.9% | 18.5% | 23.6% | 27.9% | 29.9% |
| Johnson Electric Holdings Ltd ($179) | 27.7% | 27.5% | 27.3% | 28.0% | 29.5% |
| Hengxin Technology Ltd ($1085) | 18.7% | 18.5% | 18.4% | 19.6% | 17.7% |
| United Pacific Industries Ltd ($176) | 29.5% | 29.0% | 29.8% | 13.8% | 14.5% |
| Trony Solar Holdings Co Ltd ($2468) | 42.4% | 42.7% | 19.6% | 0.3% | 7.3% |
| |
|---|
| Median (8 companies) | 19.3% | 23.0% | 19.0% | 13.0% | 10.9% |
|---|
| Boer Power Holdings Ltd ($1685) | 36.5% | 37.1% | 36.8% | 36.0% | 35.3% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Johnson Electric Holdings Ltd ($179) | 11.6% | 14.9% | 14.2% | 14.5% | 15.5% |
| Hengxin Technology Ltd ($1085) | 12.3% | 11.6% | 9.8% | 10.4% | 9.5% |
| FDG Electric Vehicles Ltd ($729) | -421.4% | 393.7% | 68.3% | 3.3% | 6.4% |
| CEC International Holdings Ltd ($759) | 16.8% | 11.1% | 7.8% | 4.5% | 5.6% |
| United Pacific Industries Ltd ($176) | 7.2% | 6.0% | 6.7% | 8.1% | 2.2% |
| |
|---|
| Median (9 companies) | 7.2% | 11.1% | 6.7% | 3.9% | 2.2% |
|---|
| Boer Power Holdings Ltd ($1685) | 23.8% | 28.1% | 26.3% | 27.8% | 28.5% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Applied Development Holdings Ltd ($519) | 56.3% | 46.4% | 79.7% | | 1,285.3% |
| FDG Electric Vehicles Ltd ($729) | 1.1% | 177.5% | 374.3% | 82.3% | 71.1% |
| Solartech International Hldgs Ltd ($1166) | 3.3% | 1.7% | 13.8% | 2.6% | 4.4% |
| Johnson Electric Holdings Ltd ($179) | 2.2% | 4.1% | 4.3% | 4.0% | 4.4% |
| CEC International Holdings Ltd ($759) | 2.4% | 10.6% | 8.8% | 10.1% | 4.3% |
| |
|---|
| Median (9 companies) | 2.2% | 4.1% | 6.4% | 7.1% | 4.3% |
|---|
| Boer Power Holdings Ltd ($1685) | 3.3% | 13.0% | 4.4% | 2.1% | 1.0% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Johnson Electric Holdings Ltd ($179) | 7.1% | 13.1% | 11.7% | 11.6% | 12.7% |
| Hengxin Technology Ltd ($1085) | 14.6% | 13.9% | 8.1% | 9.3% | 9.0% |
| CEC International Holdings Ltd ($759) | 3.6% | 3.3% | 2.7% | 0.9% | 4.3% |
| United Pacific Industries Ltd ($176) | 13.5% | 11.7% | 16.7% | -0.5% | -1.1% |
| Solartech International Hldgs Ltd ($1166) | -4.3% | -3.9% | -4.7% | -4.3% | -4.2% |
| |
|---|
| Median (9 companies) | 3.6% | 3.3% | -0.5% | -2.4% | -4.2% |
|---|
| Boer Power Holdings Ltd ($1685) | 25.8% | 18.2% | 18.0% | 17.0% | 21.2% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| CEC International Holdings Ltd ($759) | 1.7x | 2.5x | 3.9x | 6.1x | 4.1x |
| Johnson Electric Holdings Ltd ($179) | 0.2x | -0.1x | -0.6x | -1.2x | -1.6x |
| Hengxin Technology Ltd ($1085) | -1.4x | -0.6x | -2.0x | -1.5x | -1.9x |
| United Pacific Industries Ltd ($176) | 0.2x | -0.4x | -0.8x | -6.2x | -32.6x |
| FDG Electric Vehicles Ltd ($729) | | -0.5x | -2.5x | -18.6x | -132.0x |
| |
|---|
| Median (5 companies) | 0.2x | -0.5x | -0.8x | -1.5x | -1.9x |
|---|
| Boer Power Holdings Ltd ($1685) | -1.2x | -2.2x | -1.2x | -1.1x | 0.0x |
