Boyaa Interactive International Ltd demonstrated fast growth in recent years. Will the growth continue?
18/03/2015 • About Boyaa Interactive International Ltd (
$434) • By InTwits
Pay attention to Boyaa Interactive International 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
Boyaa Interactive International Ltd showed growth in the last financial year. Boyaa Interactive International Ltd's revenue surged on 38.8% in FY2014. EBITDA also increased considerably: 65.2% for the same period.
If we look for the longer period the company showed fast revenue growth of 43.8% from 2011 to 2014 annualy. EBITDA surged on 32.9% from 2011 to 2014 annualy.
Boyaa Interactive International Ltd ($434) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 156 | 318 | 518 | 681 | 945 |
|---|
| Revenue growth, % | | 103.6% | 62.9% | 31.6% | 38.8% |
|---|
| Gross margin, % | 56.1% | 57.5% | 60.6% | 61.1% | 60.1% |
|---|
| SG&A, % | 8.40% | 20.4% | 24.6% | 37.6% | 27.6% |
|---|
| EBITDA | 75 | 124 | 199 | 176 | 290 |
|---|
| EBITDA growth, % | | 65.6% | 61.3% | -11.9% | 65.2% |
|---|
| EBITDA margin, % | 47.8% | 38.9% | 38.5% | 25.8% | 30.7% |
|---|
| Net Income | 73 | 88 | 143 | 136 | 280 |
|---|
| Net Income margin, % | 46.8% | 27.7% | 27.6% | 19.9% | 29.6% |
|---|
| |
| CAPEX | 1 | 5 | 4 | 7 | 10 |
|---|
| CAPEX/Revenue, % | 0.689% | 1.51% | 0.858% | 1.03% | 1.02% |
|---|
| Debt | 0 | 0 | 0 | 0 | 0 |
|---|
| Cash | 39 | 112 | 275 | 966 | 1,029 |
|---|
| Net Debt/EBITDA | -0.5x | -0.9x | -1.4x | -5.5x | -3.5x |
|---|
| |
| ROIC, % | | 100.4% | 75.3% | 21.3% | 20.0% |
|---|
| ROE, % | | 80.8% | 62.6% | 17.9% | 20.8% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. Boyaa Interactive International Ltd's EBITDA margin surged on 4.90 pp from 25.8% to 30.7% in 2014. If we look for the longer period EBITDA margin dropped on 8.20 pp from 38.9% in 2011 to 30.7% in 2014.
We call Boyaa Interactive International Ltd an attractive growth stock as together with the growth it delivers high ROIC at 20.0%. Three years ago it was considerably higher at 100%. It's average level of ROIC for the last three years was 38.9%.
Boyaa Interactive International Ltd showed fast Net Income margin growth of 9.70 pp from 19.9% to 29.6% in 2014. If we look for the longer period Boyaa Interactive International Ltd showed Net Income margin growth of 1.90 pp from 27.7% in 2011 to 29.6% in 2014.
Boyaa Interactive International Ltd operates at ROE of 20.8%. It's average level of ROE for the last three years was 33.8%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 1.02% in FY2014. Boyaa Interactive International Ltd showed big decline in CAPEX/Revenue of 0.488 pp from 1.51% in 2011 to 1.02% in 2014. It's average CAPEX/Revenue for the last three years was 0.968%.
Leverage (Debt)
The company has negative net debt at -3.5x Net Debt/EBITDA - at the same time with high growth. In the longer period leverage surged on 2.65x from -0.90x in 2011 to -3.55x in 2014.
Peers in Software
Below we provide Boyaa Interactive International Ltd benchmarking against other companies in Software 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 5 |
|---|
| Pizu Group Holdings Ltd ($8053) | | -55.1% | 40.3% | -42.9% | 1,742.9% |
| Epicurean and Co Ltd ($8213) | | -38.5% | 177.0% | 185.7% | 62.6% |
| China Technology Solar Power Holdings Ltd ($8111) | | 14.0% | 0.2% | 63.9% | 42.3% |
| Kantone Holdings Ltd ($1059) | | 4.0% | 6.6% | 36.7% | 39.3% |
| Microsoft Corp ($4338) | | 11.9% | 5.4% | 5.6% | 11.5% |
| |
|---|
| Median (11 companies) | | 11.9% | 5.6% | 30.2% | -8.0% |
|---|
| Boyaa Interactive International Ltd ($434) | | 103.6% | 62.9% | 31.6% | 38.8% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Microsoft Corp ($4338) | 80.2% | 77.7% | 76.2% | 74.0% | 68.8% |
| Epicurean and Co Ltd ($8213) | 55.0% | 73.9% | 67.8% | 67.3% | 67.3% |
| International Entertainment Corp ($1009) | 46.7% | 49.2% | 50.8% | 50.8% | 44.4% |
| ITE Holdings Ltd ($8092) | 20.1% | 27.7% | 28.6% | 36.0% | 43.4% |
| China Technology Solar Power Holdings Ltd ($8111) | 27.5% | 26.5% | 23.6% | 34.4% | 37.2% |
| |
|---|
| Median (11 companies) | 31.1% | 43.5% | 28.6% | 31.6% | 23.3% |
|---|
| Boyaa Interactive International Ltd ($434) | 56.1% | 57.5% | 60.6% | 61.1% | 60.1% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| International Entertainment Corp ($1009) | 67.4% | 235.1% | 50.8% | 64.0% | 54.9% |
| Microsoft Corp ($4338) | 42.8% | 42.8% | 33.5% | 39.2% | 38.0% |
| Kantone Holdings Ltd ($1059) | 42.0% | 44.2% | 42.7% | 38.9% | 30.4% |
| China Technology Solar Power Holdings Ltd ($8111) | -73.9% | -66.3% | -80.3% | 10.4% | 16.3% |
| ITE Holdings Ltd ($8092) | 1.5% | -14.1% | -6.3% | 4.0% | 8.8% |
| |
|---|
| Median (11 companies) | -0.7% | 1.2% | 2.2% | 10.4% | 1.4% |
|---|
| Boyaa Interactive International Ltd ($434) | 47.8% | 38.9% | 38.5% | 25.8% | 30.7% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Epicurean and Co Ltd ($8213) | 0.5% | 18.7% | 25.3% | 10.4% | 10.3% |
| Microsoft Corp ($4338) | 3.2% | 3.4% | 3.1% | 5.5% | 6.3% |
| International Entertainment Corp ($1009) | 5.6% | 9.7% | 4.6% | 5.3% | 6.1% |
| Long Success International Holdings Ltd ($8017) | 6.2% | 5.6% | 26.4% | 3.7% | 3.5% |
| Yunbo Digital Synergy Group Ltd ($8050) | 0.2% | 0.5% | 0.2% | 1.2% | 2.6% |
| |
|---|
| Median (11 companies) | 1.1% | 3.4% | 1.2% | 1.2% | 1.7% |
|---|
| Boyaa Interactive International Ltd ($434) | 0.7% | 1.5% | 0.9% | 1.0% | 1.0% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Microsoft Corp ($4338) | 48.1% | 43.4% | 28.6% | 30.3% | 26.2% |
| ITE Holdings Ltd ($8092) | 3.3% | -19.6% | -15.0% | 10.6% | 16.8% |
| Kantone Holdings Ltd ($1059) | 5.6% | 4.7% | 5.6% | 7.2% | 8.3% |
| China Technology Solar Power Holdings Ltd ($8111) | -41.4% | -22.8% | -12.6% | 0.3% | 3.9% |
| International Entertainment Corp ($1009) | 2.7% | 22.0% | 1.4% | 3.5% | 1.2% |
| |
|---|
| Median (11 companies) | -7.4% | -4.2% | -7.2% | 0.3% | -6.8% |
|---|
| Boyaa Interactive International Ltd ($434) | | 100.4% | 75.3% | 21.3% | 20.0% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Pizu Group Holdings Ltd ($8053) | | | | | 346.1x |
| Epicurean and Co Ltd ($8213) | | 2.9x | 2.3x | 4.7x | 12.3x |
| China Technology Solar Power Holdings Ltd ($8111) | | | | 7.4x | 3.3x |
| Microsoft Corp ($4338) | 0.0x | 0.1x | 0.2x | 0.4x | 0.4x |
| Kantone Holdings Ltd ($1059) | -0.1x | -0.4x | -0.1x | -0.1x | -0.0x |
| |
|---|
| Median (7 companies) | -0.1x | -0.1x | 0.0x | 0.2x | 0.4x |
|---|
| Boyaa Interactive International Ltd ($434) | -0.5x | -0.9x | -1.4x | -5.5x | -3.5x |
