Looking for growth stocks? Pay attention to China Saite Group Co Ltd
22/03/2015 • About China Saite Group Co Ltd (
$153) • By InTwits
Have you thought about China Saite Group Co 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
China Saite Group Co Ltd showed fast growth in the last financial year. The company's revenue surged on 16.3% in FY2014. The growth also happened in EBITDA of 2.66% for the same period.
In the longer period China Saite Group Co Ltd showed fast revenue growth of 36.9% from 2011 to 2014 annualy. EBITDA surged on 36.6% from 2011 to 2014 annualy.
China Saite Group Co Ltd ($153) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 407 | 647 | 1,048 | 1,427 | 1,660 |
|---|
| Revenue growth, % | | 59.0% | 62.0% | 36.2% | 16.3% |
|---|
| Gross margin, % | 25.6% | 29.4% | 32.1% | 33.7% | 29.8% |
|---|
| SG&A, % | 2.75% | 2.26% | 1.56% | 1.63% | 2.68% |
|---|
| EBITDA | 97 | 180 | 316 | 446 | 458 |
|---|
| EBITDA growth, % | | 85.3% | 75.8% | 41.1% | 2.7% |
|---|
| EBITDA margin, % | 23.9% | 27.8% | 30.2% | 31.3% | 27.6% |
|---|
| Net Income | 61 | 118 | 204 | 294 | 310 |
|---|
| Net Income margin, % | 15.1% | 18.2% | 19.4% | 20.6% | 18.7% |
|---|
| |
| CAPEX | 6 | 4 | 1 | 4 | 1 |
|---|
| CAPEX/Revenue, % | 1.40% | 0.607% | 0.0668% | 0.295% | 0.0501% |
|---|
| Debt | 144 | 244 | 0 | 0 | 0 |
|---|
| Cash | 48 | 214 | 329 | 786 | 626 |
|---|
| Net Debt/EBITDA | 1.0x | 0.2x | -1.0x | -1.8x | -1.4x |
|---|
| |
| ROIC, % | | 46.3% | 64.0% | 53.2% | 35.3% |
|---|
| ROE, % | | 69.8% | 61.9% | 38.5% | 26.4% |
|---|
Profitability and return on investment
Despite revenue growth EBITDA margin declined slightly from 31.3% in FY2013 to 27.6% in FY2014. In the last 3 years EBITDA margin decreased slightly on 0.200 pp from 27.8% in 2011 to 27.6% in 2014.
China Saite Group Co Ltd shows attractive ROIC at 35.3% for the last 12 months which assumes stable development model. During the last three years it dropped - it was 46.3% in FY2011. It's average ROIC for the last three years was 50.8%.
The company showed decline of 1.90 pp from 20.6% to 18.7% in 2014. In the longer period Net Income margin increased slightly on 0.500 pp from 18.2% in 2011 to 18.7% in 2014.
China Saite Group Co Ltd operates at ROE of 26.4%. It's average ROE for the last three years was 42.3%.
Capital expenditures (CAPEX)
In FY2014 the company had CAPEX/Revenue of 0.0501%. China Saite Group Co Ltd's CAPEX/Revenue dropped on 0.557 pp from 0.607% in 2011 to 0.0501% in 2014. Average CAPEX/Revenue for the last three years was 0.137%.
Leverage (Debt)
Having such a fast growth profile China Saite Group Co Ltd keeps negative net debt at -1.4x Net Debt/EBITDA. If we look for the longer period leverage dropped on 1.53x from 0.16x in 2011 to -1.36x in 2014.
Peers in Engineering&Construction
Below you can find China Saite Group Co Ltd benchmarking vs. other companies in Engineering&Construction 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 |
|---|
| Richly Field China Development Ltd ($313) | | | | -45.0% | 464.2% |
| CNQC International Holdings Ltd ($1240) | | 401.9% | 21.6% | 91.0% | 103.7% |
| China Resources and Transportation Group Ltd ($269) | | -37.0% | 939.8% | 3,196.3% | 87.9% |
| UDL Holdings Ltd ($620) | | -47.3% | -59.6% | 180.0% | 75.6% |
| Yau Lee Holdings Ltd ($406) | | 3.2% | 30.5% | -10.0% | 56.1% |
| |
|---|
| Median (22 companies) | | 12.5% | 13.3% | 24.1% | 16.0% |
|---|
| China Saite Group Co Ltd ($153) | | 59.0% | 62.0% | 36.2% | 16.3% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Chevalier International Holdings Ltd ($25) | 21.5% | 18.1% | 24.3% | 26.3% | 25.9% |
| KFM Kingdom Holdings Ltd ($3816) | 23.4% | 30.3% | 24.6% | 24.3% | 22.0% |
| CNQC International Holdings Ltd ($1240) | 36.6% | 27.5% | 19.1% | 19.1% | 18.7% |
| Tysan Holdings Ltd ($687) | 33.7% | 22.3% | 9.2% | 11.7% | 18.4% |
| PYI Corp Ltd ($498) | 9.0% | 8.2% | 8.1% | 5.1% | 16.3% |
| |
|---|
| Median (20 companies) | 13.5% | 11.5% | 9.6% | 11.6% | 11.1% |
|---|
| China Saite Group Co Ltd ($153) | 25.6% | 29.4% | 32.1% | 33.7% | 29.8% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Cheung Kong Infrastructure Holdings Ltd ($1038) | 33.0% | 39.8% | 31.2% | 20.6% | 36.2% |
| CNQC International Holdings Ltd ($1240) | 41.4% | 23.7% | 19.8% | 19.7% | 19.6% |
| Tysan Holdings Ltd ($687) | 33.6% | 22.1% | 7.9% | 11.5% | 16.6% |
| Sino Credit Holdings Ltd ($628) | 96.9% | 82.5% | 82.8% | | 16.0% |
| Chun Sing Engineering Holdings Ltd ($2277) | | | 3.1% | 14.3% | 14.5% |
| |
|---|
| Median (23 companies) | 7.9% | 6.5% | 3.7% | 5.9% | 2.8% |
|---|
| China Saite Group Co Ltd ($153) | 23.9% | 27.8% | 30.2% | 31.3% | 27.6% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| PYI Corp Ltd ($498) | 6.6% | 6.6% | 3.7% | 4.2% | 24.5% |
| Shun Cheong Holdings ($650) | 6.3% | 7.2% | 16.4% | 8.0% | 23.9% |
| KFM Kingdom Holdings Ltd ($3816) | 4.2% | 6.5% | 4.6% | 11.5% | 14.9% |
| China Resources and Transportation Group Ltd ($269) | 144.7% | 474.4% | 19.2% | 1.1% | 14.0% |
| CNQC International Holdings Ltd ($1240) | 71.4% | 29.8% | 13.6% | 12.3% | 10.5% |
| |
|---|
| Median (23 companies) | 3.7% | 4.1% | 3.0% | 4.0% | 2.6% |
|---|
| China Saite Group Co Ltd ($153) | 1.4% | 0.6% | 0.1% | 0.3% | 0.1% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Chun Sing Engineering Holdings Ltd ($2277) | | | | 98.3% | 54.9% |
| CNQC International Holdings Ltd ($1240) | | 23.1% | 12.2% | 22.3% | 40.4% |
| Tysan Holdings Ltd ($687) | 20.1% | 16.1% | 4.1% | 10.6% | 14.0% |
| China Aluminum International Engineering Corp Ltd ($2068) | 34.1% | 28.4% | 23.0% | 6.1% | 6.7% |
| KFM Kingdom Holdings Ltd ($3816) | | 35.8% | 17.1% | 7.5% | 6.6% |
| |
|---|
| Median (24 companies) | 4.4% | 3.6% | 2.3% | 1.2% | 1.3% |
|---|
| China Saite Group Co Ltd ($153) | | 46.3% | 64.0% | 53.2% | 35.3% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| China Resources and Transportation Group Ltd ($269) | | | | | 66.7x |
| CNC Holdings Ltd ($8356) | 0.1x | -0.7x | | 22.0x | 21.9x |
| Deson Development International Holdings ($262) | 1.7x | 3.1x | 3.8x | 4.9x | 13.7x |
| Chun Wo Development Holdings Ltd ($711) | | | 14.3x | 8.1x | 12.6x |
| Yau Lee Holdings Ltd ($406) | 1.8x | 14.6x | 19.5x | 9.7x | 9.2x |
| |
|---|
| Median (17 companies) | 1.4x | 0.8x | 3.1x | 1.9x | 3.4x |
|---|
| China Saite Group Co Ltd ($153) | 1.0x | 0.2x | -1.0x | -1.8x | -1.4x |
