Eye on Yestar International Holdings Co Ltd as a growth stock
23/03/2015 • About Yestar International Holdings Co Ltd (
$2393) • By InTwits
Have you thought about Yestar International Holdings 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
Yestar International Holdings Co Ltd showed growth in the last financial year. The company's revenue surged on 30.5% in FY2014. EBITDA also increased considerably: 49.0% for the same period.
In the longer period Yestar International Holdings Co Ltd showed fast revenue growth of 16.2% from 2011 to 2014 annualy. EBITDA surged on 26.2% from 2011 to 2014 annualy.
Yestar International Holdings Co Ltd ($2393) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 523 | 977 | 956 | 1,173 | 1,531 |
|---|
| Revenue growth, % | | 86.8% | -2.2% | 22.8% | 30.5% |
|---|
| Gross margin, % | 16.3% | 16.7% | 17.5% | 17.8% | 17.2% |
|---|
| SG&A, % | 12.1% | 9.95% | 9.49% | 9.83% | 7.55% |
|---|
| EBITDA | 39 | 83 | 91 | 112 | 166 |
|---|
| EBITDA growth, % | | 111.2% | 10.3% | 22.1% | 49.0% |
|---|
| EBITDA margin, % | 7.49% | 8.48% | 9.56% | 9.51% | 10.9% |
|---|
| Net Income | 19 | 47 | 57 | 65 | 101 |
|---|
| Net Income margin, % | 3.69% | 4.84% | 5.91% | 5.55% | 6.59% |
|---|
| |
| CAPEX | 18 | 22 | 52 | 23 | 10 |
|---|
| CAPEX/Revenue, % | 3.42% | 2.29% | 5.43% | 1.98% | 0.682% |
|---|
| Debt | 64 | 92 | 106 | 197 | 171 |
|---|
| Cash | 69 | 142 | 160 | 283 | 195 |
|---|
| Net Debt/EBITDA | -0.1x | -0.6x | -0.6x | -0.8x | -0.1x |
|---|
| |
| ROIC, % | | 29.4% | 28.8% | 24.1% | 26.2% |
|---|
| ROE, % | | 35.1% | 37.9% | 27.5% | 31.1% |
|---|
Profitability and return on investment
Margin expansion supported EBITDA growth. EBITDA margin surged on 1.40 pp from 9.50% to 10.9% in 2014. In the longer period EBITDA margin surged on 2.40 pp from 8.50% in 2011 to 10.9% in 2014.
Yestar International Holdings Co Ltd shows attractive ROIC at 26.2% for the last 12 months which assumes stable development model. During the last three years it dropped - it was 29.4% in FY2011. For the last three years the average ROIC was 26.4%.
Yestar International Holdings Co Ltd showed fast Net Income margin growth of 1.10 pp from 5.50% to 6.60% in 2014. If we look for the longer period Net Income margin surged on 1.80 pp from 4.80% in 2011 to 6.60% in 2014.
Yestar International Holdings Co Ltd operates at ROE of 31.1%. Average ROE for the last three years was 32.2%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 0.682% in FY2014. CAPEX/Revenue dropped on 1.60 pp from 2.29% in 2011 to 0.682% in 2014. Average CAPEX/Revenue for the last three years was 2.70%.
Leverage (Debt)
The company has negative net debt at -0.1x Net Debt/EBITDA - at the same time with high growth. In the last 3 years the company showed fast leverage growth of 0.46x from -0.61x in 2011 to -0.14x in 2014.
Peers in Distribution/Wholesale
Below we provide Yestar International Holdings Co Ltd benchmarking against other companies in Distribution/Wholesale 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 |
|---|
| China-Hongkong Photo Products Holdings Ltd ($1123) | | 2.5% | 24.9% | 9.0% | 81.2% |
| Goldin Financial Holdings Ltd ($530) | | 4.2% | -39.4% | 63.5% | 60.3% |
| CIL Holdings Ltd ($479) | | 23.2% | 5.1% | 34.5% | 21.2% |
| Takson Holdings Ltd ($918) | | 83.0% | -44.9% | 100.6% | 19.7% |
| C Y Foundation Group Ltd ($1182) | | 23.8% | 8.3% | -65.6% | 5.9% |
| |
|---|
| Median (13 companies) | | 20.0% | 8.3% | 9.0% | -2.4% |
|---|
| Yestar International Holdings Co Ltd ($2393) | | 86.8% | -2.2% | 22.8% | 30.5% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Goldin Financial Holdings Ltd ($530) | 94.3% | 67.0% | 75.3% | 71.7% | 74.8% |
| YGM Trading Ltd ($375) | 64.6% | 67.1% | 66.5% | 67.4% | 64.0% |
| Sincere Watch Hong Kong Ltd ($444) | 29.9% | 34.2% | 35.6% | 39.7% | 38.8% |
| E.Bon Holdings Ltd ($599) | 37.4% | 36.6% | 40.3% | 37.4% | 35.8% |
| C Y Foundation Group Ltd ($1182) | 38.4% | 37.0% | 29.7% | 0.2% | 30.4% |
| |
|---|
| Median (12 companies) | 31.9% | 31.6% | 27.6% | 29.9% | 25.6% |
|---|
| Yestar International Holdings Co Ltd ($2393) | 16.3% | 16.7% | 17.5% | 17.8% | 17.2% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Goldin Financial Holdings Ltd ($530) | 66.2% | -134.6% | 163.7% | 613.4% | 285.7% |
| Pacific Andes International Holdings Ltd ($1174) | 18.8% | 16.4% | 16.3% | 13.9% | 17.5% |
| YGM Trading Ltd ($375) | 20.0% | 23.5% | 22.7% | 19.7% | 16.5% |
| Sincere Watch Hong Kong Ltd ($444) | 7.6% | 16.4% | 18.2% | 20.2% | 15.4% |
| E.Bon Holdings Ltd ($599) | 12.9% | 6.0% | 9.0% | 8.7% | 5.5% |
| |
|---|
| Median (13 companies) | 4.1% | 0.9% | -0.3% | 2.9% | 0.6% |
|---|
| Yestar International Holdings Co Ltd ($2393) | 7.5% | 8.5% | 9.6% | 9.5% | 10.9% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| C Y Foundation Group Ltd ($1182) | 2.4% | 9.8% | 2.5% | 5.2% | 82.2% |
| HKC International Holdings Ltd ($248) | 0.5% | 0.9% | 5.5% | 0.8% | 11.4% |
| Paladin Ltd ($495) | 0.1% | 9.3% | 0.0% | 0.3% | 5.2% |
| Novo Group Ltd/Singapore ($1048) | 1.5% | 0.5% | 3.2% | 14.5% | 5.0% |
| Sincere Watch Hong Kong Ltd ($444) | 0.9% | 0.9% | 1.9% | 3.6% | 4.4% |
| |
|---|
| Median (13 companies) | 1.5% | 2.2% | 2.5% | 2.1% | 3.5% |
|---|
| Yestar International Holdings Co Ltd ($2393) | 3.4% | 2.3% | 5.4% | 2.0% | 0.7% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Sincere Watch Hong Kong Ltd ($444) | 9.6% | 46.4% | 51.7% | 27.7% | 14.6% |
| YGM Trading Ltd ($375) | 19.4% | 21.8% | 16.6% | 13.1% | 11.3% |
| Goldin Financial Holdings Ltd ($530) | | -10.1% | 5.9% | 20.6% | 10.4% |
| Pacific Andes International Holdings Ltd ($1174) | 8.8% | 6.9% | 5.3% | 2.2% | 3.5% |
| Takson Holdings Ltd ($918) | -7.7% | -14.4% | -8.8% | 2.5% | 3.3% |
| |
|---|
| Median (13 companies) | 3.9% | 0.4% | -1.9% | 2.2% | -0.9% |
|---|
| Yestar International Holdings Co Ltd ($2393) | | 29.4% | 28.8% | 24.1% | 26.2% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Takson Holdings Ltd ($918) | | | | 11.5x | 11.7x |
| Pacific Andes International Holdings Ltd ($1174) | 3.6x | 4.9x | 5.1x | 9.1x | 7.8x |
| E.Bon Holdings Ltd ($599) | 0.2x | -0.1x | 1.5x | 0.0x | 0.8x |
| Goldin Financial Holdings Ltd ($530) | -9.0x | | -0.3x | -1.4x | -0.1x |
| YGM Trading Ltd ($375) | -0.8x | -1.4x | -3.4x | -2.4x | -2.9x |
| |
|---|
| Median (7 companies) | 0.1x | -1.4x | -1.2x | -0.7x | -0.1x |
|---|
| Yestar International Holdings Co Ltd ($2393) | -0.1x | -0.6x | -0.6x | -0.8x | -0.1x |
