The numbers tell that Dongpeng Holdings Co Ltd's growth is outstanding
23/03/2015 • About Dongpeng Holdings Co Ltd (
$3386) • By InTwits
Dongpeng Holdings Co Ltd is an attractive growth stock in Building Materials industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Dongpeng Holdings Co Ltd showed fast growth in the last financial year. The company's revenue surged on 15.6% in FY2014. At the same time Dongpeng Holdings Co Ltd well managed its profitability and showed even faster growth in EBITDA of 21.4% for the same period.
In the longer period the company showed fast revenue growth of 25.3% from 2011 to 2014 annualy. EBITDA surged on 46.8% from 2011 to 2014 annualy.
Dongpeng Holdings Co Ltd ($3386) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 975 | 1,979 | 2,498 | 3,368 | 3,893 |
|---|
| Revenue growth, % | | 103.0% | 26.2% | 34.8% | 15.6% |
|---|
| Gross margin, % | 20.6% | 28.7% | 35.6% | 37.1% | 38.5% |
|---|
| SG&A, % | 17.2% | 17.7% | 25.2% | 19.0% | 20.2% |
|---|
| EBITDA | 95 | 279 | 358 | 726 | 881 |
|---|
| EBITDA growth, % | | 192.2% | 28.5% | 102.6% | 21.4% |
|---|
| EBITDA margin, % | 9.79% | 14.1% | 14.3% | 21.5% | 22.6% |
|---|
| Net Income | 6 | 141 | 167 | 339 | 564 |
|---|
| Net Income margin, % | 0.644% | 7.12% | 6.69% | 10.1% | 14.5% |
|---|
| |
| CAPEX | 116 | 285 | 332 | 358 | 303 |
|---|
| CAPEX/Revenue, % | 11.9% | 14.4% | 13.3% | 10.6% | 7.80% |
|---|
| Debt | 212 | 322 | 546 | 481 | 255 |
|---|
| Cash | 75 | 113 | 240 | 803 | 388 |
|---|
| Net Debt/EBITDA | 1.4x | 0.8x | 0.9x | -0.4x | -0.2x |
|---|
| |
| ROIC, % | | 49.7% | 37.1% | 35.8% | 27.2% |
|---|
| ROE, % | | 94.3% | 71.2% | 32.4% | 26.7% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. Dongpeng Holdings Co Ltd showed EBITDA margin growth of 1.10 pp from 21.5% to 22.6% in 2014. If we look for the longer period the company showed fast EBITDA margin growth of 8.50 pp from 14.1% in 2011 to 22.6% in 2014.
Dongpeng Holdings Co Ltd shows attractive ROIC at 27.2% for the last 12 months which assumes stable development model. During the last three years it dropped - it was 49.7% in FY2011. Average ROIC for the last three years was 33.4%.
Net Income margin surged on 4.40 pp from 10.1% to 14.5% in 2014. If we look for the longer period the company's Net Income margin surged on 7.40 pp from 7.10% in 2011 to 14.5% in 2014.
Dongpeng Holdings Co Ltd operates at ROE of 26.7%. Average ROE for the last three years was 43.4%.
Capital expenditures (CAPEX)
To this fast growth the company had to invest in CAPEX.In FY2014 Dongpeng Holdings Co Ltd had CAPEX/Revenue of 7.80%. Dongpeng Holdings Co Ltd's CAPEX/Revenue dropped on 6.61 pp from 14.4% in 2011 to 7.80% in 2014. It's average CAPEX/Revenue for the last three years was 10.6%.
Leverage (Debt)
Having such a fast growth profile the company keeps negative net debt at -0.2x Net Debt/EBITDA. If we look for the longer period the company's leverage dropped on 0.90x from 0.75x in 2011 to -0.15x in 2014.
Peers in Building Materials
Below we provide Dongpeng Holdings Co Ltd benchmarking against other companies in Building Materials 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 |
|---|
| Prosperity International Holdings HK Ltd ($803) | | 217.3% | -23.9% | -43.3% | 55.2% |
| China Lesso Group Holdings Ltd ($2128) | | 31.5% | 7.4% | 20.0% | 13.4% |
| Asia Cement China Holdings Corp ($743) | | 43.8% | -18.6% | 9.7% | 11.8% |
| China Resources Cement Holdings Ltd ($1313) | | 64.3% | 9.1% | 15.8% | 11.3% |
| TCC International Holdings Ltd ($1136) | | 38.6% | 0.3% | 14.7% | 6.0% |
| |
|---|
| Median (8 companies) | | 41.2% | 3.9% | 12.2% | 8.7% |
|---|
| Dongpeng Holdings Co Ltd ($3386) | | 103.0% | 26.2% | 34.8% | 15.6% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| China Resources Cement Holdings Ltd ($1313) | 31.6% | 31.1% | 24.1% | 28.5% | 31.3% |
| TCC International Holdings Ltd ($1136) | 18.8% | 25.6% | 18.6% | 27.5% | 30.8% |
| China Lesso Group Holdings Ltd ($2128) | 26.4% | 24.2% | 24.3% | 25.0% | 25.6% |
| Asia Cement China Holdings Corp ($743) | 21.1% | 27.9% | 16.8% | 22.1% | 23.3% |
| Sustainable Forest Holdings Ltd ($723) | 45.2% | 58.2% | -2.4% | 12.1% | 19.7% |
| |
|---|
| Median (8 companies) | 23.7% | 26.7% | 18.3% | 19.8% | 21.5% |
|---|
| Dongpeng Holdings Co Ltd ($3386) | 20.6% | 28.7% | 35.6% | 37.1% | 38.5% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| TCC International Holdings Ltd ($1136) | 20.4% | 26.5% | 19.2% | 26.1% | 29.0% |
| Asia Cement China Holdings Corp ($743) | 23.9% | 30.3% | 20.6% | 24.9% | 27.0% |
| West China Cement Ltd ($2233) | 46.3% | 36.4% | 30.0% | 28.5% | 25.5% |
| China Resources Cement Holdings Ltd ($1313) | 22.9% | 26.9% | 20.4% | 21.2% | 25.3% |
| China Lesso Group Holdings Ltd ($2128) | 20.0% | 17.4% | 16.8% | 16.6% | 16.5% |
| |
|---|
| Median (8 companies) | 21.6% | 22.0% | 18.0% | 18.9% | 20.9% |
|---|
| Dongpeng Holdings Co Ltd ($3386) | 9.8% | 14.1% | 14.3% | 21.5% | 22.6% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| West China Cement Ltd ($2233) | 47.3% | 54.8% | 17.2% | 13.9% | 15.9% |
| China Lesso Group Holdings Ltd ($2128) | 7.4% | 12.0% | 13.6% | 9.1% | 11.8% |
| China Resources Cement Holdings Ltd ($1313) | 56.1% | 32.7% | 14.5% | 11.4% | 10.8% |
| Asia Cement China Holdings Corp ($743) | 27.1% | 5.7% | 9.2% | 22.6% | 8.5% |
| WLS Holdings Ltd/Hong Kong ($8021) | 0.7% | 4.9% | 6.0% | 6.6% | 7.9% |
| |
|---|
| Median (8 companies) | 25.3% | 8.8% | 9.8% | 7.8% | 8.2% |
|---|
| Dongpeng Holdings Co Ltd ($3386) | 11.9% | 14.4% | 13.3% | 10.6% | 7.8% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| China Lesso Group Holdings Ltd ($2128) | 38.3% | 26.8% | 20.5% | 19.4% | 18.2% |
| China Resources Cement Holdings Ltd ($1313) | 9.5% | 14.0% | 8.0% | 9.6% | 13.0% |
| TCC International Holdings Ltd ($1136) | 5.3% | 8.0% | 3.6% | 7.2% | 8.9% |
| Asia Cement China Holdings Corp ($743) | 5.8% | 12.1% | 4.1% | 6.8% | 7.0% |
| Prosperity International Holdings HK Ltd ($803) | 1.0% | -3.3% | -2.5% | -4.2% | 5.6% |
| |
|---|
| Median (8 companies) | 5.6% | 10.1% | 3.9% | 6.9% | 6.3% |
|---|
| Dongpeng Holdings Co Ltd ($3386) | | 49.7% | 37.1% | 35.8% | 27.2% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Sustainable Forest Holdings Ltd ($723) | 2.0x | 0.9x | | | 9.6x |
| West China Cement Ltd ($2233) | 0.6x | 2.4x | 3.3x | 2.9x | 3.6x |
| Prosperity International Holdings HK Ltd ($803) | 4.7x | | | | 3.3x |
| Asia Cement China Holdings Corp ($743) | 3.9x | 1.9x | 3.2x | 2.7x | 2.8x |
| TCC International Holdings Ltd ($1136) | 5.3x | 3.2x | 5.3x | 2.9x | 2.0x |
| |
|---|
| Median (7 companies) | 2.8x | 2.2x | 3.3x | 2.8x | 2.8x |
|---|
| Dongpeng Holdings Co Ltd ($3386) | 1.4x | 0.8x | 0.9x | -0.4x | -0.2x |
