Fu Shou Yuan International Group Ltd demonstrates profitable growth
25/03/2015 • About Fu Shou Yuan International Group Ltd (
$1448) • By InTwits
Have you thought about Fu Shou Yuan International Group 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
Fu Shou Yuan International Group Ltd showed fast growth in the last financial year. Fu Shou Yuan International Group Ltd's revenue surged on 30.0% in FY2014. In addition to revenue Fu Shou Yuan International Group Ltd also keeps delivering EBITDA growth. It was 0.820% in FY2014
In the longer period the company showed fast revenue growth of 23.6% from 2011 to 2014 annualy. EBITDA surged on 17.7% from 2011 to 2014 annualy.
Fu Shou Yuan International Group Ltd ($1448) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 350 | 421 | 480 | 612 | 795 |
|---|
| Revenue growth, % | | 20.2% | 13.9% | 27.5% | 30.0% |
|---|
| Gross margin, % | 80.7% | 81.6% | 80.5% | 80.4% | 80.0% |
|---|
| SG&A, % | 38.0% | 41.5% | 41.5% | 37.4% | 43.9% |
|---|
| EBITDA | 161 | 195 | 209 | 316 | 318 |
|---|
| EBITDA growth, % | | 21.3% | 7.3% | 50.8% | 0.8% |
|---|
| EBITDA margin, % | 45.9% | 46.3% | 43.6% | 51.6% | 40.0% |
|---|
| Net Income | 104 | 131 | 124 | 167 | 230 |
|---|
| Net Income margin, % | 29.7% | 31.0% | 25.9% | 27.3% | 29.0% |
|---|
| |
| CAPEX | 35 | 8 | 23 | 75 | 77 |
|---|
| CAPEX/Revenue, % | 9.89% | 1.89% | 4.89% | 12.2% | 9.73% |
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| Debt | 35 | 102 | 101 | 77 | 95 |
|---|
| Cash | 161 | 222 | 287 | 1,544 | 1,297 |
|---|
| Net Debt/EBITDA | -0.8x | -0.6x | -0.9x | -4.6x | -3.8x |
|---|
| |
| ROIC, % | | 44.7% | 36.8% | 22.8% | 13.0% |
|---|
| ROE, % | | 62.0% | 55.5% | 18.3% | 12.9% |
|---|
Profitability and return on investment
Despite revenue growth EBITDA margin declined fast from 51.6% in FY2013 to 40% in FY2014. In the last 3 years the company showed big decline in EBITDA margin of 6.30 pp from 46.3% in 2011 to 40% in 2014.
Fu Shou Yuan International Group Ltd shows attractive ROIC at 13.0% for the last 12 months which assumes stable development model. Three years ago it was considerably higher at 44.7%. It's average level of ROIC for the last three years was 24.2%.
Fu Shou Yuan International Group Ltd's Net Income margin increased on 1.70 pp from 27.3% to 29% in 2014. If we look for the longer period Net Income margin decreased on 2 pp from 31% in 2011 to 29% in 2014.
Fu Shou Yuan International Group Ltd operates at ROE of 12.9%. For the last three years the average ROE was 28.9%.
Capital expenditures (CAPEX)
To this fast growth the company had to invest in CAPEX.In FY2014 Fu Shou Yuan International Group Ltd had CAPEX/Revenue of 9.73%. The company showed fast CAPEX/Revenue growth of 7.84 pp from 1.89% in 2011 to 9.73% in 2014. For the last three years the average CAPEX/Revenue was 8.93%.
Leverage (Debt)
Having such a fast growth profile the company keeps negative net debt at -3.8x Net Debt/EBITDA. In the last 3 years the company showed fast leverage growth of 3.16x from -0.62x in 2011 to -3.78x in 2014.
Peers in Commercial Services
Below we provide Fu Shou Yuan International Group Ltd benchmarking against other companies in Commercial Services 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 |
|---|
| Dingyi Group Investment Ltd ($508) | | -72.6% | 8.8% | -95.9% | 1,361.2% |
| China Smartpay Group Holdings Ltd ($8325) | | 13.1% | 60.0% | 274.7% | 75.6% |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | | 63.1% | 21.3% | 4.5% | 33.5% |
| Anxian Yuan China Holdings Ltd ($922) | | 368.2% | -49.3% | 96.9% | 23.5% |
| Realord Group Holdings Ltd ($1196) | | 12.8% | -2.6% | -14.7% | 22.1% |
| |
|---|
| Median (21 companies) | | 13.0% | 9.4% | 4.0% | 6.0% |
|---|
| Fu Shou Yuan International Group Ltd ($1448) | | 20.2% | 13.9% | 27.5% | 30.0% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| China Communication Telecom Services Co Ltd ($8206) | | -56.6% | 61.6% | 58.6% | 69.1% |
| Dingyi Group Investment Ltd ($508) | 84.3% | 76.5% | 75.8% | | 64.5% |
| Yuexiu Transport Infrastructure Ltd ($1052) | 61.6% | 67.1% | 66.2% | 66.8% | 62.8% |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 55.9% | 49.4% | 55.4% | 53.4% | 49.5% |
| Finet Group Ltd ($8317) | 69.9% | 70.1% | 65.7% | 50.8% | 48.5% |
| |
|---|
| Median (18 companies) | 28.4% | 30.5% | 29.0% | 29.1% | 30.2% |
|---|
| Fu Shou Yuan International Group Ltd ($1448) | 80.7% | 81.6% | 80.5% | 80.4% | 80.0% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Yuexiu Transport Infrastructure Ltd ($1052) | 74.0% | 74.3% | 78.3% | 74.5% | 74.0% |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 41.8% | 38.7% | 46.2% | 40.2% | 38.5% |
| Brilliant Circle Holdings International Ltd ($1008) | 25.5% | 26.9% | 27.0% | 31.8% | 32.3% |
| Anxian Yuan China Holdings Ltd ($922) | -358.8% | -6.0% | -26.1% | 25.2% | 17.5% |
| 1010 Printing Group Ltd ($1127) | 16.5% | 15.2% | 15.9% | 14.9% | 14.0% |
| |
|---|
| Median (21 companies) | -1.9% | 1.8% | 1.9% | 2.3% | -2.2% |
|---|
| Fu Shou Yuan International Group Ltd ($1448) | 45.9% | 46.3% | 43.6% | 51.6% | 40.0% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Finet Group Ltd ($8317) | 0.8% | 3.9% | 10.3% | 9.1% | 26.0% |
| Brilliant Circle Holdings International Ltd ($1008) | 4.9% | 1.5% | 5.4% | 8.5% | 8.4% |
| Beijing Jingcheng Machinery Electric Co Ltd ($187) | 1.0% | 0.9% | 2.7% | 10.3% | 8.4% |
| Dingyi Group Investment Ltd ($508) | 12.8% | 16.6% | 29.0% | 12.6% | 6.9% |
| Celebrate International Holdings Ltd ($8212) | 70.8% | 140.9% | 211.7% | 12.0% | 6.2% |
| |
|---|
| Median (21 companies) | 1.5% | 2.5% | 3.0% | 2.6% | 1.9% |
|---|
| Fu Shou Yuan International Group Ltd ($1448) | 9.9% | 1.9% | 4.9% | 12.2% | 9.7% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 167.2% | 136.8% | 51.5% | 26.6% | 30.0% |
| 1010 Printing Group Ltd ($1127) | 16.4% | 14.4% | 13.5% | 20.8% | 17.8% |
| Pico Far East Holdings Ltd ($752) | 16.5% | 18.8% | 16.7% | 12.3% | 14.3% |
| Linmark Group Ltd ($915) | 7.4% | 5.0% | 7.5% | 12.6% | 13.1% |
| Brilliant Circle Holdings International Ltd ($1008) | 19.9% | 13.5% | 13.2% | 12.0% | 10.0% |
| |
|---|
| Median (21 companies) | -6.7% | -2.3% | -2.8% | 0.1% | -2.5% |
|---|
| Fu Shou Yuan International Group Ltd ($1448) | | 44.7% | 36.8% | 22.8% | 13.0% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Anxian Yuan China Holdings Ltd ($922) | | | | 4.6x | 3.8x |
| Beijing Jingcheng Machinery Electric Co Ltd ($187) | | 5.0x | 9.3x | 3.5x | |
| Yuexiu Transport Infrastructure Ltd ($1052) | -0.1x | 2.9x | 4.5x | 3.1x | 2.7x |
| Brilliant Circle Holdings International Ltd ($1008) | 0.5x | 0.6x | 0.7x | 1.2x | 0.8x |
| 1010 Printing Group Ltd ($1127) | 1.0x | 0.5x | 0.5x | -0.3x | -0.2x |
| |
|---|
| Median (12 companies) | -0.2x | 0.5x | 0.5x | -2.1x | -0.3x |
|---|
| Fu Shou Yuan International Group Ltd ($1448) | -0.8x | -0.6x | -0.9x | -4.6x | -3.8x |
